
Caterpillar – A Partner in India’s Growth
CATERPILLAR showcased Products and Technology solutions to support Infrastructure growth in India at bauma ConExpo India. The company also announced the launch of “Services Commitment” program, as part of Customer Value Agreements (CVAs), Services Commitment represents service response guarantee and parts availability guarantee within an agreed timeframe. In an exclusive interview to CONSTRUCTION OPPORTUNITIES, SAM MARTIN (SM), AFTERMARKET DIRECTOR, SALES– ASIA PACIFIC, CONSTRUCTION INDUSTRIES SERVICES DIVISION, CATERPILLAR ASIA & MANI RAJAN (MR), DIRECTOR DISTRIBUTION, APD, CATERPILLAR INDIA, provide an overview on the CE industry, launches and a lot more.
Gives us an overview on the CE industry.
(MR) Indian is among the fastest growing large economies in the world. Infrastructure has been a key driver of this growth. Under initiatives like Gati Shakti and the National Infrastructure Pipeline, significant investments are being made in various sectors, including roads, railways, ports, airports, affordable housing, and urban development (smart cities). The National Infrastructure Pipeline (NIP) outlines significant capital expenditure plans aimed at improving rural amenities, a combination of government initiatives, rising incomes, technological advancements in agriculture, financial inclusion efforts, enhanced digital connectivity, and targeted investments are key drivers propelling growth in rural infrastructure across India. Government is significantly focusing on providing affordable housing to all under Pradhan Mantri Awaas Yojana which has led to increase in infrastructure related development in metros as well as Tier – 1 and Tier – 2 Cities.
With large investments currently being made in the infrastructure sector, the customer today is keen to complete the job quickly and efficiently to capture more opportunities. Our customers demand equipment with enhanced efficiency, safety, and sustainability benefits.
We will continue to focus our efforts on delivering the integrated solutions to meet their needs and help our customers build a better, more sustainable world. We are focused on developing and providing comprehensive solutions that help make our customers more successful with technology, financing and aftermarket offerings designed to increase the value proposition of Cat equipment.
Has Caterpillar launched anything new when it comes to aftermarket?
(MR) Our focus this year is to highlight our customer-focused solutions. We have launched “Services Commitment” program in India. The Cat® CVA Services Commitment is a set of service and parts guarantees focussed on the responsiveness of Cat dealers, in terms of service response times and parts availability. Cat CVA Services Commitment is offered through a Cat CVA. It provides:
- Service response guarantee: a Cat dealer technician will be on site within agreed timelines of logging your service request
- Parts availability guarantee: maintenance parts delivered as soon as next business day
- Parts availability guarantee: repair parts delivered as soon as second business day
Both Indian dealers, Gainwell and GMMCO will be offering the CVA Services Commitment. Customers can contact their local Cat dealer to take out a CVA, providing security and peace of mind through hassle-free maintenance and ownership plans.
Another exciting launch at Caterpillar’s Services display is the Cat Central App, enabling customers to order Genuine Cat parts at any time, and from anywhere. Cat Central also provides a range of additional benefits such as personalized features to find the right parts quickly, free in-app manuals, and more.
What are your thoughts on the growth and potential of the Indian market in the coming years?
(SM) India has an ambitious goal of becoming a US$5 trillion economy by the fiscal year 2025. Critical industries in which we operate i.e., resources, construction, energy & transportation are at the heart of this vision. These sectors play a crucial role in the socio-economic development of the country as they are driving innovation, generating employment opportunities, and fulfilling the infrastructure and power requirement of the growing population. From infusing resource circularity into business models, building smart infrastructure, making green energy accessible to all, these industries are together working towards building a new India.
The infrastructure sector is witnessing unprecedented growth led by urbanisation and demand for affordable housing. Government is prioritising construction of smart cities, tunnels, railways, dams, ports etc to enhance connectivity and boost economic development. Simultaneously, the energy and transportation sectors are undergoing a paradigm shift by adopting energy saving technology and techniques. There is a growing traction for autonomy, electrification, and hybrid engines. Technology is at the forefront of reshaping these sectors. It has led to evolution of the way customers own and operate their machines. In this scenario, the companies that are investing in advanced technology like IoT, automation, electrification and developing smart solutions are likely capture the market and thrive in the long run.
How are you redefining the ownership experience for customers while supporting them in managing their total cost of ownership?
(MR) Cat machines are known for its durability, efficiency, productivity and reliability. Our products are built to be rebuilt. They are designed to withstand heavy-duty operating conditions and to be restored and used for multiple lifecycles, reducing the need for raw materials and associated GHG emissions.
We not only provide machines and parts but also a wide range of related services and technology solutions which help customers maintain not just the initial pricing of the machine, but also the total cost of ownership throughout product lifecycle.
To help customers protect their investments, Cat Financial offers various financing options as well as extended protection packages. Cat Financial can support customers in making the best choice to support their business, whether it be for new or used Cat machines or for repair/rebuild options to keep their current machines operational. Customers are increasingly turning to Cat Financial for financing solutions due to our unique value propositions:
- Financing Solutions Throughout Product Lifecycle: We offer comprehensive financing support throughout the equipment lifecycle, including parts financing, rebuild financing, and machine financing bundled with Customer Value Agreements (CVAs).
- Equipment Protection Plans: We finance Equipment Protection Plans (EPP) which provide coverage beyond the standard machine warranty for parts and labour protecting new, used, or rebuilt machines from defects and unplanned repair costs.
- Technology to help Customers Manage their Fleet Seamlessly: The MyCatFinancial app and online tools from Cat Financial help you manage your Cat Financial accounts and contracts.
Customer Value Agreements’ (CVAs) can support hassle-free service to customers at any point in the machine lifecycle to help maximize machine performance and utilization. A CVA includes dealer technician support using genuine Cat parts for certain planned maintenance and fluid health management to help identify issues before they cause unexpected downtime.
In the ASEAN market, how do you perceive the differences between customer bases in various regions, particularly in terms of their requirements and demands?
(SM) Covering the Asia-Pacific region, I’ve noticed that customer demands are quite high across the board. While there may be slight variations in what customers prioritize, the underlying trend is that they are aware of the solutions we offer. Most customers today understand the value proposition of our machines.
What stands out is the growing demand for comprehensive solutions beyond just the machinery itself. Customers are looking for financing options, customer value agreements (CVA), and service commitments that help them manage risks throughout the entire lifecycle of their equipment—not just at the point of purchase. Therefore, I wouldn’t categorize one region as more demanding than another; rather, all markets are seeking additional solutions.
This shift towards seeking extra services is beneficial for us. It allows us to engage directly with customers to understand their challenges better and collaborate with dealers to tailor our offerings accordingly. The emphasis is on providing a holistic approach that addresses customer needs throughout their engagement with our products.