RNI no.: maheng/2014/55864 vol. 3 issue: 8 mumbai december 2016 price: x100 Pages:xx
ENGINEERING & PERFORMANCE TRUSTED BY THE WORLD KYB-CONMAT offer world class concrete construction equipment for Infrastructure and Building Construction, well supported by 14000 employees working in 34 manufacturing plants and 62 offices across the globe. Products Stationary Concrete batching Plants Mobile Concrete Batching Plants Canal paving Machines
Concrete Road Paving Machines, Rack & Pinion Construction Elevators Transit Mixers Concrete Pumps
TRANSIT MIXER
KYB-CONMAT PVT. LTD. 0265 - 6555680, 6555690
702-703, National Highway No. 8, Por, Vadodara - 391 243, Gujarat, India
sales@conmatindia.com, info@conmatindia.com
www.conmatindia.com
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RNI no.: maheng/2014/55864 vol. 1 issue: 1 mumbai december 2016 price: w100 Pages:98
Interviews
SN Subrahmanyan, Deputy MD and President, L&T ...Pg 46 DK Vyas, CEO, SREI Group ...Pg 44 Abhijit Gupta, Brand Leader, CASE India ...Pg 36
Equipped for growth
Growth seen in construction equipment market in future
Content National News
BAUMA Conexpo India 2016
10 News on Indian construction and construction equipment industry
30 Event Profile
Cover Story 18 Equipped for growth – Growth seen in construction equipment market
Interview 36
Insight 40 Financing Assets - SEFL India has had a market share close to 30 per cent for the last five years in a row.
46
Special Feature 68 Waiting for the Wind in the Sail- boosting mining equipment sales
Feature 72 Click + Shift - The online model makes renting and sale of equipment easy and hassle-free 6 | EQUIPMENT TIMES | December 2016
Abhijit Gupta, Brand Leader, CASE India
SN Subrahmanyan, Deputy MD and President, Larsen & Toubro
44
Devendra Kumar Vyas, CEO, Financial Services, SREI
50
Rajendra Raina, General Manager, Marketing, Escorts Construction Equipment
Product Profile 81 New Machines to be Showcased at bC India 2016Volvo
International news 90 News on International construction and construction equipment industry
Events Calendar 94 National
From The Desk
Editor In Cheif Ramamurthy Mayavan Director Communication Kranti Shanbhag Asst. Editor Kartiki Lawate
Dear Readers, It gives us great pleasure to launch our maiden edition simultaneously with on of the biggest international trade fair for Construction Equipment (CE) Bauma Conexpo, - set to be held in New Delhi this year (between December 12-15). The fact that such an exhibition is being held in India is a testament to the growth potential for India & CE industry in the coming times. Let’s look at some stats. As per a forecast from Off-Highway Research, CE sales in India will grow 27 per cent this year, with double-digit increases to follow in 2017 and 2018. The domestic market is dominated by six equipment types, backhoe loaders, crawler excavators, mobile cranes, mobile compressors, compaction equipment and wheeled loaders. These six types will account for 94 per cent of the market in 2016, as per the report. Also, the industry’s revenues are estimated at $ 22.7 billion by 2020. Unit sales are expected to grow to 96,730 by 2020 from 55,946 in FY13. There will be a lot of exhibitors of construction machinery and equipment, 750 of them, in fact, and with over 30,000 plus business visitors, the event is no doubt set to be a great business networking opportunity as well for all. Our maiden issue, other than giving you a peak into what Bauma has to offer,features valuable, actionable insights from industry experts and veterans on a variety of issues that will impact our industry in the months and years ahead. The industry continues to be challenged by a severe shortage of skilled manpower, but the government is taking steps to address such issues and we expect the Skill India programme will be a success with the active participation of the private sector. The Goods and Services Tax (once implemented) will rationalise taxation. And as such niggling worries begin to get sorted, a general ease of doing business may finally prevail. With the continuing growth for the infrastructure and allied sectors, the CE industry is likely to post stellar performances in the years ahead. The action promises to be riveting in 2017.
Ramamurthy Mayavan
8 | EQUIPMENT TIMES | December 2016
Sr. Manager Sales & Marketing Sampat Dam Creative Head Sachin Dalvi For Subcription constructiontimes02@gmail.com Registered Office ARK Events & Media Pvt. Ltd. S-02, Haware Fantasia Business Park, Second Floor, Near Inorbit Mall, Sector 30-A, Vashi, Navi Mumbai - 400 703 Tel.: 022 650 67220/22/23/24 www.constructiontimes.co.in *Responsible for selection of news under the PRB Act, 1867. All rights reserved. While all efforts are made to ensure that the information published in correct, Construction Times holds no responsibility for any unlikely errors that might have occurred with regards with content and photographs. Plagiarism in any form is prohibited.
Printed & Publisher by Mr. Ramamurthy T. Mayavan on behalf of M/s. ARK EVENTS & MEDIA PRIVATE LIMITED at: S-02, Haware Fantasia Business Park, Second Floor, Near Inorbit Mall, Sector 30-A, Vashi, Navi Mumbai-400 703 Printed at NAS PRINTING PRESS & PACKAGING at.: 316, Floor - 3, Todi Industrial Estate. N. M. Joshi Marg, Lower Parel, Jacob Circle, Mumbai - 400011. Editor:- Ramamurthy T. Mayavan
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National News
Construction equipment maker Sany forays into mining trucks
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onstruction equipment manufacturer Sany India has forayed into mining segment and launched its SRT series off-highway dump truck. The company, which launched its SRT55D dump truck at an event in Kolkata, has created a separate mining business unit that will be headed by Dheeraj Panda who is currently the Head and Vice-President of the company’s excavator business, a statement issued here stated. “With our foray into mining segment, we want to set new benchmarks for Sany India. We will offer complete mining solutions and partner with big mining companies for end-toend solutions,” Sany Heavy Industries Chief Executive Deepak Garg said as per reports. The SRT series trucks are largely used in large surface mining sites for transportation of OB, Coal, Iron
ore, limestone, bauxite and in quarry segment, the company informed. Panda said, “Since mining is a crucial segment adding significantly to the GDP of the country, we believe there is a huge potential for us in this market. With the launch of our new world-class product range, we are confident to contribute meaningfully to the growth of the industry.” With the launch of the new SRT series the company will be offering mining solutions to the iron and coal, power, cement and construction industry, he said. Currently, Sany will be importing these truck series as CBU (Completely Built Units) from China. Their aim is to innovate and design products to meet customers requirements and the company will also introduce new solutions in various segment.
JCB Showcases “Made in India” Machines At IMME 2016 JCB India Limited, a manufacturer of earthmoving and construction equipment in India showcased its new 5.5 tonne Wheeled Loader - the JCB 455ZX and the JCB G63QI Diesel Generator at the International Mining and Machinery Exhibition (IMME) 2016 in Kolkata. This new, “Made in India” machine comes with a powerful 6-cylinder Common Rail JCB DieselMAX 672 engine which also was exhibited at the stand. This machine is designed to work for longer hours at a lower maintenance cost. This compact Genset is extremely fuel efficient and saves upto 40% space. ”
L&T Construction wins orders valued at Rs 1926 crore
I
nfrastructure major Larsen & Toubro (L&T) announed its construction arm had won orders worth Rs. 1926 crore across its various business segments. The company said these included orders worth Rs. 571 crore secured by its power transmission and distribution business. Among these was electrification works orders under the integrated Power Development Scheme (IPDS) and Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY) schemes of the Government of India. It has also bagged a major order from Odisha Power Transmission Corporation Ltd. (OPTCL) for turnkey electrification works. Another order from Madhyanchal Vidyut Vitaran Nigam Ltd. (MVVNL), Lucknow, is for electrification works in three tehsils of Unnao district in Uttar Pradesh. Furthermore, the business has won orders from reputed customers
for turnkey construction of solar PV plants in the states of Uttarakhand and Rajasthan. The building & factories business had bagged an order worth Rs. 514 crore for the construction of a medical college and a 500-bed hospital from Bihar Medical Services & Infrastructure Corporation, Bihar. Its water & effluent treatment business had bagged orders worth Rs. 397 crores, including an engineering, procurement and construction contract from the Rural Water Supply & Sanitation Board, Government of Odisha, to provide piped water to the
10 | EQUIPMENT TIMES | December 2016
rural areas of Balasore, Bhadrak, Puri, Bolangir and Keonjhar districts. The scope of work includes design and construction of intake wells, water treatment plants, water storage structures and supply and laying of various pipelines. The company’s Metallurgical and Material Handling Business secured orders worth Rs. 298 crore. An engineering procurement construction order has been secured from Steel Authority of India Limited for integrated water circulation system. The Civil Infrastructure Business won an an engineering, procurement and construction order worth Rs. 146 crore in the special bridges sector from a prestigious client. The scope of work includes the construction of a 4-lane extradosed road bridge across the Durgam Cheruvu Lake including an approach viaduct and road embankment in the city of Hyderabad.
National News
98 tonne off-road trucks in India Manufacturer of construction and mining equipment, Caterpillar to produce higher capacity offhighway trucks in India. Caterpillar showcased their Cat 773E and 777E Off-Highway trucks to customers in International Mining & Machinery Exhibition (IMME) held in city. Company said the new Cat 777E is a 97.98-tonnecapacity off road truck. Cat 773E and Cat 777E and these would be manufactured in Caterpillar’s production facility set up at Thiruvallur, Tamil Nadu, a company statement said. In mining Caterpillar has the widest range of products to cater to surface as well as underground mining. The company has two dealers in India - GMMCO and TIPL.
Sany to double market share in TS, AP
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any Heavy Industry India,is looking to double its market share in Telangana and Andhra Pradesh over the next one year. At present, the Pune-based company enjoys five % market share in Telangana and about 3.5 % in Andhra Pradesh, led by its popular range of excavators. The pan-India market share is, however, a shade higher at 6.5 %. They are aiming at doubling our market share in Telangana and Andhra Pradesh in a year as sales have picked up in both the Telugu states, Dheeraj Panda, Business Head, Sany India,said as per reports. New irrigation, mining and road projects currently underway in Telangana, are driving the sales growth of the company in the State. They expect a similar growth trend in Andhra Pradesh as the government there is also taking up new projects. The company
Indian equipment market sees steep growth
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n updated forecast from Off-Highway Research says construction equipment sales in India will grow 27% this year, with doubledigit increases to follow in 2017 and 2018. This should see sales volumes beat the previous record of 72,197 units, which was achieved in 2011. Sales have been boosted by a renewed
focus on infrastructure investment. ort added, “The domestic market is dominated by six equipment types, backhoe loaders, crawler excavators, mobile cranes, mobile compressors, compaction equipment and wheeled loaders. These six equipment types will account for 94 per cent of the market in 2016.
12 | EQUIPMENT TIMES | December 2016
appointed Madhura Engineering Services as its channel partner and authorised dealer for Telangana State and Kurnool district in Andhra Pradesh to expand its sales network and increase sales. Madhura Engineering Services will set up four offices with 3S facilities with the capability to cater to all needs of customers related to sales, service and spares. The company is also planning to set up wind power plants in the country.
Caterpillar to manufacture off-road trucks in India Caterpillar to produce higher capacity off-highway trucks in India. Caterpillar showcased their Cat 773E and 777E OffHighway trucks to customers in International Mining & Machinery Exhibition (IMME) held in city. Caterpillar has a wide product portfolio in India that serves various sectors across infrastructure including power and oil exploration, railways, defense and other sectors. In mining Caterpillar has the widest range of products to cater to surface as well as underground mining. The new Cat 777E is a 97.98-tonne- capacity off road truck.
National News
273 infra projects cause cost overrun of Rs 1.77 lakh crore
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s many as 273 infrastructure projects, including those delayed due to land acquisition, forest clearances and other reasons, have led to a cost overrun of Rs 1.77 lakh crore, as per official data. In August 2016, the Ministry of Statistics and Programme Implementation monitored 1,167 infrastructure projects, each worth Rs 150 crore or more across sectors such as power, railways and roads. The ministry said in its flash report that out of the 1,167 projects, 282 are on schedule, 337 are delayed, 273 projects reported cost overrun and 85 projects reported both time and cost overrun with respect to their original project implementation schedules. “Total original cost of implementation of the 1,167 projects was Rs 14,33,476.53 crore and their anticipated completion cost is likely to be Rs 16,10,504.54 crore, which reflects overall cost overrun of Rs 1,77,028.01 crore (12.35% of the original cost),” it said.
Smart cities to increase by 27 Twenty seven more cities from 12 states have joined the list of smart cities in the third round. These cities will need an investment of close to Rs 67,000 crore. With this 60 cities have been selected by the urban development ministry. Only nine more states and UTs are still to get on board, including Uttarakhand and Jammu & Kashmir.
As per the report, the expenditure incurred on these projects till August 2016 is Rs 6,30,581.41 crore, which is 39.15% of the anticipated cost of the projects. However, the report stated that the number of delayed projects decreases to 283 if the delay is calculated on the basis of the latest schedule of completion. Further, 81 projects have been sanctioned without original commissioning date and for 460 projects neither the year of commissioning nor the tentative gestation period has been reported, it added.
Maharashtra has bagged five cities - the maximum number in this round . Pollbound Uttar Pradesh has three cities on the list including Prime Minister Narendra Modi’s constituency of Varanasi. Four cities each from Tamil Nadu and Karnataka have also made it to this third list, followed by three from UP and two each from Punjab and Rajasthan. One city each from Madhya Pradesh, Andhra Pradesh, Odisha, Gujarat, Sikkim and Nagaland were also selected in this round Sikkim and Nagaland are the latest entrants from north-east India. As per the ministry, an investment of Rs 1.44 lakh crore has been proposed .
Arun Jaitley urges more private investment in infrastructure
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nion Finance Minister Arun Jaitley has asked representatives of industries and trade to increase private investments, especially in the infrastructure sector. Holding his fourth pre-budget consultative meeting for the union budget 2017-18 with industries and trade representatives in late November, Jaitley said that in the first half of the current financial year 2016-17, the Indian economy achieved a robust growth rate despite volatility and uncertainty in the global economy. “This was made possible by a slew of policy measures undertaken by the present government including enhanced public investment, kick-starting stalled
projects, improving the status of financial inclusion significantly among others,” an official statement quoted him as saying. He also said that the government took many steps to improve governance by bringing in transparency and efficiency through systematic changes.
14 | EQUIPMENT TIMES | December 2016
According to the minister, the government gave greater thrust on fiscal federalism and improving business environment through reforms in policies and regulation among others. Industry associations and groups recommended the reduction in corporate tax and withdrawal of tax incentives which will result in higher collections due to better compliance and will make India an attractive investment destination. Other suggestions include complete elimination or a major reduction in minimum alternate tax (MAT) and higher public investment in infrastructure and social sector.
Indian Railways’ station development programme kicks off
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icking off the government’s railway station redevelopment programme, the company that has been formed especially for the purpose – the Indian Railway Station Development Corporation (IRSDC) – is now inviting bids for redeveloping the Gandhinagar and Surat railway stations in Gujarat. Sanjeev Kumar Lohia, CEO, IRSDC, told CT two special purpose vehicles (SPV) would be formed jointly with the Gujarat state government entities within the next 15 days, one each for Surat and Gandhinagar. IRSDC will float the tender for Gandhinagar on December 2, inviting bids from engineering, procurement and construction (EPC) companies to develop the station as well as a star-category hotel on top of the station. The construction work is expected to be awarded in January 2017
and the cost of development is estimated at Rs 130 crore. Lohia told CT, “The hotel will be constructed as three separate towers. The first one will have 30 rooms of five-star category. The second one will be threestar with 120 rooms while the third tower will be a budget establishment with 150 rooms. When completed, the entire station and hotel will be the
197 road projects being developed in NE at Rs 37,691 crore: Govt
IIT-Kharagpur roped in to suggest technology for maintenance free highways
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aintenance of country’s national highways for a longer period could get a new lease of life with the prestigious Indian Institute of Technology-Kharagpur is set to embark on an ambitious project which will suggest technologies for maintenance free highways. At present, the construction of these highways requires a monolithic (in-situ) layer of cement concrete normally 300 mm thick laid continuously over the prepared surface. The idea is to innovation of a technology to optimize the design of concrete pavement in its traditional form which can facilitate faster construction at much cheaper cost. The National Highways Authorities of India (NHAI) and IIT-Kharagpur has signed a pact recently for research project to develop technology to construct long lasting maintenance free
tallest building and the most prominent landmark of Gandhinagar.” Lohia added that the SPV overseeing the Gandhinagar project will invite bids from all the top hospitality brands in the country to operate the hotel under a management contract. “Leading hoteliers in India have expressed interest and we will be meeting with them shortly to discuss the way forward,” Lohia said. For Surat, IRSDC has already invited request for qualifications. IRSDC has been entrusted with developing 12 stations out of the 400 stations that the Railways Ministry has earmarked for redevelopment. Out of this, it recently awarded the work for Habibganj station in Madhya Pradesh to Bansal Pathways Habibganj Private Limited along with stations in other states.
highways in the country. The duration of the research project is 3 years and NHAI have paid Rs. 1.25 crore for the project, excluding cost of construction of trial pavement section on national. NHAI and IIT Kharagpur will develop a technology to construct Panelled Cement Concrete which can replace the design of construction of existing cement concrete road. To overcome this problem, the government has recently announced a policy for the construction of concrete pavements for all major highways due to their longevity and maintenance free life. The Paneled concrete pavement laid on a lean concrete base can fulfil the Government of India’s dream of providing long lasting maintenance free pavement at a cost on par with those of asphalt pavements.
The government has informed the law makers that there are 197 road projects are being developed in the North Eastern region of the country under the watch of Ministry of Road Transport and Highways (MoR&TH) in the North Eastern States. The total length and the total sanctioned cost of these projects are 4320.95 kms and Rs.37691.05 crore respectively. Apart from road projects, 20 major railway projects consisting of 13 new lines with a length of 2624 km at a cost of Rs 52,030 crore have also been taken up in the North Eastern Region. An expenditure of Rs.21336 crore has been incurred on these projects upto March, 2016. An outlay of Rs.5040 crore has been provided for 2016-17 for these projects and for the residual liabilities of some completed projects, as per reports.
December 2016 | EQUIPMENT TIMES | 15
National News
Govt. imposes safeguard duties on some steel imports
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overnment has imposed anti-dumping duties on hot rolled flat sheets and plates of alloy or non-alloy steel to curb cheaper imports into the country, a government notification informed. The government will gradually lower the duty from 10 per cent this year to 6 percent by 2019. The effective duty rate would be arrived at after deducting the value of the goods and the antidumping duty payable when the import price is below $504 per tonne, it said. Indian steelmakers JSW Steel, Essar Steel ESRG.UL and Steel Authority of India had approached the Directorate General of Anti-Dumping and Allied Duties seeking safeguard measures against cheap imports flooding local markets and pressuring margins.
Supreme Court refuses to stay Allahabad HC order of making DND fly way toll free
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he Supreme Court, earlier last month, refused to stay the Allahabad High Court order which made DND (Delhi-Noida-Direct) toll free. The apex court said no toll should be collected until further orders. Following a public litigation interest (PIL) filed by Federation of Noida Residents’ Welfare Association in 2012, the Allahabad High Court had ruled that no user fee can be collected by the private concessionaire from the commuters of the 9.2 km long, eight-way flyover that connects the capital city of India and Noida and its neighbourhood. The PIL had challenged the levy and collection of toll by Noida Toll Bridge Company Ltd any further as it argued the company has made sufficient profit. The Noida Toll Bridge Company Ltd – which operates the toll way - filed a plea in the Supreme Court against the Allahabad High Courts’ order. Noida Toll Bridge Company had asked the apex court to get its
accounts audited by the Comptroller and Auditor General (CAG). The court said the accounts of DND toll company will be audited either by CAG or by an independent auditor to find whether the profit recovered was adequate. The Supreme Court will pass an order about auditing the account and till the audit report is submitted, there will be no toll on the expressway, an SC bench comprising justices AR Dave, RK Agrawal and AM Khanwilkar said. The toll for the fly way, which opened on February 2001, was Rs 8 initially, but it was gradually hiked to Rs 28 per trip. About 1.5 lakh vehicles use the DND flyway on a weekday.
Cabinet approves 1120 km of NH in 5 states at Rs 6461 crore
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he Cabinet Committee on Economic Affairs (CCEA), which is chaired by the Prime Minister Narendra Modi, has approved development of 1120 kms of national highways in the five states of Karnataka, Odisha, Bihar, Rajasthan and West Bengal. The revised cost is estimated at Rs 6,461 crore including cost of land acquisition, resettlement and rehabilitation and other pre-construction activities, according to an official statement. CCEA said while the proposal was initially approved for Rs.5,193 crore but the cost has increased due to higher bid prices, and increase in
cost of land acquisition, resettlement and rehabilitation and other preconstruction activities. The projects are already taken up for implementation and 429 kms has
16 | EQUIPMENT TIMES | December 2016
been completed. The civil works are expected to be completed by July, 2019 and maintenance works are expected to be completed by July, 2024. The work for development to two lane standards are under Phase-I of the National Highways Interconnectivity Improvement Project (NHIIP) with World Bank assistance. “The project will ensure safe, fast and all weather movement of traffic on the proposed National Highways mostly located in backward regions thereby improving socio economic development,” the statement said.
Cover story
Equipped for growth
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well-developed infrastructure is a foundation for growth in any country, paving the way for a better quality of life and a rapid rise in Gross Domestic Product (GDP), especially for developing countries such as India. Construction sector in India is considered to be the second largest employer and contributor to economic activity, after agriculture sector. Construction sector also accounts for most inflow of Foreign Direct Investment (FDI) after the services sector and employs more than 35 million people in the country. 50% of the demand for construction activities in India comes from the Infrastructure sector, while the rest comes from Industrial activities, residential and commercial development etc. The Indian construction equipment industry is reviving after a gap of four years and is expected to grow to US$ 5
billion by FY2019-20 from current size of US$ 2.8 billion, according to a report released by the Indian Construction Equipment Manufacturers’ Association (ICEMA). Foreign Direct Investment (FDI) received in construction development sector from April 2000 to March 2016 stood at US$ 24.19 billion, according to the Department of Industrial Policy and Promotion (DIPP). Infrastructure growth holds the key to the industry realising its potential in India. In the 12th five year plan, the government has earmarked approximately $1 trillion for infrastructure investment, with 40 % of the funds to come from the private sector. At the minimum, 45% investment in infrastructure is towards construction & 20% of the infrastructure spend will be for modernization of the
18 | EQUIPMENT TIMES | December 2016
A trillion dollars estimated by the government for infra expenditure spells an unprecedented opportunity for the CE industry in India. CT analyses the road ahead...
construction industry. In order to attract such investment, the Indian government has eased FDI norms for quite a few sectors of infrastructure development. Consequently, infrastructure spending is expected to grow from 7.2 % of GDP in 2012 to 9 % by 2017. This is likely to spur the demand for the earthmoving and construction equipments, and if the industry’s full potential is realized, the result could be a $16 billion to $21 billion industry by 2020. The 12th Five Year Plan India’s need for infrastructure development is also well supported by the government’s intentions as outlined in the 12 Five Year Plan (FYP). Infrastructure is one of the plan’s primary areas for spending, with about $1 trillion (Rs. 55 lakh crore) earmarked for investment. Five sectors account
for more than 80 % of total planned spending: electricity, telecom, roads and bridges, irrigation, and railways, including mass rapid transit systems. Overall, the 11th FYP saw a significant rise in infrastructure investment, with $ 436 billion (Rs. 24 lakh crore) invested. This represents an overall increase of 70 % compared to the 10th FYP. Although the infrastructure investment fell short of target during the 11th FYP by about 10 %, the planned investment is now more than double the levels achieved in the 11th FYP. Private investment was higher than projected during the 11th FYP. The shortfall was the result of lower-thanplanned investment by central and state governments, primarily in railways, irrigation, water supply and sanitation and ports. Overall, infrastructure spending is expected to grow from 7.2 % of GDP in the 11th FYP to 9 % by fiscal year 2017. Private investment in infrastructure is expected to increase from Rs. 8.8 lakh crore in the 11th FYP to Rs. 26.8 lakh crore in the 12th FYP, with the last year alone of the 12th FYP period (fiscal year 2017) targeting private investment of Rs 8.7 lakh crore. More than 80 % of private-sector spending will continue to focus on four sectors: telecom, electricity, roads and bridges and renewable energy. Private investment
in infrastructure is expected to increase from 37 % in the 11th FYP to 48 % in the 12th FYP. This growth is expected to be spurred by private players’ expected capacity expansion and their ability to provide good quality, timely service while keeping costs low. Indian Urban Infrastructure Only 30% of Indian population lives in urban areas. As per government of India estimates, urbanization in India is expected to grow at an astonishing rate of 38%. Indian Urban Infrastructure and Services, parts of which still bear markings of its British heritage, clearly isn’t adequate to deal with such pressure.
Over the next 20 years, it is estimated that US$ 650 billion investment is required in urban infrastructure. Of this, almost 45% is required for development of urban roads. The Twelfth Five Year Plan document expects 48% of the Plan investment to come from private sources, conditional on several national policy initiatives to restore investor confidence. To boost urban infrastructure across the country, the government has initiated numerous measures and has allocated almost US$ 2 billion under Jawaharlal Nehru National Urban Renewal Mission (JNNURM). The government has also launched the Urban Infrastructure Development Scheme for Small and Medium Towns with an outlay of US$ 1 billion to address infrastructure needs of small towns and cities. Additionally, there is a renewed push towards Public Private Partnerships (PPP) in the sector. Delhi - Mumbai Industrial Corridor (DMIC) is an ambitious Infrastructure programme conceptualized with Japanese government and aiming at developing new industrial cities as “Smart Cities” and converging next generation technologies across infrastructure sectors. Projects worth investment of US$ 200 Billion have already been approved under DMIC. Success of DMIC has prompted many similar corridors including Bangalore Chennai
December 2016 | EQUIPMENT TIMES | 19
Cover story corridor etc. Roads India has one of the largest road networks in the world, behind only the United States and China. Roads account for 80 % of passenger traffic and 65 % of freight traffic in India. The annual growth of road network in India is projected at over 12% for passenger traffic and over 15% for cargo traffic. Indian Road Network is divided into National Highways, State Highways/ PWD roads and rural roads. The Indian Government estimates around US$ 27 billion plus private investment is required over FY12-FY17 to improve the country’s road infrastructure. The National Highways Development Project (NHDP) is a project to upgrade, rehabilitate and widen major highways started in early 2000s. NHDP is planned to be implemented over seven phases. The program envisages an investment outlay of over US$ 40 billion. The Government of India plans to invest Rs 3 trillion (US$ 44.73 billion) for developing 35,000 km of roads across the country, of which 21,000 km will be economic corridors and 14,000 km will be feeder routes,
which is expected to improve freight movement, ease traffic bottlenecks and improve inter-city connectivity in the country. The total projects awarded by both National Highways Authority of India (NHAI) and the Ministry of Road Transport & Highways stood at 2599.58 km in FY15. Extensive contribution of the private sector is being utilized for implementation of NHDP through contracting and Public Private Partnership (PPP). The 12th FYP outlays an increase in planned investments by more than 100
20 | EQUIPMENT TIMES | December 2016
% from the 11th FYP achievements, driven by higher targets across national highways, state highways and rural roads. The FYP has plans for about 13,000 kilometers of new national highways and 158,000 kilometers of new roads in rural areas. Apart from government spending, private funding has increased from 5 % in the 10th FYP to 20 % in the 11th FYP, primarily driven by factors such as 100 % foreign direct investment in road infrastructure, 10- to 20-year tax breaks during concession periods and duty exemptions for importing road
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Cover story equipment. The 12th FYP targets about 33 % of the investment to be fulfilled by the private sector. In the current five year plan, 3928 Kms of National Highways and 39,144 Kms of Rural Roads, have been created till December 2013 to give a big boost to infrastructure industries. The value of total roads and bridges infrastructure in India is anticipated to grow at a CAGR of 17.4 % over FY1217. The country’s roads and bridges infrastructure, which was valued at US$ 6.9 billion in 2009, is projected to touch US$ 19.2 billion by 2017. Airports There are a total of 454 airports in India, out of which around 90 are open for commercial services and 16 are designated as international airports. Delhi and Mumbai are by far the busiest airports in India, carrying almost 2.5 times traffic as the next busiest airport. Air traffic has increased rapidly in the last decade. Growth in passenger traffic has been strong since the new millennium, especially with rising incomes and low-cost aviation passenger traffic expanded at a CAGR of 3.8 per cent over FY 2006–16. Passenger traffic increased by 12.47 per
cent in FY 2015. Total passenger traffic stood at a 106.45 million in FY 2016. Indians are still flying in much greater numbers. However, a number of Indian airlines have faced challenging market conditions in the recent years, and the rate of growth is likely to be significantly less than initially projected, estimates suggest that passenger traffic is expected to grow to 320 million by 2022-23 (an annual cumulative growth rate of 8.44. Freight traffic is expected to be five times the current level by the end of the next two decades. It is expected to be
22 | EQUIPMENT TIMES | December 2016
11.4 million tonne by 2032. Growth in import and export in India will be the key driver for growth in freight traffic as 30 per cent of total trade is undertaken via airways. The growth so achieved has put tremendous pressure on current airport infrastructure in the country. The Indian Government has projected that an investment of around US$ 12 billion in the next five year plan will be needed to help cope with additional demand, and private sector participation is expected to play a key role. 75% of the investment envisaged in the next five
year plan is expected to be contributed by private sector. Railways Indian Railways has the world’s fourth largest rail network comprising 115,000 km (71,000 mi) of track over a route of 65,000 km and 7,500 stations. There is an estimated annual traffic growth of 4% to 5%. Indian Railways is
also the world’s second largest employer with a workforce of 1.5 million. Freight earnings in August 2016 declined 3.66 per cent year-on-year to Rs 7,252.42 crore, while freight loading stood at 85.36 Million Tonnes (MT). Passenger earnings in August 2016 rose 4.53 per cent year-on-year to Rs 3,872.57 crore, while earnings from other coaching rose 3.10 per cent to Rs 338.45 crore
One major programme intended to attract private investment is the Dedicated Freight Corridor project. The project is intended to decongest the routes between Delhi & Mumbai and Delhi & Kolkata by building dedicated cargo lines at an estimated cost of US$ 6 billion-7 billion. Railways have continued to be another large focus area for developing transportation infrastructure, with the government investing about Rs 201,000 crore in rail projects during the 11th FYP. However, this was 24 % lower than planned investments, mainly the result of lower freight traffic growth and revenue losses of Rs 81,000 crore in passenger traffic because of several years of unrevised tariffs. The investment shortfall was further driven by negligible private participation (Rs 9,000 crore against a target of Rs 65,000 crore). Going forward, about Rs 519,000 crore have been earmarked for railways during the 12th FYP, out of which about Rs 95,000 crore are targeted for investment in dedicated freight corridors on eastern and western routes. Aimed at decongesting the existing rail network, the Indian Railways will
December 2016 | EQUIPMENT TIMES | 23
Cover story commission 2800 km of new track in the current year. Ports India is blessed with a coastline of more than 7500 km and countess opportunities for natural ports. Ports in India are classified as Major and NonMajor Ports. There are currently 13 Major ports in India. Additionally, there are more than 180 non-major ports governed by the state governments. However, only about 60 of these nonmajor ports are currently operational. In FY 2015-16, the Indian Port sector witnessed capacity addition of 94 Million Tonnes Per Annum (MTPA), which is the highest in the history of major ports. India’s existing ports infrastructure is not sufficient to handle the increased loads, even where ports have already been modernized. There are capacity constraints with containerization level at only 25% as compared to global average of 60-70%. Further, ports face huge congestion and average time for clearing import-export cargo is about 19 days. This is due to bottlenecks at almost all levels of the chain, including cargo handling and off take capacities of road/ rail connections. The Indian Minister for Shipping, Road Transport and
Highways, Nitin Gadkari, announced a massive investment in India’s ports and roads sector, which is likely to help boost the country’s economy. For ports, the 12th FYP budgets investments worth Rs 198,000 crore, out of which around 85 % is expected to be fulfilled by private players. Till December 2013, 217.5 million tonnes of capacity per annum in our ports have been created to give a big boost to infrastructure industries. The capacity of ports in India by the end of the 12th FiveYear Plan is targeted to touch 2,493.10
24 | EQUIPMENT TIMES | December 2016
million tonnes per annum (MTPA) as against 1,245.30 MTPA at the end of the 11th Five-Year Plan (2007-12). The Indian construction equipment industry’s revenues are estimated to reach US$ 22.7 billion by 2020. Unit sale of construction equipment industry is expected to grow to 96,730 by 2020 from 55,946 in FY13. Construction equipment forms around 7-8% of gross domestic product (GDP) and gives employment to more than 30 million people in the country. It also accounts for more than 60% of total infrastructural investment.
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Cover story The Government of India has de-licensed the material handling equipment industry and has allowed 100% FDI under the automatic route. It has also granted sops, including the large number of SEZs, to the capital goods industry of which construction equipment is a part, especially with an impetus to increase exports. The Indian construction equipment market has been volatile for the last few years. After an unprecedented fourfold growth in four years since 2003, the construction equipment demand in India exceeded 50,000 units for the first time in 2007, but declined by nine per cent in 2008 in the wake of the global economic crisis and witnessed a further drop of 11% in 2009. The market recovered strongly with a growth of 45% in 2010 and 22% in 2011, when it peaked at 72,197 units. However, limited access to long-term finance, high inflation, delays in policy decisions and statutory clearances for infrastructure projects adversely affected the sales leading to a market declined by eight per cent in 2012 and a further 15% drop in 2013 to settle at 55,946 units. In 2014 the market once again saw an upturn of 8.4% with 60,655 units being sold. In terms of the number of units sold, the Indian construction equipment market is dominated by six machine types. Of these, backhoe loaders, crawler excavators, mobile cranes and mobile compressors together accounted for 87.5% of total market in 2014. Add compaction equipment (4.5%) and wheeled loaders (3.0%) to it, and it is already has 95% of the total market. Backhoe loaders accounted for the largest share of total sales (49%) followed by crawler excavators (19%), mobile cranes (10.7%) and mobile compressors (8.2%). Though the market has remained more or less unchanged for the past few years, growth differences are seen in the performances of individual products. The growth of earthmoving equipment in India is directly proportional to the investments in the real estate and infrastructure; since all construction
activities require these equipment for initial land clearance and development. According to productions for 2018, backhoe loaders (2014: +8%) will grow 27% to around 38,000 units, while crawler excavators (2014: +11%) is set to grow an impressive 143% to 28,000 units, mobile cranes which posted a growth of 12% last year is projected to grow at 54% to about 10,000 units, and mobile compressors which grew only 3% last year is set to grow 40 % by 2018. Compaction equipment which grew 6% in 2014 is estimated to grow 67% (4,500 units) by the year 2018. Wheeled loaders (2014: +7%) are likely to grow at 94% to reach a number of 3,500 units by 2018. Major challenges for the construction equipment market arose in the past from delay in the policy decisions. Major non-financial constraints include problems related to land acquisition, and procedural and approval delays, especially for environment and forest clearances. The government in the past has been slow in reforming its regulatory and administrative structure, and this has resulted in the ongoing gap between the planning and execution of all infrastructure projects. The situation however has now turned favourable for infrastructure growth. In the medium and long term,
26 | EQUIPMENT TIMES | December 2016
it is understood that the Government’s obligation to bridge the massive infrastructure deficit in the country will outweigh all other unfavourable factors; hence most construction equipment suppliers are optimistic about the future growth. As with any product that requires a large one-time capital expense, financing is a good way for the construction equipment industry to spark demand and acquire new customers. India’s earthmoving and construction equipment (ECE) financing industry was valued at Rs 23,000 crore. Financing accounts for about 80 % of the equipment purchased. For imported machinery, it’s even higher, with 90 % of equipment purchased being financed. Over the next few years, the ECE financing industry is expected to grow by a compound annual growth rate of about 22 %. Most financing is through loans, with leasing as a distant second option. About 80 % of ECE users that opt to finance are micro, small, and medium-sized enterprises. With ticket sizes varying from Rs 20 lakh for a backhoe loader purchased by an individual user to Rs 20 crore for a construction firm’s bulk equipment purchase, the variety of players offering equipment financing has grown. Non
Banking Financial Companies handle 75 to 80 % of ECE financing. Penetration of financial intermediaries in the market is high – over 80% of all CE bought in India are financed. Main buyers of non-financed equipment include government and public sector undertakings. These are % of capital investment across sectors, but in CE alone the penetration is far higher. The market is dominated by First Time Buyers (FTBs) with 60% of the market share indicates a broad based market with easy access to financing. FTB and Mid segment (small retail buyers) together constitute the retail segment of the market which accounts for a large market. Construction companies are under a lot of pressure to trim capital outlay and hence they increasingly rent equipment on a monthly or hourly basis, or where possible, on the amount of material handled. Again, the current rental penetration in India at around 7 to 8% remains low as compared to the global standards of 50 to 80%. Leasing/ rental of construction equipment is still
a very fragmented industry in India, but is expected to show strong growth, possibly higher than 30% annually over the medium term. Several OEMs have already constituted dedicated teams for the rental/leasing services. A robust rental market enables reduction in investments in projects by outsourcing the equipment requirement (including spares and services) and improving capacity utilisation of equipment. The key equipment in the rental fleet in India currently are backhoe loaders, pick and carry (PNC) cranes, excavators, motor graders, and vibratory compactors. The equipment rental and leasing business in India is smaller compared to Japan, USA and China. Demand for rental equipment is set to witness strong growth in the medium term due to large investments in infrastructure. New players can also explore opportunities in the equipment finance business. The limited presence of large organized players is restricting the growth of rental financing. Given the industry’s narrow focus today and the
tremendous opportunities for growth, better access to financing will help broaden the market. Key Challenges for Infrastructure and Construction Equipment Industry Land acquisition delays. Across infrastructure projects, delays as a result of land not being acquired by the time projects are awarded have affected many projects both before and after they start. For example, land clearance issues held up the Trivandrum-Tamil Nadu border road project, though the tender was awarded in 2010. Countrywide regulations on land acquisition have been enforced in a non-uniform fashion, causing delays. Even lenders are unwilling to support projects unless clearances are available and 100 % right of way has been secured. Clearance delays. Delays related to forest and environment clearance are also impacting many infrastructure projects. Clearance policies are often not used objectively, providing different rationale for clearances on different occasions. Not only does this impact the speed of clearances, it also sends
December 2016 | EQUIPMENT TIMES | 27
Cover story uncertain signals to investors—and often leads to pullback of investments. For example, the contractor for the Kishangarh-Udaipur-Ahmedabad sixlane highway has terminated the project because environmental clearance failed to materialize. Similarly, lack of clearance from the state water department held up the Chennai Port-Maduravoyal road project. In addition to addressing infrastructure challenges, the ECE industry achieving its full potential will hinge on addressing challenges in three areas of the ECE ecosystem: Financing • Original equipment manufacturers (OEMs) in India offer limited financing options, and payment terms for firsttime users are often unfavorable. The result is that access to financing prevents many prospective users from buying. • Renting is a good option for users with an eye on limiting their large capital expenditures. However, renting penetration in India is much lower (7 to 8 %) than in other large ECE markets (65 % in the United States and 35 % in China) because of a tax regime that makes moving equipment across states unviable. • India’s secondary market for used equipment is underdeveloped. • Recovery is a big challenge for non-bank finance companies, the major providers of ECE financing for whom regulations pertaining to defaulters and bad debts are not very favorable. Unavailability of skilled manpower • As the ECE industry rapidly grows, the need for trained operators and mechanics will increase proportionately. Availability of skilled workers is likely to be an issue. Multiple entities from the government, ECE companies and industry bodies are working to solve the skill gap issue, but coordination among these agencies can be improved. • Most construction-equipment users are small players who prefer on-the-job training for operators and mechanics and are unwilling to pay a premium for qualified workers.
• Specialized courses on construction equipment operations are not a part of vocational training at industrial training institutes because the high cost of equipment makes hands-on training expensive. ECE training institutes run by OEMs tend to be expensive for lowincome groups. • There is a lack of uniform national guidelines for safety and quality. Onthe-ground enforcement is a challenge because of the fragmented nature of the industry. (Small contractors make up about three-fourths of the industry.) Components • There is a high variability in OEM demand owing to market fluctuations, which makes capacity planning difficult for component providers. • India is a market where component suppliers tend to focus on items at the lower end of the technology spectrum, while relying on imports for high-tech items. Consequently, there is a gap in terms of technology adoption at the supplier end, where the market demand for higher connectivity and compliance to fuel economy regulations is not met with indigenously manufactured components. • Suppliers are also constrained for operating margins because the market is very price and value conscious. The Road Ahead: India is poised to be world’s 3rd largest construction market by 2025 All signs point to a country that would be wise to focus on developing
28 | EQUIPMENT TIMES | December 2016
its infrastructure. And when it does, demand for earthmoving and construction equipment (ECE) will surge. Growth in a country’s fleetsize ECE stock is highly correlated to the growth of the construction industry (a proxy for infrastructure growth), with a high correlation coefficient (more than 0.99) . In the near future in India, the bulk of construction growth is likely to come from growth in transportation infrastructure (roads, rail, airports, ports), urban infrastructure (mass rail transit systems, water supply and sanitation, urban housing) and rural infrastructure (rural roads, irrigation, rural housing)—three important sectors for driving ECE demand. With significant infrastructure investment and growth expected in India, it is expected that ECE stock will exhibit robust growth in the near future. The ECE market is expected to grow by a healthy 20 to 25 % over the next few years to reach 330,000 to 450,000 units sold in 2020, from current levels of about 76,000 units. This would imply a $16 billion to $21 billion market, up from today’s $3 billion. The sector will continue to be dominated by backhoe loaders (more than 40 % of total demand), but broad-based growth is expected across products, with each segment expected to see double-digit growth. A rise in the use of concrete will also create demand for concrete equipment in infrastructure and n housing projects.
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Feature
Big Names From Construction Equipment Industry Sign Up For BAUMA CONEXPO INDIA 2016
I
ndian construction and construction equipment industries are all geared to converge for the largest networking event of the year. The BAUMA Conexp India 2016 to be held from December 12-15 at New Delhi will, like the past year, be the largest networking event for the booming construction industry of India. Last year, global sales of construction machinery declined more than 10 percent compared to 2014. Now the British economic forecast and market research company Off-Highway Research is predicting significant growth again in many important national markets. In concrete terms, analysts expect that more than 46,000 units could be sold in India this year—after some 39,000 units in 2015. According to OffHighway Research, the Indian market could account for more than 80,000 sold construction machines in the year 2019. GDP from construction in India increased to Rs 2290.92 billion in the second quarter of 2016 from Rs 2285.27 billion in the first quarter of 2016. GDP from construction in India averaged Rs 1990.66 billion from 2011 until 2016,
reaching an all time high of Rs 2377.80 Billion in the second quarter of 2015 and a record low of Rs 1736.49 billion in the third quarter of 2012. The venue with a total area of 150,000 square metre space is expecting around 750 exhibitors and 30,000 plus business visitors. This is the fourth time that the International Tarde Fair for construction machinery, building material machines, mining machines and construction vehicle is being held in India. The three-day event is being organized by the Builders’ Association of India (BAI), the Indian Construction Equipment Manufacturers’ Association (iCEMA), the International Powered Access Federation (IPAF), Construction Times and Construction Opportunities. Other than the exhibition, attendees will also have access to conferences, lectures and trade events. The event will also be platform for understanding the emerging growth trends in the Indian infrastructure. Lectures and conference will cover areas such as “Reviving infrastructure—New paradigms”, “Rural Infra—Bringing
30 | EQUIPMENT TIMES | December 2016
Bharat closer to India”, and “Holistic equipment solutions—Current need of the hour for Infra growth”. The event is directed, for example, at construction firms, government authorities and departments, technical experts and also manufacturers of equipment. The event is timely as PM Narendra Modi’s government has committed to increase its focus and investment on the infrastructure requirement of the country. The government has increased its infrastructure spend by 22 per cent over the next two years. With the Indian economy one of the fastest growing economy in the world, analyst and experts, are expecting huge potential for construction and allied sectors. According to the Construction Equipment and Building Material Machinery Association within the Verband Deutscher Maschinen- und Anlagenbau (VDMA—German Engineering Federation), India is currently the only Asian country able to point to a growing construction machinery market. Infrastructure development is commonly held to be the driving force behind this development. The Indian government and international development banks are making billions available for new roads, bridges, sea and airports, as well as railway and energy projects). According to the German foreign trade and inward investment agency, Germany Trade & Invest (GTAI) data, for example, expressway construction in India in 2016/17 is to be expanded to 15,000 km compared with 6,000 km the year before. This is not all, the British market research company Off-Highway
Research envisages that approximately 55,000 construction machines are expected to be sold in India in 2016 climbing steadily to more than 71,000 units by 2020. The top sellers, with a combined market share of over 90 per cent in 2020, are expected to be backhoe loaders, crawler excavators, mobile cranes, mobile compressors, compactors and wheel loaders. Igor Palka, CEO of bC Expo India, which organizes BAUMA CONEXPO INDIA, in a statement said: “We have registrations from big names like ACE, Ajax Fiori, Ammann Apollo, ASTEC, BAUER, BKT, Columbia Machines, Haulotte, Herrenknecht, Hyundai, Kobelco, KYB Conmat, Liebherr, Linnhoff, Liugong, Macons, MAN, Marini, Masa, Potain, Puzzolana, Sany, Schwing Stetter, Soilmec, Topwerk, Wacker Neuson, Volvo or Wirtgen. That’s a pretty impressive cross-section of the industry.” That view is shared by Dimitrov Krishnan, Vice President and Head of Volvo CE India: “We are looking forward to BAUMA CONEXPO INDIA 2016 and are expecting a number of visitors to our booth from North India, which has been an area of focus for the government, and where infrastructure development is expected to pick up even
further in the coming months.” Players such as Caterpillar, JCB, Potain, Putzmeister, TIL and XCMG have also applied to the show. Among the prominent names that would be making their debut for the event for the first time include Comacchio, Kubota and L&T and Komatsu. Past Experience The exhibition held in 2014 was a grand success, the exhibitors were particularly pleased with the quality of the trade visitors. Sorab Agarwal, Executive Director of ACE, enthused: “We had visitors from all over India but also international ones. We only had genuine customers—there was no wasting time, they were here for business” and Tanmay Majumdar, Associate Vice President of Gmmco/ Caterpillar, added: “The quality of visitors was very high, including good buyers, contractors and the like. bC India is a good opportunity to meet new customers.” bC India also enjoys a very high status as a presentation platform for companies, as Sandip Choudhuri, General Manager & Head Kansbahal Works at Larsen & Toubro, confirmed: “We had many customers and very serious enquiries. The visitors were very
seriously interested in our products. We launched a new product here and in that respect it was very important for us to be here to use bC India as a platform.” For Wirtgen, too, bC India is a must. Ramesh Palagiri, Managing Director & CEO of Wirtgen India, commented: “bC India is very important for the Wirtgen Group. Here in India, bC India is the most professional trade fair. We’ll participate in the next bC India, too.” As well as high quality, bC India also provided an excellent opportunity for signing up new business as Rajesh Shrivastava, General Manager,Marketing & Dealer Development of Terex India, confirmed: “We had customers coming and buying equipment right off the booth. We are very excited about the profile of the customers here at bC India.” All Hopes According to the Indian Construction Equipment Manufacturers’ Association (ICEMA), the upswing will primarily be driven by the road construction and earthmoving sectors during the next two to three years. And so one can see that there is lof of activity on the Indian market, which is good news for the exhibitors and visitors of the upcoming n BAUMA CONEXPO INDIA.
December 2016 | EQUIPMENT TIMES | 31
Feature
Construction equipment industry set to converge B
AUMA CONEXPO INDIA 2016 is going to be held at HUDA grounds in Gurgaon / Delhi from December 12 to 15. Numerous big names in the industry already signed up for the exhibition. The show will set the perfect backdrop for those dealing with construction and the construction equipment sectors to gauge the current mood of the market along with finding the right mix of attendees to interact and deal with, under a perfect ecosystem at the venue. Why does such a show matter to the Indian and global market? According to the Construction Equipment and Building Material Machinery Association within the Verband Deutscher Maschinenund Anlagenbau (VDMA - German Engineering Federation), India is currently the only Asian country able to point to a growing construction machinery market. Infrastructure development is commonly held to be the driving force behind this development. Even the German foreign trade and inward investment agency, Germany Trade & Invest (GTAI) data, expressway
construction in India in 2016/17 is to be expanded to 15,000 km compared with 6,000 km the year before. With a view to current conditions and all currently foreseeable factors, the British market research company Off-Highway Research arrives at a very favourable forecast for the next five years as well. It envisages approximately 55,000 construction machines to be sold in India in 2016 climbing steadily to more than 71,000 units by 2020. The top sellers, with a combined market share of over 90 per cent in 2020, are expected to be backhoe loaders, crawler excavators, mobile cranes, mobile compressors, compactors and wheel loaders. This means for all those who are connected to the infrastructure, construction and realty sector. A show of this nature not only helps various exhibitors, but also helps engage with industry experts, associations and visitors. This will help gauge the momentum that is building up in this sector. Bauma is already overwhelmed with the response a has been getting from stakeholders so far. In fact, expressing
32 | EQUIPMENT TIMES | December 2016
his delight with the response from exhibitors, Igor Palka, CEO of bC Expo India, which organises BAUMA CONEXPO INDIA said, “We have registrations from big names like ACE, Ajax Fiori, Ammann Apollo, ASTEC, BAUER, BKT, Case, Caterpillar, Columbia Machines, Haulotte, Herrenknecht, JCB, Kobelco, KYB Conmat, Liebherr, Linnhoff, Liugong, Macons, MAN, Marini, Masa, Potain, Putzmeister, Puzzolana, Sany, Schwing Stetter, Wacker Neuson, Volvo , and Wirtgen, XCMG for the show.” Even at the international level, the interest in the show remains unbroken as Mr. Igor Palka points out: “Joint booths from China, Germany, Italy, North and South America as well as Spain are already currently registered. A total of 28 countries will be participating at the event. That clearly shows how important BAUMA CONEXPO INDIA is for international companies.” The India growth story too has had a positive impact on show. Over the years, BAUMA CONEXPO INDIA has been getting bigger and footfalls and audience too have widened with every successive show. This has had a direct impact on need for a bigger venue. Hence as a part of expansion plans we is organising the 4th edition of the show at HUDA Ground / Sector 29 Gurgaon. The venue will provide with a total area cover of 150,000 square meter space. The new venue also offers the visitors and an exhibitor an easy access to the show. The Gurgaon exhibition venue is just 20 minutes away from the domestic and Iinternational airport. This is expected to provide relief to those visiting Delhi just for the show, immediately. The venue is located closely to numerous hotels ranging from high end to budget hotels at very close vicinity. They too are well connected by roads and public transportation. In fact the IFFCO
Chowk Metro Station is just next to the ground. Above all, the sheer size and the experience of working on this venue has being overwhelming. The December Expo is expected to showcase around approximately 700 exhibitors and will receive around 30,000 plus business visitors. Bauma Conexpo India BAUMA CONEXPO INDIA, the international trade fair for construction machinery, building material machines, mining machines, construction vehicles and construction machinery is being held for the fourth time from December 12 to 15, 2016 at the HUDA grounds in Gurugram/Delhi. The last event, held in in Greater Noida/Delhi in December 2014, was attended by 635 companies from 25 countries and 26,018 specialist visitors. BAUMA CONEXPO INDIA is held every two years.Messe München construction machinery trade fairs In addition to holding the worldleading bauma trade fair, Messe München has a wealth of experience when it comes to organizing other international construction machinery trade fairs. Along with bauma China in Shanghai, Messe München together with the Association of Equipment
Manufacturers (AEM) organizes BAUMA CONEXPO INDIA in Gurugram/Delhi and BAUMA CONEXPO AFRICA in Johannesburg. In December 2015, Messe München successfully expanded its portfolio again by purchasing the leading Russian construction machinery exhibition CTT. Messe München With more than 40 trade fairs of its own for investment goods, consumer
goods and new technologies at the Munich site and abroad, Messe München is one of the world’s leading trade fair organizers. Every year, more than 30,000 exhibitors and around two million visitors take part in the events at the trade fair site, at the ICM - International Congress Center Munich and at the MOC Event Center Munich. Messe München also organizes trade fairs in China, India, Turkey, South Africa and Russia. With a network of associated companies in Europe, Asia and Africa, and with over 60 representatives abroad for more than 100 countries, Messe München has a truly global presence. Association of Equipment Manufacturers (AEM) The North American association AEM represents the interests of the manufacturers of commercial and offroad vehicles on an international level. Based in Milwaukee, Wisconsin, the association has offices in Washington DC, Ottawa, Canada and Peking, China. AEM represents over 850 companies from the agriculture, construction, forestry, mining and supply sectors. AEM is the joint owner or organizer of various internationally recognized trade fairs including CONEXPO-CON/ AGG, one of the world’s most important meeting places for the construction and n construction material industry.
December 2016 | EQUIPMENT TIMES | 33
Interview
New heights E
VEREST ENGINEERING has extensive technical expertise in operations and maintenance of tower cranes which are offering conversion support services for tower cranes. This is relatively a new support area in India. The company exclusively distributes FineHope , SYM flattop and electric luffing cranes which are equipped with electronic safety system, speed control, etc. Fine Hope tower cranes are available in 32-200 tons, whereas SYM luffing tower cranes in 8-32 tons. The conversion comprises converting of existing tower cranes from being electrically driven, (with power sourced from captive diesel generating sets at the site) to Variable Frequency Support (VFS) driven. With VFD, the consumption of electricity comes down by 35 per cent. For a 6-8t tower crane, it will be from a 125KVA DG set to 62.5 kva, that will save at least 3 litres of diesel per hour. If we calculate 20Hours working per day for 26 days a month, it will save 1560 Litres of Diesel which will be 18,720 Litres an Year. The cost of this diesel @`50 will be amounting to `9,36,000 per year and this amount is get burned by most of the construction companies with out their notice. The cost of conversion is close to Rs five lakhs, while it delivers saving of 9-10 lakhs on an average on diesel consumption.” every year. Everest has executed 30 projects for converting the tower cranes to VFS driven. Prominent conversion projects executed by
Everest Engineering are converting of tower cranes for JMC projects working in varied real estate projects in Mumbai, Delhi, Chennai, and Bengaluru. The cranes converted to VFS driven were of various make. Benefit for easy and quick identification of faults PLC controls are good to find faults whereas the VFD (Variable Frequency Drive) is mainly for accurate operation without any failure. PLC input/ output indictors are an additional used for smooth start and stop functions as well as saving of about 35 per cent power consumption.
34 | EQUIPMENT TIMES | December 2016
The Passenger Hoist is concerned the best control technology is the VFD mechanism. Since it handles people to vertical heights it is very important that a VFD control achieves a very smooth start/stop operation as well as saving of power up to 35 per cent. The company’s product support network offers the following services: • Erection, dismantling, O&M and spare parts for Luffing/flat top/top kit tower cranes and passenger hoists. • Technical consultancy for proper selection of tower cranes and passenger hoist according to particular site conditions like scaffolding system, jumping sequence and capacity. • Provides location drawing, execution charts, method statement and risk analysis. • Training and maintenance • Anti-collision devices and SLI (Safe Load Indicator) for tower cranes which are used for protecting tower cranes and other building/HV lines/towers/ machineries at site by avoiding collision. Also along with the standard solutions to fit customer requirement, Everest experts can offer customer solutions like Tower Cranes for 200m and above heights. Passenger Hoists to fit inside the lift shaft, High Speed Passenger Hoists for 200M – 600m heights to suit the customers’ special and specific requirement. n
Image: © www.fotopizza.com
Everest Engineering has been able to achieve higher levels of growth over the past two years. P V RAMDEV, MD, Everest Engineering Equipment speaks about the high-speed passenger hoists for 200M – 600m heights to suit customers’ special and specific requirements.
Image: Š www.fotopizza.com
12th–15th December 2016 Huda Ground, Gurgaon, Delhi
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Interview
“CE market is expected to show positive growth by 2020” CASE India’s brand leader Abhijit Gupta talks about a continuous emphasis on product development to improve equipment performance at the company.
What kind of equipment does your company manufacture? Can you explain the elements of this machine in terms of its size, weight, portability and fuel used? CASE India sells and supports a full line of construction equipment around the world. The company offers the most advanced technological products which are suited to the basic Indian requirements of high fuel efficiency and productivity. The company emphasises on continuous product development to improve the equipment’s performance and increase fuel-efficiency. • Advanced engine and hydraulics- To increase the machine’s durability, CASE India focuses on the use of quality engines along with regular maintenance across their equipments which helps deliver excellent fuel efficiency. • Design of air filters / fuel filters– CASE India engines are equipped with turbocharger waste gate control mechanisms with Internal Exhaust Gas Recirculation system
(IEGR) to minimise the Emissions (like Nitrogen Oxides and Hydro Carbons) and protect the environment. • Optimise fuel efficiency– The grader is equipped with variable horse power FPT engine renowned for its fuel efficiency worldwide. The Grader is offered with an Automatic ZF Transmission. The machine has a multi Curvature Mouldboard which reduces the resistance coming on the Engine and hence reduces the fuel consumption. • Operators comfort– For better control of visibility and safety aspects the machines are equipped with a forward-mounted articulation joint giving operators a clear sense of direction and excellent moldboard visibility from the operator’s cabin • Structural stability and ease of maintenance- CASE India focuses on providing easy engine compartment access along with daily service checkpoints for quick and efficient maintenance of equipments.
36 | EQUIPMENT TIMES | December 2016
• Tracking and monitoring tech– Every equipment is installed with a unique trip meter on the operator dashboard that continuously monitors the fuel consumption, hours operated and operating temperatures. Electronic indicators are also connected to the dashboard for safety related or operation related parameters. Based on customer requirement CASE India has launched Eagle Eye Telematic System, a real time vehicle tracking and communication based on GPS technology. This delivers better value for money. CASE India engineers are constantly developing clever innovations to make equipment more fuel efficient for reducing emissions on the environment. The company has successfully lowered the sound levels in all the construction equipments. This enhances operator comfort, which in turn increases productivity and keeps the pollution under control. Additionally, the company has introduced Customer-Driven Product
Definition (CDPD) process wherein they invite equipment users to participate in defining and improving new products. This further helps to understand the customer needs in order to develop and test new models basis customer specifications. The company has factory trained technicians ensuring top-notch service professionals are working on equipment maintenance needs by providing a thorough service for the everyday wear and tear of the machines. Through CASE India customer care centres and dealers, the customers have access to world-class equipment and aftermarket support along with industry-leading warranties and flexible financing. What are the value-added services offered by CASE India? CASE India offers product support throughout CASE Centres providing spare parts, manuals and technical support to minimize downtime and maintain production schedules. All spare parts can be ordered from the CASE dealers and are stocked at the CASE central parts warehouse across India. The company has introduced CustomerDriven Product Definition (CDPD) process wherein they invite equipment users to participate in defining and improving new products. This further helps to understand the customer needs in order to develop and test new models basis customer specifications. The company has factory trained technicians ensuring top-notch service professionals are working on equipment maintenance needs by providing a thorough service for the everyday wear and tear of the machines. Through
CASE India customer care centres and dealers, the customers have access to world-class equipment and aftermarket support along with industry-leading warranties and flexible financing. Brief us on your expansion strategy CASE India sells and supports a full line of construction equipment around the world with equipment and aftermarket support, industryleading warranties and flexible financing. The company is known for the top class quality products with environment friendly equipments and technologies. CASE engineers are
continuously upgrading the equipment and technology to suit needs of Indian customers. Also, the company has an extensive network of 70 dealers with over 300 touch points spanning the length and breadth of the country. CASE India has introduced globally followed “World Class Manufacturing� processes at the Pithampur plant. The company has started exports to developed as well as developing countries that reflect the quality of the products. CASE continues to invest in the manufacturing operations in India ensuring customers in India get access to the high technology products
December 2016 | EQUIPMENT TIMES | 37
Interview comparable to the best in the world. How is the present market scenario and expectation from construction equipment industry? CE market is expected to show positive growth by 2020. The domestic construction industry has become a driving force due to ‘Make in India’ ,Smart Cities, Swachh Bharat Initiatives etc and has the potential towards and upward growth considering infrastructure growth underway at present. CASE India has a legacy of excellent quality products and has been a major contributor towards greater efficiency and productivity of resources in India. Our priority is to provide customers with the cost-efficiency and performance that they expect from CASE equipment. The company emphasizes on continuous product development to improve the equipment’s performance with an eye to the environment. The company makes equipment more fuel efficient for reducing emissions on the environment keeping in mind that the operator is one of the biggest influencers on production, up-time, fuel burn, and machine life. CASE India engineers are constantly developing clever innovations as per requirements of the Indian Market.
Adding to the ongoing product development, we have also enhanced the manufacturing processes to best suit the world class manufacturing standards through which we deliver the most robust, reliable and high quality products. We have strengthened our distribution with an extensive network of around 70 dealers with over 300 touch points spanning the length and breadth of the country. For a global full liner company such as CASE India, introduction of newer equipment for Indian requirements is only a matter of time and right opportunity. We are committed to remain sensitive to the market needs
38 | EQUIPMENT TIMES | December 2016
and are confident to match it with agility. What can we expect at BC India from the company? India is a huge market for Construction Equipment industry. Especially international companies like CASE see the potential for Indian market and continue to provide world class products for infrastructure development. CASE India is known for the top class quality products with environment friendly equipments and technologies. The company focuses on continuous up gradation of equipments according to the market expectation to support customers with the best in class technology. Also, the company has an extensive network of 70 dealers with over 300 touch points spanning the length and breadth of the country. CASE India has introduced globally followed “World Class Manufacturing” processes at the Indian CE plant. The company has started exports to developed as well as developing countries that reflect the quality of the products. The company will be showcasing its entire gamut of products. This will also include a variety of attachments which can be mounted on equipment’s. There will be our own branded Rock breaker and trenching bucket which have been a growing demand from our customers in this part of the country. More surprises to be unveiled at the Bauma CONEXPO n INDIA 2016.
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Insight
Financing Assets SEFL India has had a market share close to 30 per cent for the last five years in a row.
S
rei Equipment Finance Limited (SEFL) is the leading financier in the organised equipment financing sector in India having a market share of close to 30 per cent for the last five years in a row. The key businesses are to provide financing and leasing of equipment in the following sectors: (i) Construction and Mining; (ii)Preowned Equipment Solutions; (iii) Healthcare; (iv) Farm Equipment; and (v) Technology and Solutions Srei’s Business Model Srei assistsits clients across the life-cycle of assets from procurement, deployment and maintenance to final disposal. For asset acquisition; they assist their customers in asset purchase and provide customised financial solutions like assets financed via loans, leasing or on rental basis. For asset deployment they provide host of services like; help in fetching captive contracts, improving deployment of assets during downtime by leveraging their relationships with major infrastructure players. For asset management; they provide asset maintenance through captive stockyards to improve the residual value of the assets, maintenance through yard management services, and equipment refurbishment services. For asset disposal they provide;
inspection, valuation, and inspection services and also advise clients on the resale options. Business Strategy Srei’s inculcated strategy entails threading of different organizational units/cores. Srei has leveraged technology to form a part of their core strategy. Alliance and Partnerships What differentiates Srei from the rest is their ability to provide an integrated ‘asset solution’ instead of being just the financier. Today, Srei Equipment Finance has tie-ups with more than 50 OEMs (original equipment manufacturers) in India and abroad. They not only offer tailor-made programmes but also focus on nurturing customer awareness, in collaboration with OEM partners. This has cemented their leadership position in financing infrastructure construction equipment. Srei Equipment Finance currently has more than 60,000 customers, with a significant number of them being repeat customers. Digitization Srei continues to invest in information technology, to improve our operational efficiencies, functionality, reduce errors
and improve its productivity through well-defined processes and systems. Some of the areas where Srei has recently invested in technology include: • Business Intelligence (BI) • Business Analytics • Digitization of Sales – Srei Sales App • Asset tracking system Risk Adjusted Growth Srei has established an effective risk management framework through the implementation of robust systems and procedures for evaluating and approving debt financing proposals.Prior to a commitment for any financial assistance, Srei’s in-house team undertakes extensive techno-economic analysis, financial and legal due diligence of the potential debt financing opportunity etc. Subsequent to the disbursement of debt, Srei continues to monitor the development and performance of the relevant project or asset. Srei has a • Robust Credit Appraisals • Strong Risk Management • Effective Collection Mechanism • Efficient Treasury Management Regional Growth Srei has a wide-spread network; covering all the major centres of the country. Srei’s strategy team, with the help of analytics, maps the regional performances. Depending on the performances of the various parameters, decisions are taken on resource allocation to different regions. Srei’s current portfolio split region wise is: Srei provides equipment financing to varied industries and have a diversified portfolio of end users of these equipment. The industries Srei caters too are a) Infrastructure Equipment Financing Srei finances the widest variety of construction and mining equipment, like Earth Moving Equipment(Backhoe
40 | EQUIPMENT TIMES | December 2016
Loader, Excavator,Compressor,Tipper, Surface Miner, Loader, Drills, Dozers), Material Handling Equipment (Fork Lifts, Crawler Cranes, Truck Cranes, Tower Cranes, Pick & Carry Cranes), Road Construction (Motor Grader,Mechanical and Sensor Paver, Compaction Equipment,Hydraulic Pilling Rig, Hot Mix Plants, Milling Machines), Concrete Equipment (Concrete pumps, Placer Booms, Batching Plants, Transit Mixers), Material Processing Equipment(Crusher, Screens) and various other application specific equipment and more.
e) Farm Equipment Financing They provide finance for purchasing tractors, harvesters and other farm equipment. In this line of business they also work closely with Case New Holland (CNH) Capital.
b) Pre-Owned Equipment Financing Srei also engages in providing finance for themed equipment from various sectors including construction mining equipment and technology and solutions. Provides financing for a wide range of themed equipment including construction mining equipment and vehicles. c) Technology and Solutions Financing Also provide finance for the purchase of hardware, software and office equipment including laptops, servers, scanners, printers and communication equipment (routers, network hubs and modems) to primarily cater to the needs of the strategic i.e. institutional and corporate customers. In addition, Srei also offers financing for the associated implementation costs for the equipment, themed for captive purposes only. d) Healthcare Equipment Financing Provide financing for the purchase of diagnostics and surgical equipment themed in the hospitals including x-ray machines, sonography equipment, CT and MRI scanners.
Outstanding Financial Performance The construction equipment industry had a few difficult years post 2011-12. During that time, the financiers of CE too were witnessing a tough period. However, Srei managed to perform better than
the peers, evident from its outstanding financials. Srei’s financing solutions and offerings • Equipment Loan Srei is in the business of equipment financing with a wide spectrum of asset finance business which includes Construction & Mining equipment, IT Infra equipment, Healthcare equipment, Farm Equipment and Pre-owned Construction Equipment. • Leasing Solutions Srei is also engaged into the business of providing equipment on lease as and when required by the customers. The various kinds of assets given under lease include heavy earth moving infrastructure equipment’s windmills, aircrafts, IT equipment etc. Pioneers of the preowned/used equipment market To address this, Srei created a new financing vertical for pre-owned equipment, perhaps the first such offering in the industry, which created an ecosystem of first time users and first time buyers of equipment who often faced challenges of expensive equipment and availability of funding. To develop the preowned market, Srei has leveraged technology in creating platforms which act as market places for the used (as well as new) equipment financing. They have come with Live Auction and Online Auction platforms, the first in the industry. They have recently launched iQuippo, a digital marketplace to sell or lease infra equipment. The platform allows buyers and sellers to interact, negotiate and close transactions in a timely, transparent and cost-effective manner. Innovators at heart Srei is the innovator various financial products which are unique to the asset;
December 2016 | EQUIPMENT TIMES | 41
Insight Finance especially the infrastructure equipment financing industry. Product Innovations White Labelling – Moulding a manufacturing industry practice into financial services industry SEFL is the first NBFC to start white labelling of financial products in the construction equipmentspace.White labelling enables the OEMs to stress less on its non–core activity and the customer to dealwith a more experienced and holistic financier. Srei Smart Exchange Finance SEFL launched a first of its kind auction platform called ‘Smart Exchange Finance’ which enablesowners of preownedequipment to exchange their old equipment for new ones.The platform helps the contractors: buyers and sellers, and OEMs, avail a fair value of theirequipment. 6/2 Scheme Srei provides preapproved top up loans to its customers with consistent payment track record for more than 6 months.
become the price makers by bidding for the lowest rate for loans.
Reverse Auction of Interest Rates A unique Dutch auction of interest rates, which allows the customers to
Khushiyon Ki Barish A monsoon special scheme offering attractive terms and deals including
42 | EQUIPMENT TIMES | December 2016
longer tenure of loans and reduced EMIs during monsoon months Srei Equipment Finance Limited, industry leader in infrastructure and construction equipment financing, has disbursed Rs 5,354 crore during the half year ended September 30, 2016 as compared to Rs 3,972 crore during the corresponding half of previous year; registering a growth of 35%. Profit before tax (PBT) grew by 34% to Rs 96.67 crore for the half year ended September 30, 2016 as compared to Rs 72.10 crore for the half year ended September 30, 2015; while PAT, grew by 36% to Rs 68.83 crore for the half year ended September 30, 2016, compared to Rs 50.47 crore during the corresponding half of previous year. Gross NPA reduced from 4.17% as on 30th September, 2015 to 2.62% as on September 30, 2016; while Net NPA reduced from 3.16% as at September 30, 2015 to 1.80% as on September 30, 2016. Total AUM stood at Rs 20,216 crore as on September 30, 2016 as compared to Rs. 19,381 crore as on September 30, 2015. n
Interview
“Demand should pick up from CY2017.�
What is the growth likely with the expansion of capacities in mining and construction, especially in the wake of amendments to the Mining Act and a general ease of doing business? The amendments in the Mining Act cover some crucial points. Now, there can be transfer of mining leases; which were granted via non auction procedures and the mineral mined was for captive purposes. This will facilitate many mergers and acquisitions of companies with captive mining leases. The amendment also improves upon the definition of leased area, helping in ease of land acquisition. The government has also started a lot of initiatives to boost mining activities. Online transparent auctions, opening of non-captive commercial mining are some of the initiatives that will help the mining sector. As per industry estimates, by
FY2020; coal mining production will be increased to 1.6 billion tonnes per year and iron ore mining will be increased to about 200 million tonnes per year. Which products would form a major portion of mining equipment financing, considering the high demand likely, owing to the increased applications in industry? Before talking about the equipment for mining industry, it is pertinent to talk about the activities which had hampered the mining production in the last few years. With coal block allocation scam and other hurdles, mining production had slowed down. Mining activities are now seeing a turnaround and we are seeing a pickup in the mining equipment sales. Excavators and dumpers form around 85% of the earth-moving equipment
44 | EQUIPMENT TIMES | December 2016
sold for mining activities; and going forward, these equipment will continue to be part of our mining equipment portfolio. We also expect increase in the sales of dump trucks with the increase in mining activities, as they are an important part of the mining ecosystem. As per industry estimates, the market for earth-moving equipment for mining increased around 15% in FY2016 and this growth rate is most likely to be maintained for the next couple of years. For the past few months, the mining output has slowed down, as compared to the targets set; but that is due to a small dip in the coal out-take. From calendar year 2017, the demand should pick up once again. With cement players indicating expansion plans, what is the impact on the mining/construction equipment
taxes and eliminate the hurdles of varied taxation within the country. It promises a unified single tax structure which helps put a curb on the total tax incidence and evasion, and enable free movement of goods within the country. The economic benefit of GST will be all pervasive and the impact on infrastructure should be no different. Depending on the GST rates finalised, the cost of construction materials may go down by 5% to 10%. This should help abate the cost of construction. The real winner will be the real estate segment where both the developer and buyer presently pay a myriad of non-creditable taxes. GST will reduce the cost of construction incurred by the developers and thereby help in reducing the property prices. It will also give a fillip to leasing activity which is currently plagued by both sales tax and service tax being imposed on the same transaction. GST will resolve this problem of dual taxation and a significant beneficiary of this will be the construction equipment segment. Efficiencies in supply chain and logistics, and a uniform tax regime, will further boost the construction equipment sector, which is already witnessing a revival.
Devendra Kumar Vyas, CEO, Financial Services, SREI says after long years of inactivity, infrastructure equipment sales have begun to boom. In this chat, he provides an overview of the pick up in demand.
business? About 60% of cement produced in India is used for concrete production. Ready Mix Concrete (RMC) accounts for hardly 7%-8% of this concrete demand; as compared to developed nations, where it accounts for almost 70%-80% of the demand. The sales of concrete equipment are directly corelated to the growth of the RMC market. Therefore, the scope of growth of concrete equipment is huge. As per industry estimates, market for concrete equipment grew at around 19% in FY2016 and until 2020, the concrete equipment market should grow at a compounded annual growth rate (CAGR) of about 15% - 20%. Infrastructure and manufacturing activities consume about 40% of the cement demand. In the past year, the road sector has seen a lot of traction;
giving a boost to the infrastructure activities. The result can be seen in the increasing demand for cement. The cement production in FY2015 was around 270 million tonnes, and increased by around 5% in the last fiscal. In the coming fiscal, cement demand is expected to maintain a rate of 6%. India’s current demand of around 290 million tonnes is way less when compared to China’s consumption of 1400 million tonnes. So, with the increase in the infrastructure activities, we should see an increase in demand for cement and an increased demand in the concrete equipment industry. What are the implications of the new GST regime for the construction and mining equipment sector once it is launched by the next fiscal year? GST aims to bring unanimity in
What is the role of newer technologies towards creating better efficiencies of cost for the construction and mining business? Construction and mining equipment are products of heavy engineering. Today, there are a lot of new developments in hardware and software to provide services for maintenance of construction and mining equipment. Telematics is the most prominent of these services. To increase the safety for the labour force and increase the efficient use of the machinery; telematics provide a holistic solution on asset tracking and usage. Construction and mining activities require the machines to work in arduous conditions. Robustness is a critical parameter of the equipment’s design. Data analysis of the existing equipment’s usage will help in better designing and usage of all machinery.
December 2016 | EQUIPMENT TIMES | 45
Interview
“We are a benchmark”
SN Subrahmanyan, Deputy MD and President, Larsen & Toubro, talks about the government’s recent demonetisation move and takes a few other questions from CT. What has been the impact of the recent move to demonetise certain high denomination currency notes? First and foremost, as citizens, and as an organised company, that deals only in cheque payments and direct payments to the client, we believe it is a good step. It is the right thing to happen. We believe it has taken the government a lot of courage to implement this step and we welcome the step. At the same time, there are consequences of this action when a certain denomination of notes that people are used to, disappear. Certain parts of the economy do work with cash as a basis of barter and there will be some impact. I think we have to live through with that. It’s a pain you take for a short while but I believe that with the kind of action that the government has taken to put money back into the system, this should get sorted out in a month or even two months. All in all, I think it is a good step. Are you facing any specific problems with respect to contract management because the whole thing goes through a series of layers of sub-contracts? So, for labour, what is the impact on their cash payments? As far as labour payment is
concerned, there is an impact. We have about Rs 200-225 crore of labour compensation paid every month. And we pay by cheque or by cash to our subcontractor/main account holder, who in turn disburses the amounts to the workers at site. To an extent, these payments are done by cash. We are not directly involved, but through the sub-contractors. In certain cases, due to the demonetisation and the lack of supply of cash, there was an impact. We realised this very quickly because our sub-contractors obviously approached us. Therefore, we took special initiatives at site to see that all workers’ immediate needs were taken care of at various sites, such as food and other essentials. And at the moment, we have even applied for special permission to remit this money to take care of this situation. There have been some disruptions but I don’t think it is causing major anxiety since as an organisation, we have thought through it and are dealing with it. Will you be bidding for the MumbaiNagpur expressway? I think it is some time away. It is an interesting project. Of course, we are big in roads with an annual turnover of nearly a billion dollars. The sector
46 | EQUIPMENT TIMES | December 2016
is doing well for us. For this project, though, I believe the land acquisition hasn’t fully happened. But as and when the tender comes and the land acquisition is completed, we will be bidding for it for sure. Do you think the equipment or technologies we use in India are at par with other countries? I think the kind of equipment and technologies that we use as a country is as good, or better than anywhere else. So let us not doubt ourselves on that. Predominantly, this is the scenario. I cannot talk for all contractors but all the major contractors, certainly, and including ourselves, both design-wise, equipment-wise, resources-wise, and the kind of planning tools that we use, is at par or even better than many parts of the world. This includes things like scrapers, inclinometers, asphalt pavers with laser controls, very modern asphalt making plants, use of asphalt mastics, asphalt emulsions, very good road designs using the latest tools and technologies. In fact, I would say we are a benchmark. Even for concrete roads, the pavers, etc., we are certainly where we ought to be and not behind any other market or country in any way. n
Interview
Companies are now focusing on making green equipment Pankaj Kumar, VP, DOZCO India says the trend is towards manufacturing equipment that eimt reduced smoke and consume less fuel. What kind of equipment does your company manufacture? DOZCO, a name to reckon with as a dependable source for machinery and spares in the field of construction and mining industry since 1983, being rich in experience and knowledge, spiriting by undaunted entrepreneurship, aided by technical expertise of team of dedicated professionals took the determined step forward by establishing the state-of-the art manufacturing plant at Visakhapatnam, India in 2013 and emerged as manufacturer of quality attachments, undercarriage and components for construction & mining equipment. Product from the Plant includes: • Rock Breaker in wide range • Tool/Chisel for varieties of applications • Hydraulic Quick Coupler in versatile design • Bucket to meet OEM Standards • Undercarriage for crawler equipment • Ground Engaging Tools • Portable Tower Lights etc.
quick change of attachments such as Bucket, Rock Bucket, Cutter, Shear, Rock Breaker etc. When you workday doesn’t end, or your event heats up after the sun goes down, then you need to put the power of DOZCO light source to work for you. Undercarriage is the most running Item of Crawler Machineries. DOZCO provides quality products and service at an affordable cost, with a single minded objective of maintaining a well satisfied client base by fulfilling their needs, increasing their long term profitability, reducing their overheads and optimizing their investments. How does the mechanism of the machine work to ease the work? Advance series of DOZCO Rock Breaker are comes with superior technology. There is “No rigid side bolts” which ensures low maintenance & operating cost. Advanced dampening
system is improved to minimize shocks, noise level and vibration. High Pressure Accumulator is modified to eliminate pressure fluctuation & increases Impact Power. We can adjust the Stroke length and Blow per minute for different application/material by the help of Valve Adjuster & Cylinder Adjuster feature. More Protection to front cover - High tensile wear resistance plate (Bottom Plate). Constructed outer & Inner Ribs on the Rock Breaker Body - It reduces the internal torsion stress and increase breaker lifetime. What are the elements of this machine in terms of its size, weight, portability and fuel used? These Breakers are superior in quality at low price. We offer for both primary & secondary application. We manufacture Moil Point, Conical, Wedge & Blunt type chisels for all Rock
DOZCO Advanced Series Rock Breaker Ranges: 8 models of Rock Breaker available for 2 – 60 Ton class Excavators.
In which sector of construction is it useful? DOZCO products are useful in mining and infrastructure / construction sector. Rock breaker is the attachment which is used to break the rocks. Chisels are the most consumable item by Rock Breaker during breaking and demolition period. Hydraulic Quick Coupler is mounted on excavator to save time by 48 | EQUIPMENT TIMES | December 2016
Models
Weight (Kg)
Tool Dia. (mm)
Impact Rate Carrier Class (bpm) (Ton)
200A
126
45
700 - 1200
1.2 – 3
430A
458
75
400 – 800
6–9
450A
660
85
400 – 800
7 – 14
800A
933
100
350 – 700
11 – 16
2000A
1725
135
350 – 500
18 – 26
2200A
1928
140
350 – 500
20 – 26
3200A
2508
155
300 – 450
8 – 38
5000A
4200
175
200 – 350
40 – 60
Breaker Manufacturer. DOZCO chisels are superior in quality. DOZCO manufactures undercarriage ranging from 140 mm pitch to 216 mm pitch. Undercarriage Parts like, track link assemblies with Track Guard, Rollers, Sprockets, Idlers, for all kind of Excavators, Dozers, Apron Feeder and Drill Machine etc. In today’s world, how important is it to have eco-friendly equipment in the industry? These days, the Heavy Construction Machineries come with electronic engines which lead to high horsepower. Electronically operated high horsepower ensures lesser amount of smoke emission into the environment. Since, the modern equipment have fully automatic systems, the fuel consumption is reduced considerably. This again leads to less smoke emission and pollution. As against the earlier machines which demanded a lot of maintenance due to frequent breakdowns, the present day equipment is very technologically advanced. Due to this, there are less breakdowns, thus, resulting in less requirement for replacement of parts. Environment-friendly equipment are not only beneficial for the ecosystem, but also for the construction companies as it can reduce the overall cost of maintenance of the equipment. Realizing this trend, CE manufacturing companies are now focusing on making
green equipment that emit less amount of smoke and give more energy with less fuel consumption. So, the time has come to go green! How is the present market scenario of the construction equipment industry? The Construction equipment industry has already started booming up in India, with an objective to bring quality infrastructure, the government has taken several initiatives like Smart Cities, Make in India, Swachh Bharat, National Highway Projects and rural road flagship schemes. All these collectively bring a positive outlook to infrastructure industry in general and construction equipment industry in particular. What is the potential of this industry in our country? The potential of this industries in India looks very good in near future. In fact the demand for construction equipment is already being observed due to development of road infrastructure, growth in the real estate sector, development of ports, pipelines, airports, power and other infrastructure projects, mining, building and material handling. We sincerely believe that the overall earthmoving industry in India will grow by at least 30-35 per cent over the next five years. What is is impact of GST in manufacturing segment?
The manufacturing sector has been a major economic driver for many developing economies across the world,. Now manufacturing may be revived with the focused efforts of the new government. India, traditionally an agrarian economy, could even experience a paradigm shift from an agricultural economy to a manufacturing and service based economy. The government also realises that becoming a manufacturing hub will need several strategic reforms to simplify manufacturing in India. One of the proposed reforms, in line with Make in India, is the implementation of the Goods and Services Tax (GST). The new GST regime will trigger a transformational shift from a complex multi- layered indirect taxation system to a unified indirect taxation system. GST will also propagate a positive change by ensuring cascading of taxes is reduced, thus leading to manufacturing synergy in India. The new GST regime will be a modern tax reform which will usher in growth and opportunities for businesses in India. It will have a far-reaching impact on business avenues, compelling organisations to realign bottlenecks such as production cost, production time, supply chain, compliance, logistics, etc. with the changing indirect tax structure. Furthermore, all major business dynamics will have to be thoroughly analysed to assess the impact of GST on business. ď Ž
December 2016 | EQUIPMENT TIMES | 49
Interview
“Growth is steady rather than in spurts” Rajendra Raina, General Manager, Marketing, Escorts Construction Equipment Ltd, tells CT he believes the industry’s profitability will improve over the next two years.
E
scorts has been a solution provider rather than an equipment manufacturer trying to find a market for its products. It has changed the very face of the industry and processes from time to time by pioneering these products in India. Lall elabrates on the initiatives generated for the construction equipment industry What opportunities have the government’s initiatives generated for the construction equipment industry? A lot of the iniatives are also major projects. Moving from a measly 4 km/ day to 25 km/day as on date, to 40 km plus in the near future is an ambitious target. Debottlenecking the stalled projects kick-started the process and the hybrid annuity model (HAM) displayed the intent of the government and acted as an accelerator. This led to a major growth in demand for road construction equipment. During the first nine months of the current calendar year, the market grew by more than 40 per cent over the same period last year. Rest of the projects will add to the demand of material handling equipment and backhoe loaders in particular. These projects will open up options for new equipment.
did you sell ? The industry we serve showed positive growth ranging between 25 to 40 per cent for their respective product categories during the first nine months of 2016 over the same period last year. Our volumes grew at a rate higher than the market. Prices remain a struggle. The growth is steady rather than in spurts and sustained growth is projected during the next two to three years at least. As the volumes increase further, profitability will grow with better sweating of fixed assets. This will help our suppliers as well as network partners which is a must for the good health of the OEMs. Ultimately, customers stand to benefit as does the economy. Which sector generates the maximum demand for your products? Infrastructure remains the prime mover for our industry. Roads, metro rail, railways, ports, the power sector, irrigation, airports and mines constitute the bulk. Escorts has been a solution provider rather than an equipment manufacturer trying to find a market for its products. From manual to mechanical material handling, static to vibratory roller soil compaction and from manual
Have you seen a jump in sales this fiscal? How many units
to backhoe loader excavation. Our solutions will remain value for money for the customer even as we upgrade our products. What are the trends in the equipment industry? India is a price sensitive market and will remain so. High priced equipment constitute just the tip of the pyramid. The OEMs have to make a choice to be either a niche player or be really price competitive to play the big volume game. Within that price band technology, quality and after sales support will be a differentiator. What challenges do you face in terms of equipment finance, infrastructure and getting skilled manpower? Availability of equipment finance varies from product to product. The high delinquency in the industry made NBFCs cautious. The funding as a percentage of asset value, though customer specific, got reduced across the board to secure repayment. To that extent, financing is a bit of a concern particularly for the FTBs and FTUs. As the industry started picking up, financing started easing out. Demonetisation will not only make financing cheaper but also easier to come by. This is going to help the demand grow. What are your expectations from the government for the sector? The industry is looking for continued focus on infrastructure sector by the central government. Of course, the game changing tax reform GST needs to see the light of day next year. We are keeping our fingers crossed.
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Mtandt plans to invest $100 million into manufacturing Mtandt Group plans to invest US $100 million into manufacturing and rental equipment inventory over the next two years.
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he Mtandt Group, pioneer in bringing Aerial Work Platforms and Portable Roads in India announced investment of US $ 100m into setting up manufacturing facility and enhancing rental equipment inventory ,the Group Executive Director, Production & Purchase, Mtandt Limited, Gopal informed. He added, “ We will be setting up state of art production facility for manufacturing PortaDeck portable road, Aardwolf No Limit unlimited scaffolding solution and will scale up production of Aardwolf Quickfit mobile Aluminium Scaffoldings keeping in view increasing demand from Industrial, Construction
and Defence segment.” “We will be enhancing our rental fleet inventory by bringing in more new machines to keep the fleet young and give contractors access to the most modern, safe and environmentally friendly equipment without the capital outlay. We are investing in capital equipment service and refurbishing facility to serve our customer in better way.” said Mr. Sanjay Khanna, President, Mtandt Rental Limited. “It is our intention to continue to grow; after seeing first two quarters result we can say the group will continue to grow
at better rates than the market growth” added Mr. Modi . Mtandt group specialised in manufacturing, distribution, renting, service and training of capital equipment. The group is managed by Industry veterans and professionals, with all India presence, it has maintained itself as the largest Aerial Work Platform rental company of India. Mtandt is proactive in entering into partnerships with international market leaders across the world, thus drawing technological expertise and higher returns for its stakeholders. n
December December 20162016 | CONSTRUCTION | EQUIPMENT TIMES | 51
Product Profile
Hydraulic Tipping Solution For Vehicles H
yva, a global provider of transport solutions for the commercial vehicle and environmental service industries, is launching ALPHA Series, a new range of tipping solutions, for the construction, transportation and mining sectors, which deliver higher transport efficiency and safer operation at lower cost. These next generation front end tipping solutions will be available to customers during the last quarter of 2015 and prior to their launch they will be showcased at several exhibitions around the globe. Performance improvement has been achieved through re-design and re-engineering of the complete hydraulic system, down to the component and sub- assembly level, together with improvements to installation and service procedures. “The ALPHA Series will extend and consolidate Hyva’s record of innovation and leadership in front end hydraulic cylinders. This is the fifth generation of front end tipping solutions which Hyva has brought to market,” explained Jacob Biemond, R&D Director. We are proud that we are maintaining our position of offering the lightest, fastest, most efficient and safest tipping solutions to our customers.” Transport Efficiency, Safety and Reliability In this new tipping solution, hydraulic cylinders are smaller, lighter, stronger, operate at higher pressure and consume less oil. Brackets are stronger, lighter and can be maintenance free. Wet kits have improved knock-off and control options, cylinder mounted tipping valves, new tank and filter options, and, pumps operating at
higher pressure. These improvements deliver faster tipping, shorter cycle times and reduced system size and weight which can translate into more efficient working routines, increased payloads and reduced operating costs. Smaller space installations, quick connections of valves, cylinders and hoses, maintenance free seals and longer service intervals all contribute to lower levels of downtime. Safety is enhanced through re-designed cylinder overlaps and guide systems and new cylinder mounted HT tipping valves with new pressure relief safety. These features reduce the risks of vehicle turnovers and hose bursts. The operator has complete control over the tipping system. Reliability has been improved through a programme of review of every single component. Wherever necessary, components have been redesigned and then tested to satisfy the required lifetime of that component. Environmental performance too is improved through lower fuel and oil consumption.
Extensive field testing in India and China of a variant of the ALPHA Series has validated the benefits of the new solution and attracted praise from customers. Maximum benefits in terms of efficiency and reduced operating costs will be achieved with installation of the complete hydraulic system. Tipping Solutions Customised to Market Segments Construction, C-Line: Allrounder and Heavy duty Rigids for both On-road and Off-road applications Transportation, T-Line: Allrounder, Heavy duty and Silo Trailers Mining, M-Line: Heavy duty Rigids Hyva’s unrivalled customer service and after-sales support comes as standard too. For truck manufacturers, body builders and end users who are all keen to find the right solution for their specific tipping requirements, ALPHA Series from Hyva delivers a market driven solution for every tipping application. n
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Feature
Lift-off
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onstruction Equipment (CE) are the backbone for any project. They are most required if you need to ensure safety, complete the project on time and make your project technically strong. The construction equipment market over the years has been witnessing both ups and downs in terms of demand. Today, it is not unknown that the CE market is seeing a year-on-year growth, thanks to the emphasis of the government to clear stuck projects as well as introduce new projects to get development going. These new projects have attracted interest from construction companies for new and pre-owned equipment to fulfill the norms while applying for project tenders. While the new market is already witnessing good sales numbers, we tell you how the pre-owned CE market is benefiting and in turn, how buyers too are reaping maximum benefits by buying used equipment.
After three years of sluggish growth due to an economic slump, the CE industry is on a growth path again. As per data from SIAM (Society of India Automobile Industry) the ratio between new and used CE is 1:1 which means every time new equipment is sold, pre-owned CE is also sold. It sometimes becomes difficult to identify the players who offer the best range of used CE to choose from. Whether to search online or visit your nearest dealer is still a topic of debate as some prefer online while others prefer to go to a dealer, see the equipment and then make a purchase decision. Finding Out The Most Trusted Player For Buying Used Equipment There are a number of players who claim to offer the best line up of used construction equipment in India. What makes Shriram Automall different is it comes from one of India’s most Trusted Group - Shriram Group. The company, within a span of just five years, has become India’s leading service provider
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for the exchange of pre-owned vehicles and CE. The CE business with Shriram Automall is seeing a y-o-y increase with excavators, loaders and backhoes being the most in demand. Most construction business owners now prefer to search for used CE instead of going for a new one as it has a major difference in price. Built on the bedrock of trust and transparency, the pre-owned CE segment of Shriram Automall is riding on a positive growth track. CE does not only make it easier to complete projects but also ensures the efficient use of labour, time and money. Shriram Automall caters to every need with a wide variety, including hydraulic excavators, wheel loaders, loader backhoes, cranes, motor graders, crawler tractors, piling rigs, forklifts, off-highway trucks and other mining machinery. The company has now started its voyage towards capturing the interests of international buyers.
Shriram Automall, after the new Union Budget for 2016, aims to capture a large share in the market as the government has allotted huge amount towards construction of new highways and road networks all over the country. With this big push provided by the government the construction business owners are also positive about buying both new and used equipment to make their bid for acquiring new tenders. Other government initiatives including the Make in India campaign is also providing the required boost. For its customers, the company offers various platforms for buying and selling used CE. However, a private treaty is the most preferred platform for closing deals. With a personalised approach and negotiated deals, every need is fulfilled with customised solutions through private treaties. Over the years, Shriram Automall has acquired a significant amount of share in the organised market for trading of used CE and has facilitated transactions worth Rs 1000 crore. The company has become a one-stop solution for people who want to buy used equipment in the most organised and transparent manner.
the private sector and the rest 60 per cent from government-funded projects. Around 45 per cent of infrastructure investment will be funneled into construction activities. These huge investments in the segment will be the main drivers of growth for the industry. The recent union budget was also majorly focused towards reviving the infrastructure of the country and has allotted a huge budget for construction of new roads and highways. India has globally become one of the key potential markets for construction equipment. Construction market contributed nearly 7 per cent to India’s GDP and is further estimated to increase to 8 per cent. Further, by 2025, India’s construction market is expected to emerge as the third largest in the world, which would exhibit huge demand for construction equipment in the coming years. With the new CE market now on track, Shriram Automall expects to increase its sales since even during the sluggish period, demand for used equipment remained rock solid. Now with these new measures, the company is hopeful for many good years ahead in terms of demand for used CE.
The Market Point Of View After three years of sluggish growth due to an economic slump, the CE industry is on a growth path again. Coming out of three years of de-growth, the industry is stabilising this year and is gathering momentum for the next few years, thanks to reforms and policy measures in the infrastructure sector. Initiatives of the new (central) government have made the macro parameters favourable to the industry. With the economy reviving and inflation under control, some reforms such as opening up the insurance and defense sectors for more FDI (foreign direct investment) will lead to more infrastructure projects requiring equipment in India. An investment of $1 trillion has been projected for the infrastructure sector until 2017 around 40 per cent of which is to be funded by
Why Visit Shriram Automall For Buying Used Construction Equipment Whether it is purchasing used equipment or maybe used trucks, owning a vehicle is not a tough task now. Today, when people are slowly and gradually shifting towards better lifestyles, their mindset and ideologies are also changing. Today, people know that purchasing a used vehicle won’t damage their pride and prestige. Besides a wide range of vehicles and equipment, the company also serves various platforms for easy acquisition and disposal of vehicles and equipment. The physical bidding platform is the most popular platform considered on the grounds of transparency and fair deals. But being an easy and instant platform in terms of market reach, online bidding has now gained much required momentum over time.
The company also has its private treaty platform, where the company serves as a negotiator between the owners of bulk or single assets at a high value and potential customers. Another of Shriram Automall’s unique platform that provides realtime information about pre-owned vehicles for disposal is Shriram OneStop Classified KIOSK. This platform helps individual and fleet operators to interact and strike deals. The kiosk is an interactive machine from where it is easier for users to view and select the vehicle of their choice. These platforms have been presented with high strategic compliance and have proved to be successful among their own niche audiences. From helping the buyers in inspecting the vehicle onsite to enabling the customer to connect with the company from anywhere easily, Shriram Automall has every possible thing a customer would need to have their trust built in a company. Shriram Automall is the only company working towards organising the highly unorganised market dedicated towards exchange of used vehicles and equipment for over five years. Thus, the company has brought forward an innovative approach for the acquisition and disposal of pre-owned vehicles and construction equipment through its unique bidding platforms, especially physical and online bidding along with the private treaty and OneStop Kiosk. Its unique bidding platforms has helped all; OEMs and individuals alike. SAMIL’s professional services has touched the lives of many. Transparent, Efficient, Safe and Reliable That’s how customers regard the bidding process at Shriram Automall. The company has improved the purchase capacity of people in the zone by providing them with a wide range of used vehicles and construction equipment at a fair price through its unique physical bidding platform, combined with easy finance options.
December 2016 | EQUIPMENT TIMES | 55
Insight
Solid Growth V G Sakthikumar, MD, Schwing Stetter, Sales and Services and Chairman, Mechanisation Committee, Builders Association of India, says concrete usage has got a boost with the government’s thrust on building new roads and highways.
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ndian concrete equipment industry has seen a revival at the end of FY15. Concreting equipment industry comprises of concrete pumps, batching plants, transit mixers, concrete boom pumps, separate placing booms, recycling plants. Currently, we have around 1300 Ready mix concrete plants in India. They are present in almost every state in India. There are various categories of players in the RMC sector like MNC’s, corporates, cement manufacturers, retail, entrepreneurs, etc. Starting from a small setup, it slowly moved on to grow because the concrete delivery time window became smaller and smaller due to traffic conditions in India. Customers have started moving to higher capacity batching plants.The trend of storing maximum capacity of aggregate in the plant itself, is making the plants’ land requirement more. Schwing Stetter India has been providing solutions ever since the
beginning catering to these different needs. We command a high market share percentage in India. For example, Schwing Stetter India have introduced products of Recycling plant, new control systems and Self Loading Mixer (SLM). Recycling Plants Schwing Stetter’s RA 12, RA 20 can recycle the concrete at a washing capacity for normal concrete at 12m3, 20m3 per hour. Recycling plant RA 20 will be launched at BaumaConexpo India. The major benefits to RA 12 are easy operation, fully automatic, no wastage of aggregates or raw materials, short vehicle downtimes during cleaning, no disposal costs, exceptionally resistant to wear, variable installation possibilities and low operating costs. Operation of SCHWING Stetter’s RA 12 is based on reverse flow principle. This provides quick intake of concrete. It separates aggregates in various sizes ranging from 63 mm to 0.2 mm.
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Vibrators are available for free concrete flow and aggregate flow. Drum rollers are provided with nylon ring for increased life, maintenance door provided for easy access to wash drum, drive protection cover provided for safety. Typical system for recycling wash water/ aggregate recovery is that the surplus concrete is fed into the washing drum with the help of vibrators in the hopper. Depending on the system, upto two trucks can be unloaded simultaneously. The boom pump delivers water to Transit mixer for washing. Transit Mixer washout concrete discharges into the charging hopper and flows into the drum. The Drum rotates to separate the aggregate and slurry water by reverse flow method. The slurry water gets collected into the slurry tank. The aggregates gets collected through vibrating sieve. The agitator stir the slurry tank in regular interval to avoid deposition. The rinsing pump delivers water to drum through vibrating sieve and charging hopper. Batching pump delivers slurry water to batching plant for concrete production. Schwing Stetter are the best in the next generation - recycling plant. RA 12 offers easy to use, low noise equipment wherein it separates aggregates and slurry from the concrete to be reused. The major benefits of concrete recycling are keeping concrete debris out of landfills saves landfill space, recycled gravel reduces the need for gravel mining and using the recycled concrete as the base material for roadways reduces the pollution involved in construction, satisfying legal authorities guidelines of not allowing waste water containing cement slurry should be allowed to be
flushed into municipal drains, minimum payback period of capital investments made on RA 12 system. New Control Systems for Batching Plants: Schwing Stetter India is the only company with an inhouse electronics and automation for concrete batching plant. The latest advancements are: 1. Membrane keypad control to reduce the control cabin size 2. Automatic calibration to reduce the consumption of calibration time. The automatic calibration will be completed in less than a 5 min as compared to the manual which will take a complete shift in case of a H3N plant. 3. Optional SMS of alerts like alarms, production status. 4. Continuation of previous batching OR interrupted batching after power recovery (This is only possible in our MCI 360 & 550). 5. Open to connect the control system to ERP like SAP, etc., 6. Networkable with our Schwing 996 weigh bridge. This feature is not available with any of the competitor’s product. Maintenance scheduling and 7. reminders 8. Any weigher, any slot configuration (can be done by configuring the software) 9. Optional GPS support to plan the production. Self- Loading Mixers: Our Self Loading Mixers are playing a vital role in concrete road construction in many villages. Schwing Stetter India’s Self-loading mixers are in the capacity of 2m3 and 4 m3 capacities. Stetter Self Loading mixer is off highway rough terrain machine which can be operated by one person. The machine comes with electronic weigh batching and has a typical concrete output of 8 to 14 m3 / hr. Stetter Self Loading mixer is a 4 cylinder, water cooled with turbo-charged after cooler diesel engine - 80.9kw @ 2500 rpm.
The latest advancements in the RMC sector is to reuse flyash, GGBS and left over concrete from mixer, pump and plant. The total cement and steel production accounts for almost 19-20 % of CO2 emissions in India. Due to exponential growth in urbanization and industrialization, byproducts from these industries such as Ground Granulated Blast furnace Slag (GGBS) are becoming an increasing concern for recycling and waste management. At the same time, studies have revealed usage of GGBS in concrete as a partial replacement for Ordinary Portland Cement (OPC) that have increased the compressive strength, tensile strength, durability and decreases the permeability, embodied energy and cost per cubic meter. The numerous advantages of industrial byproducts, Ready-mixed concrete (RMC) industries have partially replaced the cement with Fly Ash, GGBS, ultrafine GGBS or Silica Fume, which are by-products of other industries. The acceptance level for blended cements and concretes in India is increasing because of inherent mechanical properties of mineral admixtures and easy availability in southern and western markets. GGBS blended concrete have been used successfully in concrete for many years in many countries throughout the world were structures have to be
designed for durability requirements in a very aggressive environment. Nowadays along with cement, ingredients like fly ash, GGBS, micro silica are also used in producing concrete. There is a lot of cost savings for a RMC unit in reusing these byproducts. Schwing Stetter batching plants have necessary provisions to handle all these materials. Also our recycling plants recycle the leftover concrete and slurry making the RMC unit operations sustainable. Conclusion Concrete usage across industries has seen an upward growth trend through the government’s push for the roads sector. 2016 is a very good year for projects in roads and highway sector in India. It has offered substantial sale of batching plants for concrete road construction in India. With respect to the new road projects upcoming in India, it is not only time bound, the customer looks for equipment which are easy and fast to erect and also to dismantle, assemble, transport and erect from one side to another. To conclude, the market volume has increased for all the concreting equipment in the sectors of road, railways, power, irrigation and in real estate. We anticipate project based concrete equipment requirement n to grow further.
December 2016 | EQUIPMENT TIMES | 57
Feature
ExxonMobil has introduced a new digital knowledge center to help industrial operators. E xxon Mobil introduces industrial lubricants digital knowledge center via new website • Extensive catalog of equipment maintenance best practice tips and industry insights on the newly redesigned mobil.com/industrial. • ExxonMobil lubrication experts provide insights to help equipment owners across a wide range of industries stay on top of current trends and improve equipment performance. • Website’s improved search and filter functionality helps visitors more intuitively find product, application and service information with streamlined navigation and menus. To help industrial operators more easily find the information they need to properly protect their equipment, ExxonMobil has introduced a new digital knowledge center full of educational content on its redesigned Industrial Lubricants website, mobil. com/industrial. Available via the website’s Technical Resources section, visitors have access to best practice maintenance tips and key insights on industry trends that are impacting a wide range of industrial sectors, such as general manufacturing, mining, oil and gas, power generation and food and beverage.
This content includes: • Expert Answers – Taken from ExxonMobil’s Mobil SHC™ Club industrial lubricants community, these short articles answer a range of lubrication-specific questions sourced from real customers • Industrial Application Expertise and Tips – A mix of in-depth articles and quick tips authored
by ExxonMobil field and technical experts providing best practice guidance on critical lubrication topics, such as safety, used oil analysis and lubricant selection • Industry Insight – Also authored by ExxonMobil experts, these industry trend articles outline “big picture” considerations that can help industrial operators enhance productivity and profitability • Success Stories – Real-world case histories showing how customers across a range of industries captured substantial benefits with Mobil-branded lubricants and ExxonMobil’s field engineering support “Successful industrial companies value working with ExxonMobil because they know we have the expertise to help them make informed maintenance decisions that can enhance operational safety, reduce environmental impacts and boost their productivity,” said Chima Eze, global industrial lubricants brand manager
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at ExxonMobil. “The new educational content available in our redesigned Industrial Lubricants website supplements our field engineers’ work to help industrial operators, managers and equipment maintenance professionals to stay on top of current trends and achieve their equipment goals,” Eze said. This new content is part of a wider range of enhancements to the new Industrial Lubricants website. For example, the site offers improved search functionality where visitors can simply search for equipment builders, lubrication specifications, and topics, to find the product and service information they need. The site also includes responsive design to optimize the viewing experience on any device. To learn more, please visit ExxonMobil’s Industrial Lubricants website at mobil.com/industrial. to support the communities where they operate and pledges to maintain the highest ethical standards, comply with local laws and respect local and national cultures. n
Interview
Backhoe Loaders: Loaded for Action
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ome say that Mahindra EarthMaster Backhoe Loader is the most important construction equipment available. The EarthMaster is actually three independent pieces of construction equipment i.e., tractor, loader and backhoe - all of it combined into one unit. The three individual equipment are suited to do various sorts of work. Mahindra EarthMaster’s tractor mode is designed to move easily over rough terrain. While the loader is attached in the front and is designed to do several tasks like picking and carrying large amounts of loose materials from one place to the other and pushing dirt, third is the backhoe which is attached at the back and is used to dig up hard and compact material, usually earth or heavy loads. The Mahindra EarthMaster has three segments i.e., boom, stick and bucket.
application of the Mahindra EarthMaster is digging a trench with the backhoe and then filling it back with the loader. Apart from performing the above mentioned basic tasks, Mahindra EarthMaster has other benefits as well. In fact, Mahindra EarthMaster is one of the most useful multi-purpose machinery and is known for its versatility on any construction site. While the most common uses of this machine are digging ditches, laying pipes, planting underground cables or laying the foundation for buildings and drainage systems, with few additional attachments, they can do much more. Other benefits of Mahindra EarthMaster Apart from the above, various others attachments can be easily attached to Mahindra EarthMaster to perform
Primary benefits of Mahindra EarthMaster Mahindra EarthMaster as a tractor is used to move the other two components from one place to another. As for the loader and backhoe, when you dig up a lot of dirt to make a hole, you generally require a loader to either move the dirt out of the area or to fill it back when the work is done. Thus, the most common 60 | EQUIPMENT TIMES | December 2016
some of the most difficult tasks at the job site such as rock breaking, dozing or levelling the ground, etc. Thus, it can be put to various uses. Mahindra EarthMaster is a substantially faster machine loaded with other features that lead to far greater productivity such as banana Boom with 7% more reach, Ergonomic layout and seating – all controls are smooth and easy to reach, A new age digital cluster with telematics helps the operator identify and troubleshoot problems. Operators in different regions of India can read messages and hear warnings in 6 different languages. Audio-visual warnings. In-built radio etc. Cost of backhoe loaders in India Keeping in mind the extensive usage and demand, one may think that the cost of Mahindra EarthMaster in India would be way beyond their capacity. However, the truth is different. Mahindra offers backhoe loaders at competitive and affordable prices. Moreover, the overall cost of operations with the Mahindra EarthMaster is quite lower leading to saving of upto 7.5 lakhs in 4 years. So, what are you waiting for? Employ Mahindra EarthMaster at your construction site and reap the benefits of n this magic machine.
Company Profile
The cost of loading and unloding goods can be calculated precisely and is exactly definable. G andhi Automations, India’s No.1 entrance automation and loading Bay Equipment Company. This widely recognised position has been achieved over years of hard work, innovation, commitment to quality and reliable customer service. The company is also proud to be certified to ISO 9001 : 2008. Since its inception in 1996 we have been manufacturing, importing, distributing and installing products that are problem free and easy to operate. The company offers complete logistics solutions by providing dock levelers, dock shelters, sectional overhead doors and dock houses. electro-hydraulic, mechanical and airpowered dock levelers offered by Gandhi Automations are not only “a bridge for connecting a vehicle”, but also facilitate fast, smooth and safe transition by compensating the difference in heights between the loading bay and the vehicle. This contributes to minimizing energy used and savings on heating and chilling costs resulting in maintaining the quality of the transported goods. Dock Levelers offered by Gandhi Automations are designed as per EN 1398 standard for the most demanding loading and unloading operations. Efficient loading and unloading the goods The importance of efficiently loading the goods has always been evident, and it has increased over the years, essentially for two reasons: the lesser availability and the higher cost of manpower. Consequently lesser qualified manpower is being utilised which leads to damage in the goods. The cost of loading and unloading the goods can be calculated precisely and is exactly definable, which allows for a scientific approach to find out the
investment that goes into the process. Gandhi Automations has always designed solutions based on such scientific approach and feedback from clients. The dock levelers offered by the company ensure loading and unloading with lesser effort and minimal cost. It is possible to load and unload your products in a safe way and in the process obtain remarkable energy savings. The loading bay remains with the Dock Leveler in rest position and the Sectional Overhead Door closed, until the vehicle is positioned. The driver drives back centring to the Dock Shelter and stops the vehicle the moment it gets in contact with the bumpers. The Sectional Overhead Door is then opened only when the vehicle is positioned, brakes applied and engines shut off .This eliminates the exit of hot air, intake of cold air (or the opposite in hot and inside conditioned places) and intake of exhausting gases in the warehouse. After the Sectional Overhead Door opens, the lip of the Dock Leveler connects to the truck bed for loading / unloading to
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take place. At the end of the loading/ unloading the Dock Leveler is put in rest position and the Sectional Overhead Door is closed, without moving the vehicle. The vehicle then departs at the end of the process. Following are the two types of Dock Levelers Radius Lip Dock Levelers Radius lip dock Levelers allow the dock to connect with the truck bed, thus making it possible to drive directly on and off with forklift trucks etc. The self-cleaning lip hinging system does not retain rubbish with automatic endof-run, so as to keep the 25 mm security distance between the folded lip and structure as per EN 1398 & EN 349. Telescopic Lip Dock Levelers Telescopic lip dock levelers are ideal for connecting vehicles unable to drive near dock i.e. sea containers, side loading railway wagons etc. These types can be supplied with a lip extending up to 1 m. Gandhi Automation’s Dock Levelers are equipped with the most secure safety n devices and accessories.
Feature
Click + Shift The online model makes renting and sale of equipment easy and hassle-free.
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ith the rise in internet and mobile phone penetration, India has witnessed digitisation in almost all walks of life and business. While some sectors have embraced the digital economy as the new way of life – think movie ticket booking – others, like online pharmacies and groceries, are taking their own sweet time to make this shift. And while technology has been disrupting the way most of the businesses operate, the construction and mining sector has been quietly going on with its traditional way of conducting business. However, all this is about to change – online players are coming up, aiming to revolutionise the construction and mining equipment industry by bringing construction and mining equipment services within the reach of a click. However, each sector comes with its unique set of challenges and problems, and the construction equipment industry is no exception. One of the key issues plaguing the sector is its highly fragmented nature and information asymmetry. This means that most of the transactions happening in the used equipment space happen in a localized manner and without any means to ascertain fair market price of the asset. Online players aim to solve this by digitising the entire life-cycle of the construction and mining equipment, and bringing information on asset availability and valuation within the reach of end users. Furthering the cause of ‘Digital India’, online platforms today provide a nation-wide audience to buyers and sellers, thereby fetching the best possible price for assets and services. Going forward, this will not only help consolidate this highly fragmented market but also facilitate fair price discovery of used equipment
by eliminating information asymmetry and providing a wider market access to users. Secondly, when compared to their counterparts in developed economies, CE owners in India have traditionally seen very low machinery utilisation rates - primarily due to low rental penetration. Again, the online model makes renting and sale of equipment easy and hassle-free for both parties. Thus, by enabling easy access to certified equipment across the country, the online way aims to increase utilisation rates of machinery across the board, thereby reducing the payback period for all stakeholders. Another problem plaguing the used equipment industry is lack of transparency. Most of the transactions currently happen through local brokers, without adequate paperwork to safeguard the interests of both the buyer and seller. A research conducted by our team suggests that almost 90% of the transactions in the used equipment space did not have adequate paperwork and contained some proportion of unaccounted cash payment. Leveraging deep domain knowledge, serious online players in this space can provide customised and legally vetted sale contracts for all transactions carried out through the platform, thereby safeguarding the interests of both parties. Today, few online players also provide integrated valuation and certification services to ensure fair and transparent dealing. With the infra and construction sector witnessing huge growth, lack of certified and qualified manpower is another key issue plaguing the industry. To address this issue, the online players have also developed a dedicated platform to promote skill development in this space and aid
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the process of recruitment and hiring of manpower. There are tie ups with multiple operator training schools and this will serve as an avenue for students of these schools to gain meaningful employment. Aimed at resolving the demand supply mismatch in the operator space, skill development and manpower recruitment has become a strategic priority. Certified operators can register themselves on an online platform and upload information like experience, certifications, expected salary and availability. The online platform is actively used by prospective employers to contact and hire candidates that meet their specific requirements. Driven be deep industry experience of its core management team, some of the online players are leveraging technology to usher in a new tomorrow for the verygrounded construction equipment industry. Online platforms today have thousands of assets listed for sale and rent. Going forward, there are plans by online players to increase the number of offerings, including an e-auctioning platform. With its aim of generating value for all stakeholders, big or small, in the construction equipment industry including manufacturers, dealers, corporate companies, end-users, operators and mechanics, the online players seem to have hit the nail on the head and aiming to disrupt the way the industry functions. Don’t bet against it happening. The author is Debnil Chakravarty, Chief Business Officer, iQuippo, a digital marketplace for equipment sale and rental
Project Profile
MB Crushers for Excavators Helps PMGSY Rural Roads Project
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he development objective of the Pradhan Mantri Gram Sadak Yojana (PMGSY) Rural Roads Project for India is to support the strengthening of the systems and processes of the national PMGSY rural roads program for the expansion and maintenance of all-season rural access roads, resulting in enhanced road connectivity to economic opportunities and social services for beneficiary communities in the participating states. We are in Phulbani district, deep inside Odisha on the eastern front of India. It is a road project of 15kms long, PMGSY promoted by government to connect interior rural areas by motorable road. The site being far away from any quarry, cost of transportation of crushed stone for GSB (Granular Sub-base) was huge.
Our customer’s experience: Our Indian customer was interested in a MB crusher bucket as stone was readily available near the site on both sides of the road, as it passes through a hilly region. The site is far from any quarry and cost of transportation of crushed stone for GSB (Granular Sub-base) was huge. BF90.3 crusher bucket, suitable for excavators starting from 21 tons, was an attractive proposal for the customer, since crushing the stones directly on site and immediatly reusing it, he can really save a huge amount of transportation costs. Currently, our customer uses a rock breaker to break-up the big boulders into size less than 350mm and then crushes down to 40mm using MB BF90.3 Crusher bucket.
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MB Crusher BF 90.3 is designed to resist the most difficult conditions of the work place and the abrasiveness of certain materials; each individual part of the bucket is designed to simplify any intervention directly on site and to minimize maintenance operations. MB Crusher and Screening bucket are designed and built with HARDOX to perform under most difficult conditions, crushing blue metal like Granite, Basalt etc. MB Crusher is the pioneer in the world for designing and manufacturing Crusher bucket, and has supplied more than 10,000 such buckets across the globe. Visit MB Crusher at BAUMA CONEXPO INDIA, a 4 day event being held from 12th December to the 15th December 2016 in Gurgaon, India. n
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March 7–11, 2017 | Las Vegas Convention Center | Las Vegas, USA
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Special Feature
Waiting for the Wind in the Sail Despite the current inactivity, the mining sector, over the long run, is expected to see exponential growth, thereby boosting mining equipment sales.
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he volatility in commodity prices showing continued downward trends, and the not-so bright prospects in the short term for the mining sector has led to a stronger focus on performance improvement and cost efficiency throughout the entire value chain of mining sector. This in turn, has revived the potential for advanced mining technologies which augurs well for the mining equipment manufacturers, at least, in the long term. Almost 80 percent of India’s coal is produced by Coal India, the biggest coal producing company in the world. Coal India has planned to gradually increase its annual production of coal from 536.50MT in 2015-16 to One Billion Tonnes by the year 2019-20. To ensure the government’s 2020 target is met, it Coal India has set a target for itself: To produce 900 million tons by 2020. To do that, it plans to invest Rs 57,000 crore over the next five years. So far, mine/projects have been identified to produce about 908 MT and for balance to reach 1 Bt is underway. Roadmap prepared by CIL to substantially enhance production of coal by 2019-20 includes capacity addition from new projects, use of mass production technologies and identification of existing on-going projects with growth potential. CIL has already taken a number of actions to promote cleaner coal technologies like use of surface miners and dispatch through merry-go-round/conveyors etc. Market Scenario India is the world’s third largest producer of coal and has the fifth-largest reserves globally. According inputs from
VDMA during 2001-02, open cast mining contributed to 82% and underground mining contributed to 18%. During 201415, open cast mining was approximately 91% and underground mining was 9%. Underground mining in India has not been developed due to lack of new underground technologies. SCCL has commenced production from the first of its kind in India, Long wall technology in Adriyala Shaft Project in 2014 with a rated capacity of 2.81 MTPA capacity imbibing international standards. Since 2011, the exports of processing equipment are reduced by 1/3 up to now. It is not probable that the need for processing and beneficiation of minerals is reduced in the same scale. Beside this fact, it is amazing that no extraction technology has been exported to India for years. In this respect it is of importance that there are not so many underground operations in India but the need for mechanization of underground mining is still essential. The overall heavy equipment market for FY 2015 was estimated at USD 2.8 billion. Close to 85% of the new equipment is financed. The heavy equipment finance business is estimated tat US$ 2.35 to 2.38 billion for the year FY2015. Used
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equipment finance is still at a nascent stage – lack of proper guidelines for the usage of used equipment, non-uniform tax structures and difficulty in moving the equipment from one state to another is a major issue in India. Wind in the Sail According to Balvinder Kumar, Secretary Mines over the past year, Government of India has made significant efforts to accelerate the growth of the mining industry through speedy clearances, transparent auctions and creating an exploration fund. A diverse set of mineral resources (especially nonfuel minerals) is essential raw material to power the growth of the manufacturing sector in the years ahead and is likely to be a significant determinant of the success of the ‘Make in India’ initiative. The mining sector currently contributes 2.4% to India’s GDP and the government aims to increase its contribution to GDP by another 1% in the next 2-3 years. Over the coming years, India will need to strategically develop joint partnerships with existing global players to secure assured supply of critical minerals. “India not only needs to garner
minerals underground but must also harness its human capital pool to achieve full potential in the mining sector,” stated Mr. SBhattacharya, Chairman cum Managing Director, Coal India. The natural resources sector in India is quite nascent compared to the immense opportunities it holds to support the growth of the country. Currently the mining industry contributes around 2-2.5% to India’s GDP. Swift progress in introducing regulatory reforms by the government has improved the investor sentiment in the sector, stated Tom Albanese, CEO, Vedanta Limited. According to him India remains the fastest growing major economy in the world. In many ways India is becoming a hub of global innovation and has a robust plan in place for the process of urbanisation. To grow on a large scale, India must become a key part of the global supply chain and be independent of its energy and natural resources needs. Most of the major miners have geared up for mid to long-term expansion, introduction of new underground mining apart from replacement and fresh purchase of new systems or gadgets. Major players such as Coal India, NMDC, Singereni Colleries, NALCO, HCL,
and Essel Mining have already laid out plans for enhanced procurement and deployment of MDOs or new technology. According to inputs from Mr. SK Dash, Executive Director (P&T), Nalco, the company is already eyeing for MDOs for its upcoming unexplored bauxite mine development project at Patangi, as well as expansion project at the existing mine in Odisha. “We have substantially reduced finalisation timeframe for global tenders – from 2 years to 9 months,” stated Dash. Over all, there has been a renewed optimism and determination to optimize resources and make mining a robust engine of economic growth. On the mineral front, according to the study conducted by the Council on Energy, Environment and Water (CEEW), a leading policy research organisation, twelve critical minerals could play an important role in the success of the Make in India programme and the sustainable growth of the Indian economy. These critical minerals would also play a role in nurturing the domestic manufacturing capacity to support the government’s lowcarbon plans, such as the 100GW solar target, faster adoption and manufacturing of hybrid and electric vehicles, and the national domestic efficient lighting programme. Increasing Efficiency FDI in the mining sector is definitely going to bring about changes in the purchase selection criteria. Reputed and major contractors are already well aware of the global best practices and they are already attempting their best to adopt such practices in India. With more and more FDI in this sector, India is going to see more on technological and higher grade of safety parameters of the equipment, enhanced emission norms, higher category of infrastructure, reliability and capability, both in terms of the machine and product support, training etc. An increasing number of companies are registering a rise in customer enquiries. Some sectors are also developing new areas of business, for example in hardrock mining. They assume that demand for the raw materials extracted in hard-
rock mining will increase substantially as a result of a global expansion in alternative methods of energy production. Manufacturers see the need for raw material producers to reduce costs as a further cause for optimism, since this can only be achieved by increasing efficiency. There is a very good potential for underground mining, especially in coal as this minimises the environment issues. In the last five years high capacity Room & Pillar systems as well as Long Wall systems have demonstrated their capability in CIL subsidiaries, due to which CIL has earmarked several mines for design and development by UG method in the next five years. Tenders/orders for a few UG projects are underway. A few UG coal blocks will also be auctioned for bidding by private end users of cement, sponge iron etc. Caterpillar ( Bucyrus) currently have five sets of R&P systems and one Long Wall system operating in SCCL SECL & ECL. SCCL R &P system has been in operation since last five years, established very good production benchmarks. Future Prospects Off-Highway Research is very bullish on the prospects for all types of mining equipment such as dump trucks, dozers, excavators, mobile compressors, motor graders and wheeled loaders. The industry feel that in the long term the expected growth in mining is going to positively impact the demand surge for mining equipment and machinery. The increase in coal and mineral production would require a large number of equipment for opening new mines and enhancing production in existing mines along with replacement demand. The industry is hopeful about the revival of mining sector which will see a great upsurge in the next ten years. There is huge gap between the demand and supply of coal. To achieve the huge demand for coal mining companies have already started enhancing production and usage of new equipment will increase, especially among Tier 1 and Tier 2 contractors. With increased focus on captive mining, demand for large excavators and higher capacity wheel loaders for coal mining is sure to go up. n
December 2016 | EQUIPMENT TIMES | 69
Company Profile
Puncture Proof Tyres For Heavy Duty Applications T
After fuel,tyres represent the highest operting cost.
yres are the only connect between the vehicle and the terrain hence ensuring that tyres are reliable, safe, performance worthy anytime and every time, is critical specially for heavy duty applications such as construction, industrial plant, mining, recycling, scrap handling etc. Besides, as tyres represent the highest operating cost after fuel, understanding tyre related global best practices and emerging concepts is essential. We wish to introduce and explain to the readers contemporary punctureproof tyres and technologies that reduce TCO (total cost of ownership) and CPH (cost per hour). Semi Solid Industrial Tyres: Developed specifically to address the problems of frequent punctures and fast wear encountered by industrial vehicles/equipment used in demanding service environments and difficult underfoot conditions. These semi-solid tyres are airless thus puncture proof, have an extra deep tread for long, uninterrupted service, with specially designed sidewall apertures to provide shock absorption and ride comfort. These are available in a range of patterns to suit various operating conditions and supplied as ready to fit tyre & wheel assemblies for easy replacement. Product Features & benefits: • Puncture Proof • Zero Downtime • High Safety - no danger from blowouts • Long Life – 4-5 times that of pneumatic tyres Semi-solid tyres are suitable for industrial equipment with a maximum operating speed of 25 Km/
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hr, such as: • Aerial Work Platforms such as Manlifts, Boom lifts & Scissor Lifts • Back Hoe Loaders • Skid Steer Loaders • Telehandlers • Wheel Loaders PU Foam Filled Tyres: Tyre Filling is a process in which a pneumatic tyre is injected & pressurized with a special 2 component urethane polymer in a precise proportion using a special metering pump. The polyurethane cures into a soft, resilient, synthetic rubber core replacing the air in the tyre. The resultant filled tyre is thus rendered puncture proof and maintains the required pressure throughout its service life. PU Filled tyres have a full footprint & are capable of carrying their rated load at all times. The soft core is designed to provide a ride similar to air filled pneumatic tyres. Product Features & benefits: • Puncture Proof & Maintenance Free • Enhanced Man & Machine Safety • Better Ballast in overload conditions • Extended Limp-in Capability Suitable for vehicles with a maximum operating speed of 90 Km/hr & Industrial equipment for which semisolid tyres are not available Typical applications: • Access Equipment
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Defence & Paramilitary Port & Harbour Open Cast Mining & Quarrying Steel Mills Underground Mining
Semi-Solid Tyres & PU Filled Tyres offer the following long term benefits: 1. Zero Tyre Maintenance: No punctures and elimination of periodic tyre pressure checks 2. Lower Operating Costs: Direct Puncture Costs & puncturerelated costs such as machine downtime, operator idle time and operational delays are automatically eliminated. While Semi-Solid Tyres cost about 3 times the price of pneumatic tyres, it is important to note that they are puncture-proof and their life is four to five times that of pneumatic tyres thus offer a lower CPH. 3. User & Equipment Safety: SemiSolid Tyres/ PU Filled Tyres significantly improve occupational safety as there is no possibility of tyre blowout related accidents 4. Maintenance of Operational Tempo: The elimination of punctures allows sustained, continuous use of the equipment in any operating environment. Tyre Damage does not cause delays or stoppages
5. Damage Resistance & All-Terrain Utility: Abrasion & cuts do not affect structural properties and stability of the tyre, thus offering a high degree of failure-resistance in severe service conditions 6. Stability: The added weight augments balance & ballast properties. This provides stability when negotiating gradients and uneven terrain 7. Ease of Installation: Semi-Solid Tyres are supplied as ready to fit Tyre & Wheel Assembles. No special mounting equipment is required and the entire assembly can be hand mounted in a few minutes 8. Inventory Management: Fewer replacements mean that costs associated with re-purchase, downtime, inventory and repair are significantly reduced Ideation to implementation: Trident has developed application specific, outcome orientated products and solutions to assist machine owners & operators get the best out of their equipment in the most demanding conditions. Our products are distributed in over 25 countries which include the Americas, Europe, Africa, the Middle East and Asia-Pacific. n For further information please visit www.trident-intl.com or write to ankit@trident-intl.com
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Company Profile
Bringing together international construction and engineering industry
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rom the 11th to 17th of April 2016, with over 580,000 visitors from 200 countries and more than 3,400 exhibitors, Bauma was once again successful at bringing together international construction and engineering industry players in Munich. Taking place once in three years, Bauma is the world’s largest and leading Trade Fair that represents all branches of industry and sectors, and is organized into categories such as construction machinery, buildingmaterial machines, mining machines, construction vehicles and equipment. As the heartbeat of the construction industry, this is where new innovations are showcased, a place where suppliers and solution come together perfectly. Putzmeister has been an integral part of this iconic innovation journey through the years since 1965. “Closer to your business” Putzmeister’s presentation area of more than 2,600 m2 included a professionally designed exhibition stand, manned by a dedicated Putzmeister staff who personified its premium brand identity,
establishing closer connections with its customers by proactively understanding their needs highlighted the central theme of “Closer to your business”. Amongst the influx of eager customers and curious visitors, an hourly entertaining video and acrobatic show left them in awe. The legendary “Elephant Night” One of the major events of Putzmeister at Bauma 2016 was its legendary “Elephant Night”, held at Allianz Arena in Munich on the 14th of April. Allianz Arena is a world renowned, one of a kind football stadium in Munich that is widely known for being home to FC Bayern and its exterior of inflated ETFE plastic panels that change colours. Dr. Gerald Karch, CEO, Putzmeister Holding, personally with his team welcomed everybody. The Arena was packed with 700-850 VVIP invitees from around the globe. Food and drinks flowed and with a live Band to entertain, people were soon up and dancing into the promised Elephant Night. Unlimited enthusiasm about innovative
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technology Putzmeister showcased its central launch of BSF 47-5 and PUMI 25-4 in hall B6, while the outdoor area presented the BSA 1409 D4 and 2110 HP D stationary concrete pumps together with the MX 32-4 placing boom. The BSA stationary pumps and the truck-mounted BSF concrete pumps are core products that offer unique concreting solutions for challenging building sites. The Putzmeister Underground Technology (PUC) area was home to the new Wetkret 3 shotcrete machine that enables shotcreting small tunnel sections with difficult access. Visitors were impressed with the new mortar technology products, mainly due to their environmental compatibility. Although a feature at Bauma 2016, these cutting edge products have not yet been introduced in the Indian market. However, the BSF 47-5 is speculated to be launched in the Indian market by 2017. Greener Technology in Europe and India In dedication to its green technology initiatives, all Putzmeister BSA D4 models,
that were presented at BAUMA for the European market mainly, have efficient exhaust after-treatment systems that reduce soluble particles and diesel soot significantly by means of a diesel particle filter and simultaneously reduce nitrogen oxide considerably with the help of “selective catalytic reduction”. By focusing on recent emission “Tier 4 Final” directives in the USA and Europe, engineers at Putzmeister provided competitive benefits to customers through lower fuel consumption and operating costs. The Indian counterpart to this initiative is the ground-breaking achievement of savings of up to 50% oil among the BSA e-smart range’s Open Pumping System (OPS) pumps, that are solely manufactured for the Indian market. The BSA 1404 HD and BSA 1405 D are best sellers in India as they provide customers with life-long savings on every oil change. OPS system features reduced consumption of hydraulic oil to 70-100 litres, leading to almost 3.5 times lesser oil needed when compared to equivalent machines from other brands. Exemplary Customer Care Outstanding customer care and a great atmosphere were constantly delivered by Putzmeister staff and dealers on the stand at Bauma 2016, strengthening customers’ views about the company’s reliability, and cementing sales teams’ efforts worldwide Some Insight about PUTZMEISTER The year 1958 saw the emergence of an innovator, a specialist and a revolutionary in the field of concrete construction equipments. Founded in 1958, Putzmeister kick started its pedestal pace
More than 2000 visitors watching the Putzmeister movie on the dancing screens.
as a manufacturer for building plastering machines. Growth has been only on an escalating mode since its inceptions and is today the world leader and global supplier of concrete machines. As the pioneer of research and development in Concrete pumping technology, Putzmeister offers the latest and most comprehensive range of concreting solutions. The concrete equipment major today has its operations in all major countries of the world and has manufacturing facilities in Germany, Turkey, USA, Brazil, China and India. The German major has already achieved landmarks in both the vertical and horizontal concrete pumping technologies. The stalwart of concrete pumps not just manufactures the most technologically advanced machines but also manufactures one of the world’s largest working Concrete Machine M 70.
Putzmeister’s new BSF 47-5, a tentative addition to the Indian Product portfolio in 2017
Putzmeister Concrete Machines Pvt. Ltd. in India: Excellence Imprinted With the ‘Engineered for Success, Solid Partnership and Experience Paves the Way’ Putzmeister initiated its pace in the India mainland as Putzmeister Concrete Machines Pvt Ltd, a 100 per cent subsidiary of Putzmeister Holding GmbH, Germany. Having its state of the art manufacturing plant in Verna, Goa, the core competency of the company lies in its ‘Products, Quality and Service’. The unit that became operational in 2007 manufactures today an entire range of internationally acclaimed equipments and machineries. From its factory in Goa, Putzmeister Concrete Machines Pvt Ltd not only caters to the domestic market but also exports to Bangladesh, Bhutan, Srilanka, Nepal, and other neighbouring countries as well as South East Asia, Japan, South Africa and the Americas. Putzmeister pumps have been deployed at various prestigious projects and are the first choice of real estate and infrastructure companies across India. Today, the machines are successfully installed for construction of various prestigious projects including metro rail, expansion and modernization of International Airports at Mumbai, Delhi, Kolkata and Bangalore, construction of various Power Plants, Hydro Electric Projects, LNG Tanks, Refineries, Ports, Roads and n Bridges.
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Company Profile
Infrastructure sector in highest demand Sales of constrcution equipment have increased by more than 30 per cent in comparison to the previous year, says Wilfried Theissen, MD, Putzmeister.
What kind of opportunities have these government initiatives generated for the construction equipment industry? Has your company geared up for this massive equipment demand? Between 2012 and early 2015 the market for construction equipment manufactures shrunk by more than 30%. The infrastructure development initiated by the current central government had started to show its positive effects for the industry in late 2015. The sales of construction equipment in comparison to 2015 figures, has risen by an average of 30% between Q1 and Q3 of 2016 and Q4 is looking good too. In our state of the art manufacturing
plant in GOA as well as in our service and sales organization we are perfectly geared up for the potential surge in business. Have you witnessed any jump in sale of equipment this fiscal? How many units did you sell this fiscal? As I mentioned above our sales have increased by more than 30% in comparison to previous year. Our equipment are niche market products and therefore the numbers are not in the thousands but rather in the hundreds. Last fiscal year we did sell about 750 units from stationary-over to truck mounted concrete pumps.
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Which sector does generate the maximum demand for your products? How technologically superior and efficient are your products in this competitive age? The infrastructure sector has been the one which created the highest demand in 2016 and this is likely to continue especially since the already depressed real estate sector got further hit by the demonetization. Putzmeister is a worldwide solution provider and trend setter in the industry. We not only have the best equipment but also the best support and after sales service. What are the trends in the equipment
industry? There are no particular trends with regards to the equipment. However there is definitely a move to more mechanization, which is the only way to speed up the execution and quality of the projects. What challenges do you face in terms of equipment finance, infrastructure, getting skilled manpower? How do you overcome these bottlenecks? The primary challenges will be skilling the people to operate the equipment needed to realize in a timely manner the infrastructure and realestate projects, facilitating credit lines to builders and contractors as well as facilitating the land acquisition. Putzmeister with other members of the industry is a driving force in the IESC initiative helping to skill India’s workforce. Another important challenge will be the profitability improvement of the construction equipment manufacturing industry in India.
What is the impact of present slowdown spell on the company? Has it provided the company an opportunity to fine-tune its operations? If you mean the demonetization I have to tell you that up to now we haven’t really felt the impact but since the real estate market is very depressed about it we anticipate a slowdown in this segment by about 20-30% in the coming 2 Quarters. How excited are you about BC India 2016? Do you have any plans to introduce new products at the event? As always we are very happy to welcome our customers at such an event. There will for sure be some surprises but please allow me to give the “primeur” of this information to our customers. But please visit us at our stand you will certainly be enchanted. What kind of opportunities does the event BC India 2016 generate for your company? How will it generate the momentum for the construction equipment industry?
The main opportunity is to have the possibility to welcome our existing and future customers, to better understand their requirement and needs, and to share our new products and services. I don’t think that a show like this will generate any particular momentum for the industry but it will allow the existing and future customer to see what is available for their upcoming projects. What are your expectations from the government for the sector? Current focus is definitely on the development of roads, bridges, fly overs…the other major development sectors like power plants, ports, airports are lagging behind. In my humble view the 2 main reasons are, problems in land acquisition and availability of financial resources. The Indian banks are cash weak and also still very reluctant to allocate credits to the construction industry. However I’m confident that it will be solved over the coming years.
December 2016 | EQUIPMENT TIMES | 75
Product Profile
SDLG G9138 Grader Launches in India rural development projects have prompted the need for smaller and lighter motor graders.
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his year’s bC India 2016 will mark the official launch in the country of the G9138 motor grader from SDLG. The new unit will help India meet fast-rising demand for road building equipment, giving contractors a lighter and more economical option to help them beat project deadlines. Against the backdrop of rapid infrastructure development and increased government drive for road building, motor graders have become one of the fastest selling equipment categories in India as contractors plan to gear up for project schedules. While SDLG’s established a larger G9190 which has enjoyed notable success in Asia, rural development projects have prompted the need for smaller and lighter motor graders for narrower road constructions. This is where SDLG’s new G9138 will really appeal. “The wellpublicized increase in the road building program has seen a significant pick-up in activity levels. Contractors in the road building industry are under greater scrutiny than ever before,” said Sanu George, business head SDLG India. “In particular they are under pressure to meet construction deadlines and that’s where having reliable equipment – such as motor graders from SDLG – becomes most important. With the new G9138 we are offering a machine that is tailored to the needs of road building contractors in India.”SDLG machines are known for their reliable operation, robust performance and fast return on investment and the G9138 offers all of this and more. The highly maneuverable machine also gives the operator precise control through a fully digital instrument panel that includes electronic monitoring. The integrated
panel also offers straightforward inspection and maintenance. Adding to the motor grader’s operability is its swing frame, which delivers greater flexibility in a variety of work scenarios. The articulating swing frame’s movements allow the blade to generate more power and carry a heavy windrow. It also allows the unit to make turns at more acute angles for close-quarter work or smaller roads. For greater durability and easier operations over, the swing frame’s composite bearing is lifetime lubricated and maintenance-free. With an overall working weight of 12,100 kg, the G9138 is powered by a Deutz BF4M101315T3R/2 Tier III engine that has an output of 111 kW at 2100 rpm. Complemented by a fully Automatic ZF 6WG 200 transmission system which has 7 forward and 3 reverse gears, the G9138 is able to reach maximum forward and backward velocities of 39 km/h and 24.5 km/h respectively. It can
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deliver up to 75.4 kN of traction force. In combination, this delivers power to the moldboard, which is a hefty 3048 mm x 565 mm x 16 mm. The G9138’s blade can cut depths of up to 575 mm and create bank slopes of up to 90 degrees. The sliding range of the blade is 500 mm, while it can be inclined up to 47 degrees forward and 5 degrees backward. Maximum gradeability in travel is 20 degrees. “India is a major area of focus for SDLG and we are continually growing our presence in the country.” said George. “Reliability and uptime are more important than ever, given the work pressures on job sites. We’ve worked hard with our extensive network of dealers to ensure we have the parts and the processes in place to provide necessary and timely support when our customers need it.”This year’s bC India exhibition will take place between December 12 and 15 at the HUDA Ground exhibition space in Gurgaon, Delhi. Visit us as Stall No. n 233.
Half century for GENIE G ENIE, a Terex brand which completed its 50 years of pioneering and being the world’s largest manufacturer of Aerial Access Platforms and has been represented in India by MACO Corporation India Pvt. Ltd. since 2002. GENIE was one of the first products to be offered to the market with complete sales and after sales support and that set the pace for many other products in the MACO offering to the Indian market. GENIE equipment save lives at work places, it keeps people safe without compromising on work execution speed. The GENIE brand of Mobile Elevated Work Platforms (MEWPs) is the preferred choice by any reputed company across the world for work place safety while working at height. It continuous evolution principle has made it the inventor of the highest boom lift in the market the SX-180 which stands tall with a working height of 56.69 m the highest for a self propelled telescopic boom lift.
The quality of the GENIE machine is acknowledged by the simple fact that companies like Nestle, ITC, TATA, Shell, Maruti Suzuki patronise the brand again and again for every access requirement at their facilities. The sturdy build and the easy maintainability of the GENIE machines make it the preferred choice for rental companies as well. We have witness the change over my many rental companies from the other brands to GENIE over the last couple of years. It was a difficult path to tread but the success Is now showing to the owners of these companies who understood what it really means to have the “highest valued lifting equipment” in the market. MACO also has plans to soon come up with a refurbishment centre whereby pre-owned GENIE machines can be given an extended life and at the same time the quality of existing machines in the market can be improved and safety ensured at every
step. MACO has been successful in placing the GENIE brand of machines in every industry and companies like TATA Power, Power Grid Corporation of India, TATA Steel, ABB, Alstom, GE, Nestle, ITC, TATA Power, TATA Chemicals, Indian Navy, ISRO, DRDO, Larsen & Toubro, Shell , Oberoi Hotels, Hyatt, Marriott to name a few. MACO headquartered in Kolkata, has a PAN India presence with a strong network of sales & service network. Traditionally a trading company, MACO evolved into a dedicated sales and service provider for many of the world’s premium & high end engineering goods and solutions. n
ARK& Events & Media Pvt. Ltd. ARK Events Media Pvt. Ltd. S-02, Haware Fantasia Business Second Floor, S-02, Haware Fantasia Business Park, Park, Second Floor, Near Mall, InorbitSector Mall, Sector Near Inorbit 30-A, 30-A, Vashi,Vashi, Navi Mumbai - 400Tel: 703, Tel:650 02267220/22/23/24 650 67220/22/23/24 Navi Mumbai - 400 703, 022 June 2016 June 2016 39 CONSTRUCTION TIMES 39 CONSTRUCTION TIMES
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Interview
Steel is 100 per cent recyclable SSAB Steel is 100 per cent recyclable and its unique properties mean it can be recycled infinitely without loss of properties or performance, says Sharad Rastogi, Director, SSAB India, SSAB Special Steel. What kind of equipment does your company manufacture? SSAB does not manufacture equipment. SSAB is a highly-specialised global steel company driven by close customer relationships and we develop high-strength steels and provides services for better performance and sustainability. SSAB is a leading producer on the global market for Advanced High-Strength Steels (AHSS) and Quenched & Tempered Steels (Q&T), strip, plate and tubular products, as well as construction solutions. SSAB’s steels and services help to make end products lighter and increase their strength and lifespan. SSAB has a costefficient and flexible production system. SSAB’s production plants in Sweden, Finland and the US have an annual steel production capacity of 8.8 million tonnes. The company also has the capacity to process and finish various steel products in China, Brazil and many other countries. In Sweden and Finland, production is integrated into a blast furnace process. In the US, electric arc furnaces are used for a scrap-based production process. In which sector of construction is it useful? • Mobile crane booms and support legs • Loader cranes • Aerial work platforms • Chassis for trailers and trucks • Agricultural machinery
• • • • • • •
Offshore oil rigs Dumpers and tipper bodies Buckets Containers Mining equipment Recycling equipment and tools Wear parts in all kinds of machinery
How does the mechanism of the machine work to ease the work? What are the elements of this machine in terms of its size, weight, portability and fuel used? SSAB has two power brands: Hardox® and Strenx™, which both have a unique global market position. Hardox® is a global leading brand of wear steels designed for maximum payload and longer service life. Strenx™ is a brand covering structural steel products designed for sustainable and lightweight solutions. SSAB’s targeted product brands include: Docol® – the automotive steel, Toolox® –engineering and tool steel, Armox® –protection plate and GreenCoat® –colorful steel. Additionally, five product groups have SSAB in their name includes SSAB Domex, SSAB Form, SSAB Weathering, SSAB Boron and SSAB Laser® Plus. All SSAB steels enable customers to design lighter, stronger and more durable products. In today’s world, how important is it to have eco-friendly equipment in the
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industry? SSAB’s products and solutions is able to significantly reduce the environmental footprint of customers and end-users. Customers using SSAB ‘s High-strength steels uses less materials, which leads to reduced emissions during the user phase through lighter construction and longer durability of products. For SSAB, sustainability is a natural part of our company and integrated into our vision. We are convinced that by managing our business in a sustainable way we will increase the possibilities to deliver strong financial and operational results. One of the most important drivers in our sustainability efforts is the idea that sustainability and performance go hand in hand, relating to our customers’ products and processes. To deliver on our sustainability goals, SSAB is developing new initiatives within our sustainable offering that help us both demonstrate clear benefits to our customers and strengthen our corporate story of creating partnerships for sustainability and performance. Steel is the most recycled material in the world. More steel is recycled than all other recyclable materials combined. SSAB Steel is 100% recyclable and its unique properties mean it can be recycled infinitely without loss of properties or performance. A critical element in reducing carbon emissions originating in the steel lifecycle is to optimize steel recycling.
Specialist in Explosion-Protected Crane Technology S
TAHL CraneSystems ranks among the leading manufacturers of hoisting technology and crane components on an international level and is the global specialist as regards explosion-protected crane technology. Our product portfolio is comprehensive and unique on the global market. The products set high standards as regards innovation, technology and quality. They thus rightly rank as premium products. STAHL CraneSystems occupies a strong market position thanks to its expertise on system solutions and engineering. If a standard product does not meet the customer’s requirements, our committed engineers and technicians organized in project teams will develop a suitable solution. Our hoists and crane components, manufactured in up-todate series production, form the basis for the consistently high level of quality. STAHL CraneSystems’ customers include demanding and reputable EPC companies, machinery and systems builders, crane builders, but also professional end customers. We have at our disposal a close-meshed, powerful network of subsidiaries, branch offices and sales partners to enable us to provide expert support for our customers all over the world. STAHL CraneSystems has always been open to new aspects, innovative and high-performing, without forgetting our social and ecological responsibilities. ASR 7 wire rope hoist – the costeffective standard hoist The ASR 7 wire rope hoist has been especially developed for the load capacity range from 20 to 32 tonnes. It closes the gap between the field-proven wire rope hoist series SH and AS 7. Thanks to the lower load capacity and in some cases lower classification, smaller motors and long-life ropes with smaller
diameters can be used. The bottom hook block and rope return sheave have been adapted to the smaller diameter of the rope. The result is a price saving of around 25 % compared with comparably dimensioned AS 7 with double rail crab. Depending on load capacity and application, the ASR 7 is available in three different FEM classifications. It can be used in combination with double rail crabs on double girder overhead
travelling cranes, or as stationary lifting or towing equipment. The new wire rope hoist is also available as ASRF 7 with frequency-controlled hoist motors for smooth hoisting and step less speeds. The accessories too are convincing: For the first time on the AS 7 series, load measurement is at the rope anchorage as standard. This permits the lifting and lowering motions to be measured accurately and the load to be indicated on a display. ASR 7 wire rope hoist – the advantages Standard hoist with excellent priceperformance ratio Reduced design for load capacities from 20,000 kg to 32,000 kg Stationary design or double rail crabs for crane and systems building Compact construction and short approach dimensions Greater lifting height Accurate load measurement, at rope anchorage as standard Largely maintenance-free, low wear. n
December 2016 | EQUIPMENT TIMES | 79
Feature
Compact Milling machine: In a Class of its Own Customers canchoose from no less than eight models.
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ORO, a milling contractor based in Kassel, Germany, brought the versatility of the W 100 CFi Wirtgen compact milling machine into play when rehabilitating the surface course of a federal highway. The B3 extends over a distance of 755 km from Buxtehude in the north of Germany through to the Swiss border in the south. The job involved milling areas of damaged asphalt on one side of the highway in the vicinity of the municipality of Jesberg in the federal state of Hesse. As the project progressed, a free flow of traffic had to be maintained on the opposite lane. A total of 1,200 m² asphalt surface course had to be removed to a depth of 4 cm. The entire milled area was divided into 13 individual sections, each 3.50 m wide and located at intervals of 50 to 100 m. Maneuverable and versatile but as productive as its big brothers “We decided to use a type W 100 CFi Wirtgen compact milling machine for this job, as it achieves a high area output with low fuel consumption and, with its compact design and maneuverability, can be easily transported from one job site to the next,” explained Alexander Emde, Operations Manager of VORO Straßenfräsdienst GmbH. In the Wirtgen Compact Class, customers can choose from no less than eight models with standard milling widths ranging from 1.0 m to 1.5 m and milling depths of up to 330 mm. Combined with the Flexible Cutter System, milling widths of 8 cm to 1.5 m are possible. The entire machine range – encompassing the W 100 CF / W 100 CFi, W 120 CF / W 120 CFi, W 130 CF /
W 130 CFi and W 150 CF / W 150 CFi – delivers on performance and economic efficiency. It covers classic small milling machine applications such as partial road repairs as well as the removal of entire road pavements – a task which is normally the preserve of large milling machines. Wirtgen compact milling machines are therefore not only extremely versatile. In combining the advantages of the large and small milling machine classes, implementing a uniform operating concept and, in particular, incorporating pioneering control technologies, the Wirtgen compact class is now one thing above all: The next step in the development of cold milling. Effective operation and increased performance The Wirtgen W 100 CFi is equipped with a powerful, 257-kW diesel engine and, despite its high capacity, meets the stringent requirements of the exhaust emissions standards EU Stage 4 / US Tier 4 Final. The drive unit is designed
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for a maximum milling depth of 33 cm. The mechanical milling drum drive transmits the engine torque to the milling drum with a high degree of efficiency. “Wirtgen’s Generation X pointattack cutting tools cut through the 4-cm surface course with ease and produced very smooth and excellent milling results,” reported Sigbert Werner, milling machine operator with VORO. “The noise insulation on the machine is also very good. The engine runs very quietly at full load,” commented Werner. In addition, the driving dynamics package supports a travel speed of up to 7.5 km/h, enabling the machine to move swiftly to the next surface to be milled. As the entire job site extended over a 1.2-km stretch, this was essential to ensure a fast milling procedure. New control technology sets standards The new operating concept with a multifunctional armrest and fully integrated LEVEL PRO PLUS leveling
system guarantees optimum milling results. After all, it leaves the operator free to focus almost entirely on the milling work itself. “After a brief induction on the brand new control system, the machines are a great deal easier to use than ever before,” commented Sigbert Werner, describing his experiences with the new operating concept. One highlight is the ergonomic multifunctional armrest. This is used to show all important information – including the compilation and visualization of job data – in color on the operating display. Four “favorites” buttons integrated into the armrest can, for example, be programmed with any of 20 different functions. In addition to the steering wheel, the operator also has access to an extremely sensitive, fingertip steering function in the multifunctional armrest. The large number of added and automated functions make life easier for the operator and also save time. For example, the automatic buttonactivated folding in of the compact milling machine’s right rear crawler track also speeded up the milling work on the B 3. The track can be folded in without lowering the milling drum or manually loosening a bolt. In addition to the “basic position”, the new “outside” position – in which the right rear crawler track is located within the cutting diameter of the drum, enabling the machine to
be easily positioned along the righthand milled cut – and the “folded in” position are possible. The first milled cut on the B3 ran alongside a safety barrier. For this reason, Werner moved the crawler track into the “folded-in” position to be able to mill along the outer edge of the roadway with the zero-clearance side. To prevent the side plate from sinking into the surface when working on loose substrate – for example gravel or on the adjacent grass verge as in Jesberg – it has an active floating position. It ensures that the side plate is lifted at specific intervals. To support the leveling and milling process, the milling machine operator Werner was also able to use an automatic lowering function when positioning the W 100 CFi in the milled cut. When the milling drum unit reaches the surface to be milled, the lowering speed is adjusted automatically so that the milling drum slowly penetrates the material down to the set depth. In addition, the height of the crawler units can be adjusted in steps of 1 mm or 5 mm using the new millimeter height function to precisely set the milling depth. The most frequently used height settings can be stored in three heightadjustment memories and called up quickly at any time. Optimum visibility concept for safe working on confined construction sites
As traffic continued to flow on the opposite side of the highway during the rehabilitation project and the job called for frequent machine relocations, the Wirtgen compact milling machine was the ideal candidate for these job sites. The sophisticated visibility concept enables the operator to maneuver with millimeter accuracy. The chassis of the W 100 CFi is distinctly narrower and affords the operator a better view to the front. In addition, the operator’s stand can be hydraulically displaced 200 mm beyond the edge, thus providing a perfect view ahead of the milling drum assembly and onto the front right-hand crawler track. Thanks to the camera system, the lefthand milled edge or material discharge is always clearly visible to the machine operator on the high-resolution display. “The dust extraction device on the discharge conveyor also makes work very pleasant,” Werner adds. Best quality at top speed The milling work was completed within a few hours. Alexander Emde was satisfied with the results: “The W 100 CFi not only created a very smooth milled surface over the entire area, but also worked with minimum wear.” It was possible to pave the new surface course immediately after the milling work had been completed. This job was done by a Vögele road n paver.
December 2016 | EQUIPMENT TIMES | 81
Product Profile
New Machines to be Showcased at bC India 2016 This year’s bC India exhibition is the biggest event in the Indian construction equipment calendar).
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he products on display from Volvo CE at this year’s bC India 2016 exhibition will showcase the company’s strength in depth and their superior productivity. There are five machines from three product lines on show, while information on dozens more machines will be available, plus are a range of activities planned for visitors. This year’s bC India exhibition is the biggest event in the Indian construction equipment calendar and is expected to welcome tens of thousands of visitors over the course of the four-day event. Dimitrov Krishnan, vice president and head of Volvo CE India, said the company will highlight its unique position in the country’s construction equipment sector.
“Our message at bC India 2016 is two-fold and quite clear,” he said. “Volvo CE is the largest major manufacturer in India that offers a complete range of equipment to suit the country’s three main areas of activity: road building, mining and general construction. In addition, our machines can offer the high performance, reliability and fuel efficiency that contractors need to meet the growing demands of projects in India.” Two new compactors will be formally launched at bC India, both of which are built at the Volvo CE manufacturing facility in Bangalore. The new DD90B double drum compactor and SD110BA single drum compactor have their origins in proven Volvo designs, but feature a number updates to make them even more attractive to Indian customers.
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The introduction of the units is timely, with pressure growing on contractors to ensure projects stay on schedule as the Government of India targets 30 km of new road construction per day. “Perhaps the most important design feature of the new DD90B and SD110BA is the inclusion of a locally-built engine with a reputation for rugged performance and ease of service,” said Krishnan. “We’ve also fine-tuned the design of these units so they appeal more to Indian customers. The new models not only deliver better vibrating performance they also have Volvo’s trademark fuel efficiency and will offer faster ROI to owners.”Maintaining the strong focus on road building at the show will be the P5320B ABG paver which is appearing at a trade show for the first time, having launched earlier in 2016. Like the new compactors, this advanced paver is also built at the Bangalore factory and delivers exceptional paving quality and productivity, as well as easier operation and outstanding fuel efficiency. It offers excellent versatility
across both medium and large-scale projects where paving widths range from 2.5 m to 7 m. Alongside the compactors and pavers Volvo CE will display two of its advanced excavators from the D-Series. The 21-ton rated EC210D and 25-ton rated EC250D represent the latest in construction technology and are well suited to a range of applications including road building, irrigation projects or work in materials handling duties. As well as superior performance, D-Series excavators can also deliver up to 10% better fuel efficiency than their predecessors. “In the excavator categories above 30 tons, we have enjoyed huge success with our D-Series models. The EC300D, EC480 and EC750D are well-known and popular units in India,” said Dimitrov Krishnan. “We want to use bC India to show visitors the kind of productivity advantages our D-Series models offer in smaller classes.”On-stand activities Aside from the products on show, Volvo CE will be running a variety of activities over the course of bC India 2016, making it a must-visit destination for attendees. To underline the company’s industry-leading customer support program, there will be a dedicated area
showcasing the aftermarket products and services available from Volvo www.volvo.com Volvo Construction Equipment S.A. Avenue du Hunderenveld 10 BE-1082 Brussels Belgium Telephone switchboard +32 2 482 51 11 Telefax see above RPM Bruxelles VAT BE 0436.180.690 ING 310-0813608-58CE. Visitors can also
pitch their skills against others, in the Mini Operator Championship, using Lego models of its trademark machines. Elsewhere there will be quizzes, with the opportunity to win amazing prizes, while a selfie contest will run for the duration of the show. The best selfiephoto taken on the company’s booth and posted to its Facebook page will get a gift, plus the opportunity to take an additional commemorative selfie, this time with Dimitrov Krishnan. “We want to make our booth as interactive and engaging as possible for visitors,” said Roopa Nagaraju from the marketing and communications team at Volvo CE India. “We are running live photo booths, plus quizzes, competitions and more. We’re looking forward to meeting as many visitors as possible at the show, to understand how we can help them improve their businesses.”Volvo CE will have an 1,100 sq m display, located at Stand 233 in the outdoor area. The bC India 2016 show takes place from December 12 to15 at the HUDA Ground in Gurgaon, Delhi. To facilitate a one-stop solution for customers, Volvo CE and Volvo Financial Services will be launching competitive financing schemes and on-the-spot credit n approvals at bC India.
December 2016 | EQUIPMENT TIMES | 83
Interview
“Globally, compliance to emission norms is mandatory” Vikram Sharma, MD & CEO, Kobelco, rues the fact there is no regulation in India, allowing manufacturers to continue with older technologies.
What kind of equipment does your company manufacture? Kobelco is a global leader manufacturing Hydraulic Excavators of a wide range – from the smallest at 1 Ton to the largest at over 80 Tons. In India, we manufacture three of the most popular models, the 14 Ton SK140HDLC, the 21 Ton SK210HDLC and the 35+ Ton SK380HDLC. We also import and sell our two bigger models for the mining segment, the 51 Ton SK500HDLC and the SK850LC.
on hydraulic power. These machines are capable of working in all sorts of conditions for a wide variety of tasks. Kobelco Excavators come with the latest
In which sector of construction is it useful? Excavators are useful in various types of jobs and applications. Any earthwork – from foundation digging to landscaping, excavation and handling of aggregates used for Construction, Site leveling, Dam construction, etc are only some of the uses. Several types of attachments are also available which make the machine perform specific tasks. It is truly a versatile machine. How does the mechanism of the machine work to ease the work? Hydraulic Excavators are basically powered by a diesel Engine and work 84 | EQUIPMENT TIMES | December 2016
technological features which provide excellent Output with maximum Fuel savings. The operator is seated in an Air-
conditioned Cabin with an excellent view for precise and efficient operation. What are the elements of this machine in terms of its size, weight, portability and fuel used? The product range in India starts from the 14 Ton to the largest model weighing 80 Tons. These machines are transported on trailers. Presently, all the models offered
in India are fitted with diesel Engines. Kobelco was the first Excavator manufacturer to launch a Hybrid version as far back as 2006. Have you ever made eco-friendly equipment? Kobelco is known for its eco-friendly machines with a low carbon footprint. This is one of the key distinguishing features of Kobelco excavators. In fact, many Companies continue to produce machines which do not comply with current international standards of emission and safety.
In today’s world, how important is it to have eco-friendly equipment in the industry? Globally, compliance to emission norms is mandatory. However, in India, in the construction equipment industry, there is no such regulation, thereby allowing manufacturers to continue with older technologies. Such machines are still preferred by some customers primarily on price considerations. How was your overall business in the year 2016 ? The current year has been clearly showing better results compared to the corresponding months of the previous year. This is an outcome of the allround improvement in groundlevel activity in many of the stalled projects as well as a lot of the new rojects. How optimistic are you with the new government? Do you think that this government will deliver what it has announced in the last six month? The government has shown exemplary courage and determination in driving wideranging projects and schemes to revive the economy. Barring political considerations, we certainly expect very good progress on the announced initiatives. Where is the Indian construction equipment industry heading towards 2020? What role will KOBELCO play in it. The Indian CE industry is poised to play a very important part in execution of all Infra Projects. The high growth projected some years back were belied due to various reasons and, on the contrary, we had a downturn during the past few years. We expect the economy to grow at a healthy pace, and with it, the CE industry will grow as well. Kobelco has been a key player in this industry and expects to increase its market share in ď Ž the coming years.
December 2016 | EQUIPMENT TIMES | 85
Insight
Project Smart There is no quick fix solution to ensure implementation of best practices in a construction projects, says B A Madhukar, from Bangalore University.
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ptimum time for delivery being a given, every construction project has 3 important considerations - Quality, Cost & EHS compliance. I have read somewhere that while constructing the Taj Mahal, thousands of people died due to non-existent safety standards at that time. We have moved a lot since those days and today, our clients and Client’s clients increasingly decide on collaborating with a certain agency only based on presence of strong systems & processes to mitigate the risk of EHS non-conformances on a project. Prevention of accidents leading to loss of life or limb besides providing hazard-free working environment both during & post construction stages is considered an essential requirement. This high priority is underscored right at the design & tender stage through elaborate discussions with all stakeholders of the project & leading to the project mandate highlighting the expectations of clients and their end-users. These are clearly
documented as part of the vendor prequalification wherein significant rating is given to a vendor’s EHS track record and system compliance. Vendors scoring low on EHS hence lose out in a field where all other things being equal. Once the pre-qualification establishes compliance to basic expectations, the standards to comply like ISO 14001 & ISO 18001 as well as the relevant requirements of regulatory agencies form the basis of tender documentation. There is no quick fix or one size fits all solution to ensure implementation of best practices in a construction project. The process starts with analysis of the risks associated with safety in a particular project. Factors to be considered include but not limited to whether work is carried out underground or with deep excavations, in confined areas or if project is a high rise, are effluents like bentonite that need to be treated prior to disposal are part of project have an impact on
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safety management system to be adopted at a site. Attention to detail at this stage in identifying & documenting potential risks & its mitigation go a long way in ensuring bringing in awareness among all stakeholders. The emphasis is more on prevention rather than on containment of safety issues. Accordingly, I have listed out some dos & don’ts, which may be handy as a starting point: As can be seen from above, a zero accident project does not happen by accident (literally & figuratively) or by chance but by meticulous planning, effective implementation and continuous monitoring. We have achieved more than 10 million safe manhours in a single project spread over 3 years as well as many projects logging in a million safe man hours each without incident. There has not been any instance of anyone on our project sites requiring hospitalisation in the last 10 years or so. This is the result of commitment of team, focus on making the site operations completely safe most importantly, we have been fortunate to be working with project owners who walk the talk by willing to spend reasonable amount time, efforts & resources on EHS enforcement. This is where, the project owner, being the most influential part of the eco-system, plays a major role in setting mandate, expectations and adequate resources for a zero accident project. So far, MNC Owners & those with exposure to best practices, due to precedents set elsewhere or process
Dos Prepare a well thought out safety manual specific to the project identifying potential hazards & defining preventive action for each of the key activities & for the project as a whole Pre-qualify vendors who meet specific EHS requirements of the project (ex: if you are working on a project with 4 basements or is a top down construction, choose a vendor who has executed such projects successfully without any safety issues). Set out your expectations clearly to the contractors proposed for working on the project at time of tender and provide an opportunity for contractor to quote for complying with specific requirements of the project on EHS matters Inform clearly & in no uncertain terms your no nonsense approach to safety compliance at the site and your expectation of total compliance by the successful bidder at the pre-bid meetings to underscore your commitment.
Set out the Implementation, Monitoring & Control mechanisms clearly including regimented meetings, workshops, training programmes, audits & reporting as well as process for closure of non-conformances, escalation & management responsibility for all contractors working on project Having put in place high expectations & a strong system in place, be prepared to get your hands dirtied & micro manage the activities to ensure end results meet intended objectives An experienced & well-trained team to manage EHS aspects of a project is key to success. Empower the EHS officer & make them report only to the management
Conduct periodic review of system conform ance including non-conformances, corrective action taken & trend analysis to ensure that there is continuous improvement in key areas. No point in simply documenting the records unless it is used to monitor & improve. Display prominently relevant languages safety signboards, Safety Key Information boards, safety shelters, safe assembly points and safe access routes to make everyone at site aware of dangers & their responsibilities.
requirements have a much better record in achieving this but the trend is shifting now with many local project owners also realising the tangible & intangible benefits
Don’ts Avoid tendency to copy & paste a generic report or process from another project or company since project risks can vary significantly and perspectives differ. Keep the manual brief and to the point. Avoid unwanted processes, checklists and procedures that are not applicable or not necessary for the project. Avoid tendency to go with brand names & marketing gimmickry of vendors. Insist on seeing evidence of demonstration of safe work practices by visiting on-going works & inspecting the records of the project as well as discussions with project owners. Demand and see records of tool box meetings, EHS meeting records, non-compliances record of projects completed and evidence of continuous improvement before deciding on the vendor. Don’t assume that the contractors know all since they are experienced or they flash their certificates. Insist on verifying their implementation mechanism & interview the key persons proposed for the project to understand their commitment levels. Most accidents happen due to lack of knowledge / carelessness at the lowest levels of implementation and an effective system & process can do wonders in prevention. Avoid generating thick documents that are copied lock, stock & barrel from some other company or project. The chances are, too much will lead to too little focus. It is desired that you prepare a brief, practical & project specific EHS manual that addresses the specific requirements and is easy to implement, monitor & control. Most owners, consultants & contractors get into a chaltahai mode after the initial euphoria & big banner launch until they are jolted back into reality by accidents putting entire projects at risk. It is better to have a sober, hands-on approach that involves systematic review at regular intervals. Don’t take the mere presence of checklists, method statements & manuals as surety for safety at site. Even the best laid plans come a cropper if not implemented effectively. As the saying goes ‘the devil is in details’, put in place an effective doer & checker mechanism to ensure what is planned is implemented effectively. Have fortnightly & monthly EHS audits for compliance and more importantly, follow up & close on all non-conformances. These NCs should become part of the next training programme. Ensure the closure reports reach the highest levels of management so that there is ownership. Don’t be a “big picture” guy & ignore details when it comes to safety since the next victim could be you. Most managers & senior executives often get into jargons like “it has been taken care of” or “someone is managing it” or “it will be done” without really having the necessary back-up process to ensure effective implementation. Remember – “Plans don’t fail. It is the effective implementation that fails” Don’t put in place a team just on paper or deploy a team that is ineffective or not trained for the job responsibility. Avoid conflicts of reporting where the reporting officer might be the person responsible for EHS non-conformance and get all EHS non-conformances reported directly to the highest levels of management. In most instances of accident investigation it is noticed that the safety supervisor or the officer at ground level is not empowered to report hazards directly to the right persons resulting in his reports / warnings getting lost in the maze of reports / emails which nobody gives much importance causing the morale of the EHS person to drop down. Don’t trash the reports or the meetings on grounds of “not my responsibility” or “someone is looking into it”. The chances are nobody is looking into it and everyone will look at each other’s faces when there is an incident!
Don’t limit the efforts to only preparation of manuals & nice looking internal reports that are for consumption of visitors only. Don’t presume everyone at site knows how to read. Use of cartoons & graphical / pictorial displays may be more effective especially when dealing with illiterate or semi literate workforce.. Some pictures are attached.
of a zero accident completion and taking steps to move closer to perfection. The bar is definitely raising. In so far as the way forward is
concerned, we have seen significant reduction in incidents & accidents while managing projects. All projects carry risks and challenge lies in reducing
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Insight infinite risk to finite & once there, drilling down to control. One successful project leads to another and so on. The results so far are very encouraging and perhaps the time is not too far when we can expect best practices from around world being implemented in all projects rather than in a select few projects as is being done right now. The regulatory framework is
there, the intent is there and a little bit more commitment from all of us can get us there. I come from a school of thought where the besides putting the onus of safety in construction site on contractor, the owner also commits to compensate the contractor extra over for ensuring that the expectations are met. This is anti-
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thesis of tendency of most project owners who tend to bundle everything under the sky in the responsibility of contractor without giving him the opportunity to price for the item separately. Most project owners are guilty of not knowing what specifics to get from the contractor and end up using terms like “everything necessary to ensure zero accidents” or “it is sole responsibility of contractor to adhere to all requirements” etc. Having said this, there are several mechanisms in which a contractor is compensated for the investments he makes on EHS practices in a project. In some forms of contract, we provide a pricing option for contractors to quote. In some others, the contractors are provided with incentive (generally as percentage of the contract) for ensuring zero accident performance. Whereas these are tangible ones, there are other (and much larger) intangible incentives to the contractor like a happy & healthy workforce, recognition from Owner leading to repeat business saving on business development cost, premium being paid by Owners for working with an accountable contractor and recognition by the government & authorities to name a few. Many of our projects have been recognised & awarded for best Safety Site and other recognitions by Governments & other industry bodies which give much encouragement & motivates contractors besides giving much recognition in industry & professional circles which would also act as a big incentive to the contractors to keep up the good work. Hazardous Activity Analysis One of the key ingredients for mitigating risks in a project in my opinion is taking a professional approach to analysing each hazardous activity that is anticipated in a project. As a subject, analysing each activity for its hazard quotient and taking a preventive view based on the severity would be the most desired way of managing risks to the project. However, considering the complexity of such a study, I would suggest the following categorisation of Hazards & pigeon-holing each of the activities under different heads would be the first & easier step towards same. Maintaining a log of
all categories of hazards and its effective mitigation at highest levels goes a long way in prevention. In so far as construction industry in India is concerned, the safety record varies in different sub-sectors. I can say we are almost on par with best practices from around the world when it comes to projects involving MNC clients with legacy systems & processes with strong emphasis on implementation & enforcement. Some of these sectors are in IT / ITES workspaces, pharma, space technology, biotechnology & automobile industries, R&D centres where our industry has made rapid strides in implementation of global EHS best standards. On the other end of the spectrum, there are projects in other sectors like housing & infrastructure and some public sector projects that are perhaps about 15 years behind in terms of awareness & effective implementation. This can perhaps be explained by lack of enforcement by the concerned regulatory authorities or the project owners. Even best contracting companies are guilty of having dual standards citing “ the client is not insisting of safety” indicating that we still have some way to go before we can claim to be fully conscious of our responsibilities on this front. We also need to have many more training institutes with high quality trainers adept at giving a practical & hands on training to meet the ever increasing need for
EHS professionals in our industry. This training infrastructure shortfall coupled with an effective regulatory framework is something that developed countries like Singapore & Germany seem to have addressed prior to setting very very high standards of EHS in construction industry. A construction worker typically spends a minimum of about 60 hours per week in making his ends meet. Assuming that he has a shelf life of about 35 years (as most of us do), that is a very
Category Type
What it covers / consequence
Category A
Matters related to statutory non-compliances & those that may be fatal
Deep excavations
To be closed within a set timeline of one to three working days since it may get escalated to Category A if neglected
Use of wrong shoes / helmets/gloves may lead to injury etc.
Category B
Examples of Activities
Formwork support Contamination of earth
Exposed electrical contacts / junction box may lead to electrocution Fire extinguishers reaching their expiry dates
Category C
Nothing seriously wrong but more of process improvement & could be closed in about a week.
Waste collection bin not provided Gas cylinders used for welding are not latched properly
Action to be taken Permanent solution to be implemented on utmost priority & followed up with periodic conformance audits Process driven approach by use of checklists & sign-off cards prominently displaying originator, responsible person & checker with date & signature
Daily site walk-around & tool box meetings to continuously educate the workforce
long time spent at site working in the exposed conditions, which can be very hazardous & risky. When unchecked or un-supervised, he is bound to catch some chronic illnesses like chest & eye infection, high stress levels, noise pollution, skin irritation to name a few all of which affect his productivity. RiskEnvironment Impact Assessment Forms can be designed for each critical activity & implemented to ensure due diligence prior to commencement of activity. Designing a safe work environment striking a balance between the individual, the hazard, social responsibility and financial outlay that can be set aside, though tough to achieve, will lead to long term sustainable practices good for the society as a whole. A common EHS code or handbook for all construction projects in a particular region regardless of the type of construction, devised by group of concerned professionals including Developers, Architects, Consultants, PMCs, EHS professionals, Government representatives and associations like BIA, INSTRUCT and others can be a good starting point that can be taken up by Construction Times as an initiative to raise the bar and improve awareness in this area.
December 2016 | EQUIPMENT TIMES | 89
International News
Japan to supply nuclear power Equipment
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apan and India signed a civilian nuclear accord opening the door for Tokyo to supply New Delhi with fuel, equipment and technology for nuclear power production, as India looks to atomic energy to sustain its rapid economic growth. It was the first time Japan, the only country to have suffered a nuclear attack, had concluded such a pact with a country that is not a signatory to the Nuclear Non-proliferation Treaty (NPT). The accord stipulates that the nuclear fuel and equipment provided can only
be used for peaceful purposes, and a separate document signed in parallel has a clause allowing Japan to terminate the pact if India conducts a nuclear test. The agreement is a legal framework to ensure that India will act responsibly for the peaceful uses of nuclear energy. It will also lead us to having India participate practically in the international nonproliferation regime, as per reports. India says the NPT is discriminatory and that it has concerns about its two nuclear-armed neighbours, China and Pakistan.
Doha opens North Canal Bridge More roads being built under Expressway Programme as new route eases access to Lusail City and northern areas Doha’s Public Works Authority has announced the opening of part of the city’s North Canal Crossing (NCC) Bridge to the public after it completed the first phase of the project. The partial opening of the bridge has improved access to Lusail City and the northern areas of Qatar, as well as reduced travel times to residential and commercial developments in the Legtaifiya area. Located between Lusail City and north of the Pearl Interchange currently under construction, the NCC Bridge will be a 200-metre-long crossing.
Srei Infra goes Amazon way, takes iQuippo global
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hortly after the launch, Srei group is taking its e-commerce venture for equipment renting global. iQuippo, Srei’s digital marketplace for new and used equipment sale and rental market, has gone global, with representative offices at Jebel Ali Free Zone in the United Arab Emirates and at Leninsky Prospekt station in Moscow, sources said. The Kanorias now plan to reach out to several other geographies like Myanmar in Asia and several African countries as the concept of online renting of construction equipment picks up. “Africa, Middle East, S-E Asia and countries like Myanmar where construction business is booming, are the growth markets we would cover initially. We will have people there who would basically service the digital marketplace that we have created. Service providers from anywhere in the world can come and provide their services,” said Sunil Kanoria, vice-chairman Srei Infrastructure Finance, reports said.
The Kanorias are betting big on the digital marketplace which will allow owners to list their assets, equipment and services, negotiate with buyers, close terms of the deal, generate digital contracts and get payments. Construction equipment market is currently worth Rs 20,000 crore and Kanoria believes it is likely to grow to Rs 50,000 crore by 2020.
90 | EQUIPMENT TIMES | December 2016
“The way Amazon has come to India and tied up with sellers here, likewise, we would be tying up with equipment providers there. And like Uber only ties up cars and validates driver, likewise, we would be doing validation of used and new equipment across the globe using our expertise,” added Kanoria. The Kolkata-headquartered financing company first ventured into foreign operations with Srei Leasing, which started in 2004 and exists in the form of a joint venture outfit. It has been doing moderate business in Russia. European Bank for Reconstruction and Development and German government funding agency DEG had invested in the business through debt as well as equity infusion. Around 20% of equipment is available for hire. Most of the transactions take place locally through brokers in an opaque manner and the unorganised segment caters to nearly 70% of the rental and used equipment volumes, as per reports.
Work begins for Tactical Armoured Patrol Vehicles 3rd Canadian Division Support Base Edmonton requires this new facility to shelter 43 TAPV and 14 of the 18 AEV that will be delivered to this location starting in 2017, the Canadian military noted. The remaining four AEV will be housed in existing facilities on base. Five units on base will benefit from the additional storage and maintenance space to carry out their daily tasks as well as safely and effectively maintain the new equipment, the military added in a news release. Construction is expected to be completed by the end of January 2018. The cost of this infrastructure project is estimated at $39 million, which includes the study, design, construction, administration, and taxes.
Gamesa unveils 304 MW of orders in India
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panish wind turbine maker Gamesa (BME:GAM) today said it has won orders to supply a total 304 MW of turbines at five wind farms in India, strengthening its foothold on the market. The contracts, secured in the third quarter of 2016 and coming from several customers, will see the company supply, install and commission 80 units of its G114-2.0 class S machines and 72 pieces of its G97-2.0 MW class S turbines. Both models have been specifically configured for the low wind speed sites typical of India. The projects are due to be commissioned during the first quarter of next year. For four of the wind farms, Gamesa will also be in charge of construction. It will be responsible for the operations and maintenance of all five facilities. Gamesa, whose shareholders
recently cleared the company’s planned combination with the wind power business of Germany’s Siemens (ETR:SIE), says it is the leading original equipment manufacturer (OEM) in India with a market share of 34% in 2015, up from 25% in 2014, based on MAKE Consultancy data.
Kubota begins construction on National Distribution Center in Jefferson
K
ubota Tractor Corporation announced that it has begun construction on an important 617,865 sq. ft. expansion of its National Distribution Center (NDC) on the company’s existing property in Jefferson, Georgia, the project is adjacent to the Kubota Industrial Equipment (KIE) facility off of I-85 North. Scheduled for completion in July 2017, the expansion’s nearly $16 million investment is a direct response to Kubota’s continued growth and manufacturing demands in its compact tractor, utility vehicle and turf product markets. The newly expanded NDC will store and process Kubota equipment – tractors, backhoes, loaders, tires, weights, along with hay tools, utility vehicles, and turf equipment – until it’s ready for distribution to dealers around the country.
December 2016 | EQUIPMENT TIMES | 91
International News
China to develop world’s fastest Maglev train capable of 600-kph
Chinese train manufacturer have announced to begin production of world’s fastest maglev railway, which will allow trains to travel at up to 600 kilometers per hour. The first prototype is expected to be delivered in 2020, and the test track will be built in Shandong province. Based on electromagnetic induction, maglev trains are suspended over railway tracks. Thanks to the consequent reduced friction, the travelling speed of maglev trains is twice that of the fastest high-speed train, and close to that of airplanes.
IranConMin 2016 promotes construction and mining ties
Munich-based international exhibition company Internationale Messe- und Ausstellungsdienst (IMAG) is partnering in or organising eight trade fairs in Tehran. One of the most important of these is IranConMin, the international trade fair for construction machinery, mining, building materials and the natural stone industry, being held from 5-8 November 2016, at the Permanent Fairground in Tehran. This is the twelfth
New flights will build airport for long term A bevy of construction projects around the Dayton International Airport, along with some recently-secured new flights, will enhance the facility as its director sees a long-term plan to keep traffic stable. The
airport
suffers
from
aging
infrastructure, with the main part of the terminal approaching 60 years old, and other parts of the airport being built on incrementally after the 1950s. But when it studied building an all-new terminal, Slaybaugh said that turned out to cost $350 million and was not affordable.
92 | EQUIPMENT TIMES | December 2016
Instead, the 356,000-squarefoot terminal will see incremental modernization projects - $123 million in construction over a decade, beginning with a $30 million rehabilitation entrance area and driveup. The airport has sent out requests for proposals on the project and in the coming weeks it will sell $30 million in revenue bonds to pay for this project.
edition of the show, which last year attracted 200 exhibitors, around half of them from abroad, and 19,000 visitors. This year, there will be national pavilions from Germany, China, Korea and Finland. The event offers a wellestablished platform to present products, innovations and solutions to a receptive clientele in one of the most important growth markets.
Asian Railway inaugurated The Afghan President Mohammad Ashraf Ghani inaugurated the Asian International Railway , the Afghan government remains committed to turn all the bordering provinces of the country into major economic hubs. The inauguration of the railway connects Afghanistan with Turkmenistan. The country will be connected via railway networks with Iran in the West and some other regional countries, including India. The construction of a railway line between Afghanistan and Iran officially kicked off near the western Herat province of Afghanistan in the month of September this year. The railway line will be established from Iran to Ghoryan district and will further go towards Zindjan district and Herat Airport.
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