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India’s Earthmoving and Construction Equipment Industry

Indian construction equipment

Indian construction equipment (CE) segment is the most volatile segment of the automotive industry. Due to investment in the infrastructure, construction and mining sector the construction equipment segment has become one of the fastest growing segments of the country.

With the increasing demand for the construction equipment Shriram Automall India Limited (SAMIL) has become the largest solution provider for both public and private enterprises as demand of construction equipment is highly lead by the enterprises investing in areas like road construction, maintenance, ports, power plants, telecommunication sector, urban infrastructural development etc.

Construction equipment today not only makes it easier to complete the project at hand, but also ensures the efficient use of labor, time and money.  Almost 30-35% of money involved in construction is dedicated towards procurement of good machinery and equipment.

The industry involving earthmoving & construction equipment was not always this evolved; it has come a long way. So, let’s learn little about its journey towards being one of the largest industries.

Evolution of Tools to Machines

Centuries ago, development of tools started with humans. Hands and teeth were the first tools. They were used to pick, dig, break, scrape, and shape. They were used to make other tools and shelter. Eventually simple tools were used to create a better living environment. Improved tools resulted in increase of the amount and speed with which construction work. Therefore the scale and complexity of construction projects increased and this same development cycle continues today.

New Revival in Infrastructure Sector

In parallel with equipment development, the study of productivity and cost for equipment has also become more sophisticated, as now machines are designed to be extensions of the operators. Manufacturers are now able to provide tested and documented technical and operating information to better help users understand impacts on their work production. Very importantly, they are able to communicate best practices to increase production and promote safe operation.

In India CE industry is considered to be the second largest employer and contributor to economic activity. Over 50% of the demand for construction activities in India comes from the infrastructure sector, while the rest comes from industrial activities, commercial and residential development etc.

The need and dependency for heavy construction equipment in the country have grown with size and complexity of construction projects. The development of automated heavy construction equipment for earthmoving, excavating, and lifting occurred in the last two centuries. Today it is assumed that if equipment does not exist to perform a necessary task, it can be designed and built. Thereby heavy construction equipment manufacturers are very responsive to market needs and feedback from users.

Hence we can say, design development of heavy construction equipment is driven and evolves from the needs of the user market.



Looking Forward

By FY20, construction equipment industry’s revenue is estimated to reach to US$ 5 billion. Revenues has increased at a Compound Annual Growth Rate (CAGR) of 8.38 % during FY07- 14 and are further estimated to grow at a CAGR of 2.34 % between FY07-20 due to rapid infrastructure development, undertaken by the Government of India.

Today, the road to construction equipment market involves demand of 52,000 machines per year and this demand is currently growing by 5% to 7% and in spite of having many players in the market who are dealing in the same segment, SAMIL has become the first choice.

Government of India’s Involvement

Government of India while paving the way for a better quality of life and a rapid rise in gross domestic product (GDP) looks forward to focus on the infrastructure of the country for further growth. As country’s infrastructure, holds the key to potential which both India and SAMIL understands.

By FY20, construction equipment industry’s revenue is estimated to reach to US$ 5 billion. Revenues has increased at a Compound Annual Growth Rate (CAGR) of 8.38 % during FY07- 14 and are further estimated to grow at a CAGR of 2.34 % between FY07-20 due to rapid infrastructure development, undertaken by the Government of India.

As outlined in the next Five Year Plan (FYP), Infrastructure will be the focus area for spending, about ` 31 trillion (US$ 454.83 billion) earmarked for investment with 70 % of funds needed for power, roads and urban infrastructure segments.

  • The Government of India has planned an investment worth ` 45,000 crore (US$ 7.07 billion) for the development of India’s north-eastern regions bordering China, Bhutan, Bangladesh and Myanmar.
  • The Ministry of Road Transport and Highways, Government of India, invested ` 14,916 crore (US$ 2.32 billion) in the Special Accelerated Road Development Programme for North East (SARDP-NE) and ` 4,095 crore (US$ 635.6 million) for the National Highway (Original) over the past two years to improve the road infrastructure in India’s north eastern region.

Also in the Union Budget 2017-18, the Government of India has taken the following measures for the development of infrastructure, resulting in growth of the equipment industry.

  • Increased total infrastructure outlay and defense capital expenditure by 10% and 20.6% to ` 396,135 crore (US$ 59.18 billion) and ` 86,488 crore (US$ 13.1 billion) respectively, over FY17 revised estimate.
  • Railway expenditure allocation has increased by 8% to ` 131,000 crore (US$ 19.58 billion) for laying down 3,500 km of railway lines in 2017-18.
  • Affordable housing has been given infrastructure status.

Shriram Automall’s Contribution Towards Construction Equipment Industry

The used construction equipment industry is a critical part of the construction ecosystem and has to be dealt with as a major sector of utmost importance. SAMIL with an eye for 100% customer satisfaction has come a long way while emerging as the No.1 and Largest Platform for Acquisition & Disposal of Used Vehicles and Equipment in the country.  Till date the company has sold over 28,000+ used construction equipment through effective physical/ online bidding platforms across the country.

Shriram Automall understands the demand and requirements of its customers, thereby gains a leading edge for implementing the most unique line up of used construction equipment with a dedicated team for the segment.

Company manages to reduce the equipment budget by providing good quality used equipment at optimal price to its customers in a structured regulatory way while paving the way for them to clear the challenges they face which lead to delay in their projects i.e. non availability of the needed equipment or delay in delivery of the construction equipment. SAMIL provides them the insight to make the complete process both easy and accessible. As a result since 2011, SAMIL has garnered over 5,80,000 transactions from 42,000+ bidding events through 73 well structured Automalls across the country, acquiring over 6,80,000 unique bidders.

Being the OneStop Solution for all types of used vehicles & equipment requirements in India, company provides a common platform to Owners, Dealers, Individual, and Corporate. For construction equipment segment, company’s innovatively advance platforms work the best for both acquisition & disposal.

SAMIL’s Private Treaty Platform was especially initiated to complete the bulk transactions of used construction equipment.  Through this platform, customers can do one-on-one deals to buy or sell their used vehicles & equipment. This platform enables them to directly make the transaction without having to participate in the bidding process with personalized approach and negotiated deals.

Now, SAMIL has also made, bidding quite prominent amongst the masses through its technologically driven online bidding platforms. Out of multiple innovatively advance platforms, online bidding has made the exchange of used construction equipment extremely exciting as well as convenient.

In a very short span of time company has grown to be quite huge through its hard work and commendable services providing uncommon results and solutions to help the issue at hand.

For Further Details
Shriram Automall India Limited
2nd Floor, Best Sky Tower, Netaji Subhash Place,
Pitampura, Delhi-110034
Tel: 011-41414444, Fax: 011-42414444 |
E-Mail: contact@samil.in | Website: www.samil.in


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