JOIN USBig projects like river cleaning, Swachh Bharat, solid waste management and road projects are likely to generate demand for customised machines in construction equipment (CE) machinery industry, a top executive said on Wednesday.
Talking to Deccan Herald, Tata Hitachi Construction Machinery Company Managing Director Sandeep Singh said, “We have seen some green shoots, especially from the last quarter. We expect that the January-March quarter will be good. We expect eight per cent growth in the next one year.”
Singh explains, “We are seeing some improvement at the enquiry level. Conversion rates have gone better. In the last quarter, we have seen a growth of five per cent.”
Singh believes that improvement in road construction is a big demand driver for the construction equipment industry. Tata Hitachi Construction Machinery Company is a market leader in the excavator segment with a market share of 37 per cent over the last three years.
The company is a joint venture between Tata Motors and Hitachi Construction Machinery Company, Japan, with 40:60 per cent share. It has over 2,000 employees.
Tata Hitachi Construction Machinery Company Vice President (Sales and Customer Support) A Krishnakumar said, “State-driven projects will give boost to the industry. Especially, in Andhra Pradesh and Telangana, water grid management is growing. Both chief ministers are working very hard to woo investors.”
Krishnakumar explained, “The Swachh Bharat Abhiyan has also helped in municipal work. The Polavaram project in Andhra Pradesh, which was closed for some time, has been declared a national project and it has kick-started.”