Machinery Mart attracts biggies
Guwahati, March 4: Construction equipment manufacturers are looking to the Northeast to improve their turnover, thanks to the massive flow of funds from the Centre for infrastructure projects.
In such a scenario, it’s no wonder that Telcon (Telco Construction Equipment Company Limited), a leader in construction equipment in India, is looking to increase its market presence in the region.
Telcon branch manager Biswajit Kundu told The Telegraph, “The focus is on the Northeast, where big projects in the infrastructure sector are under way now. We currently have three dealers in the region and one more soon will be entering our network.”
According to Kundu, Telcon, which was selling 20 machines (excavators and others) every month, was expecting higher sales with improvement in the marketing network. “The new plant at Kharagpur will feed the east and Northeast markets," he added.
Telcon is a subsidiary company of Hitachi Construction Machinery Company Ltd and Tata Motors.
Kundu and other officials from major construction equipment companies were participating in the second Machinery Mart organised here by the Confederation of Indian Industry (CII) from February 24 to 27.
The exhibition showcased heavy earthmoving machines and equipment, including excavators, backhoe, loaders, skidders, crane towers, lighting towers, stone crushers, tippers, compactors, concrete and bitumen mixers and industrial products.
The event witnessed sales worth Rs 25 crore and generated more than 250 business enquiries worth Rs 200 crore. The second edition of the Machinery Mart has witnessed 35 per cent increase in participation, thanks to significant additions from the infrastructure and construction sectors.
The fact that the Centre is making huge investments in the infrastructure sector in the Northeast is attracting companies of this sector to the region.
Among the notable participants of the Mart were Ashok Leyland, Asia Motor Works Ltd, Case New Holland Construction Equipment (India) Pvt Ltd, DOZCO (India) Pvt Ltd, Hyundai Construction Equipment India Pvt Ltd, Hyva (India) Pvt Ltd, JCB India Ltd, Larsen & Toubro Limited (L&T Construction & Mining Machinery), Telco Construction Equipment Company Limited (Telcon), Terex Equipment Pvt Ltd and Torsa Machines Limited.
Torsa is a premium crushing and screening equipment brand in India with manufacturing facilities based at Guwahati. The Rs 25-crore turnover company is currently targeting the Bangladesh and Nepal markets, while it transacted business worth Rs 2.2 crore with Bhutan recently. It has successfully executed more than 1,000 projects across the country and is considered a major player in the domestic and international markets.
“We have a mobile crushing plant whose capacity ranges from 20 tonnes to 200 tonnes per hour,” a company official said. He said the stone crusher market was worth Rs 1,200-crore and that there was stiff competition involving many national and international players. Torsa launched its new 80 tonnes per hour combo crushing and screening plant at the exhibition.
Torsha Machines Pvt Ltd vice-president, marketing, Palash Banerjee, said, “We have stabilised in the Northeast are now going pan-Indian which gives us the lead,” and added that the company got repeat customers, which reflected the reliability of its equipment.
L&T, which did a business of Rs 53 crore in the Northeast in 2010-11, is aiming for Rs 70 crore in 2011-12 and Rs 200 crore in the next five years. “We have strong research and development capabilities and have developed Komstrax, which is a satellite monitoring system through which one can monitor the machines from anywhere,” L&T construction equipment business assistant general manager Raj Sovon Chaki said.
An industry official said availability of adequate finance by small buyers to procure heavy machines and skilled manpower to efficiently run the state-of-the-art machines are the key challenges in the growth of the infrastructure sector and therefore, skilled intervention and equipment leasing was the need of the hour.
JCB, which did a business of Rs 300 crore in the last year is targetting a business of Rs 500 crore in the next five years. One of out of every two equipments sold in india is a JCB. Kirloskar Pumps feels that the market for irrigation pumps is huge and is looking to do Rs 35 crore business in next five years.