With around 70 percent growth seen in the first half of 2018, construction equipment maker CASE Construction is eyeing the Centre’s ambitious programmes like Bharatmala and Sagarmala, state and rural road development and maintenance projects, railways, Metro Rail development among others. These projects have had a positive impact in terms of increased demand of construction equipment. The estimated sales of construction equipment in the first half of 2018 increased by 33 percent as compared to 2017, but a similar growth trend may not be supported in the second half of 2018, Ajay Aneja, Brand Leader, CASE Construction, tells Ritwik Sinha. Excerpts from an interview:
What is your immediate outlook on the Indian construction equipment (CE) sector? How do you think the market is performing in the current fiscal and what are your predictions for the next fiscal?
Start of 2018 was a great period for the construction industry. The industry outlook for the construction equipment (CE) sector has been promising and allotment of an increasing number of road and highway projects is expected. Fuelled by a demand for roads and irrigation projects, CE manufacturers have also speeded up in terms of adding new and technologically efficient products to their product line.
The estimated sales of construction equipment in the first half of 2018 increased by 33 percent as compared to 2017. However, a similar growth may not be supported in the second half of 2018. The rainy season and elections in Chhattisgarh, Madhya Pradesh and Rajasthan at the end of 2018 might have a negative impact on demand, while sales may also be moderate as the country approaches general elections scheduled in mid-2019.
What are the critical factors for success in the construction industry in India?
Construction is one of the major industries in India and is an important indicator of a country’s development as it creates investment opportunities across various related sectors.
Regular maintenance, operators’ visibility, after-sales support, customer feedback, R&D are identified as key factors for developing the construction industry worldwide and to improve its effectiveness. Government’s support for awarding roads and infrastructure projects is a must-do factor which contributes to the success of the construction Industry.
This story is from the December 2018 edition of Steel Insights.
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This story is from the December 2018 edition of Steel Insights.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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