EXCON 2017 ex­hibits In­dia’s grow­ing tech power for Next Gen In­fra­struc­ture

Auto components India - - CONTENTS - Story by: Bhar­gav TS

The Con­fed­er­a­tion of In­dian In­dus­try’s (CII) EXCON 2017, South Asia’s largest con­struc­tion equip­ment ex­hi­bi­tion, con­cluded with over­whelm­ing re­sponse from par­tic­i­pants and vis­i­tors. The 9th edi­tion of EXCON 2017 held from De­cem­ber 12 to 16, 2017 at the Ban­ga­lore In­ter­na­tional Ex­hi­bi­tion Cen­tre (BIEC), Bengaluru with the theme ‘Smart Tech­nolo­gies Fuel­ing Next Gen In­fra’.

Af­ter inau­gu­rat­ing EXCON 2017, Anant G Geete, Union Min­is­ter for Heavy In­dus­tries and Pub­lic En­ter­prises, Gov­ern­ment of In­dia said, “The NDA gov­ern­ment is try­ing to pave the way to lead In­dia as a de­vel­oped na­tion. In all these ef­forts, ‘Make in In­dia’ is a piv­otal ini­tia­tive es­pe­cially in the heavy in­dus­try sec­tor. While we want for­eign play­ers to in­vest in In­dia, our fo­cus is also to en­cour­age In­dian com­pa­nies to in­vest and grow in In­dia. I am con­fi­dent that the gov­ern­ment will sup­port all com­pa­nies to make PM’s vi­sion of ‘Make in In­dia’ a suc­cess­ful one. The equip­ment makers have good op­por­tu­ni­ties as there is phe­nom­e­nal investment be­ing ex­pe­ri­enced in the In­fra­struc­ture sec­tor and we have also launched a slew of schemes to pro­mote the cap­i­tal goods in­dus­try. In the com­ing years around Rs 7-8 lakh crore is ex­pected to be spent.”

Amitabh Kant, CEO, Niti Aayog said, “I en­vis­age the con­struc­tion sec­tor as one of the big­gest driv­ers of the In­dian econ­omy in the com­ing years. Es­pe­cially with the grow­ing ur­ban­i­sa­tion in our coun­try there is a need to ac­cel­er­ate growth rate by 9-10% year af­ter year for 3 decades or more to be able to move above the poverty line. In the next 5 decades we aim to do very com­pact and dense ur­ban­i­sa­tion as com­pared to what we have done in the last 5,000 years. The gov­ern­ment has not only pro­vided im­pe­tus to 100 smart cities, 50 met­ros etc. but we also see a sig­nif­i­cant im­pe­tus to the rail­way and ir­ri­ga­tion sec­tor. If In­dia’s am­bi­tion is to grow 9-10%, the con­struc­tion sec­tor must grow at nearly 50%each year.”

“Our ob­jec­tive in the gov­ern­ment is to pro­vide the right ecosys­tem to en­able the sec­tor to grow and ex­pand in a much bet­ter way. There­fore, we have taken a vast num­ber of mea­sures, pro­vid­ing ease of do­ing busi­ness,” he added

Shobana Kami­neni, Pres­i­dent, CII said, “Con­struc­tion in­dus­try re­mains the fun­da­men­tal strength of the econ­omy with im­por­tant mul­ti­plier im­pact. Un­der the Make in In­dia ma­trix, con­struc­tion ma­chin­ery as a key com­po­nent of the cap­i­tal goods sec­tor con­trib­utes to In­dia’s man­u­fac­tur­ing prow­ess and is set to wit­ness strong ex­pan­sion.”

Vipin Sondhi, Chair­man, EXCON 2017 said, “The con­struc­tion in­dus­try is headed for bet­ter days of a pro­jected sta­ble growth of

10% CAGR over the next 5 years com­pared to 7% in the previous decade. The Gov­ern­ment of In­dia has made in­fra­struc­ture creation a ma­jor pil­lar for sus­tained growth and an­nounced a num­ber of projects in roads, rail­ways, metro rail, min­ing, ir­ri­ga­tion, power and ur­ban de­vel­op­ment which are growth driv­ers for our in­dus­try.”

The in­au­gu­ral ses­sion was fol­lowed by an In­fra­struc­ture Sum­mit or­gan­ised by CII which de­lib­er­ated on the op­por­tu­ni­ties in in­fra­struc­ture de­vel­op­ment through Pub­lic Pri­vate Part­ner­ship (PPP). A CEO’s Round Table Ses­sion was also or­gan­ised which wit­nessed par­tic­i­pa­tion of lead­ing global and In­dian CEOs in the in­fra­struc­ture and con­struc­tion sec­tors. At the in­au­gu­ral ses­sion the CII-ICEMA Re­port on ‘In­dian Con­struc­tion Equip­ment In­dus­try’ was re­leased.

The Gov­ern­ment of Kar­nataka is the Host State for EXCON 2017. ICEMA is the Sec­tor Part­ner and sup­ported by the Builders As­so­ci­a­tion of In­dia (BAI)

Next-Gen in­fra­struc­ture

On the sec­ond day of EXCON 2017, CII and ICEMA or­gan­ised a Con­fer­ence on “Next-Gen In­fra­struc­ture”. Speak­ing at the in­au­gu­ral ses­sion, R V Desh­pande, Min­is­ter for Large and Medium In­dus­tries and In­fra­struc­ture De­vel­op­ment, Gov­ern­ment of Kar­nataka said, “Creation of hu­man re­sources is the big­gest chal­lenge in the present day and has urged the in­fra­struc­ture in­dus­try cap­tains to create good jobs. It is our duty to create good jobs for the pros­per­ity of the state; how­ever, au­to­ma­tion, digi­ti­sa­tion and ro­bot­ics have re­placed hu­man jobs. We have al­ready cre­ated more than 13 lakh jobs by Septem­ber 2017 and 5 lakh more jobs are in the pipe­line. I also en­cour­age the in­dus­try to in­vent and in­vest in Kar­nataka and pro­mote ease of do­ing busi­ness. In­fra­struc­ture is the key for eco­nomic, so­cial and hu­man re­source de­vel­op­ment. It’s a key and pri­or­ity area for the state.”

K T Rama Rao, Min­is­ter of IT, Mu­nic­i­pal Ad­min and Ur­ban De­vel­op­ment, In­dus­tries and Com­merce, Pub­lic En­ter­prises, Sugar, Mines and Ge­ol­ogy, NRI Af­fairs, Gov­ern­ment of Te­lan­gana said, “Both the Gov­ern­ment and pri­vate sec­tors need to come out with a Ju­gaad model, among others, to create more ro­bust In­fra­struc­ture. We welcome those who come and set up man­u­fac­tur­ing an­cil­lar­ies units in our State. We have moved away from red tape to red car­pet to at­tract in­vestors to our state. As part of the Te­lan­gana Gov­ern­ment’s in­dus­trial pol­icy, the en­trepreneurs seek­ing to set up their man­u­fac­tur­ing fa­cil­i­ties do not re­quire gov­ern­ment per­mis­sion. If their pro­ject is al­ready com­plete and the land is ap­proved, their certification process would only take 15 days. If you want In­dia to pro­pel to a global econ­omy, In­dia needs in­fra­struc­ture but with unique in­no­va­tion. Te­lan­gana to­day is ranked num­ber one in the Cen­tral gov­ern­ment’s in­dex of ease of do­ing busi­ness.” T CAR an ga nathan, For­mer Chair­man and MD, Ex­port-Im­port Bank of In­dia said, “The cur­rent change of cy­cle has started in adopt­ing tech­nolo­gies in a quick way. In­dia is on rapid growth in ex­ports and has dou­bled the mar­ket rates in the last decade. The in­ter­na­tional av­er­age is about 20-25% of to­tal ex­ports as com­pared to 5% to In­dia’s ex­ports. The in­ter­nal growth rate of CAGR for In­dia is about 20% but not enough com­pa­nies are com­ing in. Com­pa­nies need to be more cap­i­tal in­ten­sive if it needs to be tech­nol­ogy in­ten­sive. Also, we should be pro­duc­ers of tech­nol­ogy which will fur­ther pro­pel the growth of our na­tion.”

Global par­tic­i­pa­tion

Through EXCON 2017, CII pre­sented In­dia as a po­ten­tial global out­sourc­ing des­ti­na­tion for con­struc­tion equip­ment, com­po­nents and ag­gre­gates man­u­fac­tur­ing. EXCON had re­ceived par­tic­i­pa­tion from over 925 ex­hibitors in­clud­ing 275 in­ter­na­tional com­pa­nies. The ex­hi­bi­tion had ded­i­cated coun­try pavil­ions in­clud­ing lead­ing economies like China, Ger­many, Italy, China, South Korea and the UK. There has been tremen­dous back­ing from renowned in­ter­na­tional as­so­ci­a­tions like Ger­many

En­gi­neer­ing Fed­er­a­tion (VDMA); Korea Con­struc­tion Equip­ment Man­u­fac­tur­ers As­so­ci­a­tion (KOCEMA); Con­find­us­tria Mo­dena and UNACEA, Italy; China Coun­cil for the Pro­mo­tion of In­ter­na­tional Trade (CCPIT); Con­struc­tion Equip­ment Dis­trib­u­tors and Man­u­fac­tur­ers As­so­ci­a­tion of Turkey (IMDER).

Ann-Marei Zwickirsch, Ger­many En­gi­neer­ing Fed­er­a­tion (VDMA) said, “We see EXCON as a very ben­e­fi­cial platform to ex­hibit and are very happy to see a lot of vis­i­tors in 2017. We are able to make good busi­ness here. It is im­por­tant for ev­ery small com­pany to have good con­tacts and be able to have good busi­ness part­ners.”

An­other in­ter­na­tional del­e­gate present at EXCON, Da­vide An­sa­loni, Con­find­us­tria Mo­dena, Italy said, “We are a part­ner of CII since 2005 for the or­gan­i­sa­tion of the Ital­ian pavil­ion. With EXCON, so many com­pa­nies find the right part­ner to do their busi­ness. It helps Ital­ian com­pa­nies to not only sell their prod­ucts in the In­dian mar­ket but also find­ing the right busi­ness part­ner. We also see par­tic­i­pa­tion of a lot of new com­pa­nies out­side the Ital­ian pavil­ion. Hence, we see a lot of co­op­er­a­tion from the In­dian com­pa­nies through EXCON. The In­dian sec­tor shows a very good trend for us es­pe­cially when we see ex­ports from Italy grow­ing. In the ar­eas of Bengaluru and Pune specif­i­cally, the projects we see have a lot of con­trac­tors to visit here and we ex­pect next year to be even more fruit­ful.”

Platform for com­po­nents

EXCON 2017 had the par­tic­i­pa­tion of large num­ber of global and do­mes­tic play­ers in the com­po­nents, accessories and af­ter­mar­ket seg­ment. The com­bined In­dian Con­struc­tion Equip­ment (ICE) mar­ket in­clud­ing con­struc­tion equip­ment, spares, ser­vice and ex­ports stood at USD 5.8 bil­lion in 2016-17. It is likely to touch USD 10.5 bil­lion by 202122 ac­cord­ing to CII-ICEMA Re­port on In­dian Con­struc­tion Equip­ment In­dus­try re­leased dur­ing CII EXCON 2017.

The over­all mar­ket for spares for earth mov­ing equip­ment in FY 2016-17 was in the range of Rs 4,000 – Rs 4,300 crore. The spares mar­ket is ex­pected to go up to Rs 5,800 crores by FY 2022 with the al­lied ser­vices busi­ness to be pegged at Rs 800 – Rs 850 crore giv­ing a huge op­por­tu­nity for growth of the com­po­nents in­dus­try.

EXCON 2017, lever­ages this grad­ual shift in the mar­ket dy­nam­ics, pro­vided an in­ter­na­tional platform for the lo­cal com­po­nent man­u­fac­tur­ers to show­case their of­fer­ing to a global au­di­ence. The South and West In­dia are hubs for such com­po­nent man­u­fac­tur­ing with a good mix of do­mes­tic and MNC play­ers. Tamil Nadu, a lead­ing hub for au­to­mo­tive man­u­fac­tur­ing and spares is also be­com­ing the pre­ferred des­ti­na­tion for con­struc­tion equip­ment com­po­nent man­u­fac­tur­ing. The road ahead for com­po­nent man­u­fac­tur­ers is to work more closely with OEMs and the ini­tia­tives like ‘Make in In­dia’ and rolling out of GST would pro­vide the much fil­lip for the ro­bust growth of the com­po­nent man­u­fac­tur­ing in­dus­try.

Pratik Ku­mar, CEO, Wipro In­fra­struc­ture En­gi­neer­ing said, “To a sig­nif­i­cant ex­tent, the com­po­nent in­dus­try mir­rors growth that the OEMs ex­pe­ri­ence. The growth of In­dian con­struc­tion equip­ment in­dus­try has pos­i­tive im­pact on the com­po­nent in­dus­try since it is very closely in­ter­con­nected and in­ter­de­pen­dent with OEMs. The com­po­nent in­dus­try is ex­pected a CAGR of about 12% as com­pared to last year’s growth at 5-8%. Over the next few years, we’ll see a lot of com­po­nent com­pa­nies fo­cus­ing on bring­ing in new tech­nolo­gies, new pro­cesses, build­ing ca­pac­ity and bench­mark­ing with global best prac­tices on qual­ity in the most cost-ef­fec­tive man­ner. This not only po­si­tions the de­mands of the In­dian mar­ket but also to be strong con­trib­u­tor to the ex­port mar­ket as well.”

M Seetha­p­a­thy Rao, Chair­man and Man­ag­ing Di­rec­tor, Hy­com En­gi­neer­ing In­dia Pvt. Ltd., said, “I have been as­so­ci­ated with EXCON since its 1st edi­tion and this year has turned out to be the best edi­tion ever. The premise is that com­po­nent is where tech­nol­ogy is built for the equip­ment. The com­po­nent sec­tor is the one which can ex­plore prod­ucts. Most con­struc­tion equip­ment man­u­fac­tur­ers are in In­dia and the main em­pha­sis is on it so that the ‘Make in In­dia’ cam­paign can be ful­filled. The con­struc­tion equip­ment in­dus­try is likely to grow around 15-20% and so will the com­po­nents in­dus­try grow ac­cord­ingly.”

Prod­uct launches

Apollo Tyres Ltd, man­u­fac­turer of in­dus­trial and earth­mover tyres for con­struc­tion and min­ing in­dus­try, launched a range of un­der­ground min­ing tyres, port tyres and wheel loader tyres.

Avtec Lim­ited, man­u­fac­turer of offhigh­way power-shift and au­to­matic cy­cling and haul­ing trans­mis­sions, trans­fer cases, split­ter gear­boxes, en­gines and high pre­ci­sion trans­mis­sion com­po­nents and off-high­way axles, in­tro­duced AVTEC 8700 Se­ries Trans­mis­sion for 100T dumpers, Cross Drive Trans­mis­sion for de­fense ap­pli­ca­tions and Trans­fer Case for Tran­sit mix­ers.

Cater­pil­lar In­dia Pvt. Ltd, the world’s lead­ing man­u­fac­turer of con­struc­tion and min­ing equip­ment, diesel and nat­u­ral gas en­gines, in­dus­trial gas tur­bines and diesel-elec­tric lo­co­mo­tives, in­tro­duced 950L wheel loader, 349D2Lex­ca­va­tor, 424B2 back­hoe loader, 2021D small wheel loader.

Dan­foss Power So­lu­tions In­dia Pri­vate

Lim­ited, a global man­u­fac­turer and sup­plier of high qual­ity hy­draulics and elec­tron­ics com­po­nents, launched high pres­sure open loop pumps, high pres­sure high flow pro­por­tional valves, new range of low speed high torque mo­tors, telem­at­ics and in­ter­net of things so­lu­tions, au­to­mo­tive con­trol HST. The com­pany of­fers tech­nol­ogy and so­lu­tions that ex­cel

in harsh op­er­at­ing con­di­tions of ma­chines. Hyundai Con­struc­tion Equip­ment In­dia

Pvt. Ltd, launched SMART se­ries of ma­chines to be man­u­fac­tured from its Pune plant. These ma­chines would be sold and sup­ported by 30 deal­ers hav­ing around 180 outlets. At Excon, it launched R480-9S Min­ing ex­ca­va­tor, R140W-9S Wheeled ex­ca­va­tor, R215 L SMART with El­e­vated Cabin.

JM Frictech In­dia Pvt. Ltd, which de­signs, de­vel­ops, tests and man­u­fac­tures the Wet brake, Clutch sys­tem and hy­draulic ac­tu­at­ing parts for ma­te­rial han­dling equip­ment, Back­hoe, Dozer, Dumper, Agri ma­chin­ery and Heavy Com­mer­cial Ve­hi­cles, in­tro­duced Wet brakes, Wet clutches and Hy­draulic ac­tu­at­ing parts.

Ko­belco Con­struc­tion equip­ment In­dia

Pvt. Ltd makes hy­draulic ex­ca­va­tors in the range of 14T to 38T at our Sri City plant (A.P.). It also sells 50T and 85T ex­ca­va­tors made in Ja­pan. It of­fers var­i­ous at­tach­ments like Rock Break­ers, spl Buck­ets, etc. It in­tro­duced its new 38T Ex­ca­va­tor SK380XDLC-10 and Lon­greach Boom at­tach­ment suit­able for our 22T ex­ca­va­tor SK220XDLC. So­jitz In­dia Pri­vate Lim­ited, man­u­fac­turer of Kub­ota Mini Ex­ca­va­tors, launched its 5-tonne class ma­chine U50-5S for the In­dian mar­ket.

Surin Au­to­mo­tive Pvt. Ltd, which man­u­fac­tures hy­draulic and fuel tanks counter weights buck­ets for ex­ca­va­tor, back­hoe loader and wheel loader cabin driver seats fab­ri­cated parts like floor plates, Seat base Assy and Dozer blades, in­tro­duced Seat base Assy Buck­ets.

TIL Lim­ited, a lead­ing provider of road build­ing and ma­te­rial han­dling so­lu­tions, rep­re­sent­ing global tech­nol­ogy lead­ers, show­cased Truck Cranes, Pick-n-carry Crane, Mo­bile Crush­ing Plant, Jaw Crusher, Vertical Shaft Im­pactor, Reach­stacker & Hot mix as­phalt plant, It launched the TILHys­ter RS 45-31 Reach­stacker and the new PIXEF pick-n-carry crane.

Action Con­struc­tion Equip­ment Lim­ited

(ACE), a man­u­fac­turer of Pick & Carry, Tower, Crawler, Truck mounted & Lorry loader cranes, Load­ers, Road equip­ment, con­crete plac­ing boom, Fork­lift trucks, and Agri equip­ment launched its new model of Back­hoe Loader - AX 124.

Par­tic­i­pants at a con­fer­ence on ‘Next Gen In­fra­struc­ture’

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