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