Interview:

Dimitrov Krishnan, Vice President and Head, Volvo CE India.

Q: What is the current market share of Volvo CE in India?

A. We are striving to position ourself as one of the top five or six players. The market share varies monthly. We are working to make it to the top of the list. As a premium player, we are offering our customers the latest and the most advanced technologies in terms of value. Our equipment is charged on the basis of cost per tonne. While our patrons are able to comprehend the reasons, it is the operating cost that makes for a large chunk of the total operating cost. The ownership cost is just 18 to 20 per cent. Volvo stands tall in the most demanding segments. Underlining a market share of 40 to 60 per cent in the excavator segment, we have a market share of under 8 per cert in the high volume 20-tonne product range. In the 50-tonne excavator segment, we have a 60 per cent market share. Higher digging processes, challenging road conditions, and quarries is where our machines find use. This makes us a leader with a high market share.

Q: Any market share challenges do you foresee?

A. From the product perspective, we do not see much challenge ahead. We are increasing our product range. We are also focussing on distribution.

Q: Would you be launching any new product this year?

A. This year, we are planning to introduce a nine-metre ‘C series’ paver. This is the low volume segment and we are not making this product in India but importing from Germany. The nine-metre paver will be used in road building and airport maintenance.

Q: What difficulties did you face during the downturn?

A. The industry has seen several spikes and downturns in the last 20 to 25 years. The years, 2007-08 and 2011-12 were peak years. The industry scaled down drastically between 2012 and 2014. The industry was absolutely neutral in 2015. Growth emerged in 2016 as road construction activity picked up pace. It were the expressways, national highways, state highways, and the activities to convert four-lane roads into six-lane roads that gave us an opportunity to bounce back. There’s been a 40 to 50 per cent increase in almost all the equipment sales. Some equipment has seen a traction of over 60 per cent. Our business depends on roads, mining, irrigation and basic infrastructure like ports. I think the market is growing, and will continue to grow for the next one to two years.

Q: Is your current plant capacity enough to tap the growth?

A. We have an installed capacity of 35000 machines. We are not using the full capacity. We have been able to manage another 30 per cent increase. Yet we have spare capacity. This year should be smooth sailing. About the years to come, we will have wait and watch. Due to low volume uptake in certain products, we end up importing 30 per cent of our machines still. We manufacture seven types of machines at Bangalore. Of these, five-types of machines are exported.

Q: Is India an export hub?

A. We have strong R&D capabilities in India. We export these. We do a lot of R&D work for products which are not made in India. This, to us, is one way of exporting. We also export fully-built products. We indulge in two types of exports thus. We are catering to markets like South East Asia and the Middle East. We export 11 to 12 per cent of what we produce in India. India is ta bright spot in the construction equipment market the world over. Growth in other markets is not as good. If we gather demand from various regions and collate it, India is higher up there. Others are trailing the Indian market with a huge difference.

Q: How do you plan to increase sales in India?

A. Distribution is the major area we are focusing on. We are expanding our network, man power and competence. There are operational needs, and are becoming a basis upon which other developments will take place. We have 15 dealers in India that manage 120 to 130 branches. Our target is to add 20 branches in 2017. The target is to reach 150 branches. Reasonably quick in responding to the needs of our customers, we review dealers every month. We are able to substantiate our aftermarket fit with the service we render.

Q: How far has telematics penetrated into the equipment market?

A. We have launched our telematics platform called ‘CareTrack’. It is not a standard fitment in all models. It is available on premium models like bigger excavators and wheel loaders. The platform helps track and record vehicle information. Customers can log on to our portal and check the health of their equipment. We will be gradually introducing ‘CareTrack’ to our other products as well.

Q: How do you conduct operator training?

A. Delivery is the primary process. It is followed by the training of operators. Particular attention is paid to make them aware of the different features an equipment may have. Our operatortrainer spends three days at the customer site and trains the user. Classroom training, demonstrations, and machinelevel training are imparted to the operator.