At ICEMA’s Annual Session, Nitin Gadkari unveiled the CE Technology Vision Roadmap 2035 for alternate fuels adoption in India’s infrastructure revolution
During ICEMA’s Annual Session on 1st August, Minister Nitin Gadkari unveiled the Construction Equipment Technology Vision Roadmap 2035. This roadmap outlines a plan to adopt sustainable practices and alternative fuels in the CE industry, reducing costs and contributing to the nation’s development.
Speaking at the launch event, Gadkari stressed the urgent need to adopt sustainable technology and alternative fuels (such as ethanol and methanol) to reduce operational costs and promote the industry’s economic viability. He emphasized that embracing alternative fuels could potentially reduce operational costs by 25 to 40 per cent, further boosting the industry’s competitiveness and contributing significantly to the nation’s growth while positively impacting the environment and society. Gadkari also highlighted the importance of upholding worker safety and ensuring job creation, urging CE manufacturers to prioritize the development of cost-effective equipment to drive demand in both domestic and international markets.
The Minister also applauded the industry for training 10,000 machine operators under the aegis of the Infrastructure Equipment Skill Council (IESC) and encouraged the industry to persist with this initiative to train an even greater number of operators. This initiative will not only enhance the safety of the operators but also lead to a boost in machine productivity.
Dimitrov Krishnan, Outgoing President of ICEMA and Managing Director of Volvo Construction Equipment, lauded the significance of the roadmap, stating, “The Construction Equipment Technology Vision Roadmap 2035 is a game-changer for our industry. It presents a clear roadmap for adopting emerging technologies and harnessing the potential of alternate fuels, including electric machines, hydrogen, and bio-fuels. This approach is indispensable to enhance the overall competitiveness of the Indian construction equipment sector while making substantial strides in reducing our carbon footprint.”
V. Vivekanand, Incoming President of ICEMA and Managing Director of Caterpillar, emphasized the roadmap’s unwavering focus on sustainability, saying, “As we look to the future, safety, sustainability, and solutions would serve as three pillars of our industry’s growth. The technology vision roadmap will focus on taking safety as the first priority, sustainability aligning with the 2070 goals of net-zero emissions, and solutions that would double up on quality, productivity, and efficiency, perfectly aligning with the Minister’s vision for a cleaner and greener world-class infrastructure.”
Deepak Shetty, Member of ICEMA Governing Council and CEO & Managing Director of JCB, highlighted “the collaborative spirit behind the initiative, involving industry stakeholders, policymakers, and experts. He believes that incorporating alternate fuels will bridge technology gaps, address challenges, and unlock new growth opportunities in the construction equipment sector while contributing to a more sustainable future.”
The Construction Equipment Technology Vision Roadmap 2035 lays the foundation for a future where cutting-edge technology, sustainability, and innovation converge, creating a thriving construction equipment sector in India.
The Annual Session of ICEMA was attended by around 300 delegates and was addressed by eminent speakers, including union ministers, policymakers, industry thought leaders, and economists.
Indian CE industry records 18% YoY growth in Q1 FY24
The Indian Construction Equipment (CE) industry has experienced significant growth during the first quarter of the fiscal year 2023-24. Sales surged by 18% compared to the same period in the previous fiscal year, with a total of 27,244 units sold, compared to 23,037 units in Q1 FY22-23. Domestic sales accounted for 24,806 units, while 2,438 units were exported.
Dimitrov Krishnan, Outgoing President of ICEMA and MD of Volvo CE India Pvt. Ltd., attributed the impressive sales growth to the accelerated pace of infrastructure projects. An estimated INR 406 billion worth of projects are already in the pipeline, and there are expectations of a rapid influx of new projects, which bodes well for the CE industry.
This sales growth in the first quarter was driven by positive performance in three major CE equipment segments: Earthmoving Equipment (up 19%), Road Construction Equipment (up 38%), and Material Handling Equipment (up 57%). However, the other two major segments, Material Processing Equipment and Concrete Equipment, experienced a slight decline in sales, down by 10% and 11%, respectively. On a month-on-month basis, CE sales in June 2023 totaled 8,781 units, a 2% decrease from the 8,986 units sold in May 2023.
Earthmoving Equipment, comprising around 70% of total CE sales, saw significant growth with 18,831 units sold in Q1 of FY24. Backhoe loaders (10,161 units) and crawler excavators (6,866 units) contributed significantly to this surge. Material Handling Equipment also experienced a substantial growth of 57%, mainly driven by increased sales of 2,966 pick and carry cranes.
V. G. Sakthikumar, Convener of ICEMA Industry Analysis and Insights Panel and Managing Director of Schwing Stetter India Pvt. Ltd., expressed optimism for continued growth, citing the 17% increase in budgetary allocation to the infrastructure sector and 15% increase to NHAI as driving forces behind the pickup in infrastructure projects. The industry anticipates a boost in demand over the next two quarters due to the government’s directive to spend 80% of the budget allocation for the infrastructure sector by December 2023.
The Union Budget 2023-24 reaffirmed the government’s focus on infrastructure development as a key driver of economic growth, with increased budgetary allocations, particularly in Road infrastructure, which received the second-highest allocation, amounting to 20% of the total budget. This is particularly encouraging for the CE industry, as road construction accounts for approximately 40% of the total demand for construction equipment in the country.
Krishnan, as the spokesperson for the Indian CE industry, emphasized the importance of steady project execution to ensure the anticipated growth rate of around 15% for the current fiscal year. With the current fiscal being an election year, the completion of projects in a timely manner is crucial.
The ICEMA Panel on Industry Analysis and Insights is dedicated to providing reliable market intelligence through data collation, generation, and analysis. Their quarterly CE Industry Report, based on data shared by member companies representing about 95% of the OEMs operating in the Indian Construction Equipment industry, adds value to the industry’s understanding of market trends.