New mining and road infra products to be launched at bC India 2018
It has been an amazing run for LiuGong India so far in the Indian CE market, successfully completing 15 years of business operations in the country early this year. Coinciding with this milestone is the 60th anniversary of its parent company LiuGong Machinery Co. Ltd. headquartered in Liuzhou, China. Crossing the landmark sales of 1,000 machines in the domestic market last year, LiuGong India is targeting a year-on-year growth of at least 40 per cent, i.e., around 500 units additional sales roughly.
Last year at EXCON, the OEM presented a complete range of excavators including the new CLG 921 Di ‘Made in India’ excavator, aiming at a variety of applications from quarrying to road infrastructure, along with a brand-new 611 vibratory soil compactor. Asked on the customer response and acceptance of the new products, Mr. Nischal Mehrotra, Director (Sales and Services), said that the 2017 edition turned out to be the best EXCON ever for his company. “We closed deals for over 100 machines orders from the expo, of which at least 45 were from the Telangana region. The response from our repeat customers was also overwhelming while they also conveyed their readiness to try out our complete range of products”, he added.
Taking positive cues from its customer base and market demands, the company is on its toes for the upcoming important event for the CE sector, Bauma Con India (bC India) in December. “While we had showcased our higher tonnage wheel loaders and excavators at IMME, high-capacity motor graders will grace the occasion at bC India”, Mr. Mehrotra revealed.
Segment-wise Focus
LiuGong India’s forte has always been wheel loaders since the beginning in India, an undeniable trend setter in the 5-tonne class segment, to be precise. This market is consistently witnessing surge in demand due to buoyancy in road construction activities lately, with a healthy annual demand of around 3,000 units.
“LiuGong is one such company in India that is mainly focusing on wheel loaders, they are leading growth drivers for the company, weighing about 700 units of annual sales. The market expands by around 30 per cent”, the Director observed. The OEM boasts a comprehensive range of equipment in this space, ranging from 2 to 7-tonne, along with a plethora of customer-centric variants on offer.
“We are also the second market leader in motor grader sales in the country, according to Off-Highway Research reports”, he claimed, while adding that the market is expanding by at least 20 per cent every year, thanks again to the assured investments on the road sector by the government.
As far as vibratory compactors that were recently launched are concerned, Mr. Nischal Mehrotra noted that the company is giving a huge push by supplying those equipment to its existing customers. He is quite positive that they will gain traction in the times to come, in spite of cost-conscious market sentiments and heavy competition in this space.
Local Manufacturing
“Our prime focus remains to be mining applications and road construction segments, we are committed in bringing a complete range solutions for the buyers”, he reiterated, while citing that LiuGong is partnering with world-class suppliers including Cummins, Kawasaki, and ZF for making reliable and competent products with proven technologies. The company claims that its machines are designed and tested for rigorous life cycles and working conditions, including that of India. It also work to set new standards in the local market, by offering value-addition, like fully air-conditioned cabins since 2008 and telematics for H-series wheel loaders and heavy-duty excavators as standard fitment.
Mr. Mehrotra also said that localized assembly of equipment and sourcing of components is an essential attribute to match the price point of the domestic market. “With a new assembly line for 15 and 21 tonne class excavators at our Pithampur plant, our max utilization capacity now stands at 3,500 units per year. The localization level for wheel loaders and excavators stand at 70 per cent and 30 per cent respectively, although the latter might go up to 100 per cent by the end of this year”.
India as a strong manufacturing base is what LiuGong is looking for, he added. “This also helps our exports to neighboring markets including Nepal, Bangladesh, Bhutan, and some parts of Africa”. LiuGong India is also rapidly expanding its service network and dealership based across the country, with 22 dealers and 60-plus touch points for ease of customers.
60 years of LiuGong in global markets
LiuGong India’s parent company is completing 60 years of existence in the mining and construction equipment industry in the international markets this November. It’s been a long journey and an amazing milestone, claims the company, with celebrations being held at the group’s headquarters in Liuzhou, China.
LiuGong is a company of many firsts, including being the first company in China to manufacture heavy equipment and the producer of China’s first modernized wheel loader in 1966. It boasts a total of 20 manufacturing facilities worldwide, offering 17 lines of products to meet any customer demands in the mining, road construction and infra, material handling and hauling, and concrete equipment, to name a few.
According to Off-Highway Research, LiuGong is renowned for being one of very few Asian competitors producing equipment that exceeds international standards, while also setting design and price standards in the industry.