Indian infrastructure sector during the 12th Plan (2012-17) of the Planning Commission will witness a spending in the range of $1 trillion. Incentives offered by the Central Government, which include a mega seven lakh crore of rupees to improve the existing infrastructure and build anew has given a major boost in the arm for all the relevant stakeholders. The incentives also comprise establishing multiple special economic zones (SEZs) to the capital goods industry that includes construction equipment with a special impetus to increase in exports.
As a run-up to the much-awaited biennial EXCON 2017, we spoke to Mr. Dimitrov Krishnan, Vice President & Head, Volvo CE India, for an exclusive curtain raiser on the launch of its new excavator and the outlook.
Excerpts:
What is Volvo CE planning to unveil at EXCON 2017?
Volvo CE will be launching its EC200D excavator at EXCON 2017. This is designed keeping general construction segment in mind and we hope to see a strong interest in it. The new excavator, besides being fuel efficient, boasts of bucket breakout force of 123 kN and arm tear-out force of 96 kN, which helps it deliver high job site productivity and fast cycle times.
In addition to presenting new machines at the show, we will also be displaying the EC210D, a 20-ton-rated excavator which is tailor-made for heavy-duty applications such as in mining and in quarrying, besides also being highly useful in general construction.
The largest excavator in our bouquet, the EC950E, will also be showcased. It is a 90-ton-rated crawler excavator. It has a maximum bucket capacity of 6 m3. Its breakout force of 424 kN and arm tear-out force of 408 kN will help deliver the machine’s unparalleled digging performance.
For the road building sector, our P6820C ABG tracked paver, DD90B asphalt compactor, and SD110BA soil compactor will be on display.
The P6820C ABG offers paving widths of up to 10m and is equipped with a 142 kW-rated Volvo engine. Its paving output can reach up to 700 tons per hour. The DD90B and SD110BA are two relative newcomers to the Volvo family which, though, were launched last year, will be on show at EXCON 2017.
The DD90B is a 9-ton double drum asphalt compactor while the SD110BA is an 11-ton class single drum compactor for earthwork compaction. Both are manufactured at the Volvo plant in Bangalore.
Another from Volvo stables is the L150H wheel loader which has a bucket capacity of up to 9.5 m3 and a static tipping load of 15,900 kg.
The Indian construction equipment segment seems to be going through a boom what with the Central Government recently announcing a mega seven lakh crore rupees worth of road development projects. Being a top-of-the-line construction equipment manufacturer, what are your views on the announcement? Given such a setting, what are your expectations from the upcoming edition of EXCON?
India’s push to expand connectivity through improved infrastructure among its population and business centers presents a huge opportunity for Volvo CE proving that infrastructure development continues to be the key growth driver of our economy. And hence, EXCON 2017 is a perfect platform for us to highlight our unique position in supporting the nation’s ongoing efforts at building and improving infrastructure since we are present in all equipment sectors such as mining, road building and general construction.
What has been the CE market like in recent times?
We are seeing maximum activity in the road building sector with numerous projects progressing. Understandably, we are also witnessing highest levels of demand for excavators, compactors and pavers for this application and its associated industries. For other sectors, such as mining and general construction, activity levels have not been so high and therefore demand for equipment is proportional.
How has this year been in terms of business for Volvo CE? Have you crossed last year’s sales mark? What is the figure this year and what are your expectations for next year?
Market share gains in key segments combined with good cost control and growing demand in most markets have helped Volvo Construction Equipment post an especially strong third-quarter of 2017 globally. This saw sales rising by 34 per cent, order intake going up by 45 per cent and delivery up by 48 per cent in the period, as well as a strong improvement in profitability.
In Asia (excluding China), the total market for the third-quarter of 2017 is 12 per cent above last year, with continued growth in India and Indonesia, which has been helped by a recovering mining sector. The Chinese market has witnessed 74 per cent climb compared to last year, with strong recoveries in both excavators and large wheel loaders.
The outlook for 2020 is bright. India’s potential is clear, and the drive to improve infrastructure and energy supply will unquestionably facilitate further growth in the economy and the construction equipment industry. Volvo CE is well-positioned to play our part in the next stage of India’s development.