Kalpesh Soni
Vice President, KYB Conmat
What is the current market scenario of Indian construction equipment industry? How far does expanding infrastructure investment push the consistent use of equipment in infrastructure projects?
The market for construction equipment products in India is showing continuous growth and significant potential, with several key factors contributing to it namely:
Infrastructure development: India has many ongoing and planned infrastructure development projects, which includes roads, bridges, airports, metro systems, smart cities, railways, multimodal logistics parks etc. These projects are driving the demand for construction equipment.
Urbanization: India's urban population continues to grow, leading to increased demand for residential and commercial construction. This, in turn, fuels the need for construction equipment.
Government initiatives: Government initiatives like ‘Make in India’, ‘Atmanirbhar Bharat’, Production Linked Incentive (PLI) schemes and focus on infrastructure projects like Bharatmala, Sagarmala, new industrial corridors etc have encouraged domestic manufacturing and investments in the construction equipment sector.
Construction boom: The construction industry in India is experiencing a significant boom, driven by private and public investments in real estate, commercial spaces, and industrial projects.
Technological advancements: Advancements in construction equipment technology, such as telematics, IoT integration, and automation, have improved efficiency and productivity in the construction sector.
Improvement in road construction infrastructure, increasing urbanization rate, and higher investment to boost infrastructure activities serve as the major determinants for the growth of concrete construction equipment in India.
How do you look at the progress of Make in India initiatives in construction equipment?
The Make-in-India initiative has had a transformative impact on the manufacturing sector, driving substantial growth and innovation. Today, the ecosystem has a growing number of prominent domestic players, all of whom are contributing their expertise to help make India ‘Atmanirbhar’ in the true sense. It has sparked creative thinking and adoption of modern manufacturing practices, positioning India as a global manufacturing hub. As of 2023, India ranks 5th in the Global Manufacturing Index, reflecting the sector's progress and competitiveness on the global stage.
The manufacturing sector contributed approximately 17% to India's GDP in FY 2022-23, with ambitious plans to increase this share to 25% in the coming years. The government's focus on expanding the manufacturing sector, coupled with significant investments in infrastructure, is driving a core demand for products such as construction equipment, which is expected to provide a substantial boost to the industry. According to ICEMA's latest report, the sector has recorded a remarkable 26% year-on-year growth, with 1.35 lakh units sold in FY 2024.
Moving forward, a key focus is strengthening support for Original Equipment Manufacturers (OEMs) and fostering the creation of a localized ecosystem. KYB Conmat stands out as a prime example of how an Indian company is reshaping the concrete construction equipment sector. As one of India's leading manufacturers of concrete equipment, KYB Conmat is at the forefront of innovation, offering a wide range of products including batching plants, paving machines, transit mixers, self-loading mixers, and concrete pumps.
What sets us apart in a competitive market is our deep understanding of customer needs and our unwavering commitment to continuous innovation. By consistently integrating customer feedback into product development, we ensure that our offerings remain not only relevant but also ahead of the curve, making KYB Conmat a true global player with an Indian heart.
Indian CE industry needs to focus more on enhancing exports. What is your take on this and what are the steps from the company in this regard?
India’s Construction Equipment (CE) industry is experiencing robust growth, driven by both a strong domestic market and expanding exports. According to the latest ICEMA report, the sector has recorded an impressive 49% year-on-year growth in export sales, highlighting a growing demand for Indian-made equipment in international markets. Companies in the industry are no longer focused solely on the Indian market; they are developing products designed for the global market. By combining innovation with cost-efficiency and sustainability, Indian manufacturers are making significant strides on the world stage. With a global emphasis on infrastructure development, the outlook for the sector remains highly positive, with increasing demand not only within India but also from international markets. Our company also integrates cutting edge technologies in our products matching every international standard possible and that’s why it is very fast growing in the international market because of increase in demand for KYB Conmat’s products.
What is your vision on India becoming the second-largest CE market globally? How are you gearing up for this? What is the way forward?
India is already the third largest CE market globally, and with government’s strong impetus on infrastructure development and increased capex for the same, is boosting the demand for CE Industry. Along with the domestic growth, the international demand is also showing an impressive growth, and we are hopeful that India will soon be the 2nd largest market globally, owing to the demand of infrastructural domains across sectors.
We are continuously working on our R&D and integrating the demands from the markets into our products, as we believe in serving our customers like none other in the market.
