A systematic and strategic approach can put India on the path of enormous economic growth.

- R Haridoss

Vice President - Business Development Power Build Pvt Ltd

What are challenges which you foresee impacting the Construction and Mining Equipment sector, and specifically on component supplier like Power Build on the demand side?

In the beginning of the Covid-19 pandemic, we all have seen its impact and uncertainty in economy across all the industries globally and India is no exception. Though, we are witnessing the slow recovery, yet gradually coming back to the trackwhich can be seen in GST collection report by government. Construction and mining equipment sector has witnessing a positive growth now. Construction andmining business has always been highly labour centered and hardly hit due to labour migration in first quarter of the FY20-21. Even after when most of the people have come back on work, the liquidity issue still haunting and remained one of the key concern. Government of India has announced lot of packages to uplift economy and advised RBI reduce the interest rates to increase the demand in real estate sector.

Power Build is in the business of mechanical transmission product which is heart of any engineering industry. The brand Radicon Powerbuild offers complete power transmission solution based on various products helical, heli-bevel and planetary and other customized gear boxes and geared Motors. In first quarter, there was a dip in domestic market and therefore our capacity utilization was dependent only on our export business. Post lockdown we observe increase in demand and our capacity utilization in October vis-à-vis last Oct'19 and expecting it will further go up in coming months.

What measures do you further expects from the government's part

The Covid-19 stimulus package Atmanirbhar Bharat Abhiyan for Rs20 Lac crores aims to build a self-reliant India by prioritizing MSMEs, liquidity and welfare, agriculture, power distribution, mining, health, rural employment and housing sector reforms.

The launch of commercial coal block auction is another transformational agenda and can potentially fast track growth in the central and eastern states in mining-sectors.

Also, there are more than 15.62 lakh units of housing and residential projects are under construction in the top seven cities of the country which will be supported by the Indian government to boost the economy. Of course the lower interest rate as I said earlier would attract more buyer in the market.

Some of the steps taken by the centre and states provide an opportunity to attract industry and create localized employment opportunities. Some of the states have made changes in labor laws to attract private investments and revive industrial activity. Emphasizing Make in India and Vocal about Local will definitely help the Indian industry.

How do you see the impact on the investment scenario in infra projects and its bearing on the CME / component manufacturing sector?

It is true that India has suffered a lot due to the recent Covid 19 crisis but there is a lot to gain if we are alert to the demands of the changing world. Hence, a systematic and strategic approach can put India on the path of enormous economic growth which will be fuelled by its flourishing manufacturing sector in the years to come.

In infra project; we can envisage substantial contribution towards road network. Perhaps, India has the second largest road network in the world; which ultimately gives rise in overall manufacturing sectors including CME / components.

The extremely cheap labour costs and large workforce in the country can make India an attractive place for investment for some companies despite the risks due to infrastructural problems.

In new normal scenarios, government has mainly focused on infra projects by taking several initiatives through various schemes - including PMGSY.

Now in the modern epoch of health conscious society, healthcare sector will remain the top priority with features such as an expanded primary healthcare network, multi-functional infrastructure and adoption of digital tech. Strengthening rural infrastructure to promote growth of agro-based industries, better access to markets for farmers and creation of job opportunities for the rural population will be the second priority.

Post pandemic era how do you envision the transformation of manufacturing processesespecially with the advent of disruptive technologies?

The crisis has taught us the risk of dependence on other countries and may thus, give way to more localization. This ensure that the local industry makes sincere attempts to become competitive instead of just relying on protection from higher import tariffs.

In the attempt to revive the economy post Covid-19, companies should enhance their business strategies by optimization of human capital, innovative funding models and greater technological integration. This would not only provide a timely stimulus for turning the tide on industrial activity but also improve national competitiveness.

Manufacturers are going to be under greater political and competitive pressures to increase their domestic production, grow employment in countries, reduce or even eliminate their dependence on sources that are perceived as risky, and rethink their use of lean manufacturing strategies that involve minimizing the amount of inventory held in their global supply chains. Yet many things are not going to change. Consumers will continue to want low prices in recession, and firms won't be able to charge more. In addition, digitalization of marketing will be key source for promoting the business instead of traditional marketing.

What is your outlook on the future potential and how geared up is Power Build?

We at Power build have a very strong belief in a 'V' shaped recovery in near future and we are fully geared up to cater the market demand. Not only domestic market we are gearing up overseas market too.

Hence, we should retain our confidence and communicate with our people and partners.

PBL leads to the adoption of new technology and would give impetus to our business targets. Almost unanimously, cash management, vendor optimization and supply chain stabilization are the important strategies for us. Sectors, like chemicals, food processing, infrastructure, pharma, agriculture, food processing and pollution control would be our most targeted segments to accelerate our growth.

PBL believes in continuous innovation and new product development, RadiconPowerbuild leverage it strong design and application engineering team fully to give solutions to suit almost any application.

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