Demand for road construction equipment is strong and uniform across all regions of the country

Dimitrov Krishnan

Managing Director, Volvo CE India

How do you look at the year 2022-23 and beyond for roads and highways sector?

Road construction is expected to grow in the high double digits for better part of the decade, starting this fiscal year. In fact, we expect 2022-23 to be 'peak year' for the sector as we head to general elections in 2024. A massive surge in capital outlay in recent Budget will certainly speed up execution of mega greenfield and brownfield road projects, powered by PM GatiShakti National Master Plan, National Infrastructure & Monetisation Pipeline, and National Bank for Financing Infrastructure & Development. These include Bharatmala & Sagarmala Projects, scores of expressways and freight corridors connecting ports, cities and towns across the country.

How is the demand trend of road equipment currently?

Demand for road construction equipment is strong and uniform across all regions of the country - from rural, urban, border and coastal roads to national expressways, feeder routes and economic corridors.

What are the challenges encountered by road equipment players in the current market scenario?

Road equipment manufacturers face multiple challenges. These range from input cost inflation and supply chain disruptions to continuing changes in emission norms and standards to inadequate product operating knowledge at both owner and operator levels.

Volvo CE has addressed these challenges and taken significant steps to overcome them. Extensive investments in India manufacturing facility along with robust local supply chain ensure minimal backlogs in product delivery. All Volvo road construction equipment comply with stringent CEV IV emission norms and are capable of running on bio-diesel fuel.  Volvo CE has made it a policy to provide detailed, quantified briefing on specific product features and benefits to all customers alongside hands-on, periodic training modules for operators at work sites.

Government aims to construct highways at a pace of 50 km per day. How practical is this in the current conditions? How can latest road equipment and technologies help achieve this target?

Given the government's unwavering focus on developing roads and overall infrastructure, the unprecedented thrust in terms of resource allocation and road planning, and streamlining of land acquisitions, a pace of 50 km a day, while daunting, is achievable. And world-class road equipment and technology go a long way to help achieve this target.

For over 75 years, Volvo construction equipment have been preferred by contractors worldwide for their road projects. Volvo road building products are backed by decades of engineering excellence and deliver unmatched productivity, reliability, versatility and fuel efficiency. The Volvo series of soil & asphalt compactors and pavers are all designed and built to do more work faster with less operating cost, safely and surely, across a variety of projects and applications.

How is the current buying pattern of road equipment in India?

Equipment-as-a-Service is fast gaining traction among road builders across the country. Under this concept, customers can avail flexible financing/loan options and tax-efficient lease/buyback plans to source equipment along with special offers on spares and maintenance.

Volvo CE India is introducing Equipment-as-a-Service across the length and breadth of the country. This will benefit thousands of customers, particularly sub-contractors, who may not have the resources but need a brand like Volvo to bid and win projects in their region.

What are the breakthrough technologies and services introduced by the company recently for roads and highways construction?

The Volvo DD100 asphalt compactor features Reversible Eccentric Technology facilitating matching of machine performance to
production needs. Volvo soil compactors offer Infinitely-Variable-Frequency-Independent-of-Amplitude feature to help achieve faster compaction across applications. Both soil and asphalt compactors are powered by Volvo Compact Assist - a technology wonder featuring 10” touch-screen monitor - to deliver real-time access and guidance to operators along with a selection of work enhancing tools to enable matchless performance and productivity. The new series of Volvo CE pavers feature robust hydraulics, spacious platform, intuitive controls and intelligent functions.

What opportunities do you look forward for road equipment and what is the market outlook?

As India enters Amrit Kaal, total transformation of the seven engines of economic growth and development - Roads, Airports, Railroads, Waterways, Ports, Mass Transportation and Logistics Infrastructure - is envisaged over the next 25 years. It will change the face of Indian roads and infrastructure like never before. Volvo CE is well-positioned to seize this opportunity with a premier range of road construction equipment.

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