Our focus is to become a one billion company

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 [/vc_column_text][vc_empty_space][vc_empty_space][vc_empty_space][vc_empty_space][vc_empty_space][vc_empty_space][vc_empty_space][vc_column_text]We look forward to increase our market share in many major equipment categories such as backhoes, agri-equipment etc

What is your take on the current slowdown and how it has impacted the CE industry?

There have been a lot of challenges in the year gone by. Economy growth was being impacted due to many expected reasons such as the General Election and Monsoon and unexpected factors such as liquidity crunch. Various markets contracted, and the whole CE industry got impacted between 20-25 percent. Q1 and Q2 of 2019 was not that severe, but next quarter was really not good and everyone has been feeling the heat. However, we are optimistic that 2020 will bring a new hope and there would be recovery.

What was the impact on ACE's performance?

It is true that we also have been impacted except the crane division, which was less impacted. But I am sure things will be back on track, starting from next financial year. We are already witnessing good signs starting January 2020. Of course, we will not be able reach compared to the first quarter in the previous year, however things will improve a lot, and there will be a positive growth in construction, agriculture and other industries. There are lots of other positive signs; for example, the share market is performing well, which is an indication that third quarter onwards things will get better. And, we could also sense the highly positive vibes from customers in the recently concluded Excon edition.[/vc_column_text][vc_column_text]Are the liquidity issues ironed out?

It is very difficult to say. But we see lots of improvements; banking sector is improving, there has been good support to NBFCs, which are major financial institutions. These are some positive indicators.

The global markets have also gone down. What is the impact of this especially in terms of your export potential? 

The global market is already going through the slow down. Almost 70-75 countries are going through the similar economic situation as we face in India, may be worse than India.  There are many factors such as the agreement between China and US, election in US, Brexit etc.  Recovery will be slow, unless those issues are solved. Only some markets are performing, but only based on that we cannot say on the export potential.  Even neighbouring countries like Nepal is going through a worse situation; its construction is down by almost 50 per cent. Same is the case with many African countries where financial issues are high and foreign currency availability, a big issue. I think by mid of 2020 things will get settled, and these countries will also start performing.

India, being a major exporter to Asia, Middle East and Africa, the prevailing situations of these countries plays a major role in our export growth story.  But I am sure these markets are on a stage of improvement, and Indian export will also rise again.

What about the performance of ACE on the export front?

We have been exporting close to 30 countries.  We have four different verticals - agriculture, construction, cranes and material handling. Agriculture, cranes and roads segments we are doing pretty good. We have a good dealer network. As I mentioned earlier, by 2020 we are targeting huge growth in our export. In the last two years, ACE has been doubling the export, and in 2019, despite the slowdown, we have clocked a growth of around 50-60 per cent.  We have been strengthening our network in these countries, and the new additions to our product portfolio would be attracting a lot of customers in those markets.  Now there is huge shift in buying pattern in these countries and they prefer our brand more than the brands from US, Europe and Japan.[/vc_column_text][vc_column_text]What about the Indian market scenario?

Definitely the slowdown has impacted the business, but our performance was very close to the previous year. The response we received from our client during Excon 2019 was tremendous despite the slowdown.  We launched a range of new products - our newly launched AX-124 Backhoe, our next generation slew cranes in 15-20T category, Piling Rigs and Truck mounted cranes in high capacity. Our customers were really excited and we received good number of inquiries at the show.   

In 2019 you introduced Piling Rigs.  What has been the response so far?

Yes we added a new vertical, piling rigs - the ACE- Sunward Rotary Piling Rigs. We have got wonderful response from our clients, and we have already sold many units within a few months of its launch.

Do you have a level playing field in the global market?

From the last three years there has been lot of concentration on exports. To get into the export market, you need to have global standards, which mean you need to upgrade technology, or come out with advanced technology; the performance of our products has to be better and quality needs to be good. In the global platform competition is so high, the market is open to everyone - right from the top companies across the world to local ones. And that it is where we have differentiated from competition. We have a high quality range. As per the market requirements, we are capable of upgrading our machines - based on the markets and working conditions.  And our top management has a very specific and visionary global perspective, and we are sure in 4-5 years time, exports will become a major part of the overall turnover.               [/vc_column_text][vc_column_text]How open ACE is to telematics and IoT integrated solutions?

We are already working on it, and probably in a short period you will see our machines fully integrated with IoT.  In some of the export markets we have already introduced the same as per the requirements of the customer. We have been developing the capabilities and we are ready with the solutions. The basic engineering is done at our R&D Center. Besides, we also have technological collaboration with experts to cater specific IoT requirement for both domestic and exports customers.        

Why should a customer buy from ACE?

Number one, ACE provides high quality products.  Secondly, we have one of the largest network in India, and the response time to any issue, is one of the quickest in the industry.  And thirdly, our products are extremely customer and user - friendly, which undoubtedly make us the leader in many products.        

How do you envision the growth of your company in another five years down the line?

We are already the No. 1 Crane Brand of India and our vision is to become a leading Construction Equipment player of the industry. Besides cranes, we look forward to increase our market share in many major equipment categories such as backhoes, agri-equipment etc. Our focus is to become a 1 billion company in the next five years.[/vc_column_text][/vc_column][/vc_row]

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