Shift towards local component manufacturing will lead to better R& D.

 We have adopted various digital platforms that facilitate smooth and efficient continuation of work.- Puneet Vidyarthi, Brand Leader, CASE India

What new measures have you implemented to contain costs and optimize operations amid this pandemic?

We are taking every measure to acclimate our offices and people to the current conditions in the best possible way. We have made certain changes to our processes to increase efficiency, and our employees continue to be our priority and containing costs has never come at their expense. To optimize operations, we have adopted various digital platforms that facilitate smooth and efficient continuation of work. Our teams are in touch with our customers and dealers via e-meetings, webinars etc. We are also conducting product trainings for our dealers online. We are also taking precautions and have sanitized our offices, plants and warehouses thoroughly to ensure a safe work environment.

Brief us on the measures taken to support your customers during this crisis and what innovative, value-added products / service support you have added / aim to add?

This pandemic has affected all businesses and people. We understand that and have taken measures to ease up the lives of our customers. For our existing customers, we have continued to stay in touch and have given loan extensions and support on warranties to take the pressure off. Since our commitment to our customers is paramount, even in these challenging times we are delivering parts and scheduling services keeping all the safety precautions in mind.

For potential customers, we have come up a new scheme where customers can buy equipment and pay for the same after 90 days. Through CNH Capital, our financial arm, we are making sure there is enough capital available for customers who wish to make purchases. To provide faster solutions to our customers we have come up with a 48 hours loan approval policy as well.

CASE India has always stood shoulder to shoulder with its customers and will continue to do so.

How do you look at opportunity of manufacturing the components that you currently import?  What are the challenges here?

In the wake of a pandemic which has sealed all borders between countries and people, the government has started re-emphasizing the 'Make in India' movement which focuses on being a self- reliant and sufficient nation.

At CASE, we already have a manufacturing plant in Pithampur where we have been locally producing our world-class construction equipment range, which provides us with a distinct advantage. Since most of our machines feature our own engines such as the revolutionary FPT engine, we are able to project and fulfil our requirements for parts and critical components more accurately and timely, thus ensuring no gaps in the supply of the same.

As far as challenges are concerned, the industry lacks in some areas right now such as infrastructure and resources but the government is keen on making India a self-reliant country and has announced measures to facilitate hassle free business set up in the country. And as per industry reports, some industrial parks and additional geographical areas are also being earmarked for the purpose. We believe that this shift towards local component sourcing and manufacturing will lead to better R&D, infrastructure, logistics, delivery etc. and subsequently a more robust product line in the country.

To what extent the earthmoving equipment segment has contracted due to current crisis?  Is the demand set to witness further contraction in FY21?  

This pandemic has been an unprecedented occurrence and is impacting economies and all sectors worldwide. According to a report from ICRA the revenue of the construction equipment industry may fall up to 15-20% in 2020.

Nevertheless, the government is trying its best to salvage the situation. The creation of a fiscal stimulus to boost the economic activities coupled with the recent announcements by Nitin Gadkari, Minister of Transport and Highways have reassured that the infrastructure sector will reinvigorate soon and have a positive impact on equipment demand. The recovery may be slow but it will be a full recovery, nevertheless. We are confident that the government will continue to take corrective measures to bolster the market situation and the economy, further.

What sort of course correction is needed to scale up the infrastructure investment that can trigger fresh equipment buying?

Covid 19 and its resulted lockdown lead to the volumede-growth in the construction sector. The government is trying its best to bring the infrastructure sector back on track by taking fast initiatives and eliminating hurdles which occur in infrastructure projects. Recent announcements by Nitin Gadkari have reassured that this sector will not slow down, thus indicating some big ticket investments in the future. On the other hand, to reduce build-up of arbitration cases NHAI has asked its project managers to cancel portions of the proposed contracts in case of any hurdles in the land acquisition process. The government has also refocused and magnified its Make-in-India initiative to promote the use of locally sourced equipment. Hopefully, the fruition of such initiatives will result in less monetary burden on the buyers.

At CASE, through our financial arm, CNH Capital, we have made it easy for customers to buy fresh equipment as well. We have boosted our capital availability and introduced a 48 hours loan approval policy to facilitate easy and flexible loan service for our customers. We have also introduced a new buying scheme for our customers under which they can buy the equipment and pay for it 90 days later. Hopefully, these initiatives will help in alleviating any liquidity crunchand facilitate buying new equipment.

How does the supply-demand scenario look like after the announcement of the stimulus packages?

Although, pre-Covid demand - supply ratio will take some time to comeback in the market, but the steps undertaken by the government are slowly moving the ratio upwards. We are happy with all the steps taken so far and look forward to helping in every way possible to revive the construction industry.