We are switching from manual to real time data capturing, data analysis & AI.

- Rahul Shorey Head, Construction Equipment, Tata Hitachi

“Tata Hitachi's Shinraiis equipped with inSite, which helps the customer keep an eye on the machine running, usage, location, critical alerts and fuel levels,” states Rahul Shorey - Head, Construction Equipment, Tata Hitachi. Excerpts from the interview…

What has been the impact of disruptive technologies on your production processes, product design strategies and supply chain management? 

The impact of technologies (IoT, AR&VR, machine learning) on production process are as follows-

IoT- We will switch from manual to real time data capturing, data analysis using AI and expert system that will help in faster decision making. This helps in real time production planning, inventory management and synchronizing machine and material flow.

AR (Augmented Reality)- Training, process sheet visualization, feasibility study of facilities

VR (Virtual Reality)- Layout planning, process planning, facility planning, ergonomic study

Machine Learning- Faster trouble shooting, elimination of repetitive manual intervention elimination of manual SAP parts booking using RPA (Robotic process automation). Respond with voice command (Deep learning).

Additive technology- 3D printing, template and checking gauge manufacturing

How do you foresee the trends in production process / design strategies and supply chain management post Covid era?

The Key mapped changes in Tata Hitachi's production process post Covid era are as follows:

- Production monitoring through remote location using camera and digital communication technology.

- Work place support through video call providing tabs and computers at shop floor.

- Paperless office and approval of workflow automation for document approval.

- Digital displace for drawing and SOPs at shop floor.

- Contact less attendance system. Installed face recognizer.

- Use of digital check sheets in shop floor.

- Online training.

- Use of SharePoint in place of physical file system.

- Online meetings using Microsoft teamsvendor handholding using digital platform.

- Online seminars and virtual factory tours.

- Participation in online competition- CII.

- Online design review and technical discussion.

In the 'new normal' how have you re-aligned your support strategies towards contractors / dealers and end-user segment especially leveraging disruptive technologies?

Most of our dealer outlets have resumed operations. We have been engaging with them in terms of hand holding during this difficult period as well as virtual training of their service engineers.We were also providing service to our customers using digital means during the lockdown - which was appreciated by them - helping them maintain operations.

There has also been a lot of virtual training to our customers' support staff to enhance their skill and knowledge of efficiently maintaining the machines and look for early warning signals to intervene before it results in a breakdown.

In addition to this, ConSite is available in our Zaxix GI series excavators andInSite in EX Super+ series of excavators - : a next-generation service solution that utilizes Information Communication Technology (ICT). These deliver monthly reports to customers, provide both summary reports that give an overview of the operation of all the fleet owner's machines, and provide detailed reports that show information about individual machines.

Further ConSite also has remote fleet management system with our Global e - Service offering, allowing the customer easy access to operating information real time to increase machine productivity and reduce downtime. This is a convenient and simple system which has been designed to give customers valuable information regarding the operations, maintenance, system parameters and alarms of their machines from the convenience of their offices. Alarms are also reported to our support team who get into action to resolve proactively.

Our support team is at our FMC sites keeping the machines fully functional and we continue to use both the digital as well as well as our physical network to support our customers. Our sales teams were continuously engaged with customers to apprise them of our offerings and how these aid their business going ahead.

We conducted webinars to counsel and instill confidence in them in these uncertain times and spread the positive word around the opportunities in infrastructure in the country as well as in their area of operation. We have also been engaged with financers to offer schemes to explore the way forward and this has helped a lot of customers in availing finance for their purchases.

Please elaborate on the latest technology upgrades in your BHL range?

Tata Hitachi Shinrai was launched in 2018, and is currently being sold with multiple variants:  general purpose/ heavy duty tyres, standard / heavy duty backhoe bucket, standard loader / 6-in-1 loader bucket, loader version and rock-breaker piping variant. The latest backhoe loader offering in the market, Shinrai has been designed to suit Indian customer requirements. A major segment of the Indian backhoe loader market is hiring, and fuel consumption is the major criteria for the choice of machine. Tata Hitachi's Shinrai boasts of good fuel efficiency with it EHS(Excellent Hydraulic System), wherein the flow is regulated sensing the pressure of the system. Apart from low fuel consumption, Shinrai also boasts of high bucket forces, dump height and good reaches.  Machine tracking feature is provided through inSite, which helps the customer keep an eye on the following parameters: machine running, usage, location, critical alerts and fuel levels.

Brief us on the impact of the pandemic on the CE sector and on the BHL market?

We must look at the market in different time segments to get a better sense of what lies ahead. The 1st quarter bore the brunt of lockdown - the period saw disruption to business as well as heightened uncertainty about the direction of impact of the pandemic on the business. Therefore, the CE industry was also significantly impacted with sales down more than 60% YoY basis. BHL market was also impacted and was down more than 50% during the period.

In the 2nd quarter, the unlocking of the economy and various measures taken by the government has enabled the industry to recover sharply and is likely grow by around 10% YoY driven largely by a big growth of over 30% in the BHL market.

The low base of last year post the elections is a key factor in this growth.

However, the increased pace of activity in roads, irrigation, rural development works have positively impacted CE industry volumes and the increased spend on MNREGA aided by good pre-monsoon and monsoon showers have significantly boosted usage of BHL in agricultural activities.

Basis this, we expect the industry to log good growth in the 2nd half of the year - again boosted by the increased infrastructure investment and good support from agriculture. Therefore, the CE industry for the full year could still be down around 10% to a marginal growth - YoY basis - with BHL showing a significant growth.

How does the financing scenario look like, especially for BHL from NBFCs? 

Customers who have taken moratorium are facing challenges in getting funding. We have observed a sharp reduction in the number of BHL customers who continue to avail moratorium, as the confidence and liquidity is coming back into the industry.

However, a large part of around 50-60% of CE customers continues to avail moratorium, but the trend is clearly improving by the month with more and more customers opting out of it.

Given the liquidity, especially driven by rural infra investments as well as agriculture - that is driving demand in BHL - financers are getting more comfortable in funding this segment.

As explained earlier, we have been in discussion with financers throughout this period, updating them about the developments in the industry and boosting their confidence, especially the sharp trend in usage of CE from May onwards that showed that activity was rapidly getting back in spite of shortage of labour.

Apart from this, we have worked with them to offer attractive schemes to our customers in line with current market requirements.

What are the major challenges in today context in the BHL market?  What is your outlook on the BHL market in the coming years?

Any market that grows very fast in a short period of time always has an issue in sustaining that growth. Further given this trend, it also develops into a herd mentality and that has been an issue in the past in maintaining the growth trend.

This generally translates into higher NPAs and when the industry comes back to sustainable demand; it is hit by issues with financing and affects other segments of the CE market as well. This is a key challenge.

Given the sharp recovery and the oncoming CEV4 emission regulations in April 21, we expect the growth to moderate to more sustainable levels in the coming years.

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