We are very keen to showcase our readiness in building the India of tomorrow

- BKR PRASAD

Head - Marketing & Product Development, Tata Hitachi Construction Machinery Company

What are the new technology trends in Indian CE market?

The construction and infrastructure domain in India is way ahead in terms of adapting future technology. Technologies like an autonomous truck, connected equipment, geological surveys using drones, project monitoring using onsite digital communication, use of augmented reality to visualize projects, remote operation of equipment in places that are difficult to reach, artificial intelligence for operation optimization, simulator for operator training, machine health monitoring, etc. have been there from more than a decade.

Although these technologies were developed and available for use, it is only now that the industry has started adopting them at a very fast pace now. Highway projects, railway projects, industrial and residential projects, etc., have started reaping benefits from it.

Very soon we will see that most OEMs using these. The benefit of project execution in less time and low cost will be visible in project reports. The industry also needs to make sure that they are using reliable sources or OEMs for this adoption as the ability to integrate and upgrade is very important. Most important is the security of data as it is going to flow through multiple channels. Hence, the role of partners becomes more important than ever.

The construction industry is constantly evolving with the introduction of new technologies. To stay competitive, construction companies need to embrace these new technologies. Autonomous vehicles and Robotics are some of the most important technologies that will shape the future of the construction industry.

How do you experience the current demand trend of construction equipment?

To accelerate infrastructure development as well as implement holistic planning to improve logistics efficiency, the government had announced the Gati Shakti- National Master Plan in 2021. The focus on infrastructure continued in 2021-22 too. However, the CE industry contracted by 11% mainly due to the impact of the change in emission norms for wheeled construction equipment to CEV4, while the excavator segment continued to grow.

With the focus on infrastructure investment announced in the 2022-23 Budget, capex increased by 35% to Rs 7.5 trillion (USD 101 billion), mostly in infrastructure. Guided by the NIP and Gati Shakti Master Plan, the CE industry is expected to sustain growth this year and in the coming years.

Regarding mining operations, the country is blessed with immense mineral resources. India has one of the largest cement industries in the world and has been able to systematically extract limestone over the past several decades. Limestone and hence cement is a building block in the development of infrastructure as well as real estate construction and housing. Similarly, the country is bestowed with a large deposit of iron ore which companies have been able to convert to iron and steel: driving the development of the country.

India also boasts of having the fifth largest coal reserves in the world, and we are the third largest producer. Recent developments thrust focus on the issue of energy security of the country and coal will play an important role in achieving this. In this direction, Coal India has a target to achieve one billion tons of coal production by the year 2024-25. With a total of 46 coal mines auctioned for commercial mining and many MDOs being executed by Coal India, the private sector is going to play an important role in coal production. This will enable the scientific and systematic extraction of coal in an economical and environment-friendly way with the use of large-class modern mining equipment.

Mining of mineral resources is very important and the above measures will aid in the development and growth of the CE industry in the future.

What is your view and expectations on bauma CONEXPO INDIA 2023?

The most popular tradeshow in North India is returning after the hiatus caused by the pandemic and we are all geared up and look forward to participating in it. In the past, bauma CONEXPO has given us and the CE industry a good opportunity to meet, discuss, and exchange ideas with all the industry stakeholders and policymakers. Also, physical events like this give us the ability to give customers, policymakers, and other attendees a first-hand touch and feel of our machines, which is important in an industry like ours. It has also been an excellent platform to launch new products apart from demonstrating our technologically advanced and future-ready solutions.

This year, bauma CONEXPO INDIA is happening with the theme 'The future of nation building' and we are very keen to showcase our readiness in building the India of tomorrow. We will be displaying our versatile, CEV IV-compliant backhoe loader model Shinrai Prime, our newly launched, indigenously developed, NextGen 3 ton mini excavator model NX30 along with some of our mid-range construction excavators. Also, on display will be parts, attachments, and solutions offered by us.

What is your outlook on the CE market in 2023? How are you gearing up for the year ahead?  

FY 23-24 is the penultimate year before elections in H1 2024 and therefore we expect the government to continue its focus on growing the economy through capex and focus on execution. However, this will need to be balanced with fiscal responsibility and limited borrowing. Also, advanced economies are expected to enter a recession in an era of increasing interest rates. This will possibly hamper the high growth rates, unlike the pattern observed in the past with the years preceding the election year.

Further, the national highway construction, a major driver for CE, is facing headwinds in accelerating execution and is projected, at best, to touch 31 km/day this fiscal as against a reduced target of 33km/day. Even highway construction awards which are a lead indicator of works in the future are also trending almost flat on a YoY basis. Keeping this in mind, we expect moderate growth in the coming year for the CE industry.

Tata Hitachi is a pioneer in introducing the latest technologically advanced equipment in the Indian market. We will continue to introduce next-generation machines for our customer basis the emerging requirements and developments to offer the most cost-effective high performance and reliable products and solutions.

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