We expect to see an increased focus on mechanization and digitalization

The government should ensure that sufficient liquidity is available so that industry can start rolling again. 

- Wilfried Theissen, Managing Director, Putzmeister India

How are you gearing up to deal with the challenges due to the pandemic?

The lockdown to prevent the spread of Covid19 in India is of course taking a toll on the economy. Like governments around the world, India too is grappling with the challenge of saving lives and livelihoods. As construction activity starts resuming, we expect demand to pick up slowly. And we are gearing up to deal with the emerging challenges.        

Our customers were already plagued by liquidity issues since the NBFC crisis. These problems appear to have only become worse during the lockdown. Our sector will need the support of the government to ease this situation.  Ensuring a safe and healthy jobsite is going to take precedence. At Putzmeister we have developed guidelines for the safe handling of all our equipment keeping in mind the prescribed social distancing and regular sanitization norms. We are training customers, equipment operators and our after-sales team to help with smooth resumption of work.            

What are the challenges on the logistics front?

Obtaining raw materials and delivery logistics is a challenge for everyone. Given the dynamic situation, our planning, procurement and logistics teams are working round the clock to support our customers.              

How do you address the labour issues?

The crisis in handling of migrant labour is expected to affect many industries. Our HR and production teams have been taking care of all our factory employees. Regular checks on their health and catering to any shortages or problems they face in procuring essentials has been effectively handled.     

How do you assess the importance of Central / States support initiatives? 

The industry required support in tackling liquidity issues even before we were struck by the Covid19 pandemic. This situation has become worse owing to the lockdown. While the government had helped by announcing measures that would help in the medium term as part of Budget 2020, these will probably now take a longer time to show an impact. Financing of equipment and jobsites will be the primary challenge. The government should ensure that sufficient liquidity is available so that industry can start rolling again and continue to fulfil its role as one of the major employment providers in the country.      

With the market contracting so badly, what will be your revival strategies post covid-19?

Despite the current situation, we don't think the market fundamentals have been affected. India has ambitious infrastructure development targets, the construction industry is among the top employment generators in this country, and there is still a lot that needs to be done. These factors haven't changed. In the short term, everyone is suffering, and the industry is facing the prospect of a potential downturn between 20-30%. But we do believe that as the situation stabilizes the market fundamentals will slowly take over.             

We also expect to see an increased focus on mechanization to reduce contact between people and to make up for time lost during the lockdown. As always, we continue to work on ensuring that we are fully prepared to meet customer demand and to offer our customers the After-Sales support required to overcome any challenges.

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