Sarada Vishnubhatla interacts with Sandeep Singh, President, Indian Construction Equipment Manufacturers Association (ICEMA), for a curtain-raiser on EXCON 2019, the largest construction equipment exhibition in South Asia that will be hosted from December 10-14 at Bangalore
India today is working towards becoming a $5 trillion economy in the next five years, as per the Central Government’s plans. It’s an ambitious target that can be achieved with investments to the tune of $777 billion in infrastructure by 2022 to create an environment of sustainable development. Currently, Indian economy is pegged at $2.8 trillion while the GDP is slated to grow at 5-6% in 2019-20 against a previous five-year low of 6.8%. Experts say that India would need to grow at 8% annually to reach its target. The push, analysts say, may come from the infrastructure segment with construction equipment manufacturers holding the potential to trigger robust growth.
It is in this sense that EXCON 2019, the largest exhibition of its kind focusing on the construction equipment industry, gains importance. Organised by the Confederation of Indian Industry (CII) with the support of the Indian Construction Equipment Manufacturers Association (ICEMA), the trade show will have close to 1,250 exhibitors as against 918 the last time. Of this, 352 are international participants as against less than 281 in the previous show.
Sandeep Singh, President, ICEMA, throws more light on the promise that EXCON 2019 holds forth. The promise is made all the more interesting because of the irrepressible spirit of the industry despite the ongoing global slowdown.
Excerpts:
How exciting will EXCON 2019 be in the face of the present economic slowdown?
This year we are celebrating 10th anniversary of EXCON coming into existence. In the last two years, the Indian infrastructure sector has been in a high developmental mode. And when there is a promise of continuous future growth and the fact that the projects will be on a bigger scale, there is a definite need for modern equipment with latest technology that can ensure higher productivity and efficiency. Yet, in the Indian construction equipment context, technology has not yet advanced to be at par with the developed countries. However, it is catching up fast. One major push is the entry of the younger generation and big corporates that do not wish to compromise on quality and professionalism.
They want telematics, Internet of Things and artificial intelligence (AI) because that is what they see around the world. And that is exactly what we are going to showcase at EXCON 2019. Also, it will be exciting despite the slowdown. We believe the downturn in the market will prove to be a blip and that it will be over sooner than later. Most of the construction equipment manufacturers are keenly looking at India. Several seminars will be organised – be it industry-related, about technology, aligning with the government or the academy – that are lined up and which will help all the stakeholders in exchanging best practices. We are also going to attract young talent, new engineers and vendors and have plans to engage them by showcasing the latest technology.
How will the Central Government’s vision to provide every household with internet, piped water and LPG help build infrastructure in India and in turn, help the construction equipment sector?
All the three projects are humungous in nature because all of them need massive excavation of earth – be it laying in pipes for water access, installing fiber optic cables, river linking or Bharatmala – which is a 34,000 km road project. The Central Government is talking about investments to the tune of Rs. 100 lakh crores in the next five years and we believe that even if half of the said budget is pumped into these projects, the infrastructure segment will witness tremendous growth. Our organisation is already working closely with the government to make provide better solution to ensure that the projects will be executed at a much faster pace.
Are there any changes required in the infrastructure industry today?
In India, one major challenge is that our operators are not certified and it means that they are not trained. Hence, there is no license. We have begun a drive under a separate organisation called Infrastructure Equipment Skill Council (IESC) where operators are trained under the Skill India project. Our aim is to offer training to 25,000 operators and technicians and equip them with technical knowledge. Change will be triggered in one such way. Another driver could be growth in exports. The government is talking about developing ports, airports and road construction. All three sectors are witnessing construction at a massive scale.
Will these sentiments be reflected at the exhibition this year?
EXCON 2019 will be showcasing equipment that will be technologically superior and we are inviting senior government officials, a few ministers and top honchos of big construction companies besides leading contractors to see, share and learn. We will be holding display demonstrations to show how to improve the productivity of machines. We are aiming to impress government officials with what we can provide, while offering a better solution to the contractor. The purpose of the show is to create synergy amongst all the stakeholders.
It is important to note that most of the projects today need customised or special attachments. For example, there are new regulations coming in for demolition, which will require a separate attachment for the machines. For scrapping vehicles there will be separate attachments and so will there be for laying cables. Then there are material or garbage handling machines that need specialised attachments. Without these, our smart cities cannot be built and this is what we will be emphasizing during the exhibition.
What can participants and visitors expect from EXCON 2019?
First, our organisation will enable international business participants to get a feel of the Indian market. As against the developed world, India is still entering an era of latest technologies. For example, wheel loaders are going to adapt to BS IV regulations, the equivalent of BS VI in the commercial vehicle segment from next year. We will initiate a dialogue with international manufacturers because their machines and technologies need to be brought here and localised. We are dedicating separate space for vendors to discuss and display their core competencies. Today, most of the international suppliers have vendors based in India. Meanwhile, companies have charted out huge expansion plans and are looking for growth opportunities in India. This is the platform where they will be able to interact with industry leaders, vendors and customers to get a clear idea of the CE market.
Do you think the Indian construction equipment industry has the traction to bring our economy out of the pits?
Yes, I believe so. For example, currently, there are many housing and road projects which have stalled. If the government supports that sector with better financial liquidity and faster adherence to project timelines. the construction equipment sector is ready to play a crucial role. The infrastructure sector alone can generate employment on a massive scale. For example, each machine needs four people – one operator and two technicians at any point in time, plus the dealer network, financiers and a huge amount of supporting infrastructure which needs manpower. We have done it over the last three years. The industry, unfortunately, has taken a beating this year. The Central Government is looking at Skill India, employment generation and becoming a $5 trillion economy but none of this is possible unless infrastructure – be it roads, ports, mining, irrigation – is developed.
What top three sectors would you say will post maximum growth in time to come?
Road construction tops the list followed by irrigation and real estate.
The role of women in infrastructure is catching the industry’s attention and EXCON 2019 is honouring them. Could you elaborate?
Quality is important in our industry along with consistency and a clear focus on the job to complete projects on time. Women professionals are disciplined and hardworking. We believe that in the next 5-10 years, women will be playing a crucial role in the industry. Earlier there was not much sensitivity to this but now we are rooting for more women to work in this sector. We want them to become operators and work on the shop floor rather than be confined to disciplines like finance, legal and marketing. This has become an important topic of discussion in the industry today. We are planning to hold special programmes such as seminars and other engagement activities at EXCON 2019 to let women know how fruitful it is to participate in this industry.