Tata Hitachi, considered an industry leader in the hydraulic excavators’ market segment, showcased its expertise in the field at Excon 2017.
Mr. Sandeep Singh, Managing Director of the company, responding to a question on how has been 2017 for Tata Hitachi’s business, in the backdrop of the recent upheavals in the economy, in the aftermath of policy interventions such as demonetization and GST, stated: “The demand for CE did get affected after the implementation of GST, more so from the understanding of various rules and procedures by our customers. We hope that the demand will come back to normalcy given the investment in infrastructure.”
“Coming to Tata Hitachi – as an organization, our focus is on our demand drivers in the market – Infrastructure and Mining. In Infrastructure, there has been a spurt in roads and railways construction leading to an increase in the demand for excavators. We are also seeing a significant demand from major and minor irrigation projects from some of the South Indian States,” Mr. Singh said before adding: “As far as the mining segment goes, in the long term, the industry overview is positive. This year we expect the market to recover in the second half given the increased demand for electricity and hence coal”.
The company’s product displayed at Excon 2017 includes new machines in the ZAXIS GI series of excavators – demonstrating advanced technology. It also introduced new products in its wheeled equipment line up.
Sharing his views on the government’s recent announcement of Rs. 7 lakh crores worth road development projects and its impact on the CE sector, Mr. Singh observed that in the budget 2017-18, the Government had allotted Rs. 4 lakh crs vis-a-vis Rs. 3.6 lakh crs in 2016-17 – an increase of more than 10%.
“Within this the allocation, the transportation sector, which has a major bearing on our industry, was allotted Rs. 2.4 lakh crs, an increase of more than 11%. The Capex spend in the first 5 months of the year was 30% more than that of same period on a year on year basis. In particular, the spend from key infrastructure drivers of roads & rural development was nearly 50% more. Resulting in a strong demand for the CE industry in the 1st half of the year. Also, the increased spend on Capex in H1 resulted in sustained demand for construction equipment. Demonetization had very little effect on the CE industry,” Mr. Singh pointed out.
Sounding positive about the continued growth of the CE sector, Mr. Singh felt that the 12th Five Year Plan has brought back focus on the Infrastructure Segment. As a result of this, India hopes to see robust economic development. The substantial infrastructure investment of $1 trillion in the infrastructure segment will, the company believes, drive higher demand for construction equipment.
“To sustain India’s 7% growth, the government is focusing on increased investments in infrastructure. Investments of Rs. 8.5 lakh crs in Railways, Rs. 8 lakh crs under Sagarmala project and, the recently announced Rs. 7 lakh crs investment in Bharatmala for road construction have already been announced. This is bound to bring cheer to the construction equipment industry,” Mr. Singh remarked highlighting some of the key projects that have been announced.
According to Mr. Singh, as an organization in Tata Hitachi, the focus is on its demand drivers in the market – Infrastructure and Mining. In infrastructure, there has been a spurt in roads and railways construction leading to an increase in the demand for excavators. He added that significant demand was being witnessed from major and minor irrigation projects from some of the South Indian States. Projects such as the redesigned Pranahithachevella Irrigation Project, the Mission Kakatiya Project, and the Mission Bhaghiratha Project are all contributing to an increased demand for excavators.
Similarly, so far as the mining segment goes, Mr. Singh felt that in the long term, the industry overview is positive. “However, currently there is a de growth, though numerous projects have been announced by the Government. Our attempt and objective are to keep pace with the market growth and consolidate our market leadership,” Mr. Singh said on a parting note.