The increased investment in India’s infrastructure, and a rise in large-scale projects across the country are propelling the demand for construction equipment. The Indian construction market is well positioned for strong growth. After a challenging time, construction equipment manufacturers are seeing business returning to normalcy, backed by a revival of business sentiment. In the light of this evolving background, – Escorts Kubota Ltd. showcased its robust product portfolio at bauma CONEXPO India 2023. The equipment showcased included newly launched Backhoe loaders, Mini-excavators and Pick & Carry Crane across its Yellow Line and White Line series.
During the exhibition, Constrofacilitator had a one-on-one conversation with Sanjeev Bajaj, Chief Executive, Escorts Kubota Ltd. He shared insights on newly launched equipment, the market potential & challenges of the construction equipment market, the adoption of technological advancements and much more.
Here are the excerpts from the interview.
1. What are the features of the newly Escorts Kubota Ltd. launched backhoe loader?
We launched DIGMAX Super in BC, India, 2023. The equipment is an addition to our fleet of DIGMAX backhoe loaders. The new backhoe loader comes with a few additional advantages. The new stylish cab integrates roll-over protective structure (ROPS) and falling-object protective structure (FOPS) to protect operators and give them a safer environment in which to work. The equipment comes with a 6 pillar cabin design with greater visibility and increased space for the operator. Seat-mounted controls improve the operating ergonomics of the new loaders. A multifunction joystick controls travel direction and speed. The equipment comes with an Escorts Kubota engine that generates an adequate amount of power and torque. This new equipment model is an optimal fit for rough terrain.
2. What is the market potential of backhoe loaders in India?
Backhoe loader sales have averaged around 45,000 units per year.During COVID, it went down, but in this quarter, it has started picking up again. We believe it can go back to 40,000 to 45,000 units per year. There is a rise in demand for loader backhoes due to an increase in small construction projects. Rapid urbanization and industrialization have aided the growth of backhoes. The investment in infrastructure that the Indian government agreed to make is expected to push the sales of backhoe loaders further in India.
3. What are the different safety features of the High-End Pick & Carry Crane being displayed?
We are displaying a Whiteline Series 23-tonne high-end pick-and-carry crane. The crane is used for infrastructure projects that require a high level of safety not only for the operator but also for people around it, such as bridges, metros, expansion of plants etc. Our focus on manufacturing High-End Pick & Carry cranes has been based on the idea of less human intervention for machine functionality. Our High-End Pick & Carry Crane is equipped with anti-toppling features that provide enhanced safety on-site and innovative technology. Different sensors in the crane ensure the equipment is immobilized when entering an unsafe zone along with audio-visual warnings. The boom and chassis of this crane are made from high-strength structural material for better endurance.
ICEMA’s construction equipment sales growth report for Q3 FY 2022–23 revealed road construction equipment sales grew by 12%. In this regard, what are the market drivers of road construction equipment?
If you look at the first quarter of the year, the road construction equipment sector was down to 35 percent compared to previous years. But it has recovered due to reformed policies around infrastructure investment, which should stimulate the sector further. From November 2022 on, it showed improvement as per MoM analysis. We believe this momentum will continue.
4. What are the different after-sales services being provided by Escorts Kubota Ltd.?
We are proud to have one of the strongest channel networks in India. We have more than 90 channel partners across the country, with 250 customer touchpoints.We understand that the availability of spare parts is also very critical for the construction equipment segment and for that, we also have more than 50-plus distributors for original spare parts. Apart from these, we have authorized service centres across remote locations in India. We intend on further strengthening our after-sales services.
5. Which equipment segment of the company is foreseeing greater demand?
Road construction equipment is in the most demand, especially for National and State Highways. Apart from the backhoe, we have a strong demand for soil compaction equipment too. Going forward, we will launch our new 11-tonne Soil Compactor in February 2023. With the launch, we aim to gain a greater market share in the road construction equipment segment.
6. What’s the way forward for Escorts Kubota Ltd. in 2023?
We would like to focus on the mini excavator segment in India. The mini-excavator range is being showcased in BC India 2023. We started selling mini excavators four years ago, and we are already one of the leading market players in the segment. This equipment range comes with extendable tracks, zero-tail swing and boom swing features. These are high-quality premium equipment with extended durability. Our mini-excavator already has a stronghold in South India, we are now expanding our network in North-Eastern and West India. After the merger of Escorts with Kubota, we are focused on three verticals, Material Handling, Earthmoving and Road Construction equipment.
