Reviving India’s road equipment market

“From a low of 98 units a month, less than 2 years back, to over 250 in September this year, the growth in the vibratory compactors is there to see,” says Rajinder Raina, General Manager – Marketing, Escorts Construction Equipment
 Road Ministry has set an ambitious target of road making during the current fiscal. Rajinder Raina of Escorts Construction Equipment believes that the projected 30 km per day of roads will make India a market to watch out for in the road sector during the next decade. Excerpts from his interview with ACE Update:
As the government is making all efforts to fast-track the road building sector, how do you look at the opportunities as a road building equipment manufacturer?The Indian government has been working with a sense of purpose and a clear vision for the road sector as a means towards development. The different sizes of road project packages allocated in the past few months have given hope to the industry. The intent of starting projects like Sagar Mala and AMRUT augur well for the industry for the coming few years. The ambitious scheme of 100 smart cities and several other port projects give the confidence that the demand is going to last long. The willingness of the government to encourage EPC projects as much, if not more than PPP projects, has brought cheer to road construction industry that was ailing for more than 3 years now. The definite timelines for these projects would boost demand for reliable and quality road construction equipment.
Could you share your outlook on the road building equipment market in India?From a low of 98 units a month, less than 2 years back, to over 250 in September this year, the growth in the vibratory compactors is there to see. On an average, the industry is expected to clock these numbers fairly consistently barring monsoons. Motor graders will also witness a decent growth as the green-field projects take off. Slowly but steadily, the market for road maintenance and repairs will grow too.
How are road building equipment industry faring? Domestic vs. global markets?With the slowdown in China, the Indian road equipment market is poised to be one of the biggest markets in the world. Given the geographical expanse of India, the projected 30 km per day of roads will make India a market to watch out for in the road sector during the next decade.
Is the road building equipment industry going through a radical change in terms of technology? Radical change, certainly not. Road construction machinery in India incorporates technology which is contemporary and matches the best in the world. The fact that all the leading names are present in India is a proof of our using the most advanced technology in the world. The standard of road making, as laid down by NHAI and other agencies is international level. Therefore, not much is expected to change as far the technology of the road construction equipment is concerned. The road construction process needs qualitative improvement and compliance to the laid down norms. The supervision during execution needs to improve. Details like temperature of bitumen while laying the asphalt carpet needs better monitoring for longevity of the roads. There might be a skew towards concrete roads from asphalt which will change the scene but that is another topic.
Are you planning any product launch in this domain to cope up with market trends?We are planning some enrichments and improvements on the products which will be introduced in due course of time. A number of attachments that help the owner of the equipment and the contracting firm to regularly monitor the equipment and outputs are being offered as optional.
What are some of your long- and short-term objectives to maintain your position?Escorts soil compactors EC5250 (10-tonne class), EC2420 (12.5-tonne class), Asphalt compactor, HD85 and mini tandem vibratory roller EC3664 (3-tonne) comprises the widest range of compactors in the industry. Escorts offers motor graders and pay loaders as well. We are exploring the possibility of offering a much wider range of road construction equipment for which we are keeping a close eye on the developments in the road construction industry.

7