The Global Cranes Market Is Projected To Grow To Usd 49.64 Billion Till 2028, Growing At A Cagr Of 4.5 Percent. How Do You See This Market Evolving In India? What Are The Major Factors Driving The Growth Of This Market?
We see that the macro signals are positive and have been positive for the last couple of years but unfortunately, the pandemic has slowed down the overall industry growth since most of the projects were on hold and many months were lost in lockdowns. Now as the pandemic’s effect wanes, we believe it is the right environment for the industry to be in.
Having said that, there are a few challenges for the industry primarily after the introduction of BS4 such as the rise in steel prices. Therefore, the buying costs for the customer have gone up since all manufacturers have tried to pass on that price increase to the customer. Unfortunately, the customer is not willing to pay more, and therefore, the realization of that price is yet to happen for most of the manufacturers.
In the coming year, I believe that things will be balanced and there will be a sweet spot for the industry to grow. Furthermore, some of the contractors would be willing to invest as they are looking at PLI schemes and would be interested to go for equipment that is highly efficient, productive, and safer. So, demand will continue to grow. Although pricing will be an issue for a short period, all macro indicators are very positive when we look at a longer period.
What Kind Of Change Do You See Lately In The Expectations Of Customers From Crane Manufacturers?
Specific to the Crane industry, I would say it is the nature of the job which is evolving. For example, the requirement for a high tonnage crane has increased because certain segments of the Construction industry are moving towards handling higher weights and therefore, we see that evolution. Secondly, there is also an evolution on moving towards a safer environment that is safe for the people and for the machine. Therefore, projects need to deploy machines that are safer to operate and have all the controls and mechanisms to override any operator negligence. So, I think these two factors are dominating in terms of customer decision making.
Safety Is A Key Aspect That Must Be Considered While Manufacturing Of Cranes. How Are New Technologies Being Implemented To Assure The Safety Of Cranes?
Most important thing to ensure is that the cranes
have a low center of gravity in order to prevent toppling. Moreover, timely and right indications should be given to the operator in terms of the weight it can carry, the height it can be lifted to, and radius or length of boom extension for any dangers in the proximity. So, the right kind of alarms, cameras, and the right kind of dashboard indications can be given. Therefore, a lot of technology has gone into these kinds of aspects and Escorts has been pioneering many of these technologies.
Recently, we introduced a series of cranes, which comprise 20 different types of features that are related to safety, and it is also a connected machine where we use IoT. We are working on this and there are more features to come in the near future. These new series will not only ensure the safety of the life of the operator but also the people around the machine and the life of the equipment itself will improve when it is operating in a safer condition.
A Major Concern For The Users Is The Lubrication System, Whose Failure Can Be The Cause Of Concern For Manufacturers. How Can This Problem Be Solved?
Often it is said that it is related to the way the machine is maintained by the customer, but I think it starts from the very first stage where the machinery is being built in the plant. So, we focus very heavily on this because hydraulics is not only the nervous system of the whole machine but is also one of the high-cost maintenance items for the customer. Therefore, we start with the very high levels of what we call NAS levels. These can be measured with the equipment we have in the factory.
Second factor is the type of components being used. We would always continue to stick to our policy of very high quality on hydraulics. And, that is the reason we believe that our products are much sturdier and stronger as far as reliability on hydraulics is concerned.
The third aspect is about how we educate the operators and the customers on the upkeep and maintenance of these machines. We are continuously evolving in terms of how do we stay connected with our customers and keep guiding them. Therefore, we have already built a customer app and through it, we are able to train the dealer, guide them, and perform troubleshooting.
We have introduced a series of cranes, which comprise 20 different types of features that are related to safety, and it is also a connected machine where we use IoT
By practicing the aforementioned steps, we can assure that if there is sufficient training provided to the customers, it will lead to a better life of the equipment.
As The Head Of Construction Equipment Business For Escorts, What Kind Of Change Are You Driving Through Your Leadership?
Our priorities are simple. Firstly, we are expecting the industry to bounce back. So, we would rather be optimistic than pessimistic. We would want to be prepared as the numbers are going to grow and therefore, we should be there in terms of the ability to produce, sell, and service. So, we should not fail in anticipating the growth of the market. That is the first priority.
Secondly, whenever the prices of raw materials go up, affordability of the product becomes difficult for the customer. Therefore, we should ensure that our customers are successful in their business and this is the best time to look inwards and work on the projects and try to reduce or nullify the raw material cost. Furthermore, if we can find out options of reducing the cost, we can make the products available at more affordable prices for the customer without compromising on any features the customers are looking for, which will call for a lot of work right from design to the way we manufacture and the way we sell.
Sanjeev Bajaj, Chief Executive, Escorts Construction Equipment
In an interaction with sudhakar singh, editor, industry outlook, shares his thoughts on how the crane manufacturing industry is evolving in india and how technological advancement is transforming the industry.
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