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“Industry players need to launch four growth enabling initiatives: 1) enhance the quality, delivery and pricing of after sales services 2) address key gaps in financing 3) expand dealer and channel network coverage and quality, and 4) proactively help build supplier capacities and capabilities,” he says.

While it takes corrective action, the construction equipment sector also expects strong support from the government.

Moitra says the government needs to lower the tax burden and abolish current tax anomalies that encourage imports.

“Encourage domestic value addition through mandatory 30% level of indigenisation and set up an industry focused R&D institute to strengthen industry capabilities through policy measures,” he says. Sakthikumar agrees and adds: “The government should insist on the use of RMC, which will scale up the industry as a whole and also help source quality concrete. Uniform taxation throughout India is another aspect; introduction of VAT and further refinement of VAT may bring this change.” He emphasises increased awareness of the advantages of RMC.

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As growth in infrastructure development will translate in growth for the equipment industry, Sakthikumar has suggestions to boost the sector through public-private partnership. “This would significantly aid the process of rapid infrastructure growth. The approach is best suited for the infrastructure sector, as it supplements scarce public resources, creates a more competitive environment and helps to improve efficiencies and reduce costs,” he says.

Sakthikumar’s farsightedness and astute market understanding is representative of the key players who have literally changed the country’s landscape. For an industry that started its first private production less than 40 years back, it has been a great journey. The last five to ten years have been particularly dramatic. Experts feel this industry has the potential to cross the US$10 billion mark within the next 6-7 years.

Despite the financial crisis, the equipment industry will grow given its close links with the infrastructure and construction industry. Taparia says: “The future for our industry is very bright as the fundamentals of Indian economy are very strong. After all, there is huge scope for real estate, industrial and infrastructure development.”

And then, industry leaders understand their responsibility. “As market leaders, it is our responsibility to work towards the growth of the sector as a whole,” affirms Sakthikumar.

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