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Ramping up capacity


 Rohit Punjabi, assistant director, Liugong, on why the company is hiking production from the current 3,000 machines

In order to cater to these needs, Liugong has continuously upgraded its portfolio with
new product launches. “The Liugong wheel loader is the highest-selling construction equipment in the market today. With strong market presence in the wheel-loader segment, the company will continue to focus on further improving its market share,” Rohit Punjabi, assistant director, Liugong, said.

He talks about the company’s growth story at length.

Company’s performance: The year 2012-13 was favourable for Liugong India. However, the past year has been slack for the Indian infrastructure industry at large. While we are yet to see major improvements, the scenario is expected to change soon given our government’s thrust on infrastructure development and the recently introduced economic reforms.

Casket of new products: Our company’s products are superior in performance. With every new launch we further raise the bar of technological innovation. The company has used an innovative process to develop insight and understand the needs and preferences of Indian customers better. the company’s flagship product wheel loader is just getting better with each
passing year. Apart from the existing product portfolio, our new product CLG836BSIII wheel loader will go a long way in setting benchmarks for operational efficiency
and low maintenance cost.

This new product will enhance our reach in the three ton loader market as it is a very cost effective wheel loader.

Manufacturing par excellence: At present, Liugong Equipment has a state-of-the-art manufacturing facility at Pithampur. Spread over 44 acre, this facility is equipped with advanced manufacturing technologies. Currently, we have a production capacity of 3,000 machines on annual basis. However, foreseeing the tremendous potential and opportunities, we are already in the process of ramping up capacity.

Challenges and solutions: Impediments in the growth of this sector include: High operation, maintenance and financial costs, inadequate access to institutional finance, lack of funds for modernisation and expansion of equipment facilities, losses on account of idling equipment and its maintenance, policy decisions along with administrative and procedural bottlenecks for land acquisition and rehabilitation, statutory approvals and clearances, litigation and long-term funding.

There are a few things that can be done in order to address this issue. Taxes and duties should be reduced to make it more lucrative for construction equipment investors as this will result in value creation.

GST will be a welcome step not only for the construction equipment industry but for all industries. Another aspect that requires attention is
skill development.

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