Bangalore: EXCON 2017 – South Asia’s largest construction equipment fair organised by the Confederation of Indian Industry (CII) witnessed the participation of large number of global and domestic players in the components, accessories and aftermarket segment.
The combined Indian Construction Equipment (ICE) market including construction equipment, spares, service and exports stood at USD 5.8 bn in 2016-17 is likely to touch USD 10.5 bn by 2021-22 according to CII-ICEMA Report on Indian Construction Equipment Industry released during CII EXCON 2017.
The overall market for spares for earth moving equipment in FY 2016-17 was in the range of INR 4,000 – 4,300 Crores. The spares market is expected to go up to INR 5,800 crores by FY 2022 with the allied services business to be pegged at INR 800-850 crores giving a huge opportunity for growth of the components industry.
CII EXCON 2017 aim to leverage this gradual shift in the market dynamics by providing an international platform for local component manufacturers to showcase their offering to a global audience.
The South and West India are hubs for such component manufacturing with a good mix of domestic and MNC players. Tamil Nadu, a leading hub for automotive manufacturing and spares is also becoming the preferred destination for Construction Equipment component manufacturing. The road ahead for component manufacturers is to work more closely with OEMs and the initiatives like ‘Make in India’ and rolling out of GST would provide the much fillip for the robust growth of the component manufacturing industry.
Mr. Pratik Kumar, CEO, Wipro Infrastructure Engineering, said, “To a significant extent, the component industry mirrors growth that the OEMs experience. The growth of Indian construction equipment industry has positive impact on the component industry since it is very closely interconnected and interdependent with OEMs. The component industry is expected a CAGR of about 12% as compared to last year’s growth at 5-8%. Over the next few years, we’ll see a lot of component companies focusing on bringing in new technologies, new processes, building capacity and benchmarking with global best practices on quality in the most cost effective manner. This not only positions the demands of the Indian market but also to be strong contributor to the export market as well”.
Mr. M. Seethapathy Rao, Chairman & Managing Director, Hycom Engineering India Pvt. Ltd., said, “I have been associated with EXCON since its 1stedition and this year has turned out to be the best edition ever. The premise is that component is where technology is built for the equipment. The component sector is the one which can explore products. Most construction equipment manufacturers are in India and the main emphasis is on it so that the ‘Make in India’ campaign can be fulfilled. The construction equipment industry is likely to grow around 15-20 % and so will the components industry grow accordingly”.
The Government of Karnataka is the Host State for EXCON 2017. The Indian Construction Equipment Manufacturers Association (ICEMA) is the Sector Partner and supported by the Builders Association of India (BAI).
Image Credit: CII