Slowdown offers opportunity to introspect and identify strenth

June 17, 2013 8:42 am

The $1 trillion investment target on infrastructure in the 12th Five-Year Plan is an ambitious one and could be a key growth driver for the material handling industry”
– Tushar Mehendale, Managing Director, ElectroMech
The Indian industrial cranes market is extremely fragmented. According to ElectroMech’s estimate, the industrial cranes market in India would be around ` 2,200-2,500 crore per annum and is pegged to grow at a rate of 20-25 per cent. Almost 30 per cent of the demand for cranes comes from government-owned companies and 70 per cent from the private sector. Tushar Mehendale talks about the industrial cranes market in depth and the success formula to keep clients satisfied. Private sector in detailsThe private sector is the most vibrant part of the Indian economy and growing at a sustained pace. The sector is willing to adopt newer technologies, thus creating scope for innovation in the crane industry. If the sector is divided region wise in terms of quantities of total requirement, Western India contributes 50-55 per cent, Southern India contributes 20-25 per cent, Northern India with 15-20 per cent, and Eastern India with 5-10 per cent.
Over 40 per cent of the total market is captured by a handful of reputed names in the organised sector. The rest of the market is shared by an excess of 250 small crane companies. The material handling industry has been on a continuous growth at varying pace over the years. This can be attributed to the huge amount of investments made by public and private enterprises toward the construction industry, thus giving a direct push toward creating a huge demand for the crane industry.Demand for industrial cranesWith the recent slowdown in the Indian economy, the market witnessed a drop in the announcement of new projects. This has reflected on the demand for industrial cranes. However, ElectroMech is slowly but steadily coming out of this phase. There will be certainly a rise in demand for cranes from various sectors in the next few months. The $1 trillion investment target on infrastructure in the 12th Five-Year Plan is an ambitious one and could well be a key growth driver for the material handling industry.
Customer satisfactionElectroMech, since its inception, has believed that the key to success for any company is the satisfaction of its customers. It manufactures and customises products which have helped ElectroMech in reaching where it is today as well as staying ahead in the market. The company stresses a lot on product innovations. Its in-house design and development department is constantly upgrading products as well as adapting to the changing trends in the industry to provide world-class products.
Culture of continuous improvementA slowdown in economy offers companies an opportunity to introspect and identify their strengths as well as areas for improvement. Core competencies can be further strengthened while attention can be given to areas that could become opportunities for differentiation. ElectroMech has always a culture of continuous improvement, more so when the times are tough so that in inevitable upward trend, ElectroMech is ready to offer best products and services.
ElectroMech and its partnershipElectroMech recently launched Torqk cranes, an array of hoists and crane kits, which are available all across India through its network of partners. This product range has been developed specifically to suit the needs of SMEs. These unique products come with high quality and reliability, yet these are priced at an affordable rate. The most crucial point is that these equipment are available through local ElectroMech partners; this gives clients the comfort of buying from someone close to them while also offering them the advantage of lower prices due to minimal transportation.
In its recent associations with Zoomlion, ElectroMech has an opportunity to manufacture, sell and service Zoomlion’s entire range of tower cranes in India. This will further help ElectroMech explore newer opportunities in market, specifically in real estate and infrastructure segment.
Its existing plant is already the largest manufacturing facility in India for industrial cranes, with an annual capacity in excess of 1,000 cranes. This is enough capacity to cater to the projected demands from the industry. In near future, it’ll enable ElectroMech to cater to even the most critical project timelines. However, ElectroMech will keep a close watch on demand across all its product segments to ascertain whether it should ramp up out production capacity.
India’s chance to be 5th largest manufacturing countryIndia is the 9th largest manufacturing nation right now and the fifth place doesn’t seem far away; however, there are lots of challenges despite its high growth potential. Poor productivity for instance is a major challenge when it comes to ramping up the production. Skilled workforce and quality talent acquisition has been an ongoing challenge for the industry for a long time now. According to a survey, poor job offerings, lack of glamour quotient and lack of awareness concerning potential of manufacturing jobs were some of the reasons behind students’ less preference for manufacturing companies. With China’s manufacturing competitiveness losing its ground fast, competitors are assertively vying for a larger piece of the global manufacturing. India, with its large working population and low labour costs (or substantial labour-cost competitiveness) is clearly at a distinct advantage and can grab a lion’s share.