Bulk MHE industry on right track

December 17, 2012 12:41 pm

Bulk MHE industry on right track
The demand from several industries as well as government support and investment in various sectors are pushing the bulk material handling equipment industry towards a promising growth
Over the years, the bulk material handling equipment industry has been on a continuous growth, of course, at varying pace. Backed by the government support and investment in promoting industrialisation, the industry has got the much-needed oxygen. Not to forget, the recent surge in power, infrastructure and general manufacturing sectors are also giving a direct push towards creating a huge demand for the bulk material handling equipment industry.
Industry Status“The current industry is not in a positive shape,” Saeesh Nevrekar, Deputy Country Manager, Konecranes India, said. “The index of industrial production (IIP) contracted 0.4 per cent in September 2012 on an account of poor performance of manufacturing, capital goods and durable industry. This has created pressure to reduce the interest rate by Reserve Bank of India.”
Whereas Tushar Mehendale, Managing Director, ElectroMech had something different to share. He confidently said, “The segment is expected to register an outstanding CAGR of around 21 per cent during 2012-2015.”
The good news is that government is developing and supporting the power sector. The construction of roads, ports, plants, and urban infrastructure has also opened up newer avenues and is expected to take the industry to a new level in terms of growth. The automobile industry may be facing tough time, resulting slow growth for auto ancillary companies, but the general manufacturing sector is growing steadily.
“The surplus of demand born out of major infrastructure projects backed by the Indian Government has presented a huge benefit for this particular segment,” Mr. Mehendale of ElectroMech continued. “Owing to all these reasons, the segment is expected to register an outstanding CAGR of around 21 per cent during 2012-2015.”
“Overall the industry is moving very slowly and it is expected to grow slowly for next 3-4 months,” Mr. Nevrekar expressed. “We hope that the next budget brings good industrial policies to boost the heavy engineering and capital goods business and to motivate the investments in the market.”
Major growth drivers for bulk MHEThe recent growth in infrastructure comes as blessing for the bulk material handling equipment industry. And government is also backing with strong support and investment.
“In particular, the industrial crane sector is the key contributor towards the growth of bulk material handling industry,” described Mr. Mehendale. “The crucial role of industrial cranes and hoists can be noticed at key infrastructure sites.”According to Mr. Nevrekar, “Ports, steel, power, mining and fertiliser industries are the biggest growth drivers for bulk material handling equipment market.”
“Recently several power sector projects have started showing interest in sourcing specialised cranes for their varied requirements,” Mr. Mehendale continued.”Their demand could amount up to a capacity of 250 MT for windmill manufacturers, and transformer manufacturers, among others.”

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