Construction Market

MARKETING AND SALES PLAN ( FY 12-13)

Amit Kumar Narayan

 Construction equipment industry (CE) in India is approximately $6-6.5 Bn ( 2011-2012) Growing at 12-13% p.a, will double ( $12-13Bn) in terms of Revenue by 2015 Unit sale 40909 in 2009 to 86420 units in 2014, recording an overall growth of +112%.

The earth-moving segment, in particular, has been driving the overall construction equipment industry in India, with the strong demand emanating from the government-backed infrastructure projects.
EM segment is poised to register CAGR of around 21-24% during 2011-15.

Source : CRISIL,CII-Mckinsey,RNCOS Rsearch,Chris Sleight

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The CE includes Earthmoving equipment(EM)- biggest in size ( 57% of industry) Road construction Material handling Concrete equipment.

 Overview : Backhoe loader : 50% plus (largest segment in unit terms) Hydraulic excavators : 19% Mobile cranes : 15% . Wheeled Loader/Compactor/Dozer/Dump trucks etc : 16%
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Backhoe : JCB is the market leader in the backhoe loader segment, next is Telcon. Excavators : Telcon is the Market leader followed by Komatsu . Wheel loader : Caterpillar is the leader. Dumper and Dozer : Dominated by BEML and CAT. Pick and Carry (PNC) : Dominated by Escorts and ACE, Compactor : Case, ECEL and Volvo India Private limited (Volvo).

JCB possesses a 55 percent market share in EM industry

Source: CRISIL,jcb press release

Atlas Copco BEML CASE Caterpillar Inc. CNH Global Leyland Deere Hyundai Construction Equipment

Volvo Kubota Kobelco Komatsu Liebherr Group Terex Sany

Escorts ACE TIL Telcon-Hitachi Liugong Apollo Godrej

Doosan Bull Standard LeeBoy Indofarm

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JCB

Mahindra & Mahindra

Greaves Cotton- Bomag

Source : Wikipedia

Below are prominent market players for certain broad category of equipment in India:
Backhoe Loaders Hydraulic Excavators Wheel Loaders Dozers & Dumpers Road Compactors Cranes Fork Lifts

JCB India
Telcon Case

Telcon (Hitachi)
Komatsu Hyundai

Caterpillar India Ltd.

Telcon JCB India

BEML
Caterpillar India Ltd Tatra Udyog Voltas

Case
Escorts (ECEL) Greaves Ltd (Bomag) Volvo

Escorts
ACE TELCON

Godrej
Voltas TIL

BEML

JCB India

BEML

JCB

Caterpillar India Ltd

Caterpillar India Ltd

Komatsu

Volvo

JCB

TIL

Source : Wikipedia

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Customer Indofarm Standard Terex Escorts JCB Ace TIL tractors India Telcon- Hitachi Liugong Case Apollo Atlas Capo Godrej Mahindra & Mahindra Hyundai John Deere Universal Construction Liebherr Sany JCB ChTZ Equipment india Kobelco Leyland deer Caterpillar Greaves Cotton L&T Bull Puma Volvo Doosan Maini L&T Komatsu LeeBoy India Beml Ajax Fiori

Location Baddhi Barnala Greater Noida Faridabad Faridabad Faridabad Kolkatta Jamshedpur,Dharwad Pithampur Pithampur Gandhinagar Nasik Mumbai Pune Pune Pune Pune Pune Pune Pune Hyderabad Sri city, A.P Chennai Chennai Chennai Coimbatore Coimbatore Bangalore Bangalore Bangalore Bangalore Bangalore Bangalore Kolar Gold Field Doddaballapur

Construction Sector
Nabh a Barnala Baddhi Delhi

Pithamp ur

Nasik Mumbai Jamshedp ur Hyderaba d Sri City Chenna i

Kolkatta

Pune
Dharwad , Hubli

Bangalor e Coimbator e

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Amit Kumar Narayan

Backhoe Excavators Wheel loaders Dozer, Dumper Road compactor Cranes Fork lift

 India is the largest Backhoe Market in the World due to its versatility and value for money. Backhoe contributes 50% of total EM sector.

Unit sale exceeding 33,000 units in 2011

Production forecast is around 43000 unit for 2012-2013 CAGR for Backhoe is around 40% 12% 5% 8% JCB

Market Statistics

Telcon Case Other Manufacturer : Terex, CAT and new players 75% Recent entrants in 2011-2012 :- Mahindra, Escorts and Leyland Deere other

Source : Off-highway, telcon, JCB, perss release

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 Excavator market observed to be growing equally fast as Backhoe Excavator account to be 19 % of EM Market Segment. Current market demand is around 12000 and projection is 27,000 units by 2015.
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Projected Growth of 114% in next 5 years.

Other Manufacturer : JCB, CAT ,Volvo and Kobelco.

Recent entrants in 2011-2012 :- Kobelco 11%

Market Statistics 2011

14%
54%

Telcon

Komatsu

Hyundai
Others 21%

Source : Off-highway,Leiugong,Kobelco,TIPL press release

 Market for wheel loaders in India is about 2,700 units, estimate for 2012-2013 Growing at approximately 20 per cent YoY. Chinese EM companies currently hold over 12% in the wheeled loader segment through Import. Other Manufacturer : Komatsu ,JCB, BEML and CAT . 20

Market Statistics
48

CAT
Telcon Other

12

China Supply 20

Source : ICRA,Euipment India,Telco press release,offHighway

Amit Kumar Narayan

 Mobile crane: Mainly of pick & carry was up 36% to 9500 machines from 2010 ( 15% of EM) Dominated by Escorts and ACE Compactor: Current market demand is around 5000 units CASE having 32% market share in Compactor followed by Escorts (25%), Greaves Volvo and JCB Dozer and Dump Trucks: The total volume contribute to 2800 units pa Three Chinese EM companies currently hold around 13% of the dozer segment BEML is a local manufacturer for Dozer Very few articulated dump trucks are sold. Dump Truck market has traditionally been dominated by two manufacturers, BEML and Caterpillar, which jointly account for 90 % of sales.

Source : off-Highway,case and Escorts press release

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Backhoe Seat

Excavator seat

Wheeled Loader

Other EM Sector

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Backhoe Seats
Volume of Seat : 33000 pa Seat Specification : Two type of seats Requirement: Type 1 :Static Seats with Height riser, Turntable, For & Aft and Reclining with plinth/base and seat belt Type 2 :Suspension seat with Weight Adj, Turntable and Reclining with plinth/base and seat belt only Used in JCB but contributing 75% of volume
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Note :It is assumed that all the Backhoe manufacturer will shift towards the Suspension seat than Height riser version to follow the JCB move.

Excavator Seat

Total Volume of Seat : 12000 Pa Type 1 Basic ( 2T ): Static seat with Fore and Aft, Armrest, Reclining with plinth Contribute to 20% volume Type 2 Medium ( 2T-33T ) Mechanical suspension with weight Adjustment, Slide rail ,Armrest, Headrest, seat belt 2 point ( Equivalent to CVG 100 series) Contribute to 60% of volume. Type 3 Heavy ( 33T-120T) Mechanical suspension with weight Adjustment, Slide rail ,Adjustable Armrest and Headrest, 2 point seat belt ( Lap/ALR)( Equivalent to CVG 400/800 series suspension) . Option for 3 point seat belt also required) Some are Imported along with the cabins some of them are with Air suspension

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Wheel Loaders and Other Wheeled Loader/Compactor/Dozer Volume of Seat : 10000 pa ( 50% is the compactor only) Seat Specification : Mechanical Suspension seat with Weight Adjustment ,Fore& Aft, Reclining backrest with plinth/base and 2 point seat belt ( Lap/ALR) ,Adjustable armrest, no head rest, Mid backrest. Options for Turntable in Compactor required. Price target : Starting from Compactor INR 5000 to INR 12000 Cranes Pick and Carry /Mobile Volume : 9500 Pa ( 90% is Pick and carry) Seat Specification : For Pick and Carry, it is same as Indian Agriculture Market Low segment. Price target : INR 1800 ( with one armrest) For Mobile crane : same as Compactor but some have Headrest.

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Grammer Harita Majestic Sietz Technologies Spack Automotive-Sears

Case, Volvo, Komatsu, CAT, Deere, Hyundai Mahindra , Escorts, Caterpillar, BEML, Telcon, Komatsu, Voltas

JCB, Escorts, Standard

Escorts, ACE CAT, Terex,Case

Need to be confirmed from Customer

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 Location : Bangalore ( South India) Timing : 21-25th Nov 2013 ( every Two years ) Excon South Asia's largest event for Construction Equipment
Location: India Expo Mart, Greater Noida, Delhi-NCR (North India) Conne Timing : 12-15 Sept 2012 Location : Mumbai ( West India) Timing : 5-8 Feb 2013 ( every two year) JV between two internationally successful trade-show organizers: Messe Mnchen Bauma International, organizer of BAUMA, and Association of Equipment Manufacturers, organizer of CONEXPO-CON/AGG. International Mining and Machinery Exhibition organized by Confederation of Indian Industry (CII) In association with Ministry of Mines, Ministry of Coal, Government of India Location : Kolkatta Timing : 7-10 Nov 2012 (every two years)

IMME

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