Foreign investments in Indian infrastructure

And as the second highest contributor to India’s national GDP, the construction industry receives large influxes of foreign investment in infrastructure, real estate, etc. The construction sector in India has received about $25.7 billion in direct foreign investments alone between the years of 2000 – 2020.

The industry is rapidly growing, not only in terms of development of housing, roadways, bridges, healthcare and educational infrastructure but also in terms of the sheer volume of people it has employed. (The construction industry is the second largest employer in India.) As a result of this expansion and growth, we are predicted to become the world’s 3rd largest construction market by 2025. FDIs play a vital role in this expansion, since India provides several projects that foreign investors can choose to invest in, like transport infrastructure, educational infrastructure, construction of green buildings and sustainable architecture, commercial and residential buildings and so on.

Before we talk about foreign direct investments (FDI) that are instrumental in setting up India’s infrastructure, let’s have a look at the FDI policies. This gives us a better understanding of the current state of foreign investment opportunities for India.

As of now, the government has allowed 100% direct foreign investment in the following sectors and spaces for construction and infrastructure:

Building industrial parks
Commencement of real estate projects in Special Economic Zones
Roadways, highways, bridges, resorts, hotels, educational institutes, hospitals, recreational centres and facilities, commercial and residential buildings, etc
Urban transportation systems, sewerage, sewage treatment, water supply in terms of Indian real estate
Conducting and handling operations in business construction and completed townships

A lot of the restrictions on FDIs were relaxed by the government in the recent past to facilitate and maintain growth in the construction industry. In fact, proposals are being made to allow limited liability partnerships (LLPs) so that foreign entities are more attracted to investing in the construction of infrastructure in India such as roads, townships, hotels, hospitals, smart cities etc. Having LLPs in place also means that it will be easier for sectors to receive foreign investments, instead of being held back because of the current investing conditions. This relaxation in policies also makes it feasible for the central government to reach its goal of building 100 smart cities and constructing affordable housing for urban areas by 2022.

One such project is the NIP (National Infrastructure Pipeline) which is a massive effort to create a “masterlist of infrastructures” all over India since its commencement in 2019. It aims to be finished by 2024, by which the project boasts of delivering world class infrastructure to the citizens, improving the quality of life and also attracting foreign investment capital. A gigantic amount of groundwork has gone into gathering data about infrastructure sub-sectors to determine where exactly a need for development and growth is needed. The NIP will cover a range of projects worthy of foreign investment, such as water and sanitation, commercial and social infrastructure, transport, energy, communication, logistics etc. This is incredibly helpful as foreign investors can comb through and investigate the numerous projects that need investment and choose an apt project that fits their requirements the best, making it all the more easy for larger investments in infrastructure in India.

Scope of the construction industry in India

In India alone, the construction industry provides for 9% of the Gross Domestic Product, being the second largest industry after agriculture. The landscape of the Indian construction industry has seen major hindrances to development, along with victories due to central sector schemes, new reforms and foreign direct investments.

However, while discussing the scope of the construction industry in India, it is imperative to note how during the peak of the Covid19 pandemic, the construction industry took a huge hit. Millions of jobs were lost, and the employment rate between the period of April to May 2021 dwindled by 8.8 million. Construction equipment manufacturers in India went through companies stopping and backing out of investments during the second wave. Projects fell through, investments were significantly shrinking as the loom of national lockdowns threatened the industry further. The demand for construction equipment products in the market lowered and construction equipment manufacturers in India had to stall production and stop processes at manufacturing plants.

As the time passed by and as the situation started to get better, restrictions were relaxed, and the market saw a boom again. New policies were formed and new reforms were implemented that bolstered growth in the construction industry. The demand for construction equipment started to rise, and foreign direct investments were one of the driving forces of the construction industry market. There are a vast number of investment opportunities in development of the road sector, residential sector, retail and commercial sectors, construction of townships, bridges, hotels resorts, etc. In 2020 India saw one of the largest foreign direct investments, at around 600 million US dollars. The government has also allowed for 100% foreign direct investments when it comes to development of land and constructing institutions, towns, and properties which widens the scope of growth in the industry. Even for real estate projects within SEZs, and industrial parks, the limit is at 100%. India is now pulling in key investors from all over the world, namely countries like France, Spain, USA, Germany, Norway, Singapore, etc.

Let’s also take a look at government initiatives which significantly supported the growth of the construction industry in India.

As of 2018, out of 199 countries, India ranked first when it comes to the number of deaths reported due to road accidents, that makes it a whopping 11% of accidents related to death in the entire world.

Pradhan Mantri Awas Yojana: An initiative focused on building housing for 20 million urban households by the year 2022. Out of this, 91.5 lakh houses have started construction and 53 lakh houses have been completed. 30 million rural homes are also set to be constructed by 2022.
Atal mission for rejuvenation and urban transformation (AMRUT): This initiative strives to deliver water and sewage access to every house, create sustainability by cultivating greenery and developing open spaces, and cutting down on pollution caused by vehicular emissions by prioritizing public transport systems.
Smart cities mission: To provide a healthy and good standard of life, the smart cities mission talks of constructing a sustainable environment for its citizens by ensuring that adequate water supply, electricity supply, sanitation, public transport systems, health and education, good governance, etc are provided. Totally, 5,924 projects worth INR 1,78,500 Cr have been put forward to start formal work. 2,665 projects worth INR 45.080 Cr have been completed.

A fitting conclusion for this discussion on the scope of the Indian construction industry would be that in December 2021, TATA Projects Limited collaborated with IHCL for the construction of the new Ginger Hotel in Santacruz, Mumbai. The project boasts of an all women engineering team – by providing equitable opportunities for women in construction, it paves a way for encouraging more and more people to join this booming industry.

The scenario of road development in India

The road network of this country mimics the veins and arteries, not only because of how common road transport is but also because they are vital for day to day functioning. The roads are our primary means of transport with almost 90% of Indians using the road network to travel and commute, and 65% of the goods transported and moved around in the country are done by road. This network consists of national highways, state highways, rural roads and major district roads. Village and state roads are included in this as well.

With such a heavy reliance on the road network, and how easily accessible it is to travel to and fro by road, let’s talk about the landscape of road development and general infrastructure in India. India is one of the largest and fastest growing economies in the world ever since the liberalisation of the economy in the 90s. Individual incomes and savings have been growing vastly since the last 2 decades. In order to keep up with this rapid growth, we need to maintain and strengthen the infrastructure that supports this country. Here’s what we know:

Even though the road network is the most prevalent and reliable system – the transportation of goods can be quite costly and slow. It sometimes takes almost 2 weeks to transport a container from Mumbai to Delhi.

In a country the size of India, investments in the building and construction sector are remarkably low, resulting in shabby and wobbly infrastructure. Other Asian countries have a higher percentage of investments in their infrastructure.

Road environment, human error and vehicle condition are the three key factors that contribute to such a high number of road accidents in India.

Taking a cursory glance at the scenario of how the road networks in India function may leave us a little hopeless about the future of road infrastructure in India. But there are many initiatives taken on by the government and private manufacturers to ensure that the scaffolding of our country is strong enough to support its magnanimous growth. Here are a few:

1. Because of the latent but significant boom in the construction equipment industry post pandemic – manufacturers are producing smarter and more reliable pieces of equipment like road grader machines, construction excavators, rock breaker machines etc that are relevant to the Indian climate.

Manufacturers in India realized soon enough that large and expensive imported road grader machines do not work efficiently when it comes to building Indian roads. Designed with extensive research, keeping Indian roads in mind and with consultation from contractors based in India, Mahindra launched The Roadmaster G75 which is the perfect road grader for grading, spreading and flattening of earth materials to create the perfect foundation for building roads.

Construction excavators, backhoe loaders and rock breaker machines use hydraulic systems that provide better speed and performance due to lesser losses because of pressure and increased flow-handling capacity. Rock breaker machines are used for larger projects where jackhammers will not work. It is a flexible tool that can be both stationary and mobile. Manufacturers are now producing rock breaker machines with more versatility when it comes to sizes, weight and usage to suit every need of the project at hand.

2. Despite the national lockdowns, India has managed to construct 13,298kms of highways in the financial year 2021. Between FY2017 and FY2021, we have seen a 17% increase in the compound annual growth rate for highway constructions.

3. To safeguard development in the future, the government has allocated Rs. 111 lakh crores for the National Infrastructure Pipeline for 2019 – 2025.

While working on policies that incite large scale investments, the government believes that by 2022, 2,00,000kms of national highways will be constructed. It is still a work in progress, but construction equipment manufacturers and government initiatives and policies are ensuring that the future of development of roads in India is safeguarded.

Why should you consider a job in construction?

Let’s look at some reasons as to why you should consider a job in the construction sector and bust the myth that jobs in construction are dangerous or lowly.

Being in this industry means being involved in anything from planning, ideating, creating, maintaining, building, remodelling, restoring, renovating on any given project.
The industry is versatile. You can choose to be a painter, construction worker, glazier, electrician, plumber, civil engineer, construction manager, architect, safety manager, construction equipment operator, brick mason, construction inspector, etc.
With the rapid rise in the construction equipment and machinery business, construction equipment manufacturers in India are faced with high demands to create machines that are bolstered with cutting edge technology. There is a scope of working with people and/or machines which is an exciting prospect.
More and more construction equipment and machinery is getting smarter, sleeker with revolutionary technology like data transmissions over 4G and digital platforms with artificial intelligence for enhanced credibility and reliability. You can learn how to operate such machinery hands on.
You have the freedom to work on a contractual basis. Getting into a contractorship means you could be hired for your professional services and expertise for a stipulated period of time. This involves overseeing and managing the day to day needs of the project, and being in touch with, and curating workers who have the skills to carry out specialised tasks.
You could start out at the entry level with little experience as there are few barriers to entry, and a college degree is not a prerequisite for a lot of the jobs under the umbrella of the construction field.
Fields like civil engineering and architecture that require degrees are endlessly exciting and dynamic careers to consider. They involve designing, planning, problem solving and creative thinking. If you are passionate about sustainability in construction, getting into these fields could give you a platform to really make a difference in the world.
20 years ago, women took up a very miniscule percentage of the workforce in the construction sector. In 2021, over 25% percent of the workforce now comprises women and we see more women thriving in this male dominated industry as time passes by and women are given equal and equitable opportunities to flourish. In about 1.46 million construction workers in India, 36 lakhs are women. While there is still a long way to go to accommodate and encourage women to apply for employment in this industry, there is a dialogue about how important it is to create positive and safe working environments for women in construction.

This conversation sheds light on how much the industry has grown in the recent years. It is the second largest industry in India after agriculture and its contributions to the overall GDP are vast. In a fast developing country like India, and construction itself being one of the fastest growing and developing sectors in the country, with business projection trends rising higher and higher, this is a promising field for anyone – whether you have 0 experience in the field or even decades of experience.

Construction Equipment Business Projections for the Next 5 Years

In recent times, there are a number of social and political factors that bring new challenges to the industry in the form of a higher demand for resource friendly construction sites and lower emissions. In addition to these demands, the vice-like grip of Covid-19 on the economy gave birth to a plethora of negative consequences for the construction sector (national lockdowns, factory closures and stalls in projects to name a few).

Having said that, in the global construction equipment market, countries in the Asia-Pacific regions are on top, with India, China and Japan holding a major market share. The Indian construction equipment industry shows an estimated projection of crossing 4.7 billion USD in the next 5 years with foreign investments on the rise, and an expected growth in the construction equipment business specifically after Covid-19 un-locks. For 2021 alone, the ICRA expects the construction equipment industry to grow by 15-20% provided that the pandemic does not hinder this growth by posing potential negative consequences. In Asia, a few drivers for the growth of the construction equipment industry are the real-estate business, commercial and residential complexes, expansion of rail and road infrastructure and dam construction projects. It also helps to know that the Indian landscape of the construction equipment business is dominated by these specific segments of the construction equipment market: Road construction equipment, earth moving, material handling and concrete mixing. As India picks up after the Covid-19 slowdown, there is an anticipation for increase in demand in the coming years for specific products like backhoe loaders, crawler excavators, forklifts, etc owing to constituents like shorter completion time, larger project sizes and growing demand for multipurpose and customized construction equipment by end-users.

The Government of India, by continuing its Build India momentum is aiding to counter the economic slowdown in the ecosystem by creating initiatives that focus on infrastructure development which further boost demand and growth in the construction equipment business. Projects like the metro rails in cities, the Smart City Mission, AMRUT (Atal Mission for Rejuvenation of Urban Transformation) are also key elements in this boost. The liberalising of taxation policies and reducing the GST on construction equipment from 28% to 18% in 2018 are additional measures the Government of India has taken to ensure that construction equipment manufacturers can mitigate operational losses and overall cost of construction equipment.

Volatile times like these, where even predictions for trajectories of growth in the construction equipment market are subject to so much change, tend to open up the conversation to the subject of the increased global focus on automation and reliance on digitalisation in the manufacturing and construction processes.

Automation, connectivity, digitalisation and new technologies pave the way for new ecosystems in the construction equipment industry. The fairly nascent concept of renting pieces of construction equipment also has its benefits in terms of equipment costs and including professional operational services and manpower along with the cost of the rent. Transformations in the construction equipment industry like these strive to elevate the boundaries of existing construction equipment business models to new levels.

At Mahindra, we take stock of the current global scenario and provide products that have cutting edge technology, are relevant to the Indian market, and cost effective. Every piece of Mahindra construction equipment is diligently crafted to meet the specific needs of the Indian consumer, climate and construction industry. The EarthMaster range of backhoe loaders boast of revolutionary iMAXX technology, along with the cheapest servicing costs in the market. We believe that in today’s climate, the equipment that saves the most, earns the most, and those are the kind of products we strive to create.

A View of the Global Construction Equipment Market

First off, before we talk about market trends and demand drivers, let us get a sense of the scale of the CE industry worldwide. As per market insight reports, the global construction equipment market size was pegged at a little over USD 129 billion in 2019. It is forecasted to grow at a CAGR of 2.8% and cross USD 160 billion market size by 2027. The Asia Pacific region dominates with an estimated market size of USD 60 billion in 2019. These figures are definitely encouraging for the sector, given how the pandemic has affected every kind of construction activity in countries across the world.

Now if we look at the key trends and growth drivers for construction equipment market worldwide, here are the ones that top the list.

CE MARKET – GLOBAL GROWTH TRENDS

Rising Demand for Construction Equipment Rental Service

CE rental service is a trend that is already prevalent and gaining momentum particularly in the APAC region. This trend can be observed in rapidly urbanising countries such as India and China with intensive infrastructure and construction activity, both public and private.

Heavy earth moving equipment is costly and with newer hi-tech features being added from time to time, the cost of purchasing such machines outright is only going up. Therefore construction equipment manufacturers are witnessing a preference for rental equipment from construction firms, builders and contractors who need the construction machinery only for a temporary duration and want to avoid incurring high purchase and maintenance costs.

This rental business demand is being recognised as an additional and high potential profit stream by many construction equipment manufacturers who are renting out their old and well performing earth moving equipment to their customers. There are several benefits offered by these machines, such as high reliability, safety and flexibility to attach extra tools; that is boosting their proliferation in the market. Hence rental services as a trend is a major contributor to the overall growth of the CE market.

Demand for Technologically Upgraded Equipment

Another global trend driving growth in the CE market is the requirement for technologically upgraded and high-performance construction machinery. Earth moving equipment such as backhoe loaders, are rugged specialised machines equipped to perform heavy-duty construction related earthwork.

The new generation of earth movers are vastly superior in design, with improved engine technology and cutting edge features. These are also smart connected machines, sporting a contemporary digital instrument cluster and advanced onboard diagnostics. Take for example the newly launched range of Mahindra backhoe loaders and Mahindra graders.

The new Mahindra EarthMaster VX IV backhoe loader has the proven and upgraded CRDi Mahindra engine that is compliant with latest CEV Stage-IV emission norms and delivers best-in-class fuel efficiency. It has bigger loader and backhoe buckets for higher productivity, a reinforced structure for better load bearing capacity and improved hydraulics to deliver optimal performance.

The Mahindra EarthMaster VX IV is also equipped with Mahindra iMAXX Telematics technology that enhances operational capabilities. It allows you to stay updated with key vehicle and business information with smart tech features viz. Live Tracking, Accurate Refills, Predictive Vehicle Health Monitoring, Fuel Efficiency Analysis, Fuel Consumption, Theft Alerts, AdBlue® Monitoring, Driver Behaviour Monitoring and a range of Automated Operation Reports.

Increase in Spending on Construction & Infrastructure Projects

Huge government investments in the construction sector for large public infrastructure projects such as roads, highways, schools, hospitals and so on, is being seen in many parts of the world, including North America, Europe and Asia Pacific. Ongoing and planned smart city projects in several countries are also providing a big boost to spending on construction activity.

As per an IBEF report, India’s spends outlay on infrastructure for the next five years i.e. 2020-2025 is approximately USD 1.4 trillion.

All these indicators for increase in big spending on construction and infrastructure projects will shore up demand and keep demand buoyant for the construction equipment market.

Earth Moving Equipment: Heavy Earth Moving Machinery

India is poised to become the world’s 3rd largest construction market by 2022 (IBEF)
Volumes in mining and construction equipment industry expected to grow by 20% in 2021 (ICRA)
Government initiatives like Housing For All and Smart City Mission, will fuel growth (IBEF)

Earth moving equipment are large, rugged, specialised machines designed for performing a range of heavy-duty construction related earthwork. They are typically used for tasks such as excavating and removing rocks and gravel, laying the foundation for structural construction, soil grading, demolishing existing buildings and so on.

Heavy earth moving machinery is deployed at different construction activity sites depending upon the type of earthwork required at that particular site. These large machines have to definatly manoeuvre and successfully perform a variety of heavy-duty earthwork functions in harsh terrain conditions. Hence operating heavy earth moving equipment requires highly skilled professionals.

Backhoe loaders, excavators, bulldozers, skid-steer loaders and trenchers are among the most significant and widely used heavy machinery when it comes to earth moving equipment. To get a better understanding of this range of earth moving construction equipment and their specific applications, we look at each type in slightly more detail.

Excavator

An excavator can usually be recognised by the tracks on which the rotating cabin sits. It is also fitted with a long extended bucket arm. The cabin of the excavator rotates 360° to allow the operator a complete view of the site surroundings.

Applications include

Heavy lifting | Demolition | River dredging | Excavating trenches, foundations | Mining

Backhoe Loader

Backhoe loaders or simply backhoes have a body that resembles a tractor mounted on a set of large back wheels and smaller front wheels. Backhoe loaders have a bucket attachment at the end of a long bent arm at the rear end for digging, while at the front end is the shovel or loader attachment. Backhoes are very well suited for urban area construction work because of their easy manoeuvrability and versatility.

Applications include

Backfill excavations | Digging and filling up trenches | Laying pipes | Moving dirt and material

Bulldozer

Bulldozers feature right up on top as the heaviest and toughest of heavy earth moving equipment. These massive machines have a flat wide blade at the front and a claw-like attachment called the ripper at the back. The front metal blade is operated by a pair of hydraulic pistons to push material. The ripper is used to break down hard material.

Applications include

Push large quantity of soil or debris | Rough or fine grading | Crush large rocks

Skid-steer Loader

A skid-steer loader is a smaller, more agile earth moving machine. Each set of wheels on either side can be driven independent of the other and operate at different speeds. This allows skid-steer loaders to do a full on-the-spot rotation where the frame remains rigid and the machine turns by the wheels skidding on the surface. Also the wheels offer good surface traction. Because of these abilities skid-steer loaders are deployed in tricky terrain like mud, snow and at sites where space is limited.

Applications include

Excavation | Drilling | Soil compacting | Lifting loads

Trencher

As the name suggests, trenchers are earth moving equipment used for digging trenches to install cables, pipes or drainage lines. Trenchers vary in size and build quality depending upon the nature of work to be carried out and hardness of the ground. These machines are track mounted and use a conveyor system of operation to move the dug up material.

Today heavy earth movers are technologically sophisticated machines using advanced hydraulics, with improved operational dynamics and leading-edge on-board diagnostics. All these factors combined enable earth moving equipment to carry out huge and complex jobs with speed, precision and efficiency.

To make an informed decision while buying such specialised heavy-duty machines, studying the brands in the market is a must. Mahindra EarthMaster BS4 variants are rugged and advanced-tech earth moving machines equipped with Mahindra’s latest iMAXX Telematics technology. From fuel consumption and fuel level analysis to machine health monitoring, location tracking, service reminders to vehicle diagnostic reports and increased control and monitoring of the machine’s vital parameters, Mahindra iMAXX Telematics puts complete control of the machine and your business literally at your fingertips. Simply download the Mahindra iMAXX mobile app and comfortably manage your business from anywhere.

Loyalty with Mahindra Construction Equipment

CAGR of 10 per cent during 2019-2025.” This clearly shows that CE market in the country is poised for exciting times ahead. This has surely brought smiles on the faces of CE manufacturers in the country who are now no less than foreign CE manufacturers and are increasingly manufacturing world-class quality equipment but with an Indian touch to aptly suit the customer’s needs.

That said, while there are many big or small CE manufactures in the country, Mahindra Construction Equipment (MCE) deserves a special mention as it caters to the Indian customers well by manufacturing top-quality backhoe loaders and motor graders that suit the Indian needs. This is the major reason that over the years, MCE has garnered a huge loyal customer base and this number is increasing at a scorching pace.

About MCE

MCE is a part of US $17.8 billion Mahindra Group. Backed by strong network of dealers and service centres across the country, MCE manufactures disruptive products that have the potential to revolutionise the CE segment in India. MCE started its business in 2011 in India with its revolutionary backhoe loader—Mahindra EarthMaster and now has Mahindra RoadMaster motor grader also in its kitty. The two equipment are loaded with technology not hitherto seen in the respective product segments in India and are manufactured at MCE’s state-of-the-art 10,000 sq metre facility at Chakan, Pune.

Customers’ loyalty with MCE

There are various reasons that have promoted customers’ loyalty towards MCE and motivate them to keep coming back to MCE. These include…

1. Unmatched product offering: Both the equipment i.e., Mahindra EarthMaster and Mahindra RoadMaster are specially designed for Indian usage patterns.

a) Mahindra EarthMaster: Bidding goodbye to the dated technologies employed by the earthmoving contractors in India, MCE offers next-generation Mahindra EarthMaster backhoe loaders backed by the engineering capabilities, manufacturing strength, distribution reach and after-sales service of Mahindra & Mahindra. Highly reliable and safe, the equipment is built to suit the Indian needs and can withstand Indias rough terrain and heavy usage. Equipped with superior technologies like REMOTECARE, DITEC Engine, joystick controls, 2-way speaker system and Banana Boom design coupled with unmatched fuel economy, superior style, operator comfort, low maintenance cost and ergonomic layout and seating, Mahindra EarthMaster offer a host of benefits to the earthmover. Mahindra EarthMaster is available in three variants: EarthMaster VX, EarthMaster SX and EarthMaster 4WD.

b) Mahindra RoadMaster: This equipment from MCE is created to offer an affordable, un-compromised and mechanised grading solution for small and medium roads in India. Mahindra RoadMaster serves the Indian needs well as compared to large and expensive motor graders from international companies. In fact, as compared to the conventional motor graders, RoadMaster is 50 per cent more productive. RoadMaster also possesses ergonomic layout and seating with all the controls smooth through joystick and easy to reach and has spacious canopy, lockable storage and mobile charging. This equipment too is backed by MCE’s robust network of dealers and service centres across India. Mahindra RoadMaster is available in two variants: RoadMaster G75 and Mahindra RoadMaster G90.

2. Products are equipped with advanced technologies: Mahindra EarthMaster comes with the revolutionary REMOTECARE feature, the first and only one-of-its-kind in the CE segment in India which allows the contractors to get complete control over the business. This is because REMOTECARE is an intelligent communication system that keeps the business owners or managers constantly informed about the machine through mobile phone-based SMS updates 24X7. The system also sends out an SMS to the service call centre of MCE which in turn informs the nearby dealer about the same. Since this is preventative in nature, it helps prevent major breakdowns. On the other hand, Mahindra RoadMaster also comes with GPRS-based remote monitoring system digisense that keeps a track of the machine with the touch of a finger.

3. Equipment are highly fuel-efficient: Both Mahindra RoadMaster and Mahindra EarthMaster and its variants are equipped with Mahindra DITEC engine which brings fuel efficiency down to an incredible 4.5 litres per hour and results in 10 per cent more savings. Hence, since both equipment are highly fuel-efficient and lead to increased productivity and profitability, customers look forward to MCE.

4. Equipment saves maintenance cost: With better technology and design enhancements, both the equipment from MCE offer lowest maintenance-in-class by lowering lubricant refilling requirement with extended service intervals, thus, reducing the overall maintenance cost. This again lures the customers to buy the equipment from MCE.

5. Equipment are highly affordable- The best part about the MCE’s equipment is that they are designed to provide optimal output at affordable cost. The two equipment offer cutting-edge features using the latest vehicle systems and technologies at prices that are within the reach of mass market. In fact, as per MCE, as compared to conventional motor graders, the Mahindra RoadMaster G9075 saves at least 40 per cent of the operating cost and 35 per cent of the product cost. So, obviously customers prefer to buy the equipment from MCE.

6. Sales and post-sales support from MCE: It goes without saying that MCE provides good sales as well as post-sales service to its customers. In fact, MCE has tied up with various banks to allow customers to easily finance the machine at low down payment. As for post-sales, MCE offers few days’ dedicated training for operators, in which they are personally trained on various features of the machines by professional trainers. Also, it is to be noted that all the equipment from MCE come with a one year, unlimited hours warranty.

7. MCE offers excellent customer support: Last but not the least, the company aims for overall the customer satisfaction and realise that this means supporting the equipment throughout its life. Thus, MCE along with its network of dealers are always ready to support the customers and ensure minimum downtime of the equipment.

In a nutshell

With good products having advanced features and technology at affordable price, pre-sales services like dedicated demonstrations in the customer’s locality and various post-sales services, MCE has received very a good response and this has helped the company to generate a huge loyal customer base. MCE’s customers swear by the company’s claims of providing better quality, innovative, energy-saving, technologically-advanced and high performance equipment and thus, keep coming back to MCE.

Working with Imported Construction Equipment in India

The irony however that can be seen today is that every construction equipment manufacturer selling in India is shouting #VocalForLocal despite them importing most of machines or having foreign investments/partnerships/JV’s or importing technology from other countries. Understanding few of the related aspects will help us get a better perspective for making the right choice.

How did imported construction equipment come to India?

As India got its independence later compared to European, American or other Asian countries, the development story for India also started much later. As a result, it was easy to adopt the practices of developed nations and for manufacturers in developed nations also it was easy to give products to the developing nations. The major influx of construction equipment manufactures in India happened after 1992 economic reforms after which it was easier for these manufactures to set up base in India.

The benefits for these manufactures for selling in India were:

1)The older/obsolete models in their countries were still new technology in India

2)No modification/new design or major cost to create the product for India. Jut make some changes to suit Indian conditions and it was enough.

3)Tax holidays and other investment benefits leading to higher profits

4)India was a nascent market with very few binding laws and low demand from customer end. It was an “easy to tackle” market

5)Less competition and hence higher margins/volumes

6)Trust of people in imported brands over Indian brands

The benefits for equipment users then were:

1)Proven reliable product available

2)Ability to do work better/faster

3)Mechanized solution reducing dependence on labor

4)Higher productivity hence higher business/profits

However, in the last 20 years the growth in India has been tremendous, the rate being much higher than those in developing nations, in effect bridging the gap between India and other developed countries.

Today Indian contractors are educated, tech savvy and up to date on world class technologies in their field and the costs associated, however on the side of equipment manufacturers from outside India who were popular in India there have been a few missed opportunities like:

1)Today also these manufacturers are modifying their products to suit India and have not started designing and manufacturing products focused at Indian conditions/customers

2)They have not invested in India in localizing their products as a result of which their customers have to bear additional burden of import duties and taxes as tax holidays are no longer available

3)They have not invested in increasing profits of their Indian customers but rather have focused on increasing profits and higher remittances to their parent organizations as a result of which the customers only use their products till they do not have a better option and mostly not out of faith/gratitude

4)They had underwritten the ability of Indian manufactures to make quality construction equipment

From the customer point of view today the products from these foreign manufacturers are

1)Costly and unprofitable because of the higher cost

2)Leading to losses due to spare parts availability issues

3)Profit eating because of the higher spare parts cost

4)Difficult to sell/resale due to above reasons at good price and quickly

5)Not adding much value compared to other local products available in India today

6)Almost similar technology and life as compared to few local manufactures

7)Difficult for local mechanics to maintain/repair leading to higher downtime and repair costs

Today’s Indian contractors want latest technology at affordable cost and higher profits which is only possible if products are “Made in India”, “Made for India” and “Made with India”(Made with Inputs from Indian contractors and users) and there are only a handful of companies who have been able to crack this code.

One standout example for this is the RoadMaster series of motor graders launched by Mahindra in 2017 which in less than 3 years has become the second largest grader manufacturer and seller in India reaching to around 20% market share in such a short time leaving behind reputed brands in the field and also well poised to become the number one grader company in India soon because most other competing manufactures in India even today,

1)Do not have “Made for India” products

2)Do not have well established support network

3)Do not have easily accessible and cheap spare parts and service

4)Still import motor graders from China or other countries

5)Have no confirmation of serving customers in India as they are not based out of India

In view of the above points it is very clear that “Working with Imported Construction Equipment” in India is today not by choice but by lack of local quality options available but with increase in local manufacturers like Mahindra providing quality “Made for India” products with required productivity at affordable costs, the users are shifting to these manufacturers due to the inherent benefits which clearly outweigh the benefits from using imported construction equipments.

Construction Industry as Career

Construction Industry

In technical terms building manufacturing or repairing of structures constitutes construction industry. However, it is not always building. Sometimes we need to destruct structures to make new. The construction industry is very lucrative, and it offers different types of earning opportunities for anyone. Construction industry provides a variety of occupation option both for job seekers and entrepreneurs. Creating structures takes a lot of activities and different business segments to involve and create anything.

Scope of Construction Industry

Going through the history, we can see the prosperity of any civilisation is linked with the structures they build. The better the structures, planning and construction the better is the civilization. The beauty is that it is an everlasting activity. Humans will never stop building anything. And construction work will go on and on. The construction in addition to producing structures also adds to productivity and quality of life. economic development, modernization westernization and specially industrialisation.

An Individual can start career in Construction industry at any point. The industry is providing major jobs to the ever-growing population of our country. Depending on the qualification of person every person has a role that can be fit in this industry.

Classification of Construction Industry

Majorly Construction business is divided in to two sectors:

Residential: Work related to direct habitat of human beings

Non-Residential: Work related to indirect development of Humans. Further divided into industrial and infra structure.

Above are 2 broad classification based on direct and indirect relation with human beings. These sectors are further divided into many branches. The industry does not include a direct activity of building something. For building anything we need Finished and unfinished materials to be brought together. Hence drilling further down to both these sectors of Construction business we will find many manufacturing, logistics and other services operational because of construction.

Residential Construction work

A home is the biggest investment most people will ever make. They dream about owning a home and work to get there. Whether building a brand-new home or renovating an existing home, skilled trades are in the business of helping people realize their dreams. It is starts from the basic small hut to a multi storied residential apartment. Both urban and rural opportunities are open for business. There are two main types of businesses in this sector New home builders, Both at small and big level. This includes all activity related to building new houses, bungalow, a multi-story and Renovation contractors, they include repair and refurbishment of already made residential buildings.

Non-Residential Sector Work: This is big and can be subdivided into industrial and infrastructure sector. Here yellow iron provides the muscle and big machines rule.

Industrial Construction: If you like playing with trucks in the sandbox as a kid, If you like being outdoors and living in new places, If the power of a monster truck give you goose bumps You can operate some of the biggest trucks in the world working in this sector. We’re talking trucks the size of two-storey houses! And there’s a ton of other ginormous equipment to get excited about, too. Working in heavy industrial, you’ll help to build huge industrial facilities like power plants, refineries, nuclear plants, mines, oil and gas refineries, pipelines, textiles and other commercial factories.

Infrastructure: Infrastructure refers to a facility required for providing/supporting any services/events. For example, setting up a research centre in some remote location requires laboratory, instruments, electricity, internet, roads for access, vehicles, residences for workers etc. All these facilities needed to operate research work is an infrastructure. Comparing in terms of engineering we can say Infrastructure is an engineering job while Construction is solely a civil engineering job.

Machines and Construction Business

This is another big business evolving with technological advancement in construction techniques. Machines have become an integral part of any construction as it makes the work easier, faster and with less error. Depending upon the scale of business and the size of construction activity machines can be either purchased or hired for any application. In India, the construction equipment leasing is growing fast and to start with if you do not have any engineering skill set you can start your rental business just by buying a specific machinery and deploy it on rental income. Youth in India can start their income by deploying machines to the bigger or smaller construction projects running around the country. Having the right machine and good business sense will make you prosperous soon. To start with one should initially always opt for a versatile machine such as backhoe loader, tractor, Loaders or dump trucks. Rental business if managed rightly can be run as a side business and one can devote his time for other sources of income.

Conclusion

The construction industry is an evergreen field. Having acquired educational qualification or skill set in any of the construction activity will never go in vain. As lot of new developments are taking place in this sector. Starting a business related to construction sounds highly profitable.

There is a wide range of activities carried out in the construction industry like renovation, interior, and repair. All the edifices, bridges, dams, roads, estates, campuses, shopping malls, office complexes, skyscrapers and massive structures that you see around today, are all products of the construction industry.

Further the Rental machinery business is also a good opportunity in this sector.

Considering the above Facts, this is one of the best career options one could opt for and start his own construction business.