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The Role and Importance of Rural Infrastructure in India and Mahindras contribution to it

Typically, rural infrastructure assumes great importance in India because of the country’s predominantly rural nature and the crucial linkages of rural infrastructure to economic growth, poverty alleviation and human development as a whole in the country. In fact, as per Census 2011, there are 6.4 lakh villages in India, which shelter more than two-third of the countrys population. In such a scenario, the role and importance of rural infrastructure in India cannot be negated.

It is to be noted that rural infrastructure encompasses irrigation, rural housing, rural water supply, rural electrification and rural telecommunication connectivity.

The role and importance of rural infrastructure in India

In general, rural infrastructure can provide basic amenities that improve the quality of life of the rural people. It is also very crucial for agriculture and agro-industries. For example, development of rural infrastructure can lead to improved access to market centres for the rural producers, better availability of inputs and raw materials at reduced prices and improved mobility.

If we talk about the rural road infrastructure, then it can provide mobility and connectivity to more than 800 million people living in rural areas. Further, better network of rural roads can provide a boost to the agricultural activities by making water, seeds and other raw materials needed for farming reach in time to the farmer. Rural roads can also provide better connectivity, thereby, enhancing employment opportunities too in the non-agriculture sector as masses can move freely from one place to another. Rural roads can also ensure that the rural areas are served with better public services and all the benefits offered by the state reach the far-flung areas easily. Thus, overall, rural road infrastructure can help in eradicating poverty in rural areas as it can provide better livelihood to people and better access to education and health services and other basic services.

Further, rural electrification infrastructure can very well cater to the requirements of agriculture and other activities including irrigation pumpsets, small and medium industries, khadi and village industries, cold storage chains, healthcare, education and rural IT. Moving ahead, rural water supply system infrastructure can lead to sustainability of systems and sources and tackle the problem of water quality, thereby, increase good health of people. As for rural housing infrastructure, it can improve the living standard of the people.

Various studies clearly show that development of rural power, irrigation, water, sanitation and road infrastructure can increase productivity, savings, income and tourism and result in better jobs and health of rural people. Thus, better infrastructure has the potential to promote overall growth of the rural community and impact the country’s economy as well.

Realising this, there has been an increased focus on developing rural infrastructure in past few years, resulting in an increase of construction equipment demand. This has led to growth of many indigenous construction equipment manufacturers in the country. Of all the names, one company with its state-of-the-art yet affordable construction equipment that has highly contributed in the rural infrastructure development in the country is Mahindra Construction Equipment (MCE).

Mahindra’s contribution

MCE offers Mahindra EarthMaster backhoe loaders and RoadMaster G75 motor graders which are the most affordable and incomparable indigenous equipment in the country at the present that meet all the rural infrastructure development needs. The two equipment are highly affordable as compared to the other imported machinery, very productive and suited to work in any environment and terrain of the country. The two equipment offer cutting edge features using the latest vehicle systems and technologies at prices that are within reach of the mass market. They are manufactured at Mahindra’s state-of-the-art manufacturing facility at Chakan, Pune.

Both the equipment have undergone extensive hours of rigorous testing in the harshest of terrains and for the toughest of applications. They have been validated on all performance, safety and reliability parameters.

Here is a look at few of the features and innovations that have been incorporated in MCE’s equipment…

1. Improved mechanics for better productivity: The two equipment are backed by powerful engines. Both the machines and its variants are equipped with Mahindra DITEC engine which help save the fuel and results in more savings. Hence, the two equipment are highly fuel-efficient and lead to increased productivity and profitability for the owners.

2. Increased intelligence: The revolutionary REMOTECARE feature of Mahindra EarthMaster, allows you to get complete control over your business and manage it at your comfort. It is an intelligent communication system that keeps the business owner or manager constantly informed about the machine through mobile phone based SMS updates. Be it business information like daily work reports or warnings like low fuel, filter clogging, engine oil pressure, customers can get constant updates about their Mahindra EarthMaster. Since this is preventative in nature, it helps prevent major breakdowns. On the other hand, RoadMaster G75 also comes with GPRS-based remote monitoring system DigiSense that keeps a track of your machine with the touch of a finger.

3. Improved systems for effortless operations: Both the equipment from MCE come with joystick controls or ride control systems to manoeuvre the complex system to make heavy duty work seem much easier and effortless than it actually is. A joystick makes for accurate and smooth power control and also enhances efficiency. These features have positive effects on the operation speeds, flow rates, engine power and engine overloading or stalling.

4. Improved convenience and comfortability: Last but not the least, the two equipment are made comfortable too and are easy-to-use and operate. They ensure maximum operator comfort and have ergonomic layout and seating.

Thus, the two equipment from MCE are loaded with technology not hitherto seen in respective product segment in India. Mahindra EarthMaster and RoadMaster G75 have thus, given rise to a new era of performance, comfort and ease of operation in the respective segment.

In addition, Mahindra EarthMaster and RoadMaster G75 are environment-friendly and cost-effective equipment without compromising on quality and overall productivity, so that even small and medium players can buy it.

To sum up…

Given that rural infrastructure has a very important role to play in India, there has been increased focus on it in the form of rural roads, houses, electrification projects and irrigation facilities and this is gradually demanding more indigenous construction equipment that are fit to be used in the Indian scenario. Well, MCE has realised this need and is making its complete contribution in this regard by offering Mahindra EarthMaster and RoadMaster G75.

How Rural Roads are Greasing the Wheels of Indias Economy and How G75 is Contributing to it

ad network, nearly 70.23 per cent are the rural roads (as on March 2016). It is to be noted that these rural roads have the potential to change the face of the country completely.

Rural roads’ impact on India’s economy

Rural roads can offer huge economic benefits to the country. Being the lifeline of the rural population, these roads can help in poverty alleviation, enable transportation of men, material and goods, lead to diversification of agricultural activities and livelihood opportunities, boost rural as well as overall economic growth of the country and be a catalyst to Indias goal of maintaining a good GDP growth rate and improving the well-being of millions of underprivileged and rural citizens. All these factors have lead to increasing importance on maintenance and construction of rural roads.

Impact of increasing importance to rural roads on construction equipment sector

With the increasing need to maintain and construct rural roads, the demand for construction equipment especially motor graders is growing at a constant pace. Typically, motor grader is a equipment with a long blade that is used to create a flat surface during the grading process. Motor grader’s main function is to prepare the topmost layer for laying asphalt on top of it during road construction and maintenance.

Motor grader market scenario in India

Most of the motor graders in India are imported and generally developed by foreign manufacturers. These machines are very huge, bulky, expensive and remain mostly under-utilised as they cannot be employed for most of the India roads which are rural roads. Also, since they are very expensive, only large construction companies can buy them.

However, given the above fact, gradually, a number of indigenous motor grader manufacturers are rising in the country that make such motor graders that are best suited to the Indian rural roads’ maintenance and construction needs. Among all such names, Mahindra Construction Equipment (MCE) with its flagship Mahindra RoadMaster G75 motor grader loaded with a plethora of features deserves a special mention.

Mahindra RoadMaster G75: Made in India for Indian roads

The Mahindra RoadMaster G75 is designed and manufactured in India and is totally suited for Indian roads especially the rural roads. RoadMaster G75 is manufactured at Mahindra’s state-of-the-art manufacturing facility at Chakan, Pune. Nearly over 20,000 man-days of product development and 6,000 hours of extensive testing across the country in the most extreme working conditions, locations and applications have been spent on the equipment. Also, extensive one-year study of the road and road construction eco-system in India has been done and inputs have been taken from the customers, contractors, government officials and other entities involved in road construction while designing this disruptive machine, especially for Indian roads.

Typically, RoadMaster G75 is created to offer an affordable, un-compromised and mechanised grading solution for small and medium roads in India. It is an ideal grading machine for spreading, grading of earthwork in different types of roadwork across the nation.

RoadMaster G75: Revolutionising rural road maintenance and construction in India

1. More productive and cost-effective

Generally, rural road construction in India is considered to be a very labour-intensive and time-consuming task combined with sub-optimal methods and unsuitable machinery. This leads to poor quality roads with a very short lifespan, resulting in added expenses for maintaining the road and re-doing them over and over again. Here, it is to be noted that the RoadMaster G75 can put an end to all these woes as it is 180 per cent faster and can single-handedly do the work of 30 labourers.

Earlier, for small roads, backhoe loaders or tractor graders were used for construction, grading and levelling, since conventional graders were considered to be too huge and expensive. However, they resulted in poor grading and levelling finish. But, this is not the case at all with RoadMaster G75 which provides a superior finish as compared to the finishing done by the backhoe loader and labourers and saves 50 per cent on the time required to get the job done (provided the material is available on site) and at least 40 per cent of the costs.

Further, when compared with the conventional motor graders, RoadMaster G75 is 50 per cent more productive and saves 35 per cent on the product cost and 40 per cent operating cost without compromising on the quality of work. This is because RoadMaster G75 is equipped with Mahindra DITEC engine which brings fuel efficiency down to an incredible 4.5 litres per hour and results in more savings. Hence, the motor grader is highly fuel-efficient and leads to increased productivity and profitability for the owners. Offering lowest maintenance in class as with technology and design enhancements, RoadMaster G75 lowers lubricant refilling requirement with extended service intervals, thus, reducing the overall maintenance cost.

What more? RoadMaster G75 is equipped with 3000 mm mouldboard which is perfect for construction and maintenance of small and medium roads and comes with an option of having its size reduced by 400 mm. This option is particularly useful when working on small roads with moving and ongoing traffic. Depending on the requirement, the blade size can be reduced by 200 mm on both sides. The cutting edge of the blade is in four separate pieces for ease of handling and replacement and has a lasting life of about 600 hrs on standard operation cycle. It is convenient, affordable and any blade part can be easily replaced in case of damage. In addition, RoadMaster G75 comes with the option of having additional fitments i.e., the ripper and dozer for added versatility.

Further, RoadMaster G75 offers higher operator comfort i.e., it possesses ergonomic layout and seating with all the controls smooth and easy to reach and has spacious canopy, lockable storage and mobile charging. The equipment also boosts safety, efficiency and productivity at all times with advanced control joysticks. You can easily shift steer, adjust blade, articulate, control hydraulics and access automated grading systems without taking your hands off the controls.

Above all, RoadMaster G75 comes with GPRS-based remote monitoring system dogosense that keeps a track of your machine with the touch of a finger. Through this, be it business information like daily work reports, fuel level or warnings like low fuel, filter clogging and low engine oil, you can get constant updates on your equipment.

2. Affordable pricing

RoadMaster G75 is highly affordable, so much so that even small and medium players can buy it. In fact, it is comfortably priced at almost one-third the cost of a conventional grader without compromising on quality and overall productivity.

In a nutshell

It goes without saying that rural roads definitely have the potential to change India’s economy. Hence, these days, more and more importance is given to rural roads, thereby, leading to growth of rural roads construction and maintenance in the country. This trend is highly impacting the motor grader industry as well where indigenous motor graders manufacturers like MCE with its RoadMaster G75 are changing the dynamics of the market by offering highly affordable and un-compromised and mechanised grading solution for small and medium roads in India.

Putting Private Capital To Work In Rural Infrastructure

ructure across the country. Right from creation of basic infrastructure in the rural parts of the country to developing and expanding the urban infrastructure. The businesses involved in construction and construction equipment related industries and work stand to be major beneficiaries of this infrastructure boost. 40 kms of roads per day is the target that the government has set to meet its infrastructure requirements and it a gold mine of opportunities for businesses in the industry.

Roads are the skeletal structures on which the connectivity of a country and the remaining infrastructure is built on. This is a very good time for business with in-depth insights and understanding of the condition of roads on India. the insight and understanding makes it easier for them to attend to the needs of the country’s roads and make their moolah in the process. 90-95% of the roads in India that need to be created or maintained are rural roads which is a very different play ground as compared to what the large companies are used to dealing with.

That being said, motor graders come under the primary set of construction equipments required to make these roads and play a major role in the bottom line of profits that road construction projects create. Lets dive into how important a role they play in the creation of roads and can aid to deliver better margins for businesses involved in construction of infrastructure and or roads.

It is common knowledge that road construction has always been a labour intensive job and adds to the unpredictability of the time line and costs of the project. Not only does human labour require most capital it is also much more time consuming as compared to machines. In a business where time lines can make an impact on the profit margins unpredictability due to involvement if human labour can be a major turn off, especially when it comes to smaller projects in rural areas. Additionally the labour involved with road construction is untrained with very little or no knowledge of road construction. This inadvertently ends up compromising the final quality and finish of the roads and eventually drilling holes in the contractor’s pockets in the long run. Additionally time delays are a norm having to regularly source new labour to replace the ones that left making it a time and money intensive task.

This is where the machines come in, the motor graders in particularly are the most reliable and efficient machines one can have on a road construction site. A single machine can single handedly do the work of 30 people or more at relatively lesser costs and faster pace. Motor graders deliver better quality and finish of jobs, whilst reducing the time and costs involved making it a must have on road construction sites. Completing projects before the scheduled timelines turn into hefty bonuses from the government in addition to generating good will for the business creating more business and eventually profits. Motor graders help companies finish the existing projects and take on many more projects given the smaller timelines and larger profits that they help bring in.

Motor graders being heavy duty construction equipment are used in challenging climatic conditions across drastically different terrains in India. Add to that the fact that these sophisticated machines are usually used by under skilled operators, the machines go through heavier wear and tear. Larger repair and maintenance costs eat away from the profits from the project. This is where the construction equipment manufacturers can come in and help reduce costs by designing and creating equipment that are more resistant to natural and human damage. Good design from manufacturers can play a major role in cutting down cost and improving profit margins for businesses. Picking up machines that are designed keeping in mind the rough Indian terrain and climatic conditions can help reduce the cost.

Manufacturers with an innate understanding of the actual working conditions tend to create more robust machines that have higher resistance to wear and tear caused due to the climate. To attend to the problem of under skilled operators using the machines and damaging them, technology can help bridge this gap. Construction equipments are being designed to be increasingly intelligent and less dependent on human operators. Buying robust smart machines will help reduce the expenses involved at the fundamental levels of the quality of machines.Is a sensible option to use a motor grader that is specifically designed to suit the requirement of road construction in the country instead of the imports that were designed to suit the requirements of the home countries.

Daily wear and tear are a part of the life cycle of the machines being put to use on construction sites, but the quantity and quality of damage can be reduced by taking better care of the machines. Regular maintenance and cleaning of the machines is a basic necessity to ensure longer machine lives despite harsh working conditions. Weeding out problems in the the root and resoling them will go a long way to add to the life of the machines. Costs for repairing damages is directly proportional to the size of the break down and damage. It is better to attend to the problems while they are still small.

Technology is a business’s friend when it comes to improving profit margins in the long run. Investing in smart machines equipped to self adjust to the working conditions, task at hand and have minimal dependence on humans will go a long way to create larger profit margins down the line. Machines that gather data, diagnose problems in the bud can help avert major havoc and damage to the machines if missed by the human eye and experience. Data collection can help formulate more efficient processes to get the task done faster and with lesser wear and tear to the machines.

While most companies prefer owning or leasing construction equipment, rental is a good option and is becoming increasingly available. Using the rental option smartly can help increase the width of the profit margins. Rental services save on costs incurred for regular servicing, logistics, insurance, maintenance, storage. Equipment rental saves on the large sum of money that is invested in owning the machines and can very easily be used for more profitable tasks like renting more machines to complete the task faster and earn early completion bonuses.

When it comes to India, most motor graders are International brands wanting to crack the growing market and large domestic layers wanting to make their moolah. Make the most of this competition to get the best of technology at better prices by pitching the competitors against each other to get better warranties, maintenance and insurance plans in addition to more services and training. Making smart use of the services being provided by the OEM’s and dealers to reduce the in-house cost of projects will help add to the profit margins as well.

Rural Roads are No Less Important Than National Highways

hways form only a mere fraction of the total road network in India and out of the total road network, nearly 70.23 per cent are the rural roads (as on March 2016).

As per the road statistics published by central government for the year 2012-13, the national highways make up just 1.51 km of every 100 km of India’s road network, state highways cover 3.24 km and rural roads span 60.39 km of every 100 km. The sad part is that most of the rural roads in the country are in bad shape i.e., they are of poor quality, potholed and unable to withstand the loads of heavy farm equipment, thereby, affecting the rural population’s quality of life and ability of the farmers to transport their produce to the market. These roads are also very far from the all-season good quality highways making the economic resource flow slow and leading to high logistics costs.

However, gradually, over the years, rural road development task has picked up very quickly and government is increasingly focussing on rural roads. This is because there are various economic benefits offered by the rural roads that make them equally important than national highways. These rural roads are often considered to be the lifeline for rural communities. They play an important role in poverty alleviation in rural areas, enable transportation of men, material and goods, lead to diversification of agricultural activities and livelihood opportunities and boost rural as well as overall economic growth of the country. Thus, rural roads form the backbone of the country’s growth.

Here is a detailed look at the benefits offered by the rural roads and why they are no less important than national highways…

1. Improvement in transportation services: Good rural road network can boost the transportation services between two villages, cities and states of the country. The improved transportation services can further lead to improved access to market centres for the rural producers, better availability of inputs and raw materials at reduced prices and improved mobility.

2. Give boost to the agricultural activities: Better network of rural roads can also provide a boost to the agricultural activities by making water, seeds and other raw materials needed for farming reach in time to the farmer.

3. Diversification of agricultural activities: Rural road network can lead to improved market access, favour growth of cash crops and commercialisation of agricultural activities for the better future of the farmers.

4. Diversification of livelihood opportunities: Better connectivity through better roads in the rural areas can enhance employment opportunities too in the non-agriculture sector as masses can move freely from one place to another.

5. Improved services: Improved road connectivity can enhance access of rural masses to education, health and financial services as well.

6. Increase in the outreach of the state: Improved rural roads can also ensure that the rural areas are served with better public services and all the benefits offered by the state reach the far-flung areas easily.

7. Alleviation of poverty: Last but not the least, rural roads can also help in eradicating poverty in rural areas as it provides better livelihood to people, better access to state, education and health services and other basic services.

The above pointers clearly state that emphasising on the development of rural roads can prove to be a catalyst to Indias goal of maintaining a good GDP growth rate and improving the well-being of millions of underprivileged and rural citizens. Realising this importance of rural roads, government has been taking some proactive steps to boost the rural road development task. In fact, for the development of rural roads, Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched in December 2000 by the Indian government to provide connectivity to unconnected rural habitations. Also, over the years, government has considerably increased the budget allocation for the development of rural roads. In the budget 2018-2019, rural roads saw an allocation of Rs 19,000 crore under PMGSY and this allocation was up by 12.42 per cent relative to last year’s grant of Rs 16,900 crore. Further, recently, India also signed a USD 500 million (Rs 3,371 crore) loan pact with World Bank to provide additional financing for PMGSY rural road projects to build 7,000 km of climate-resilient roads.

Well, with such developments planned by the government for rural road development in the country, the road construction equipment sector has all the reasons to smile. Particularly, backhoe loaders which are entry level equipment are touted to see good growth and are expected to constitute more than 40 per cent of the total demand in the rural road development activities.

If we talk about the indigenous backhoe loader manufacturers in the country, then the Mahindra Construction Equipment (MCE) with its flagship Mahindra EarthMaster backhoe loaders loaded with a plethora of features deserves a special mention. Even MCE’s Mahindra RoadMaster G75 motor grader should be noted here which is created to offer an affordable, un-compromised and mechanised grading solution for small and medium roads in India. It is an ideal grading machine for spreading, grading of earthwork in different types of roadwork across the nation.

In a nutshell

The rural roads have the potential to benefit the country on a larger scale. So, while construction of national and state highways is important, it is equally important to develop rural roads in the country especially when it can provide mobility and connectivity to more than 800 million people living in rural areas. It is for the same reason that the Indian government has been taking proactive steps for the development of rural roads these days and has increased its investments in the same. This is expected to definitely increase the demand of the construction equipment like motor graders and backhoe loaders in the country.

Heavy Construction Equipment Rental Business is Now Increasing Rapidly

Give it to the increased infrastructure investments and focus on projects like ‘Make in India’ campaign, Smart Cities Program, ‘Housing for All by 2022’ scheme and affordable housing development and Swachh Bharat Program, development of urban and rural roads, rural infrastructure development, rail infrastructure development, airport infrastructure development, power infrastructure development and industrial development, the heavy Construction Equipment (CE) market in the country is growing at a rapid pace. Apart from all the above mentioned projects, there are at least 10 other big infrastructure projects in government’s pipeline including Rs 12 lakh crore Sagarmala project and Rs 14,000 crore Bharatmala Project that needs to be completed and all of which will demand more CE. In fact, even the rental heavy CE market is all smiles looking at this long list of projects lined up.

Although the heavy CE rental business is in its infancy, the trend is picking up very fast in the country. The current rental penetration in India is at around 7 to 8 per cent as compared to the global standards of 50 to 80 per cent. However, the rental equipment sector is expected to show strong growth, possibly higher than 30 per cent annually over the mid-term. Particularly, the rental market is expected to pick up in Tier-2 and Tier-3 cities of the country.

If facts are to be believed then about $2.3 billion Construction Equipment is sold in India and nearly 7 per cent of the equipment is sold to rental companies. Gradually, the CE rental business is becoming more organised in the country and is expected to grow considerably year-on-year in the future. Today, not only the regional players but big manufacturing companies too have started setting up their own equipment rental distribution. One amongst the big names is Mahindra Construction Equipment which provides its Mahindra EarthMaster backhoe loader model on rent. As of now, the key equipment in the rental fleet in India includes backhoe loaders, excavators, motor graders and few more.

Reasons for the increase of heavy CE rental business in the country

CE rental business’ popularity has increased due to a variety of reasons. A few key contributors to the growth of heavy CE rentals include the rising cost of purchasing equipment, increasing economic uncertainty, lack of capital, technology upgradation, unpredictable construction and infrastructure growth, depreciation woes, costly breakdowns and limited space availability which has forced construction companies to find ways to save money wherever they can. In many instances, renting CE has become a viable option for many companies and has provided them the ability to cut costs and run a more financially stable construction business.

We list all the possible reasons in detail which have been leading to the growth of heavy CE rental business in the country…

1. Given that the timelines for execution of large infrastructure projects are increasingly becoming constrained, necessitating increased levels of mechanisation, the captive equipment banks of large contractors are found unable to meet this increased need of machines. Hence, construction companies find it wise to opt for rented equipment in such scenarios.

2. Generally, construction companies are under a lot of pressure to trim capital outlay and hence it is better for them to rent the equipment on a monthly or hourly basis. It goes without saying that at a time when it is not uncommon for particular projects to place excessive demand on the resources that exceed routine operations, rented CE serve as a cost-effective solution to supplement the capacity on an as-needed basis.

3. Rented CE leads to reduction in investments on part of construction companies as there is no need to invest a huge sum in purchasing the new equipment and outsourcing the equipment requirement (including spares and services).

4. Rented CE also helps the construction companies from market fluctuations. Given that the construction sector is highly dynamic and many things may influence the market, the rising or sinking cost of the equipment can highly affect the business. In such scenarios, rented CE can provide the necessary cushion to the construction companies from the unforeseen financial downturns that may arise due to multiple reasons.

5. It is generally seen that taking CE on rent is a better option rather than buying, especially for projects with duration of less than three years.

6. Many times, short-term projects or one-off jobs need specialised equipment. For these projects, taking CE on rent is definitely a smart option.

7. Rented CE helps in reducing the maintenance and the repair costs. By opting for CE on rent, construction companies may not have to worry about the expensive breakdowns at all as most of the times, this is taken care of by the rental company. This can also free up their considerable amount of time, labour and cost required for maintenance.

8. Rented CE leads to huge savings on manpower and administrative cost too as there is no need for mechanics or staff which is generally provided by the rental company.

9. Last but not the least, with new technologies constantly outdating the old machines, the old equipment can become obsolete easily and its value may also depreciate very fast. However, rented heavy CE can put an end to all the depreciation woes because it is the rental company that assumes the risk of the asset completely and it’s drastically losing value.

All the above mentioned reasons are enough to prove that why the heavy CE rental business is growing rapidly in the country. However, it is necessary to mention here that despite the various growth opportunities, the heavy CE rental business in the country is facing various challenges like non-availability of new machines on the rent, rentals mostly restricted to low to medium value and general purpose equipment, less availability of technologically-advanced equipment on rent and current rental players having a limited service offering. However, with continued infrastructure developments, the heavy rental CE industry is definitely expected to see a major boom in the coming days.

Five Ways to Stay Ahead of the Competition in 2018

These include increased investments in residential, infrastructure and energy projects under flagship programs such as the 100 Smart Cities Mission, Housing for All 2022, the Atal Mission for Urban Rejuvenation and Transformation (AMRUT), Pradhan Mantri Gram Sadak Yojana (PMGSY), Make in India, and Power for All (PFA). These developments are surely expected to give rise to cut-throat competition in the construction business. Hence, it is highly needed of the construction companies to adopt various measures to not just survive but stay ahead of the competition in 2018. However, the question here is how they can do so?

Well, we list the five major ways through which construction businesses and construction equipment owners can stay ahead of the competition in 2018…

1. Be well aware of the market and its trends:

The first and foremost tip to stay ahead of the competition and competitors in 2018 is to gain knowledge of the market. You should gather information about the market trends, present demand and statistics and future growth scenario. After having all the information in place, you should adapt to the latest trends and changes well before your competitors. Being amongst the first few at anything will definitely give an edge to your business in times when the construction industry is growing at a lightening pace.

2. Know your customers well

Customer is the king and there are no second thoughts about it! While focussing on the upcoming trends is important, it is equally necessary to pay heed to the customer demands especially during present times when their requirements are changing constantly. You must have the right strategies and methods in place to anticipate the customer demands because in today’s highly competitive world, if you are not updated about the customer requirements and give them solutions that are outdated, then you may lose on some good customers and will be left behind in the competition.

It goes without saying that consumers are not short on choice these days and they can leave one product or service for another. Therefore, it is imperative for you to know the customer’s need in advance and offer them best of products, service, solutions and experience before anyone else does it. Also, it is equally important to focus on doing what is the best for the customer rather than doing what is best for you as this can help you in longer run by earning lot of repeat business. Overall, by systematically developing quality products and services as well as by providing insights regarding emerging technologies, construction companies and construction equipment manufacturers can build a positive influence on their customers’ value creation chain and can stay ahead of the competition in 2018.

3. Live up to your commitments

In the construction business, time is money and adhering to project deadlines is the basic need. In addition, maintaining the quality all throughout the project is also very important. So, if you have committed a certain quality, cost and deadline to your client, then it is imperative that you live up to your commitments. If your fail to live up to your promises, then chances are that you may lose to your competitors and earn a bad reputation in the market. So, be very careful while making any commitments. Commitments should be made only after thorough thinking, planning and assessment of all the variable that come into play for execution of the job.

4. Make use of world-class equipment

The coming year is touted to present many challenges as well as growth opportunities for the construction business. In order to counter the challenges related to productivity, downtime, deadlines and labour costs and gear up for the opportunities like spurt in construction activities, the construction business owners will be required to employ world-class equipment to use so as to beat the heavy competition.

Highly advanced and technologically-sound construction equipment have the ability to offer more than one benefit to the business. First, such equipment can increase productivity and this can surely translate into higher profitability for business. Second, they can help in performing multiple tasks. Third, such equipment can ensure successful project completion within the given deadline. Fourth, they can reduce maintenance costs. Fifth, they can enhance your brand value and help the business in attracting new and good clientele. Lastly, they ensure workers’ good health and are environment-friendly. Such equipment help in reducing CO2 considerably and allow you to put your greener foot forward. Thus, with all these benefits, employing best of the equipment can help construction businesses to stay one step ahead of the competition.

If you are looking for world-class equipment like backhoe loaders and motor graders, then Mahindra Construction Equipment’s (MCE) Mahindra EarthMaster backhoe loader model and Mahindra RoadMaster G75 motor grader should be definitely on your list as they are highly advanced equipment and one of the best in their category available in India.

5. Know your competition thoroughly

Last but not the least, in order to stay ahead of the competition, it is very important to know about your competitors. For doing so, you need to gather all the information about your competitors’ offering, what is the cost of their products and services, any additional service that they are providing and similar things. Based on that, you can decide about what changes you can bring in your offerings. In fact, this can help you in providing additional benefits and will lure more clients for you. It goes with saying providing something that is required by the customers and is better than the offerings of your competitors will help you win the battle in no time. Further, once you are aware of your competition and your competitors, you are in a better position to formulate unique marketing strategies for your products and services.

Apart from the above, few other tips for the construction business and construction equipment owners for staying ahead of the competition in 2018 include increasing visibility, branding and marketing activities, providing value for money and giving guarantees and warrantees among others.

In a nutshell

Healthy competition is always good as it keeps pushing you to do better and the same goes with construction business and construction equipment owners. Thus, you should never shy away from competing but at the same time equip yourselves with the best of products, service and offers that can help you to stay ahead of the competition easily. Well, the above-mentioned tips can surely help you to beat the clutter and competition in 2018.

Equipment Solutions for Landscaping Labour Shortages

It involves a lot of tasks like earthmoving, site preparation, irrigation, paving, grading, excavating and material lifting, placement and movement with most of the work needed to be done in restricted spaces.

Given that these days, labour shortage is the main issue plaguing every industry including the landscaping industry, the need for more and more landscaping equipment is increasing drastically as these machines not only increase the efficiency, accuracy and productivity and save time at the job site but also enhance safety. Accompanied with various attachments, the landscaping equipment are well-equipped to perform various tasks in a short span of time without the need for having many labourers performing the tasks manually.

Below is the list of all the major equipment that can be used for various landscaping operations…

Backhoe loaders

One of the most popular equipment that is used in landscaping projects is Backhoe Loaders (BHLs). These machines offer high versatility and can be used for numerous applications including digging ditches, laying pipes, demolitions, excavating, lifting, loading, grabbing, transporting materials, levelling, laying the foundation for buildings and drainage systems and much more at the job site with various attachments.

BHLs have three components i.e., tractor, loader and backhoe. The tractor is used for moving the other two components from place to place. As for the loader and backhoe, when you dig up a lot of dirt to make a hole, you generally require a loader to either move the dirt out of the area or to fill it back when the work is done. Thus, the most common application of BHL is digging a trench with the backhoe and then filling it back with the loader. Because of the machines dual nature i.e., loader and backhoe, they are an ideal choice for many landscaping projects. There are many manufacturers in India manufacturing BHLs of which Mahindra Construction Equipment’s Mahindra EarthMaster BHL model is very popular. It comes with a variety of superior features and technology and is highly compatible with numerous attachments.

Mini hydraulic excavators

Mini hydraulic excavators can also be used for landscaping projects where space is a major constraint. Be it clearing the land, digging trenches for drainage or for irrigation system installation, mini hydraulic excavators can come to help. With a variety of attachments available like grading buckets and blades for smoothening any surface, augers, hydraulic thumbs etc., mini excavators make landscaping work much easier, thereby, allowing you to easily switch from one task to another and reduce the need of many equipment on the site.

Skid steer loaders

Another machine that can perform many tasks involved in landscaping projects is skid steer loader with its various attachments. This machine can do things like digging, loading, grading and carrying plant materials, dirt, mulch and rocks. Skid steer loaders can easily work on and around sidewalks, curbs or pavement. The front bucket of the machine can be replaced with various types of attachments like hydraulic breaker, pallet booms, auger, mower, snow blower etc., to execute different jobs.

Compact wheel loaders

Even these machines can be employed for applications like digging, loading, grading, carrying plant materials, dirt, mulch and rocks. Accompanied with various attachments like broom, grapple buckets etc., they can greatly help in various landscaping tasks.

Compact track loaders

Offering manoeuvrability and high versatility, these machines can also be used for a variety of tasks. Compact track loaders are generally great for rough ground conditions i.e., if it is wet, soft or sandy ground.

Industrial/ agricultural tractors

Landscaping is one of the primary applications of these machines which offer more power and greater durability during rigorous operations. With their three-point hitch assemblies and other towing capabilities, they are ideal for a number of finishing applications.

Typical landscaping equipment attachments

After discussing the various equipment solutions for landscaping labour shortage problem, here is the list of the major attachments that are used with the various types of landscaping equipment…

1. Augers- Through augers, BHLs and mini hydraulic excavators can easily drill holes for planting trees and shrubs even on a hill side and rocky terrain. They can also be used for fence posts installations.

2. Backhoes- The main tool of the BHLs and even used with other equipment, backhoes are generally used for digging drainage channels and trenches for laying irrigation pipes or for lifting heavy loads.

3. Brooms- Generally, they are attached to the backhoes and used for cleaning the surface after the job is complete. They can be even used for clearing snow in winter and hence used with skid-steer loaders too.

4. Blades- Available in varying size, they are used for various tasks majorly involving moving, cleaning debris and levelling any material.

5. Grapple buckets- They are used to remove bulky materials such as tree limbs and for cleaning up the ground.

6. Landscape rakes- For tasks like conditioning, levelling and removing rocks from soil before sowing seeds or laying sod, landscape rakes are used.

7. Light material buckets- Such buckets with long floor length and tall bucket height are used for light applications such as hauling mulch, snow etc. They can be attached to skid steer loaders too.

8. Multipurpose buckets- Very versatile buckets, they can be used for digging, dozing, clamping, back-dragging, grading and levelling tasks. They can be attached to skid steer loaders too with extended reach.

9. Pallet forks- They are highly labour-saving devices with the capability to speedily load and unload palletized materials like sod, fertilizer or decorative stones.

10. Trenchers: They are used for installing water sprinkler systems and can be even employed for removing roots that grow too close to buildings and paved paths.

11. Hydraulic thumb: This attachment used with the mini hydraulic excavator works with the bucket or a grapple and can be easily used for debris clean-up, tree removal and picking up the tree branches so as to load or unload them.

Overall, keeping in mind the various complexities involved in the landscaping projects and the increasing problem of labour shortage and high associated costs, it surely makes sense to opt for the various above-listed landscaping equipment solutions and the required attachments.

How Construction Equipment Rental Business is Increasing Now?

A few key contributors to the growth of CE rentals include the rising cost of purchasing equipment, increasing economic uncertainty, lack of capital, technology upgradation, unpredictable construction and infrastructure growth, depreciation woes, costly breakdowns and limited space availability which has forced construction companies to find ways to save money wherever they can. In many instances, renting has become a viable option for many companies and has provided them the ability to cut costs and run a more financially stable construction business.

Today, many CE users are preferring to rent CE or ‘pay-as-use’ model as an optimal way to do business. This has proved beneficial for the CE market because with more financing of CE and the increased use of rentals, their demand has only increased. At present, the Earthmoving and Construction Equipment (ECE) rental market is only 7-8 per cent of the total ECE market in the country, but the percentage is set to increase and the rental industry is expected to grow at the rate of 30 per cent per year in the future. Particularly, the rental market is expected to pick up in Tier-2 and Tier-3 cities of the country.

Here are some of the benefits of renting CE which is leading to an increase in the CE rental business in the country…

1. Helps in avoiding the initial purchase cost: Purchasing new equipment always demands huge investments as they are expensive and hence can affect your company’s budget. Also, purchasing CE is a long-term investment. However, renting CE can help in avoiding the upfront costs associated with purchasing and thus, you can better allocate your financial resources.

2. Protects you from the market fluctuations: Given that the construction sector is highly dynamic and many things may influence the market, the rising or sinking cost of the equipment can highly affect your business. In such scenarios, renting CE can provide a cushion to your company from the unforeseen financial downturns that may arise due to multiple reasons. Renting CE is always a flexible option that makes it easier for you to handle the rise and fall of the market forces.

3. Leads to less maintenance and repair costs: The two costs need to be accounted for when you own a equipment. On the other hand, although the maintenance and repair is important for rental equipment too, still the cost is significantly lowered compared to purchased equipment. In fact, if you opt for renting CE, then you need not worry about the expensive breakdowns at all as most of the times, this will be taken care of by the rental company. This can also free up your considerable amount of time, labour and cost required for maintenance. Thus equipment rentals can help to keep your project up and running without any delays.

4. No depreciation costs associated with rental Construction Equipment: As soon as you purchase any equipment, it starts to depreciate. So, when you own CE, you may have to incur considerable depreciation costs and as the value of the equipment depreciates, it makes it more difficult to recover the initial purchase cost. Further, as the technology advances, there is always the risk of your equipment becoming obsolete. Hence, it is always better to rent the equipment as it is the rental company that assumes the risk of the asset completely and it’s drastically losing value.

5. Saves transportation costs: Renting CE help you save the transportation cost as well. This is because you would not have to send the equipment to different project sites, which in turn can save your time and project’s productivity and efficiency. For example, if the worksite is far away from the primary location or the location where the equipment is stored, then the major logistical hurdle is transportation of the equipment which can be very expensive and time- consuming. In such a case, rented CE can remove the burden of contractors completely since the equipment can be delivered by the rental company to the worksite directly. Thus, construction companies can easily rent specific equipment for particular jobs at different project sites and get their work done without experiencing any logistical delays.

6. Solves equipment storage issues: If you purchase a equipment, then you need to ensure that you have a storage solution for it too. This is to store the equipment when not in use as the equipment kept in open may deteriorate easily and depreciate faster. The proper warehouse or storage space may mean additional cost for the construction companies. It is also often seen that after completion of the project, the machinery mostly remains idle till the next project. However, during this time also, the construction company has to bear expenses related to maintenance and repair. These expenses can be ruled out in the case of rented equipment as after completion of the project, the equipment can be sent back to the rental company. This saves your storage costs considerably.

7. Helps completing short-term projects fast: Many times, short-term projects or one-off jobs need specialised equipment. For these projects, taking CE on rent can be a smart option. The equipment can be returned to the rental company once the job is done.

8. Supplements the existing fleet during busy season: It is not uncommon for particular projects to place excessive demand on the resources that exceed routine operations. Obviously in such cases, it’s much more cost effective to rent CE as they can supplement capacity on an as-needed basis. Also, through this way, you can avoid the problem of storing and maintaining the equipment during slow season.

9. Puts an end on worries related to resale: When buying expensive equipment, the major concern is its resale value because of the fact that the value of a piece of machinery drops considerably as soon as it is bought and technological advances can make it obsolete. In case of rented equipment, this is not at all the cause of worry.

10. Reduces capital investment: Last but not the least, renting a piece of CE is always a smaller expense and thus, it has much less impact on the bottom line. The total rental cost can be calculated by taking rental rate (per year/month/day) x rental period (number of years/months/days) + pickup/delivery charge.

Thus, due to the above factors, rental equipment business in India is witnessing strong growth. In fact, today, prominent CE manufacturers in India have started setting up their own equipment rental distribution business. While there are many big CE manufacturing companies providing equipment on rent, Mahindra Construction Equipment with Mahindra EarthMaster backhoe loaders deserves a special mention.

When it comes to renting CE, the unique proposition of MCE include robust, maintained and technologically advanced equipment at affordable rates; trained, competent and experienced manpower resources with the equipment, 24*7 service support, onsite repairs and maintenance to reduce machine downtime and production loss at customer site, advice on equipment suitability based on applications and training of operator level personnel for various industries.

In a nutshell

Overall, with the construction companies seeing the benefits of renting CE, the rental equipment market in the country is growing at a fast pace and is expected to see a boom further in the coming years.

Backhoe Loader Demand Increasing in Developing Markets

Its demand is expected to grow further as it is a highly versatile machine and can be employed for numerous applications including digging, demolitions, excavating, breaking asphalt, laying roads, transporting materials, levelling, loading and much more at the job site. They have the capacity to easily duplicate the work of bulldozers, front-end loaders and excavators and are useful in farming, construction, mining and infrastructure services. In fact, BHLs can be easily used in urban engineering as well as construction projects which hugely drives the growth of this equipment. Backhoe Loaders generally come with various easily attachable attachments which further increases its utility at the jobsite.

Given their usability, backhoe loaders are high-selling equipment all over the world. Earlier, their demand was majorly seen in the developed nations but with the increase in the number of infrastructure projects and construction activities in the developing countries, Backhoe Loaders demand is increasing there too.

With globalisation, India and China, the two fast growing nations have become the major activity centre. With villages and farmlands giving way to more industries and buildings, there are whole of lot construction activities that are happening here and this is posing good demand for BHLs. Basically, huge number of infrastructure projects like canals, dams, roads, power projects etc., to match up to the West that are being carried out by these two countries is setting up the pace for BHLs’ growth. It goes without saying that for all these activities, backhoe is a key component.

Reasons for the growth of Backhoe Loaders in the developing countries

There are many reasons driving the growth of BHLs in emerging economies. These include:

1. Investment in infrastructure by the government in emerging economies is the major underlying factor driving BHL sales.

2. New infrastructure funding, reforms and procedures are also likely to stimulate the growth of the BHL segment in emerging economies.

3. The undertaking of highway and rural road development programs in developing nations is also paving way for the demand for BHLs.

4. Agriculture and irrigation projects are also providing momentum to the growth of the backhoe market.

5. Land development, building construction and industrial development projects are also adding to the growth of global BHL market.

6. Unlike other CE, demand for Backhoe Loaders is supported by the fact that they are highly multi-purpose equipment and can perform variety of tasks with ease.

7. The re-emergence of the rental sector is further expected to drive the growth of the market.

8. Shortage of manual labour in the developing nations is another significant factor which is likely to contribute to the growth of BHLs in the long term.

9. Last but not the least, as against manual labour and traditional methods, BHLs lead to improved quality, timeliness, better project financials and safety. Gradually, developing nations are also realising this fact and hence are showing more interest in employing BHLs.

Key trends related to increasing BHL demand in developing markets

  • The Asia-Pacific market including developing countries like India account for much of the growth in the global heavy construction equipment sector as construction activities continue to increase in these regions. The Asia-Pacific construction equipment market including the backhoe segment is supposed to grow at a CAGR of 10.2 percent during 2015 to 2020.
  • The Asia-Pacific region, with China at the forefront is expected to be the key region for aggregate demand of BHLs due to its huge government-led investment in new transport and other vital infrastructure development.
  • The other developing countries constituting the BRIC are also showing a growth in demand for Backhoe Loaders. If you were to rank them in order of highest to lowest demand, then China is the leader, followed by India in second place, then Brazil and Russia.
  • The demand for backhoe is set to rise in Malaysia and other Asian countries as well.

Demand for backhoes in India

Particularly, if we talk about India, then it is by far considered to be the largest growing BHL market in the world with this equipment accounting for almost 50 per cent of all CE sales in unit terms. As per Off-Highway Research, “There is an active population of 195,000 BHLs in India.”

Growing at a rate of close to 37 per cent CAGR over last few years, the pace of backhoe market is likely to continue in the coming years too. This segment is perhaps the only one in the CE sector in India that has reached the stage of maturity and scale where exports could be considered.

All the BHLs sold in India are manufactured in the country and JCB India and Mahindra Construction Equipment are the clear market leader with a share of over 70 per cent followed by other players like Caterpillar India, ACE, Escorts, Terex Equipment and few more.

In future, BHLs are expected to account for over 68.23 per cent of total sales of CE by 2018. Further, sales of BHLs in India is expected to increase from the 21,192 units sold in 2015 to 28,000 machines by 2020, a +32 per cent increase, according to Off-Highway Research.

Opportunity for growth for the construction equipment manufacturers

Overall, the huge demand for heavy construction equipment from emerging economies due to infrastructural development and increased spending on construction activities is expected to accelerate the overall growth of the BHL market. BHL manufacturers in the developing countries can definitely take advantage of this trend.

Keeping this trend of growth of Backhoe Loaders in the developing markets, the next few years can be the right time for building construction equipment manufacturers to launch new products not only in the domestic but international markets. They can adopt various strategies to take advantage of the projected growth in infrastructure construction in the various countries and aim to export their building construction equipment to these markets. They can look at expansions, agreements, contracts, joint ventures and partnerships in the sector to garner a larger share in the market. Moreover, collaborating with other equipment companies could act as a key to success. Alliance across industry due to the entry of more diverse and technology-driven products into the marketplace can also help the building construction equipment manufacturers in the developing markets to gain a larger share not only in the domestic but global markets.

Hence, the growing demand for BHLs in developing market is ringing in good news for many. In future, this demand is only going to increase further.

Tips to retain construction workers

Lack of basics, exploitation at the hands of employers, long working hours, minimal wages, risk of life, health issues caused due to working at construction sites without the proper safety gear all are causes that keep the construction worker retainer ship at job sites every low and require regular in flow of new workers.

Housing facilities

Most construction equipments are villagers who migrate far and wide away from their homes in search of jobs. These migrants live on a day to day basis and have none to minimal access to basic necessities considered human rights. Housing and sanitation being one of them. Most labourers live in pathetic conditions on the sites or in makeshifts huts on the foot paths or simply on the footpath itself. This makes them more susceptible to harsh environmental factors and diseases caused due to unhygienic sanitary conditions and eventually lead to them falling sick or leaving. Making provisions for housing will prevent sick days and having to replace workers on a daily basis.

Providing labourers with housing and basic sanitation is bound to retain them longer. Temporary or make shift housing that is comfortable, keeps them away from having to sleep on the streets and safe from harsh environments is a good move. Sanitation is another major issue that needs to be attended too. Most of them either have no access to sanitation and choose to defecate in the open or have to go far and pay for sanitation facilities. Using portable sanitation structures at construction sites is sure to be a good move at construction sites.

Labour Laws

Putting in labour laws that are fair to the construction workers irrespective of wether the government mandates it or not. Fair working hours, adequate rest period, fair and timely pay for their work are some policies that companies can implement at their level and earn returns in the long run. Happy employees tend to work better and stay longer. Most construction sites are rather exploitative of their construction workers in order to save money and increase profit margins. This however proves to be counter productive since this will cause them to either leave for better opportunities or down grade the quality of work at the grass root level.

Treating workers well with the dignity that a human deserves is a must. Dignity at work boosts self esteem and motivates people to do better. Providing an opportunity for stable work, pay and growth will work in the favour of the business since it will become easier to have the required dependable labour as and when needed to get the job at hand done on time. Providing them job security will ensure that the construction workers stick around longer and even bring in more help when required.

Safety

Construction sites are had hat had zones and need to be treated such, especially in India. Safety of construction workers is usually neglected by both the workers them selves and the people and or businesses employing them. Bring in strict rules that need to be adhered so that the lives of construction workers are safe. General safety measures to ensure safety measures on a construction site should also be taken. Hard hats, ear covers at noisy sites, breathing masks to avoid health issue caused by particulate pollutants at the site, safety gear when working at heights, boots and gloves to keep their hands and feet safe in addition to putting up safety nets and barricades as and when required.

While not mandatory, it helps to have the workers covered under insurance while they are working at one’s construction sites. This will add to the job security and give them a reason to stay with the company in the long run. Safety form exploitation should also be taken in to account. construction jobs are generally out sourced or sub leased to contractors to save money. Ensure that your work with contractors that follow the same labour friendly work ethics that your company does and ensure that it is checked on a daily basis.

Collaborate

Collaborate with other like mined humane businesses to ensure that the construction workers have jobs on a regular basis. Ensuring employ will give them more reasons to stick around with your company and at job sites. Collaborate with other contractors and experts to provide them on job training that provides them with employable skills and make it easy for them to get jobs at new sites when your work is done and get better paying jobs too. Collaborate with your workers to understand the problems that they are facing and find a way to solve them without reducing much of your profit margin.

Accessible affordable health services

Health services are again a basic human right. Ensure that you have basic first aid kits on your site to attend to minor cuts and bruises. Additional try and keep a doctor on site or at least on call in case of emergencies. Setting up a free medical camp every couple of days is easy and doesnt weigh down your pockets or profit margins. Having access to health services will ensure that your workers are healthy and stay on the job for a longer period of time. Easy access to healthcare definitely a plus point for the workers to stay back.

Food

Communal travelling kitchens at the site for the workers is a good way to ensure that the workers have access to good clean cheap food. Communal kitchens mean that every thing is brought in bulk at whole sale rates, meaning it is cheaper to buy and eventually more affordable for the labourers. Having adequate clean food will ensure that the workers stick around longer, are nourished enough to take on the labour intensive work in the gruelling climatic conditions too. Clean and affordable food will go a long way in favour of the business retaining its workers in both short and longer runs.

Water

Access to clean drinking water is another must have. Water is the stuff that sustains life, making it a basic necessity. Ensuring that clean drinking water is available at the site at all times will ensure that workers are always well hydrated and will fall sick less often from diseases caused due to drinking contaminated water. More working days per worker means on time and faster work completion for the business.

Businesses need to become more humane and treat the workers with the dignity and empathy that hums deserve. While these pointers may seem like a costly exercise, the actual costs are much lower as compared to the returns that happy workers will get you in the long run. Retaining construction workers is no rocket science. Understanding their problem, finding a win win situation to solve their problems is all it takes to keep the workers with you longer. All it takes is for businesses to care for their employees, all of them to ensure that they stay on board longer. These are just some tips in addition to Mahindra Construction Equipment’s Rental services that help you move towards better quality output.