CONSTRUCTION EQUIPMENT MARKET IN INDIA

India being the seventh largest country by area and second biggest country by population ,is the largely untapped construction equipment industry.The country has witnessed massive investment in the construction industry from both private and public enterprises in recent years.The construction equipment is growing rapidly with major contribution from infrastructural development.multibillion dollar investment made in constructing roads,ports,power plant,telecommunication sector etc have paved the way for construction equipment demand to grow substantially in recent years. Construction equipments are broadly divided into y y y y Earth moving equipments Construction vehicles Material handling equipments Construction equipments

INDIA plans to invest USD 1 Billion over next five years in infrastructure. Availability of abundant skilled labour will also assist in growth of construction equipment market Over the last 3-4 years ,various new entrants made inroad to the Indian construction equipment industry.some of the biggest names belong to japan,the US,korea.besides a number of domestic companies are either expanding their domestic capacities or diversifying their product portfolio.with the emergence of new markrt players and expansion plans underway the industry is expected to become more fragmented and diversified . EQUIPMENT RENTAL BUSINESS large infrastructure development projects require large investment ,like the equipments for concrete preparation,material handling,mining equipments So companies plan to rent the construction equipments but the rental business is at starting stage.the share of indias rental business is less as compared to rest of the world. The used and rental market in india require some big organized players or fleet operators for large growth. unlike the commercial vehicles and passenger car segment,the rental and second hand market for construction equipment is still in early stages due to lack of organized players.from the rental point of view ,it is individuals who buy machines in india and so it is more individual dependent.we do not have organized rental companies in the county like other parts of the world VIPIN SONDHI ,MD,JCB INDIA

The present rental penetration in india is estimated around 7-8 percent,which is lower when compared to global standards of 50-80 percent. A robust rental market enables reduction in investment in projects by outsourcing the equipment required and improving capacity utilization of equipment the key equipment in the rental fleet in india currently are backhoe loaders,pick and carry cranes,excavators,motor graders an vibratory compactors.

EQUIPMENT FINANCING As the infrastructure is developing more projects are undertaken which is increasing the demand for infrastructural financing Nbfc s have much share about 80% equipment finacing business DRIVERS AND CHALLENGES 1.Increased infrastructural development 2.Export Oppurtunities India is recognized as a low cost country,india is a t a verge of becoming an export hub for middleeast and south asian market. 3.Presence OF OEM s Almost all global OEM s have enterd the Indian market and some are planning to enter ENTERED-volvo,kobelco,caterpillar PLANNING-doosan,Hyundai 4.Emerging Business oppurtunities

Conclusion However there are various structural concerns that need to be resolved for Indian equipment rental markets to evolve y y Lack of synchronization of interstate tax policis Dominance of un-organized market participantsthat operate on cash transactions