Indian Mining And Construction Roadmap

By Author: Michael Jin
Total Articles: 10
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The Indian mining and construction equipment industry has evolved primarily on the basis of domestic demand generated over the various plan periods, essentially on the basis of investments which have gone into mining, infrastructure development and the building and construction sector. Today it is still focused largely on the domestic market and exports are marginal at a level of around Rs.300 crores for an industry approaching a market size of Rs.7,000 crores.
The opening up of import competition has led to tightening up in operational efficiencies across the entire sector. The larger companies who are market leaders and who have overseas tie-ups have been the first in their respective product groups to start benchmarking with global efficiency levels. The survey results have revealed that in many respects they are still far behind global benchmarking norms. ( pulverizer in India)
However, the customers in the mining and construction sectors are increasingly becoming conscious of quality, productivity and down tie and demanding better performance from Indian suppliers ...
... who have been complying with the expectations of the market due to the threat of import competition. This process is expected to accelerate. The survey results have identified some of the areas where operational efficiencies are required to improve. Indian companies need to become more mindful of this.
The industry is expecting a process of consolidation to take place. This is expected to pick up with the entry of the remaining global majors who are yet to set up bases in India. Expectedly, the route for consolidation will be through mergers and acquisitions where the smaller units who are unable to stand the process of competition will ultimately sell up to the larger players in the market. (Pulverizer manufacturers in India)
While the Indian companies will certainly base their business decisions on the basis of expectation of demand in the Indian market, the industry’s perspective on the export market is required to undergo a transformation in order to provide long-term buoyancy in terms of demand for their Indian operations which may not necessarily be entirely dependent on the investment cycle in infrastructure and mining in the Indian economy. The report has also tried to outline the fact that very significant investments are being made in capital expenditure by the global mining majors and countries like Australia, China and Chile are embarking on huge capital investments to develop mines and enhance expectations seen in conjunction with the expected investment in construction, this augurs well for the equipment producing industry the world over. (ultrafine pulverizer for sale)
In such a scenario, India can emerge as a lower cost sourcing hub for equipment. To some extent this trend is already in evidence, for example Caterpillar Inc. is producing some equipment for the South East Asian market in India. It is expected that this trend will only enhance and gain further momentum. In the circumstances, it is all the more important for Indian companies to pay attention to achieving global levels of efficiency and productivity in order to meet the challenges of the external market. There are certain advantages which Indian companies have in terms of lower cost for labour and design engineering.(Bentonite pulverizer plant for sale)
A manufacturer’s competitiveness in today’s terms is not limited to products but extends to customer support. Capital goods are expected to meet the needs of customers more so construction and mining equipment whose productivity and performance is directly linked to the customers’ profitability.
The availability of sophisticated equipment results in higher quality work, shorter turnaround time, less delays due to lower downtime and maintenance and hence less cost overruns.