GPS System In Construction Industry

Strategy for Market Penetration to CE Industry

Machine word itself a Sea word which included many kind but we focus on the heavy equipment that also targeted to Construction, Mining, Agriculture, and Lifting. Randomly in this 4 Industry more than 350 companies are manufacturing their Equipment on their Brand at National & International level but every company have their own penetration strategy for cover market share. Yes, we not talk about  how companies are penetrate their business we will discuss about what & how customer think before purchase Brand new or used machine.

Heavyequipments.in is online show room for used equipment for Construction, Mining, Agriculture, and Lifting Industry so we deal with majorly all kind of brand in all over India. Listening from diverse customer, diverse kinds of inquiry, from different region, Requirements are generated by customers.

Let’s discuss in point wise so it will be easy for us: – (Mention points are not in ranking wise)

  1. Requirement :

What problem customers are facing? What is solution for that problem? So customer requirement arise with the problem. Then they go for solution what is the best way to tackle this problem so many company who are providing the special kind of solution to their customers they are most favoured companies of their customer. Solution could be any way by selling the new equipment, used Equipment, Servicing of Equipment.

One of Example – If customer looking for the high boom Man Lifter with some extra featured if manufacturer fulfils their requirement which exactly suited to their requirement. They have very good chances of sales conversion.

  1. Technology :

Technology in equipment has two sides. Positive side which leads to cost cutting, time saving, better performance & but many less place you have find that disadvantage of technology specifically in this industry. Every one might think that better technology leads to increase their presence in market share or create a brand if company adopt some advance technology in their equipment. (This matter is considered Specifically Indian Market) it does not mean that Apple, Google, Face book, IBM are technology embedded company & they are growing but their users are techies, Segment are different while in equipment case special construction equipment case in India Drivers & Operators are not tech savvy. When they use motor grader or excavator with full of advance electrical automation system they get confused with system & one wire break keep machine in standing mode & if that equipment running in odd place then it leads to heavy losses of manpower, time, costing and of course customer are not ready to pay for that equipment which create more harassment with more machine costing.

So that many customer asking for that less electric equipped machine which their driver & operator can easily understand if its break down then also they get services it local. They prefer less like a person going to retire very soon & company providing computer training to them.

One of Example -L&T PC 200 (Model) – Most demanded Machine due to less embedded with latest technology.

  1. Availability :

Availability means accept supplying of new equipment what else Manufacturer can provide to their customers means our point with availability is Spot Mechanic, Spare Parts, and Finance. Of course If Manufacturer can make availability of these 3 things surround or easy reach to their customer then new customer can think about your equipment.

One of Example – TATA HITACHI (Best Availability Provider Manufacturer)

  1. Equipment Strength Against Costing :

What are you taking from customer against what you are providing? If you get anyhow success in your first sales with new customer & Customer not feel worth of that it means you lost your two customer one buyer itself another best friend who follow him. So your machine should be “Paisa wasul Machine”. Because many company are doing best in their area with less focus on branding even charging higher for their machine & they getting success due to that reason only.

One of Example – Wackerneuson’s Concrete Internal & External Vibrator (“Paisa wasul Machine”)

  1. Connection:

Here connection defines the how easy way customer can get in touch with you for whatever reason whether that is for New Machine, For Spare Parts, For Machine Complain, For Executive Complain, for used machine or for else any reason because every connection of end user create some value for manufacturer, provides earning opportunity.

But such kind of Industry specifically, Construction, Lifting, Mining have less connecting point. Around 30% Customers or going to be customer facing such problem.

September 23, 2016 / 1 Comment / by / in
Simple formula – Construction Equipment Should Buy or Hire ?

In many cases Construction equipment hire Company get Confused  in certain stage companies have both buy and hire options. But decision should not be only depended on the Costing factor.

1. Current financial Situation.

2. Cost of ownership Vs. Cost of renting.

3. Length of project of equipment use frequency.

4. Equipment availability & usage

5. Fleet Management and Stock Control

Here is tool which sure help out for decision making. 

 

A Great tool to identify the Costing of Construction Equipment Buy or Hire or in simple word cost calculator.

December 19, 2015 / by / in
COMMON FACTORS AFFECTING SELECTION OF EQUIPMENT

Every Equipment has certain factors those are in common and which are taken into consideration while selecting equipment. They are listed as follows-

Scope of work to be carried out- since the first concern is getting the job done, the time frame within which the work is required to be carried out, the specification of work and the methodology adopted will be of primary concern

Use of available– for a work where full utilization of new equipment for its entire working life is not foreseen and its utilization on

Suitability for job conditions-the equipment selected should suit the demands of the job conditions. Climate of region and working conditions should be kept in view while selecting the type of equipment.

Uniformity in type- it is desirable to have minimum number of types so that there is uniformity in the type of equipment on a project. It is desirable to select common type of engine for different machine such as excavators, dump trucks, tractor and scrapers purchased on the projects.

Size of equipment :– while large size of machines are capable of giving large outputs on full load, the cost of production is usually greater than that of smaller units if worked out on part loads. Large size of equipment requires corresponding large size of matching equipment. And shutting down of one primary unit may result in making several other equipment idle. Transportation and shipment are usually difficult and expensive. However large equipment’s are more study and suitable for tough working conditions. It is also desirable to have equipment of same size on the project. If there are standbys the cost of smaller equipment as standby may be less that of larger size of equipment

Use of standard Equipments: – standard equipments are commonly manufactured and are commonly available and are moderately priced. The spare parts of standard equipment are easily available and less expensive. After the work is over, it is generally easier to dispose of standard equipment.

Unit cost production: – the economics is one of the most important considerations in selection of equipment. While working out owing cost all items of expenses, such as freight, packaging and forwarding, insurance, erection and commissioning etc. should be included with the price paid to supplier.

Country of origin: – when imports are unavoidable, it is preferable to import from a soft currency than from a hard currency area, if equipment quality is available.

Availability of spare parts: – Down time for want of necessary spare parts commonly accounts for long idle periods during working life of equipment, especially of imported equipment. Availability of spare parts at reasonable cost during the entire working life should be assured while selecting a particular type of equipment.

Versatility – the equipment selected should be if possible, be capable of performing more than one function and should have feature of inter convertibility as far as possible.

Selection of manufacturer: – it is desirable to have equipment of the same manufacturer on a project as far as possible and to have minimum number of different makes of equipment. The quality of local dealers is also important.

Suitability of local labour: – available operators and technicians should be able to handle selected equipment.

Technical consideration :– the efficient performance of any piece of equipment and its service life are conditioned by following factors :

a. Strength
b. Rigidity
c. Vibration stability
d. Resistance to wear
e. Heat resistance
f. Reliability
g. Maintainability

A balance between reliability, investment cost and operating cost should be found since a policy of selecting the lowest priced equipment can often lead to higher life cycle costs.

December 4, 2015 / by / in
How IT Automation will help out Construction Equipment Industry?

In 21st Century, IT seen as a tool which help out companies to do more efficient and effective work. However many studies raised the question whether the benefits outweigh the investments. The issue is more serious in the Construction equipment industry. Where the factors limit the performance because of ineffective use of IT infrastructure, Maintenance inadequacies and less than positive staff perception concerning IT implementations by management.

  1. How we can tackle the Problem using IT in specific equipment.
  • Day to day Performance measurement of your equipment
  • Maintenance costing against the revenue.
  • Investment against Return.
  • Fixed cost for your equipment.
  1. Which are the systems which help us to track all the above issues?
  • Software Application
    • Automation engineering.
  • Turnkey Solution
    • Gauge Management system
    • Daisy Wheel Stamping Software
    • Automatic pick and pack
    • Online stock trading
    • Real Time manufacturing system
  • GPS Based solution
    • Supply chain management System
    • Fleet management and tracking system
    • Tracking and material management solution for mining sector.
  1. How IT Enable equipment can help out us.

Earthmoving Equipment

Provide tipping accountability for tippers in terms of number of tipping for Excavators, Pavers Etc. It can avail data for the usage of a particular tipper on a specific date & time. Get Real time information over a mobile by SMS.

Ready Mix Concrete

Ready mix Concrete Vehicles in can be IT enable in terms if engine fuel usage etc. It can avail data for the usage if individual engines separately for a specific date & time.

Diesel Generator Maintenance

It provides generator’s running hour, in terms of electricity hours, generator hours, amount of fuel in the generator, fuel consuming etc.

Stone Crushers

IY enable crusher will provide data like Crusher’s hours in terms of crusher ON time, Working minutes with load, working minutes without load, Crusher idle minutes.

Mining Logistic solution

Here also it provide the accountability of your unpredictable vehicles in terms of total trips, consumed times, stop details.

Fleet Management System (FMS)

It gives reports like distance travelled, Ignition status, Engine status, Speed band status, fuel report, Summarized report, Activity Report, Area wise distance, Working hours report which helps reduce fuel thefts and vehicle theft, You can monitor the vehicles on Google maps.

 

These are some IT automation which helps out to construction equipment industry to do better in their work.

November 19, 2015 / by / in
Heavy Equipment Dredger cost 2.6 Cr. will clean Gomti River.

The government is all set to finish its ambitious Gomti Riverfront project before its Dec. 2016 deadline. It will help it expedite the work would be the four new giant dredgers (heavy equipment for cleaning river) bought recently by the irrigation department. The dredgers are unique in that they can work both on land and water and can excavate deep seated sludge and solid waste.

Irrigation department claims such machinery has never been used in the river before and will cleanse it crystal clear. Engineer-in-charge said, “The benefit of this dredger is that despite being heavy machinery, it floats as soon as it lands on water and cleans the surface through. When on land, it cleanses the bed and banks with equal ease.”

By January 2016, a specialized dredger would be imported from America too. This dredger sieves liquid sludge deposited on riverbed apart from the solid waste and polythene bags. The four dredgers have been currently placed on Gomti’s banks near Gandhi Setu. Officials said the dredgers have been bought from Mumbai at the cost of Rs 2.6 crore each. The company will be assembling and calibrating them in the next few days before they start working. After cleaning the river bed, the dredgers would be used to clean the banks.

October 29, 2015 / by / in
FAVOURABLE POLICIES ARE SUPPORTING SECTOR GROWTH

De-licensing

  • The material handling equipment industry is de-licensed and FDI of up to 100 per cent under the automatic route as well as technology collaboration is allowed freely.

Policy initiatives related to infrastructure

  • Government of India’s focus on infrastructure development is the biggest driver for the construction equipment industry.
  • Projected infrastructure industry spending in the 12th plan is USD 1,011 Billion.
  • 100 Smart cities and make India programme projected to boost investment.

Special Economic Zone

  • The government has granted sops, including a large number of SEZs to the capital goods industry of which construction equipment is a part, especially with an impetus to increase exports.

Tariffs and Custom and Duties

  • The government has remove tariff protection on capital goods.
  • Custom duties on a range of goods that are used in the manufacturing process have lowered down.
  • Custom duty exemption from MAT under 80IA for infrastructure projects under union budget 15-16. This exemption will help in reducing the cash outflow in the initial years of Project.
  • No change in the excise duty on construction equipment in FY15-16.

Encouragement of infrastructure Debt Funds

  • The government of India Set up the India infrastructure Finance company (IIFCL) to provide log-term funding for infrastructure projects.
  • Interest payments on borrowings for infrastructure are subject to lower withholding tax rate of 5 percent, down from the tax rate of 20 per cent.
  • IDF’s income exempt from tax.
  • Government cleared model tripartite pact for infra debt funds in ports.

Issue of Tax free Infrastructure bonds

  • Infrastructure finance companies like IIFCL, NHAI, Housing urban Development Corp, PFC, IRFC, are allowed to issue tax free bonds.
  • Due to this company raised about USD5.5 billion in FY12 and estimated to raised about USD 4.6 billion during FY13.
  • HUDCO and REC to raise around USD 1.2 billion in 2014.
October 9, 2015 / by / in
NOTABLE TRENDS IN THE CONSTRUCTION EQUIPMENT INDUSTRY

Increasing imports from China

  • Chinese equipment manufacturer have a strong in some segments like wheel loaders (Market Share -12 Percent), dozers (Market Share- 13 Percent)
  • Chinese equipment tends to be price competitive, thereby putting downward pressure on price of domestic equipment manufacturer.

Rising private sector share

  • The private sector’s share holders across key infrastructure segments, ranging from road and communication stop power and air ports.
  • Of the total planned infrastructure investments worth USD 1 trillion during the 12th five year plan, the share of private sector is estimated to be 47 percent, up from 25 percent during the 10th five year plan.

Rapidly growing excavator segment

  • The share of crawler excavator is estimated to increase 28.95 % by 2018 from the current 18.96 %, mainly on demand for mid-sized crawlers (20 tons) from the construction segment.
  • Demand for large excavators (30 tonnes) used in the mining segment is also expected to increase in the year to come.

Equipment rental

  • Several Indian firm are entering into tie-ups for equipment rental & leasing business, E.g. – Tie –up between SREI infrastructure BNP Paribas.
  • This is expected to drive of equipment in future.
  • The market is expected to grow at a CAGR of 15-20 percent 2015.

Customised equipments

  • There is demand for equipment’s for niche applications
  • The manufacturers have also started giving end to ends solution to cater this demand.

 

 

 

 

September 26, 2015 / by / in
‘No plans to extend manufacturing base – Volvo Commercial Vehicle

Swedish commercial vehicle giant Volvo will invest Rs 500 crore on expanding production capacities of its Indian facilities in Bengaluru for trucks, buses and construction equipment. The investments to be made over the next five years will give high priority to job creations and skill development. Volvo is also planning to come up with hybrid buses soon, and is looking forward to manufacture them locally.

The company, however, does not plan to extend its manufacturing base away from Bengaluru in the near future. Kamal Bali, Managing Director of Volvo India, talks toDeccan Herald’s Annapurna Singh at length about how the company is concentrating its work around the themes of ‘Make in India’, ‘Skill India’, ‘Start up and Stand up India’.

Prime Minister’s Make in India initiative is largely about local production and job creation. How is Volvo contributing in that and what are the challenges in the way of ‘Make in India’?

Through ‘Make in India’ we need to capture more value because even if manufacturing is happening in India, a lot of it is not capturing high value. We need to go up the value chain so that we can create more jobs, more skills and more revenue for the country.
‘Make in India’ is also about making Indian entities more competent and competitive. How can we be more competitive if the government gives us an enabling environment and somehow brings about reforms like Goods and Services Tax and Land Bill? Over the past many years, internal reforms have not happened in the country. The indirect taxes regime too has remained complicated and complex. So we are looking forward to getting certain legislations passed so that things move fast and the Indian industry is at the level playing field with the globe. At Volvo, we are paying five per cent more tax for building in India, whereas importing is cheaper. We are in talks with the government and they have promised to help us.
 
What are the challenges the country is facing in Skilling India and how passionate is your Volvo India about it?

When we talk of skill, our emphasis should be on speed. The speed is very slow in India. We have shared some data with the government and we have said that the rate at which we are going today, we will have a very high level of unskilled people by 2022. We are staring at more than 40 crore people who will be unskilled for the jobs which are going to be created. It will be very ironical that you have people but they are not suited for specific jobs or you have jobs but you do not have matching skills. Therefore, the delivery of skill model will have to be different. Probably we will have to use a lot of technology in skill India.

Is Volvo involved in any skilling programme?

We support drivers, operators, and we have a training school. In fact, when Volvo rolled out its first truck in 1998, we created a driver training school and operator training school. So, Volvo is committed. For us, it is a question of sustainability. If we do not do this, we will not have the right kind of people we are looking for.

What is Volvo’s target for job creation under ‘Make in India’?

Well, we are not directly creating jobs on a regular basis but through our various programmes and initiatives we are preparing job creators who in the long run will generate employment. ‘Volvo Rasta’ is one such initiative of Volvo Group. It is an institute recognised by Bangalore University, which conducts Masters programme in highway engineering. This is a very high-level engineering programme. It is specifically for the road industry. So this is for creating engineers to create good infrastructure in the country. This would automatically create jobs.

Are you also planning to come up with more manufacturing facilities in near future apart from Bengaluru?

No plan as of now. That is only a speculation at this point in time. At the moment we have three facilities in Bengaluru, and we have a joint venture with Eicher in Pithampur in Madhya Pradesh.
 
Has ease of doing business taken off in this government?

We are satisfied with the steps the government has taken in making ‘ease of doing business’ a reality, but to be able to see the complete action on ground, it will take three to four years. Two things I would like to emphasise here in terms of getting approvals and getting land. We have moved on the first one. Then, there is having transparent and predictable tax laws, we need to move ahead on that. We need to have explicit laws. We, as an industry need transparency, clarity and predictability. Land, of course, is an issue.

How do you look at Prime Minister’s new announcement on Independence Day about ‘Start up India, Stand up India’. What does industry need to do in order to promote this?
I would see it as a sub-section of ‘Make in India’. I think by start up India, PM is hinting at getting more entrepreneurs. He is hinting at new ideas and he probably wants to have more job creators than job seekers, so that there is a virtuous cycle of employment generation and jobs for people. But of course, start up may not necessarily be only in the manufacturing. Start up can be in services sector and in agriculture sector. So to that extent, it is a little wider than Make in India. Make in India focuses more on manufacturing. But Start up and Stand up means, we give you the empowerment, we give you the ecosystem. Go out, create India, create jobs, and that’s the message for industry.

Though women comprise over 50 percent of India’s population, they still continue to be under-represented in work force?

We have 18 per cent of women working for us. That is far ahead in terms of automotive industry. Women too have a bit of inhibition in joining the auto sector. But I think it is changing.

The head of our truck plant is a lady. Volvo attaches a lot of importance to diversity. And in India, diversity is actually getting more of women into the workforce. Next, in Volvo, we want to have women at higher position.

 

Publish By- Deccan Herald

August 24, 2015 / 1 Comment / by / in
Vehicle recalls: risks loom for auto parts makers

With rise in vehicle recalls in India, auto component industry has a lot to worry as there may be impact on the profitability of the companies.

“Growing vehicle recalls may lead to further increase in warrant provisions in the medium to longer term and that could directly affect the profitability of auto ancillaries, rating agency Icra said in a report.

“In case of a large recall, there could be pressure on liquidity as well as credit profile of an ancillary who supplied those defective components,” it added.

Despite no formal recall policy in the country, over the last five years, the Indian automotive industry has witnessed a sharp increase in the number of vehicle recalls, both by global and Indian OEM (original equipment maker). While the financial implications of such vehicle recalls are far reaching on OEMs, suppliers also have a lot to worry about.

As product requirements from OEMs increase, quality expectations from the auto component manufacturer and the liability in the event of a defect are bound to increase. Vehicle makers will attempt to push down a significant portion of the directly attributable cost to the Tier I suppliers.

But, Tier 1 vendors who themselves are sourcing from several smaller companies, they may not be able to pass those costs down stream given the scale and financial strength of their fragmented supplier chain. Apart from stringent control on product design, extra safety equipment and quality check measures will have to be taken up by the Tier I supplier. Thus, warranty provision may increase further in the coming years that could directly affect profitability of auto ancillaries.

Globally, several countries have a mandatory vehicle recall code to safeguard the interest of the consumer, which entails heavy financial penalties and criminal charges against the OEMs.

Indian government has proposed ‘Recall of Vehicle’ policy in the Road Transport and Safety Bill, 2015, which is in consultation stage now.

Meanwhile, Icra has pointed out that softness in COMMODITY PRICES will continue to provide support to operating margins of auto parts markers over the next two quarters. Companies having strong aftermarket presence will benefit more.

 

August 24, 2015 / by / in