The Infrastructure Leasing Financial Services ILFS debts slow down construction equipment market.

Construction equipment sales hit after the IL&FS & NBFC liquidity crisis. “Said by construction equipment makers”. Construction equipment sector prior to crisis growing at the pace of 20%.

The growth has now slow down to 10 % “Indian Construction Equipment manufacturer association” Arvind Garg said.

In construction equipment market almost more than 95% equipment are financed. NBFC are the largest players in the heavy equipment finance. NBFC holds almost 70-80% market share in India. Rest 20-30% goes to Private Banks & government banks.

Lenders now many place facing liquidity crunches. Even Big fishes are not easily getting the fund for their big project’s equipment required.  Cost of finance is risen 200 basis points but hoping till March all this financial crunches will overcome & no stress will be there in market.  

The construction equipment makers are working closely with the NBFCs to tailor products till confidence builds up.