Monday, 8 December 2014

Presenting an update on the latest happenings in the Construction Equipment industry by Construction Opportunities, the construction equipment magazine. Construction Opportunities, the construction equipment magazine reports that JCB India has plans to invest an additional Rs 500 crore over the next five years towards a new plant in Jaipur. The plant to be initially used for fabrication work, is being set up on a 115-acre plot in the Mahindra World City special economic zone. With India being a very huge market for the British digger manufacturer the investment at the Jaipur plant is intended to further consolidate its position  

Dana Holding Corporation which offers engineering support to several to original-equipment manufacturers in the light-vehicle, commercial-vehicle, and off-highway markets in India has opened up a technology centre at Pune. Construction Opportunities, the construction equipment magazine finds out that the 90,000 square-foot technology facility, which is home to more than 240 engineers, is equipped to offer world-class engineering capabilities and throughout the region. Dana India Technical Center is the company’s 13th facility in India. Dana customers in India include Ashok Leyland Ltd., Caterpillar India, Deere and Co., Force Motors, Ford India, General Motors India, Mahindra & Mahindra, Mahindra Trucks and Buses Ltd., TAFE, Tata Motors, and VE Commercial Vehicle Ltd. 
Construction Opportunities, the construction magazine, is pleased to report Chennai based GMMCO Ltd has taken over Caterpillar s mining product line distribution and support business for its territories from Bucyrus India Pvt Ltd. The latter which is part of the US-based construction and mining tool major Caterpillar Inc manufactures mining equipment which includes draglines, unit rig mining trucks, room and pillar and longwall equipment, electric rope and hydraulic shovels, highwall miners, drills, belt systems and various lines of other equipments. GMMCO previously known as General Marketing and Manufacturing Co Ltd is a part of the empowered Caterpillar dealer in west, central and southern India.

Volvo Rents, a leading North American provider of small-to-medium sized rental equipment for a diverse customer base across multiple industries, including construction, oil and gas, industrial manufacturing, infrastructure, power, and metals and minerals, has been completely acquired by Platinum Equity. Platinum Equity also currently owns Maxim Crane, a full-service provider of crane rental and lifting services. A rebranding initiative is underway, and a new company name and image is expected to be announced soon. Construction Opportunities, the construction equipment magazine observe that Volvo’s rental centres in the US offer a comprehensive line of essential equipment for the construction, commercial and industrial markets, as well as an extensive line of Volvo compact excavators, compactors, wheel loaders, backhoe loaders, compaction equipment, and skid steer loaders.

Construction Opportunities, the constructionequipment magazine reports that the worldwide demand for mining machinery is expected to increase in India, China, Brazil and other developing nations on the back of an increase in industrial output and expansion in construction spending. Demand for mining machinery will expand at 8.6 percent per annum up to 2017 to $135 billion thanks to rapid gains in the requirements of mining equipment despite some sales weakness in the short term, according to Mat Raskind, an analyst from the Freedonia Group, a Cleveland-based industry market research firm.  

Saturday, 22 November 2014

The current size of the concrete equipment market should be around Rs 2000 crore

For over three decades, Universal, an ISO certified company has been a solutions provider in the robust field of manufacturing construction equipment that caters to the specific needs of business. Construction Opportunities, the construction equipment magazine notes that the company, with huge investments in its infrastructure, strong R&D, extensive range of superlative products, wide spread sales and service network and global reach, has endeavoured to provide world-class construction equipment backed by fully equipped integrated manufacturing process. RAJESH KAWOOR, VICE PRESIDENT (CONCRETE BUSINESS), UNIVERSAL CONSTRUCTION MACHINERY & EQUIPMENT LTD, responded to questions from Construction Opportunities, the construction equipment magazine on the Indian ready mix equipment market.   

An assessment of the current RMC equipment market in India and main challenges for its growth: Currently the RMC equipment market is negative.  We are expecting it to improve by 2014 end; the overall market is likely to start growing at a faster rate in the near future, maybe by 2015. We expect the RMC equipment market to flourish from 2016 onwards. With regards to challenges, the biggest issue for RMC equipment is awareness of quality of concrete in Tier II and Tier III cities. Also, the projects not taking off at the expected pace affects the growth of the RMC equipment sector. In the hindsight, we have seen that that RMC equipment has grown gradually and we are positive that the market will keep growing in the future. 

Construction Opportunities, the construction equipment magazine gains an understanding of the current size of the market for concrete equipment and the company’s contribution:
The current size of the concrete equipment market should be around Mrs 2000 Corer. As a major supplier of small and medium concrete equipment, we are catering to all important demands of the industry. As far as bigger concrete equipment is concerned, we have started developing the division in recent years. We are growing at an average rate of around 15 per cent.  We have already started increasing our market share in bigger equipment and we are hopeful of reaching the league of the top three suppliers of bigger RMC equipment in the next three years. We have a strong market share in the bigger and medium size construction companies.

The performance of your company and products launched in 2013:
It is well understood that the market situation is not positive this year. We have experienced shortfalls in the bigger equipment sector in terms of our targets. However, we have done well in the smaller and medium equipment category. In 2013, we have launched our Self-loading Mixer which is totally designed and developed in house, whereas the other comparable machines available in India are designed and developed in association with overseas partners. We have also launched Concrete Batching and Mixing Plants of higher capacity of 60 cum/hr. which was not there in Universal’s product portfolio earlier.
We along with our partner Zoom lion have launched the High Pressure, High Performance Concrete Pump which can place concrete at height of approximately 220 metre.more info

Wednesday, 19 November 2014

The AEM-MMI Partnership Focuses On Producing World-Class Shows

My title page contents
On AEM’s experience in the exhibitions organising space and India’s potential as a trade show destination:
In our particular market segment, just in the space of time we have been operating in India, we have seen other organisers enter the market but not have as much success as bC India with the combined CONEXPO and bauma brands. With bC India, you have the leading global show organisers, AEM and Messe München, bringing a world-class exhibition to the region for the benefit of show participants and the entire industry. A strong and comprehensive event such as bC India gives manufacturers the right sales and marketing opportunity in the region; there is less need to exhibit at so many other events so our members and all exhibitors can better manage their budgets and still be assured of a quality show. While the number of exhibitions taking place in India has increased in the last few years, it is still difficult to find a truly modern venue; we were fortunate in moving the show to Delhi as we can now hold bC India in the type of up-to-date convention center that our international exhibitors are used to. AEM is optimistic that with the new government in place, there will be a renewed increase in infrastructure projects that present even more opportunity for our members in India, and thereby will also continue to build the show’s momentum.

Construction Opportunities asks regards the  advantages and synergies the bauma-Conexpo partnership has brought with it: 
For show visitors, they have the unparalleled opportunity to see what the future holds in new products and technologies to improve productivity, efficiencies, safety and sustainability. Exhibitors know we work for the industry and that they will find a high level of quality and professional organization since we operate bC India in much the same way as we operate all the CONEXPO and/or bauma branded events around the world. And there is now a bauma and/or CONEXPO presence in every major and growth market. Rather than competing with each other, AEM and Messe München cooperate to maximise our resources and focus on producing world-class shows for the benefit of all show participants. This helps our members and all exhibitors better manage their overall global exhibition strategy and the number of shows they exhibit at in any given region. Our combined marketing approach gives us the most reach to attract the right visitors. And our shows benefit from exhibitor-led advisory boards and show managing committees that assure the direction and scope of the events are in line with industry needs.

Construction Opportunities queries on the contribution of Messe München and bauma as a global exhibition brand:
Messe München is an esteemed global partner of AEM. The AEM-Messe München partnership brings strength for both organisations in the global exhibi  tion market. bC India was the first joint project in an agreement we signed a few years ago for closer cooperation and we see continued collaboration with Messe München in the future. This cooperation helps us to better provide global business solutions for members and foster industry development.

On the role played by AEM in the hosting of the event and the strengths it brings to the trade show table:
As a co-owner of bC India, AEM is involved in the overall strategic direction of the show. Additionally, AEM is responsible for promoting the event to potential exhibitors in North and South America, as well as using our sizeable database for visitor promotion. Our teams in India, Germany and the United States work together to provide the best return on investment for our exhibitors and visitors. AEM’s membership includes the major North American equipment manufacturers; their top executives serve on our board of directors, industry sector boards and other key committees, and they provide significant input and guidance.

Construction Opportunities asks a feedback on the conduct of the two bC India editions held previously in India:
Overall we have been pleased with the success of bC India which has grown in both exhibitor and visitor numbers between its 2011 launch and the 2013 show. While the market has shown some instability earlier in the year, we are optimistic that the new government will bring an increase in infrastructure spending and buyer confidence. AEM, as an industry association, is focused on meeting the needs of its members–to connect with their channel partners and customers. Our expectation with bC India is not on making a lot of money but to provide cost-effective exhibiting options
and services for our members in this important region for their business growth.

Saturday, 8 November 2014

BC India 2014 will be a big success

Construction equipment Magazine

From a teenage student guiding companies to their exhibition spots on his bicycle at bauma 2014 in Munich barely ten years ago, to being in charge of organising the Indian edition of the global equipment fair – dubbed bC India –  IGOR PALKA, CEO, bC EXPO INDIA PVT. LTD has come a long, long way. The young exhibitions veteran offered CONSTRUCTION OPPORTUNITIES, India’s leading construction equipment magazine an understanding of his organisation’s efforts to build the bauma Conexpo brand in India.   

Construction Opportunities queries regards the assessment of bC India which will now be into its 3rd edition?

I would say we are still comparatively young event but the good point with brand bauma – which is well established – is that we are also well known now as bauma Conexpo. We are offering the platform in India which we used in Europe or in China and now also in Africa. Therefore many people know what we are talking about and we don’t really have to market ourselves further as to our identity.

What is the distinction that you draw from other bauma Conexpo editions abroad and what does India mean as a market to you?

We do our analysis of how much the potential is. If you look at the most recent Five Year Plans that the Indian government is addressing you will see there is a great emphasis on infrastructure projects. There is so much that needs to be built here. It has been so for the last 10 years and will continue for the next 20 years. India is a country set for a boom in development. Of course the pace will depend on the government’s approach to execution of projects but we do know that development and growth is assured. It also means from our perspective that India has great potential as an exhibition destination. India because of its huge market size has always been on the bauma radar and it was only natural that we had to be positioned here.

Give us a sense of why and at what point your headquarters in Munich thought of India as an exhibition destination? 

I am not sure how the dateline looked like by that time, but I think by a certain point of time during the last 10 years we had pretty much analysed India and thought of launching our exhibitions here. After seeing hundreds of thousands of visitors at our home base in Munich – which this year is celebrating its 50 th year – we decided that foreign business was also important. We thought: Why should it be that the customer should always come to you? Why not go to the customer? Of course that is when we thought of exporting our events abroad. China was the market which we explored first when we opened our subsidiary office and extended our bauma brand there launched bauma China to showcase construction equipment and construction machinery. bauma China happened with a comparatively smaller event than in Munich but it grew comparatively fast in terms of size – it is 60 per cent the size of bauma in only 5 or 6 editions when bauma itself was in the 30th edition. This development happened during the last 10 yrs and we thought it could happen in India as well, there was no doubt about that, so we brought it to India together with our American partner AEM. The process took some time because we had to set up the legal company, find office premises and such things. Then five years ago the execution happened quickly. Then we started with our subsidiary MMI India and just one show – Electronica – which further grew to 8 shows. I think every company in Europe and the western hemisphere now is led to think that it has to move to India – and that such a step should come sooner than later. India is a virtual continent, you don’t jump in and gain results within one year because you need to adapt to the local market in the local way. You grow with India. Things don’t happen here immediately and you have to think of investing for the long term to gain benefits. And that is why we are inspired to be here.

Construction Opportunities queries about the contours of your partnership with AEM?

bC India is a joint venture between Messe Muenchen International – which holds 66 per cent share – and the Association of Equipment Manufacturers of the USA. AEM had the expertise and knowledge of organizing the biggest event on the American continent with CONEXPO-CON/AGG. We had the experience and expertise of organising the bauma Munich for a long time and we are competitors for other event organisers but when we launched in India we decided to work hand in hand with AEM which has a presence in Asia and in North America. The joint event was renamed bauma Conexpo India. We have done a similar thing in Africa. Because we are from the same industry we are close partners with AEM. We combine our knowledge and expertise and customer base to function effectively.

Can you tell us about the progression made in two previous editions of bC India in terms of delivery of your objectives?

We launched our first event in February 2011. Obviously there were many challenges since we were doing it in India for the first time. There were certain expectations from Europe from the brand bauma after our tie up with AEM. The first event was an extreme success. We had 508 exhibitors and the visitor turnout was around 22,000 in 80,000 sq m of exhibition space. That for a first event was amazing and it over achieved our expectations. It was a perfect launch for bC India and two years later in February 2013 our exhibitors grew to 710, a jump of more than 200 companies. In terms of visitors we grew to over 28000. This gives us the indication that we are on a right track and that the brand is moving forward and becoming stronger. The feedback is always great. We have one slogan: ‘Quality is the difference’. I think that is what companies expect from us as organisers. We want to further raise the bar of quality of an event and this is something that we are working on everyday here.

These two events happened at a particularly sensitive time of history – the global economic meltdown. How correct would it be then to categorise the two bC India editions as a success?
The first show was more than a success. It over achieved our targets. We had a waiting list of companies. We were not expecting that kind of response. The economic situation went down in 2012 especially the 2nd half. 2013 was expected to be flat as well but what happened at the second edition was that the companies were considering to cancel or to reduce exhibition space. That also happened to a certain extent. Companies said it’s getting worse but they still wanted to remain with the show and instead of 2000 to 1500 sq mtr decided to go with a little less. They still remained with us because they knew it was important to have a strong connection with us and we thank our customers for that. Otherwise we couldn’t possibly have increased exhibitor size to 710 companies although the economic situation was not in our favour. Yes, the show could have been much better in terms of visitors but we are still happy with the outcome of both the events. We were then only on our 2nd birthday and could say we were developing.

I remember your colleague Thomas Loeffler telling me after the 2013 edition that it was a success in terms of the quality of visitor turnout?
That is correct. What we do is that we are selective and don’t open our doors to everybody. We could easily have achieved 35,000 visitors. The point is we are a business to business platform on which the top people of the industry come together. Here quality makes the difference not only in terms of organising the event but also visitor wise.

As an organiser how do you assess who is the right exhibitor – is there a process of weeding out involved?  

We know most of the exhibitors very well because we have a very good relationship with each one of them from the past through organising shows in Munich and in Las Vegas. From our database we know about the companies in various categories and the products they represent. Of course there are new companies – small and mid-sized – which we don’t have on our monitors who send their applications, but we have a system of checking who they are and what they are doing – because if we have them on the show we don’t want others feeling uncomfortable. We would like exhibitors to fit into our portfolio and try to ensure there is no mismatch. We don’t want a wrong perception of our show and therefore have a whole set of requirements for exhibitors to meet. We have guidelines for various categories and sub categories of products related to their position and placement on the fairgrounds – we try to club various product categories like vehicles, building construction equipment. When an application form is accepted from a company we don’t spread them around loosely on the venue but combine them in locations where it becomes easier for visitors to focus on a particular group of products. So companies in scaffolding or form work will be pooled together. Some companies may not want to be next to an XYZ company – that is tricky and almost like a puzzle for us to unravel. So we are allocating space keeping in mind sensitivities offering a perfect overview of the product market.

You mean companies are very touchy about things like their positioning on the exhibition chessboard?

That is one of the biggest challenges. Every company has its own set of demands
of space in terms of size, the position of its stand in the exhibition zone, even things like the identity of the company in the stand next to it. If we were to follow all their demands things would become so difficult for us. We have to do a lot to convince them in order to cater to the requirements. It therefore makes strategic sense for us to clear the big blocks first. We allocate big companies with stands and only after their approval is obtained we proceed with the placement of mid sized and small companies.

That would naturally mean a lot of advance preparation for the next event here?

We started for bc India 2014 in September last year. We require 15 months of preparations. The pace is slow initially: you send the application forms, get in touch of the companies, and work with them after receiving their applications. The pace increases as the show gets closer. It has been quite a learning experience for me in the short period I have been here.
I was a little worried in the beginning because I was used to the application period in Munich where right after sending out the application you received 100 back within a minute. Here that comes a little bit more towards the end. With so many holidays – Diwali and Christmas – and other events like elections taking place companies want more time to make a decision as also to monitor the market. But I am happy they are finally coming back to us.

Construction Opportunities queries regards to the feedback that you have received as of now - what are your expectations from the next edition of the show?

We have to be realistic in our expectations. The market hasn’t picked up that dramatically as compared to the last event. We hope to increase the turnout both in terms of quality and quantity. That is the deliverable expected of us. We really would like to cross the 800 mark but cannot be very sure. The next edition is at a new venue and we need to understand that we are dealing with an entirely untapped market of visitors coming from the north. As far as expectations go, with a new government in place and projects being announced everybody anticipates 2015 to have a significant growth rate – and that from an exhibitions perspective is good news for us.

How is India as an exhibition hosting destination?

Exhibitions have been recognised as a very good marketing tool by companies in Germany as indeed in much of Europe. Because of the regular conduct of such exhibitions which leads to buyers and dealers meeting each other the business has reached a very high level of sophistication. I think this understanding of the benefit of exhibitions must still grow in India and if there are proper venues for the conduct of such exhibitions. India is a very big country it needs more facilities to measure up to the requirements of international visitors.

What are the challenges you face as an international exhibition organiser in India? 

The main challenge of course is the absence of proper fair grounds. We at Messe Muenchen are always keen to know of development in terms of trade for exhibition centers all across India especially for a show like bauma for which you need proper space. Ideally we would look for a venue of 200,000 sq mtrs. We would like indoor facilities with high ceiling hangers and without pillars and with a high loading capacity where all the huge machinery can be displayed. We would also want a levelled concreted outdoor area with a drainage system and electricity supply, connectivity in terms of roads and other infrastructure, proximity to a port, airport and hotels nearby would be great. Everything has to be monitored and it’s quite a challenge to find a proper venue. We are now doing the third edition of bC India in Greater Noida. We will see how it works and we are pretty confident that it will work out well.

Could you explain the choice of Noida as a venue over Mumbai?

From the temporary structures that we see in Mumbai we will experience an increase in quality at Noida because of the existing fixed infrastructure available there. We don’t have to build anything like halls and toilets. Then we have a huge outdoor area with concreted grounds so no leveling is required. Indeed the support offered by the venue is very big – and that is the main reason why we picked it over Mumbai. Besides it made sense to look at the untapped market of the north.

Won’t the absence of a port close to Noida pose a logistical challenge?

We would have to calculate 2-3 days more than it would take for a venue like Mumbai to move material by road. It is so easy to transport equipment to BKC than to bring it to Delhi. Of course we have very good support from our logistic partners and forwarding companies.

Construction Opportunities asks about the support that you are receiving from urban local bodies and the government?

The Builders Association of India (BAI) which is a co-organiser has been very supportive of our project since the first event. We are also working closely with iCEMA and other international associations which support us by bringing delegations. We have received tremendous support from industry and from various government bodies in the past and we expect the same this time around too. We are also in touch with various diplomatic missions to have the head inaugurate the various national pavilions. For example, we hope to have the German Consul General to welcome the local companies.

Tell us of the turnout of Indian companies at bauma’s parent show in Munich. What are the prospects of India raising its exhibition venue profile?

I think bauma in Munich and Conexpo in North America is still very far away for India. bauma in Munich is the mother of international equipment shows. There are 30 to 40 big international companies who want to be there at that exhibition but are in the waiting list. Still we have 30-40 companies representing India who come to bauma. This figure could be higher if we had more space in Munich. In comparison there are about 300 Chinese companies who are regulars at Munich – there are more of attachment providers than manufacturers of big machinery. They have been able to raise their exhibition profile over the years. I think India can also grow like China if it develops an exhibition mindset along with infrastructure

Very obviously your idea would be to surpass the previous experience. How are you looking to do it in the next edition of bC India?

I have to admit that for me some things are usual because the show is for the 3rd time. However I am organising it for the first time and doing so at Noida, which is a different venue with new local authorities to deal with, is like conducting an event for the first time. We would most certainly want to improve the quality of the event. We know from the monitoring of past events what we must do and what we should not do, so we are very well guided. Luckily enough, I have the same team working on the project as the previous two editions. We will try to bring in fresh ideas based on our past experience to make this upcoming event a great success. We definitely have a few plans up our sleeve to raise the quality bar at the new venue. 
More Info Constructionmagazine