Construction Opportunity is a dynamic and young publishing house headquartered in India. The organization is committed to its policy of providing Authentic, Timely, Researched, Intelligent and Business linked information.
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.
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
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 exhibition 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.
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