“Our wide network provides the best-in-class service”

“Our wide network provides the best-in-class service”

tanmay-majumdar
Tanmay Majumdar,Associate Vice President- Construction Equipment, Gmmco.

Mr. Tanmay Majumdar, Associate Vice President – Construction Equipment, Gmmco, shared his views on a number of topics related to the construction equipment industry:

Elaborating on Gmmco’s strategy he said that their plan is to enhance the customer experience by adding value with differentiated offerings. He also added that Gmmco believes in a consultative approach, a lifetime value proposition and one-stop solutions. He said that Gmmco believes in making customers partners for mutual success.

On the demand-supply scenario for excavators, backhoe loaders, wheel loaders, motor graders and dozers, Mr. Majumdar said that after the 2011 spike in the industry, all the manufacturers ramped up their manufacturing capabilities to be able to feed the market demand. Subsequently, the industry shrunk across all the product segments with backhoe loaders segment itself witnessing a steep decline in 2014 compared to the 2011 numbers. At this time, there was an oversupply in the industry.

Elaborating further he said that the construction equipment industry is dependent upon policies favouring the infrastructure and mining sectors. And, that the pro-developmental motives of the now more stable government at the Centre are certainly thumbs up for the construction and related industries. He added that although a spike in sales is yet to be seen, he has strong faith that the ‘acche din’ for construction machinery is right on the horizon.

He also pointed out that the boom in the construction industry and rapid real estate development are the major growth drivers for equipment sale. And, that positive government sentiments are driving the demand at the macro level.

Gmmco operates in the 10 states of Central, Western and Southern India. The company dominates in the wheel loaders, track type tractors, motor graders, dumpers and shovels segment in the Indian market.

gmmco-single-powerful
Gmmco lives by the single powerful philosophy of making its customers profitable.

Mr. Majumdar stated that policy paralysis and multiple taxes have been the major demotivating factors for demand-growth in the last three years. He pointed out that delayed policy execution and implementation directly impacted industry sales. And, that higher lending rates and fuel costs also impacted industry sales, creating a dent on demand.

Mr. Majumdar spoke on the availability of finance by pointing out that the construction equipment financing market is dominated by NBFCs and banks. Expanding further, he said that the main limitation affecting the availability of finance is that the majority of branches are present in Tier 1 and Tier 2 cities, so it is challenging for contractors to get finance if they are present in Tier 2 or Tier 3 cities or villages. Secondly, the financing amount was also dependent upon the machine population.

He further explained that the majority of the CAT products are categorised as Level 1 products, so the funding available for them is high. Additionally, Gmmco’s continued association with financiers ensured that their machines got good financing deals.

competitive-environment
Gmmco takes the competitive environment in a healthy way.

On the initiatives taken by Gmmco to sustain growth, he started off stating that Gmmco lived by the single powerful philosophy of making its customers profitable. Moreover, Gmmco took the competitive environment in a healthy way and took it as an opportunity to figure out how to offer more value to their customers and how to make them more profitable in their own businesses.

Talking about the value propositions offered by Gmmco, Mr. Majumdar explained that Gmmco are partners of the enduring success enjoyed by their customers. Gmmco is a one-stop solution shop. In addition, it offers a wide range of products and solutions and a strong network of after-sales and support. Gmmco’s wide network with 3S (Sales, Service and Spares) facilities provided best-in-class services.

Further, a machine rebuild centre, an SOS facility, integrated yards coupled with workshops helped in offering the best solutions to their customers, right at their doorsteps. Finally, he also pointed out that Gmmco’s machines are equipped with the latest technologies like product link for efficient equipment management.

Mr. Majumdar also ventured to take a look into the future up to 2020. He expressed hope that with a more stable and pro-development government at the Centre, the growth prospects of the Indian construction equipment industry are bright. He also thought that the steps taken by the government in the last six months indicate a strong growth path for the construction equipment industry.

He also drew parallels with the wave of development happening in the Indian market with what was happening in the Chinese market 10 years back. The Chinese market was liberalised 10 years before the Indian market did and their sales during 2004 were similar to ours today. The Chinese market had grown 9-10 times in the last 10 years. This is a macroeconomic indicator of the growth trajectory that the construction equipment industry witnessed post adoption of open market policies. That period of exponential growth has now arrived, he concluded.

macro-level
Positive government sentiments are driving the demand at the macro level.

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