Analaysis of Equipment Finance in L&T Finance Comparion of Other Finance

SUMMER TRAINING PROJECT REPORT
on
Working Of Estimation Market Size &
Performance of Construction Equipments in
L&T Finance
SUBMITTED FOR PARTIAL FULFILLMENT OF THE

DEGREE OF
MASTER OF BUSINESS
ADMINISTRATION
By
Vijay Kumar Saw
(Roll No.: 1368670146)
External Supervisor
Mr. Nilesh Kumar Joshi

Assistant. Vice President
L&T Finance
Assistant.Professor
Regional Sales Head-Equipment Finance
Internal Supervisor
Ms. Sonam Rani
Grater Noida
Accurate Institute of Advanced Management, Greater

Noida
(Affiliated to UPTU and Approved by AICTE)
2014
Accurate Institute of Advanced

Management
(Affiliated to UPTU and Approved by AICTE)
______________________________________
Date: 06-Dec-2014
HEAD OF MBA PROGRAMS CERTIFICATE
Certified that the Summer Training Project Report titled
is carried out by Mr. Vijay Kumar Saw ,Roll No. 1368670146, a student of
MBA III semester at Accurate Institute of Advanced Management ,Greater
Noida, under the supervision of Mr. Nilesh Kumar Joshi
Regional Sales Head-Equipment Finance
This is an original work carried out by the said student to the best of my
knowledge and I recommend for the submission of this summer Training
Project Report to Uttar Pradesh Technical University, Lucknow in the partial
fulfillment of the award of MBA Dagree.
Prof.(Dr.) Amar Kr. Saxena
Director,
AIAM,Greater Noida.
Plot No. 49, Knowledge Park-3, Greater NOIDA-201306 (UP), Phone:
0120-2328235, Fax: 0120-2320355 E. Mail.: info@accurate.in, Web:
http//www.aiam.in
Acknowledgement
To acknowledge the invaluable assistance extended to various personalities in the

successful compilation of the training report. I hereby take upon the privilege to express
my gratitude towards my respectable faculty guide and project guide.
In the present scenario of globalization rare are the ideal faculty and guide who bestow
their fortunes upon students, specifically in research field. I feel short of words to express
my indebtedness. At the first place I am highly thankful to my revered institute for
providing me an opportunity to work with L&T FINANCE.
My heartiest thank is also towards my esteem faculty guide Mr. Brijnesh Sisodiya and
my industry guide Mr. Nilesh Kumar Joshi who escorted me and stood by me rendering
motivation, encouragement and guidance to compile this significant research report.
I also extend my thankfulness to my friends and colleagues for their trust, affection,
support and coordination.
Above all I owe regards to my parents and family members for enlightening a determined
inspiration on my way to success and compilation of training project.
Student Name: Vijay Kumar Saw

Roll no.
: 1368670146
Signature
Date
: 6.12.2014
Preface
In the millennium scenario, dynamism is the spice of life and trend of youth. Student life
is the life, which welcomes the dynamism for adapting the new personality perspectives,
trend, culture and vision by acknowledging wider knowledge and analytical and
conceptual skills.
The way to enlightenment is attained not only by traditional mantra of teaching &
learning but also by observing the things at work.
My summer assignment is one such similar exercise, which has extended an opportunity
to appreciate the practical aspects of corporate world. This has given recognition to the
application part of my theoretical learning.
To begin with I initiate the project with the note of thankfulness to my institute for
providing me ample honour to perform on practical training with such a prestigious
organization.
Vijay Kumar Saw
Roll no.:- 1368670146
TABLE OF CONTENTS
TopicsPage Numbers
1. Introduction
6-9
2. Profile of L&T Finance
10-14
3. Objectives
15
4. Construction Equipment Market in India
16
5. Results
17-24
6.
Conclusion
24-26
7.
Changing modes of operation in Equipment Finance
27-30
8.
Individual Target population analysis
31-50
9. Methodology
51-69
10. Recommendations
70-89
11. Questionnaires
90-99
12. Question wise Customer Questionnaire Analysis
100-107
13. Question wise Manufacturer Questionnaire Analysis
108-124
14. Question wise Financier Questionnaire Analysis
125-144
15. References
145
Introduction
Larsen & Toubro Limited, also known as L&T, is an Indian multinational conglomerate
headquartered in Mumbai, Maharashtra, India. It was founded by Danish engineers taking
refuge in India, as well as an Indian financing partner. The company has business
interests in engineering, construction, manufacturing goods, information technology and
financial services, and also has an office in the Middle East and other parts of Asia.
L&T is India's largest engineering and construction company. Considered to be the
"bellwether of India's engineering & construction sector", L&T was recognized as the
Company of the Year in Economic Times 2010 awards
A company was founded in Bombay (Mumbai) in 1938 by two Danish engineers,
Henning Holck-Larsen and Soren Kristian Toubro. The company began as a
representative of Danish manufacturers of dairy equipment. However, with the start of
the Second World War in 1939 and the resulting restriction on imports, the partners
started a small workshop to undertake jobs and provide service facilities.
Germany's invasion of Denmark in 1940 stopped supplies of Danish products.[9] The wartime need to repair and refit ships offered L&T an opportunity, and led to the formation
of a new company, Hilda Ltd., to handle these operations. L&T also started to repair and
fabrication shops signalling the expansion of the company.
The sudden internment of German engineers in British India (due to suspicions caused by
the War), who were to put up a soda ash plant for the Tatas, gave L&T a chance to enter
the field of installation.
In 1944, ECC was incorporated by the partners; the company at this time was focused on
construction projects (Presently, ECC is the construction division of L&T). L&T decided
to build a portfolio of foreign collaborations. By 1945, the company represented British
manufacturers of equipment used to manufacture products such as hydrogenated oils,
biscuits, soaps and glass.
In 1945, the company signed an agreement with Caterpillar Tractor Company, USA, for
marketing earth moving equipment. At the end of the war, large numbers of war-surplus
Caterpillar equipment were available at attractive prices, but the finances required were
beyond the capacity of the partners. This prompted them to raise additional equity capital,
and on 7 February 1946, Larsen & Toubro Private Limited was incorporated.
Equipment Finance is a process of extending credit for heavy machinery and

equipments. It is a core financing activity. Like other area loans viz. Loans for industry,
business loans, personal loan etc. In this specific sector of equipment finance loan is
given under hypothecation of equipments.
Here equipments mean the heavy movable, registrable, non-registrable and non-movable
equipments used in construction purposes, mining purposes, loading and unloading of
goods-materials etc. then for the transportation purposes etc.
These equipments include loaders, dozers, cranes, backhoes, vibrators, rollers, trucks,
tippers, various plants, pavers etc.
These equipments are manufactured by selected companies, which includes domestic and
foreign manufacturers. Some of the equipments are also imported, which requires a
whole procedure of issue of letter of credit. This process is typical and is provided by
selected financiers. List of the manufacturers include Indian and foreign players they are
as follows: Larson & Tubro, JCB, Gujarat Apollo, GMMCO-CAT, Tractors India Ltd.,
Greaves Cotton, Atlas Copco, BEML, Escorts, Ashok-Leyland, Tata/Telcon, Voltas,
Liebherr, Schwing Stetter, Ingersoll Rand, Volvo etc.
The equipments manufactured by them require sound technical knowledge about the
operations of the equipments. They require a person to go for heavy research &
development about the procedure of functioning so that the outcome is the state of art
equipment. These equipments are of huge cost so heavy financing is needed for their
purchase.
The concept of equipment finance as a specific sector was first started in organized sector
by SREI finance Ltd. It is a Kolkata based finance company. So SREI are not only the
pioneers of this sector but today they are the number one player in this field. After their
initiation many financiers jumped in to this sector. These all were basically private
players, which included both banking and non-banking financial organizations.
List of players in this field include banks which may be nationalized and even private
players. Then with banks there are also NBFCs, today even the manufactures extend
credit to the purchasers as promotional activity these include Escorts Finance, Tata
Finance, Ashok-Leyland Finance and L&T Finance etc. for leasing and purchasing both.
Banks may be domestic-nationalized banks or foreign banks-private players. Even cooperative banks are there in this business.
List of Major Banks in this sector are as follows: -
ICICI Bank
HDFC Bank
CITI Bank
L&T Finance
Centurion Bank
UTI Bank
Kotak Mahindra Bank
Development Credit Bank
Ashok Leyland Finance (IndusInd Bank)
List of Major NBFCs active in this sector are as follows:
SREI Finance
GE Capital
L&T Finance
Escorts Finance
TATA Finance
Cholamandalam Finance
Sundaram Finance
Shriram Finance.
The equipment finance sector is very competitive. Financiers are facing are very
tough and in fact a cut throat competition among themselves. Deals are closed and
even lost with a variation of 0.05% in the interest rate. Financiers are leaving no stone
unturned when it comes to provide the details of payment to be made by the
customers. Trying their level best to offer the most competitive and transparent
package.
SREI Finance is one of the leading financiers in this sector. It has the highest amount
of advances extended to customers and have the largest asset base of the hypothecated
equipments.
Types of deals offered by the financing organizations
Finance for the purchase of new equipment: This is the most basic service
rendered by any financier in equipment finance. This offers extending of loan for the
purchase of new equipments.
Refinance: This offer contains financing of the presently owned equipments for the
purpose of raising working capital or raising fund for other purposes.
Switch: This deal offers switching the existing loan from any other organization to
present organization with which one is dealing. Reasons may be like difference in interest
rate, tenure etc.
Types of customers of Construction Equipment

Miners: This profession deals in the mining activity i.e digging out the minerals,
marbles and even rocks. So for this they need digging equipments like shoals, backhoes,
bulldozers, loader cranes.
Civil Contractors: These are the people involved in construction of civil structures
like dam, bridges, roads, buildings etc.
Captive Users: These are the persons that take personal use of the equipments that is
for their own business. Like loaders are used in cement packaging plant.
Nature of Business
This is a relation- based business. Here top management is directly involved in making
any deal as making any agreement, may it be the purchase loan, refinance, switch is of
strategic importance. So financier should have healthy and close relations with the clients
as these relations play a major role in getting a deal from the competitors. Here players of
this field face fierce competition and everyone offers the best package, gradually the
public relation plays the decisive role in getting a deal.
Relation in this business can be categorize into two: Corporate Banking: - This is a real relationship business. Here we directly deal with the
top management of the companies. These are the persons who are dealt with great care
and respect. It takes a long period to develop the relations with them and maintaining
these relationships is also a very critical exercise. Making relations with corporate
personal means getting the favour of the whole company.
Retail Banking: - This segment of equipment finance caters to the retail segment of the
customers. This includes small contractors, one-time buyers and other small players of
the civil, transport, mining sectors. This is the segment where it is just on time process
that is just selling and there is least chance of frequent deals. Also the size of these deals
is very small.
This business is a team driven exercise. One alone can not make a deal. A team consist of
two parts Credit team and sales team. Both these have well defined assigned work with
no ambiguity. Sales team takes care of the deal like offering the deal, initiating the deal,
collecting the required documents, negotiating with the client, giving the client DO (deal
originated), collection of PDDs, signing the deal.
Credit team has the major job of developing the financials of the company and analyzing
them on company set criteria which includes making the CSP, CAM, getting the approval
and limit of loan amount extended to the client etc.
10
PROFILE OF L&T FINANCE

L&T FINANCE is an international bank with European roots and a clear focus on
consumer and commercial banking, strongly supported by an international wholesale
business. Their business mix gives them a competitive edge in their chosen markets and
client
segments.
Their strategy is built on leveraging their advantages as a Group to create the best value
for and with their clients. They are active in three principal customer segments:
Consumer & Commercial Clients, Wholesale Clients and Private Clients & Asset
Management.
Although they serve a broad range of clients, their strategic focus is on the mid-market
segment. This is the client area where they have a strong and distinctive competitive
advantage and there they feel they can be most profitable in the future.
The L&T FINANCE Corporate Values and Business Principles provide the framework
within which they carry out their operations.
In brief...
L&T FINANCE is a prominent international bank, its history going back to 1824. L&T
FINANCE ranks 11th in Europe and 20th in the world based on tier 1 capital, with over
3,000 branches in more than 60 countries, a staff of more than 97,000 full-time
equivalents and total assets of EUR 742.9 billion (as at 31 March 2005).
History
1824-1964------------------------Nederlandshe Havidel-Maatechappil Bank.
1861-1964------------------------Twentsche Bank
1863-1964------------------------Rotterdamsche Bank
1871-1964------------------------Amsterdamsche Bank
1893-------------------------------Standard Federal Bank
1925-------------------------------Banco Real
1927-------------------------------La Salle Bank
L&T
FINAN
L&T FINANCE
1991
11
L&T
The Nederlandsche Handel-Maatschappij (Netherlands Trading Society) was established
by Royal Decree of King Willem I on 29 March 1The chairmen of L&T FINANCE and
L&T FIANACE before and after the merger in 1991 were Roel of Nelissen (L&T
FINANCE) and Rob Hazelhoff (L&T FINANCE).The L&T name is derived from the
initials L&T (Algemene Bank Nederland) and AMRO (Amsterdam-Rotterdam Bank), the
founding banks of L&T in 1991.
The oldest company is the French subsidiary Banque de Neuflize. Banque de Neuflize
was incorporated in May 1966 as de Neuflize, Schlumberger, Mallet & Cie to continue
the business of de Neuflize, Schlumberger & Cie and Mallet Fr?res & Cie. The banking
firm of de Neuflize & Cie origins go back to the banking house originally established in
Genoa (Italy) in 1667 by David Andre.
In 1990, the logo plus typography and typeface was designed by Landor Associates. The
shield symbolises reliability, tradition, protection and security, the colour combination
green (turquoise), yellow and grey sets it apart from logos of predecessors and rivals
while at the same time being very modern, distinguished and clear.
Global (Strategic) Business Units ((S)BUs)
L&T implement their strategy through a number of (Strategic) Business Units ((S)BUs).
Each of these units is responsible for managing a distinct client segment or product
segment, while also sharing expertise and operational excellence across the Group.
These (S)BUs are:
Consumer & Commercial Clients, which serves almost 20 million consumer

clients and clients in the small and medium-sized enterprises sector worldwide.
L&T FINANCE is among the leading players in these segments in its three home
markets (the US Midwest, Brazil and the Netherlands) while targeting other highgrowth regions through its Business Unit New Growth Markets.
Wholesale Clients, which provides integrated corporate and investment banking

solutions to more than 10,000 corporate, institutional and public sector clients in
nearly 50 countries.
Private Clients, which provides private banking services to wealthy individuals
and families, and has EUR 115 billion assets under administration as of year-end
2004.
Asset Management, which is one of the world's leading asset managers, operating
from over 20 locations worldwide and managing EUR 161 billion worth of assets
as of year-end 2004 for private investors and institutional clients.
12
Transaction Banking Group, which is their product organisation covering all

payments and trade in the bank for their retail, private client, commercial and
wholesale markets.
Group Shared Services, which was established to create cost savings through
consolidation and standardisation. GSS focuses on further exploiting new market
solutions for support services with the aim to ach ieve better products and services
for our clients at lower costs.
Group Functions, whose basic functions are governance, which is facilitating the
implementation of Managing Board policy throughout the bank; standard and
policy setting, which is setting the parameters within which the BUs work; and
sharing its expertise with all SBUs.
Strategy
L&T FINANCE is an international bank with European roots and a clear focus on
consumer and commercial banking, strongly supported by an international wholesale
business. Their business mix gives us a competitive edge in our chosen markets and client
segments.
Their strategy is built on leveraging their advantages as a Group to create the best value
for and with their clients. It is summarized in five points.
1. Creating value for their clients by offering high-quality financial solutions that
best meet their current needs and long-term goals.
2. Focusing on:
consumer and commercial clients in their home markets of the Netherlands,
the US Midwest, Brazil and in selected growth markets around the world
selected wholesale clients with an emphasis on Europe, and financial
institutions
private clients
3. Leveraging their advantages in products and people to benefit all their clients.
4. Sharing expertise and operational excellence across the Group.
5. Creating 'fuel for growth' by allocating capital and talent according to the
principles of Managing for Value, their value-based management model.
They aim for sustainable growth that will benefit all their stakeholders: their clients, their
shareholders, their employees, and society at large. The L&T FINANCE Corporate
Values and Business Principles provide the framework within which we carry out our
operations.
They are active in three principal customer segments: Consumer & Commercial Clients
(C&CC), Wholesale Clients (WCS) and Private Clients & Asset Management (PC&AM).
13
Focus on the mid-market

Although they serve a broad range of clients, their strategic focus is on the mid-market
segment. This is the client area where they have a strong and distinctive competitive
advantage and where they feel they can be most profitable in the future.
The consumer mid-market consists of clients who require more than a basic banking
package (mass affluent and private clients), but who don't yet fall into the small category
of their top-end private clients. The commercial mid-market ranges from mid-sized
companies in their home markets to a smaller number of large multinational clients and
financial institutions.
Still, clients in ABNs other segments are essential to providing sufficient scale and
ensuring product innovation. The success of their focus on the mid-market depends on
their continuing presence at the top end of the market and the mass-market segment. The
focus on their primary target clients will also guide our future investments and
acquisitions to enhance profitable revenue growth.
One Group
Another key element of their strategy is deriving more value from being one Group. The
creation of a shared product organisation comprising payments and trade, called
Transaction Banking, and the creation of a Group Services organisation that oversees all
services and operations in the Business Units and in Group Shared Services, will enable
us to leverage our global advantaged capabilities and increase the impact of our
investments in these areas.The mid-market franchise outlined above will be the growth
engine of the Group, and they have therefore created two global cross-BU segments: a
consumer segment and a commercial segment. These two segments will drive growth by
working across our Business Units.
Unique delivery
The L&T FINANCE Group is well positioned to capitalize on their focus on the midmarket segment. Success requires a combination of local and international capabilities:
local relationships
an extensive and competitive product suite
efficient delivery
sector knowledge (in the case of corporations)
international network
L&T FINANCE is one of the few banks in the world that can deliver on all of these, in
many cases, uniquely.
14
Corporate Values
L&Ts Corporate Values provide the foundation for the bank's Business Principles. The
bank formulated these Corporate Values in 1997.Their values and principles also help
them on their journey to sustainable development. By living according to their defined
Corporate Values and Business Principles they can meet the needs of their organisation
and stakeholders today, thus protecting, sustaining and enhancing human, natural and
financial capital for the future. Read more about L&T and sustainable development.
Integrity: Above all, they are committed to integrity in all that we do, always,
everywhere.
Teamwork: It is the essence of their ability to succeed as a trusted preferred supplier of
financial solutions to their clients. Their overriding loyalty is to the good of the whole
organisation. Their learn from each other and share their skills and resources across
organisational boundaries for their clients' benefit and their own
Respect: They respect every individual. They draw strength from equal opportunity and
diversity, at the same time supporting personal growth and development. They value and
they all benefit from the entrepreneurial spirit of each individual.
Professionalism: They are committed to the highest standards of professionalism, they
pursue innovation, they deploy imagination, they are open to new ideas and they act
decisively and consistently. They are determined to deliver outstanding quality so that
their relationships with their clients will be long lasting and close.
15
Business Principles
A compass to guide them on their journey. L&T FINANCE is an ambitious
institution, committed to continuous improvement in everything they do. Their
success depends on excellent performance and a solid reputation. Transparency and
dialogue are of crucial importance in all their relationships if they are to maintain
their reputation as a respectable and reliable institution. Based on their four Corporate
Values, they have formulated Business Principles to guide all their employees in their
daily work. Defining them clarifies what they stand for and unites them as a group.
These Business Principles are(Pledge by Employees):
We are the heart of our organisation

We pursue excellence
We aim to maximise long-term shareholder value
We manage risk prudently and professionally
We strive to provide excellent service
We build our business on confidentiality
We assess business partners on their standards
We are a responsible institution and a good corporate citizen
We respect human rights and the environment
We are accountable for our actions and open about them
Business Principles alone are not the answer to every problem, but they do challenge
them to translate their spirit into their daily practice and shift their horizons beyond shortterm profit to long-term value creation through sustainable development
16
Objectives
#Project Objective : Estimating the market size of the Construction Equipments in
the West Jone (Maharastra, Madhya Pradesh, Chattisgarh, Goa, Gujarat) and
studying the relative performance of L&T FINANCE.
Methodology
Research Design
There are many different ways of going about research ways of finding out about
things. A detailed description of the particular way that applies to a particular piece of
research is referred to as its research design.
Researching and developing a new product/ improving the

existing one
Properly conducted market research will identify the kinds of new, improved products
that consumers would switch to if they become available. They help in identifying the
loop holes of the product, which if removed could significantly improve its demand in the
market. That involves asking the right questions of the right people, and also placing a
proper interpretation on their answers. In the past, manufacturers produced products and
then tried to sell them to consumers. Successful organizations find out what the consumer
wants and then produce this product for them. Even organizations offering services to the
customers have improved their part by going about the feedback of the later. This is done
via Research.
There are two main approaches to market research.
Qualitative research. e.g. working with several small focus groups comprising, for
example, people who are already in the infrastructure market, now discussing with them
about their experiences related with equipment finance. This generates a core
understanding of what consumers want and what are they getting in exchange.
Quantitative research. e.g. using a questionnaire with a large, representative sample of
people; this data gives a broad view of the information, looking more at the numerical
objective data rather than the more subjective data acquired via qualitative research.
For example, What equipments do you have, kindly mention their numbers?
17
Within the original research and analysis, there is also another vital question which needs
to be asked. "Will this proposed new venture generate profits for the company?" Many
businesses have come unstuck by wrongly believing the answer to be "Yes". Usually,
such businesses either underestimated the investment levels required for research and
development, or the cost of setting up and operating the production process, or both.
Quantitative Research
Qualitative Research
Sampling
Random sampling (e.g. namesPurposive

out of a hat)
sampling
Sample size
Large
or
convenience
Small
Types of questionsClosed questions (e.g. multipleOpen questions

asked of subjects
choice)
Duration, intensity andShort, snappy and
structure of questioningstructured questioning
of subjects
highlyProtracted,
in-depth
and
unstructured or semi-structured
questioning
Observation of subjects Highly structured observation.Unstructured (impressionistic)

Counting and measuring of pre-or semi-structured observations
defined things
Methods and mediaOften; questionnaires and non-Usually; face-to-face meetings
used for questioning/ participant
observation
(i.e.and participant observation
observing the subjects whilst not(i.e. observing the subjects
observation
interacting with them)
whilst interacting with them)
of subjects
A further distinction to be drawn between quantitative and qualitative approaches is the
fact that qualitative research, being concerned as it is with narrative/subjective data, is
restricted to the use of humans as sources of information. Quantitative research, on the
other hand, is free to gather data from anything that can be counted or measured.
In other cases, however, the qualitative approach is more appropriate one, for example,
where the researcher is interested in establishing the reasons why nurses may prefer one
pressure sore treatment method over another. There is little here that can be counted or
measured, so, attempting to collect numerical data would not be sensible.
Narrative data would provide the most useful information and so the qualitative approach
is the most appropriate. In practice, many researchers adopt what is called a hybrid or
eclectic approach. This is where both approaches are used within a single research study.
The approach adopted by me during this study was mainly qualitative. Thus my sample
size was of 53 persons from Corporate.
18
STEPS:
The project was aimed at estimating the market size of Construction Equipments in
the western region. But the most significant Part of the project was to study the
performance of the L&T FINANCE with respect to other financiers of the region. The
project therefore covers the following queries with it in order to reach the final
objective:
Performance of Bank as per its competitors (ICICI, CITI, HDFC etc.) in the
field.
Performance of Bank as per its own customers and other target customers that
is feedback from all the prime contractors and developers of West-Jone
concerned with Infrastructure.
Feedback as per the contractors was mainly based on the satisfaction level
they had achieved with respect to rate of interest, monthly statements,
documentation process, dispatch of Delivery Order and other payment
formalities from L&T in the past deals with it.
My guide also wanted to know the individual feedback about its sales-team
from their customers.
Expectation of the Manufacturers of construction equipment and the
contractors, which could further enhance the performance of the Bank.
Details about the last financial years purchase made by the contractors and
from which all financiers they closed the deal.
My bank also wanted to know the details of the tentative deals.
Then from developers we wanted to know their preferable manufacturers and
financiers. The reasons behind it and are they having any MOU
(Memorandum of Understanding) with them for the same.
Then they wanted to discover the manufacturers part. Their expectations from
the financiers.
Are manufacturers providing leads to financiers or the other way round, if so
then who all are involved in the same?
Can they provide some innovative tips to improve the services delivered by
the financiers?
What were and are the targets and achievements of the manufacturers in the
western jone?
What is the performance level of financiers as per them?
Are they having any tie up with a finance company if then which one?
What innovation can they suggest in concern to improve financiers service?
Also to get an idea about the mode of payments being adopted by the
customers?
Then comes the financier, whose performance estimation was to be done in
order to compare the L&T FINANCEs performance in the market.
This required Banks last years achievement against their targets.
Then Current financial years target and achievements if any against them.
19
Services offered by the banks and the other services which are unique and
different from other players.
Prime targets of the bank and financiers.

Target areas and the parameters considered by them for the same.
Then I tried to put up a crosscheck question to re affirm information about
their tie up with any manufacturer of construction equipments.
The project therefore required collection of information from the three key players of the
infrastructure field. That is financier, Contractors-Developers and Manufacturers of the
Construction Equipments. For this purpose questionnaires were designed for each of the
players separately. Thus in this sequence I designed three questionnaires, one for
financiers, one for contractors and the third one for manufacturers. The required
information was thus collected from various companies through face-to-face interviews
with their Regional Heads (West). For example all the manufacturers of construction
equipments were considered, all the financiers who are in construction equipment finance
were taken into account. Then I covered all the prime corporate contractors of the
Western region. Thus studied their role in the field with their expectations from each
other.
20
Construction Equipments Market in India

The Construction Equipment Industry in India has come a long way 1948 from the
days of low technological profile to a remarkable improvement in technological
status, it enjoys today.
In terms of technology the industry has the latest technology with T.O.T.
arrangements with major global players. Almost every well-known manufacturer
from Europe, USA & Asia is having its manufacturing base or representation in India.
The industry with much improved technological status is well equipped to absorb
latest global technological advancements.
The industry has been able to design, develop and fabricate indigenously a number
of important equipment and critical accessories.
In excavators, dumpers, backhoe loaders, compactors, concrete mixers, batching
plants etc.; segments of 60 to 80 % of indigenisation have already been achieved. A
public sector earthmoving equipment manufacturer (BEML) has been able to achieve
a record 85% average indigenisation in collaborated projects.
Amongst the most important manufacturers there are:

BHARAT EARTH-MOVERS LTD. (BEML)a public sector company with 60% of its
equity owned by Indian Ministry of Defense, which inthe early 1964 has cooperated with
KOMATSU and LETOURNEAU-WESTINGHOUSE for earthmoving machines, now
completely independent.
ESCORTS CONSTRUCTION EQUIPMENT LTD.a licensee of JCB of backhoe
loaders started 1980; further construction machines were added; the last excavator from
DAEWOO; as far as backhoes are concerned now a 100% WOFE (wholly owned foreign
enterprise) production.
GMMCO LTD.A BIRLA Group Company, was established in 1967 as a dealer in
India for construction equipment manufactured by TEREX and HINDUSTAN
MOTORS.GMMCO ceased the distribution of TEREX equipment in 1985 and in 1986
became one of the two distributors for CATERPILLAR product range covering southern-,
western-and central parts of India. Although CATERPILLAR has purchased the facility
from HINDUSTAN MOTORS near Chennai not long ago, GMMCO still remains further
as a dealer for CATERPILLAR in southern-, western-and central parts of India.
21
GREAVES LTD.(compaction and concrete pumps) a colonial company since 1870,

manufacturing after the Second World War BOMAG and SCHWING.
LARSEN & TOUBRO (L&T)this former Danish trading house founded 1938 entered
in the construction machine industry via a CAT dealership in the seventies; afterwards a
TOT partner of POCLAIN and since 1998 a cooperation partner of KOMATSU.
TELCON / TATA(TATA ENGINEERING AND LOCOMOTIVE COMPANY LTD.)
The company has been founded 1945 as a locomotive manufacturer. It started 1961 with
construction machines of P&H USA under licence.1983 TELCO / TATA began with
HITACHI hydraulic excavators and in the meantime also wheel loaders.
* This is only a selection covering the most important companies.
Sale of Construction Equipments in India (2008-2013)
Equipments
Asphalt
Finishers
Backhoe
Loaders
Compact
Equipments
Crawler
Dozers
Crawler
Excavators
Crawler
Loaders
Dump
Trucks
Mini
Excavators
Mobile
Compressors
Mobile
2008
95
2009
135
2010
200
2011
250
2012
300
2013
270
2750
3475
2740
3565
4380
5400
740
750
700
800
1050
1000
350
335
280
295
255
280
4750
1885
1650
1950
2250
2600
515
530
175
250
380
350
40
75
25
20
10
1400
1600
1100
1000
1350
1450
535
570
430
580
910
950
22
Cranes
Motor
Graders
50
120
215
260
120
90
Equipments
2008
2009
2010
2011
2012
2013
Rough
Terrain Lift
Trucks
Skid Steer
Loaders
Wheeled
Excavators
Wheeled
Loaders
35
60
100
85
75
110
410
410
340
500
750
1000
Total
Construction
Equipment
8679
9948
7959
10324
11829
13480
14%
Rise
20%
Fall
29%
Rise
14.2%
Rise
14%
Rise
Sale Forecast of Construction Equipments in India (2012-2013)
Asphalt Finishers
2012
280
2013
310
Backhoe Loaders
6500
7280
Compact Equipments
1100
1200
Crawler Dozers
290
310
Crawler Excavators
3000
3150
Crawler Loaders
Dump Trucks
370
410
Equipments
23
Mini Excavators
80
90
Mobile Compressors
1600
1730
Equipments
2012
2013
Mobile Cranes
1000
1100
Motor Graders
100
110
Rough Terrain Lift Trucks
Skid Steer Loaders
80
90
Wheeled Excavators
Wheeled Loaders
Total Construction Equipment
1
1200
15575
15%Rise
1
1350
17136
10%Rise
Marketing Channels of Major Manufacturers

GMMCO Ltd./ Caterpillar
The dealer GMMCO is distributing the local products and the import products via 8
regional offices: New Delhi, Baroda, Bilaspur, Calcutta, Nagpur, Bombay (Mumbai)
Head office,Hyderabad, Madras/Chennai. Furthermore there are approx. 30 marketing
locations ubordinated under the regional offices not included service facilities in coal
mines.
L&T / Komatsu
The structure is similar to GMMCO LTD. / CATERPILLAR, although L& T has only 4
regional offices in Delhi, Calcutta, Punaund Madras/Chennai plus further 10 marketing
locations.
TELCON/ TATA/ HITACHI
24
This is a perfect copy of the GMMCO LTD. / CATERPILLAR configuration with almost
the same number of regional offices and marketing locations, but there is a tendency to
appoint so-called ACSC (authorized customer support centres), small entrepreneurs (this
is a sign of market opening).
ESCORTS / JCB
The backhoe loaders division of ESCORTS / JCB (EJCB) has now come under the
management control of JCB since JCB has majority stake holding. EJCB has about 15
dealers in the major cities and has about 6 regional offices. ESCORTS Construction
Equipment Ltd., which now deals mainly in Mobile Cranes, Vibratory Compactors and
Fork Lifts, has about 15 direct marketing offices in India.
BEML
The group has a strong presence throughout India with about 30 direct marketing and
service offices including small district offices with some even located at customer
premises.
25
Results & Analysis
Manufacturers Performance
(All Figures in number of Units sold)
Last Year's(2004-05)
Target
IR
L&T Case
JCB
Gujarat Apollo
Ashok Leyland
Atlas Copco
Escorts
BEML
Telcon
VOLVO
LIEBHERR
Greaves
Tractors India Ltd.
TATA
Schwing Stetter
L&T Komatsu
Gmmco (Engines)
Gmmco (CE)
Voltas
Achievement Achievement%Market Share

30
5
500
20
300
19
50
400
220
30
15
25
30
300
70
19
9
75
25
42
7
675
26
385
24
60
475
250
34
17
27
32
310
70
19
9
54
15
2142
2531
140%
140%
135%
130%
128%
126%
120%
119%
114%
113%
113%
108%
107%
103%
100%
100%
100%
72%
60%
1.7%
0.3%
27%
1%
15%
1%
2.4%
19%
10%
2%
1%
1%
1%
12%
3%
1%
0.5%
1%
1%
100%
Top performer no doubt is JCB & BEML. However Ashok Leyland & TATA with Telcon are also
26
performing very strongly.
Percentage Break up on the type of Financier involved in the

payment
27
Financiers Performance
What were your last years figures against target?
All Figures are in Crores
28
Last Year's Performance(As per achievement against target)
Analysis of the performance of all the financial organizations is typical since

their business cycle varies from one to another. Firms either operate by
financial year or by calendar year.
Last Years (2013-14)

Rank
1
2
3
4
5
6
7
8
9
10
11
SREI
(April13-Mar14)
HDFC
(April13-Mar14)
ABN AMRO
(May13-Dec13)
CITI Bank
(Jan13-Dec13)
ICICI
(April13-Mar14)
L&T Finance
(April13-Mar14)
Centurion Bank
(Jan13-Dec13)
GE Capital
(April13-Mar14)
TATA Finance
(April13-Mar14)
Ashok Leyland Bank (April13-Mar14)
Kotak
(April13-Mar14)
Target
*Achievement
Market
Share
T/A
215
80
62
150
250
159
95
60
30
12
50
285
96.3
73
154
250
159
90
56
27
10.8
38
26%
9%
7%
14%
13%
13%
8%
5%
2%
1%
3%
133%
120%
118%
103%
100%
100%
95%
93%
90%
90%
76%
1034
1110.1
100%
73 percent of 2531 equipments were financed by the private players, which are
around 1848 equipments. Out of this 73 percent the percentage break up as per the
business done by the financial institutions in last financial year is under as follows:
Last Year 2004-05
Market Share
29
1. SREI
2. ICICI
3. CITI Corp
25%
22%
13%
4. HDFC
5. *L&T (Took only 8months to reach an achievement of 73cr) 7%
9%
*Centurion Bank is with 8% market share but it has 95% only in A/T & that too in 12
months
However performance as per market share throws light on the following rank
position (As per Achievement/Target): 1. SREI
2. ICICI
3. HDFC
4. L&T
5. CITI Corp
133%
100%
120%
118%
103%
Manufacturers Performance
30
Current Year's(2005-06)
Target
Achievement
A/T
21
1200
400
80
25
45
75
75
150
126
35
800
40
850
10
43
35
550
15
9
500
120
24
7
11
16
12
23
18
5
110
5
100
1
4
3
45
1
4575
1046
L&T Komatsu
JCB
Telcon
IR
Atlas Copco
Tractors India Ltd.
Escorts
VOLVO
Schwing Stetter
Gmmco (CE)
Voltas
TATA
Greaves
BEML
L&T Case
LIEBHERR
Gujarat Apollo
Ashok Leyland
Gmmco (Engines)
43%
42%
30%
30%
28%
24%
21%
16%
15%
14%
14%
14%
13%
12%
10%
9%
9%
8%
7%
Figures last updated on 30th May 2013

So for year 2013-14 A total of machines which are going to be sold as per manufacturers
in the west region will be around: 4575 machines. Out of 4575 about 1046 machines
have being sold.
Top performer of the market is: JCB Whether we consider last years performance or
consider current years performance so its the JCB, which has stolen the show.
Financiers Performance
What are your current years figures against target?

31
All Figures are in Crore

Current Years (2005-06)
Rank
1
2
3
4
5
6
7
8
9
10
11
Target **Achievement **Actual Target
ICICI
(April13-Mar14)
HDFC
(April13-Mar14)
Centurion Bank
(April13-Mar14)
CITI Bank
(Jan13-Dec13)
ABN AMRO
(Jan13-Dec13)
SREI
(April13-Mar14)
GE Capital
(Jan13-Dec13))
TATA Finance
(April13-Mar14)
L&T Finance
(April13-Mar14)
Kotak
(April13-Mar14)
350
400
98
300
130
525
200
60
75
15
90
80
58
14
36
15
50
18
5
5
1
5
2243
287
58
67
16
50
22
88
33
10
13
3
15
T/A
137%
87%
86%
72%
69%
57%
54%
50%
40%
40%
33%
* Figures last updated by 31st May 2013

Now total market for the money to be channelised through equipment finance in the west
region are: 2243 crore, amount already flown for the same are: 287 crore.
** Actual target has been calculated by considering the total annual target. Then I
calculated the two months target. Against which I calculated the achievement of the firms
for last two months. However this has several drawbacks against the system like
performance of organizations vary month by month from organizations to organizations.
But to bring the achievement calculation at par two-month calculation has been done.
Organizations have different business cycle like few go by calendar year, however few go
by financial year.
Self Analysis by Financiers
32
ICICI
HDFC
CITI Bank
ABN AMRO
Kotak
GE Capital
SREI
L&T Finance
Centurion Bank
Ashok Leyland Bank
TATA Finance
2
2
2
4
5
5
1
3
4
3
NA
Inference:
1. ICICI ranks itself at number two revealing the presence of SREI in the field.
2. CITI and HDFC rank themselves at number two and next to ICICI in
performance. They do not consider SREI because of its style of working. They
consider ICICI as number one.
3. ABN AMRO ranks itself at number four just next to above players. However
Ashok Leyland Finance consider themselves at number three. This can be
contributed by the fact that they are big players in the commercial vehicles.
According to them ICICI and HDFC play at number one and number two
respectively.
So banks are neck to neck estimating their performance but all accept ICICI & SREI to
be at number 2 & 1 respectively.
TATA Finance looks only for the TATA customers.
Performance Analysis of the Financiers by Manufacturers
33
Ranks
Organizations/Ranks
ICICI
HDFC
CITI Bank
ABN AMRO
Kotak
GE Capital
SREI
L&T Finance
Centurion Bank
Ashok Leyland Bank
TATA Finance
10
6
7
4
3
2
3
6
3
2
4
2
6
3
3
2
1
3
1
1
1
1
1
1
1
1
1
2
2
2
Inference: Overall Rank as per manufacturers gives a fair idea about the ranks of
the financiers.
1. ICICI
2. HDFC
For third rank CITI is a contender. Then ABN AMRO and Kotak follow them closely.
Success Marketing Wise:

Organizations Performance (As per customers): 1.
2.
3.
4.
5.
6.
7.
ICICI
HDFC
CITI
ABN AMRO
SREI
KOTAK
GE Capital
13
12
10
13
1
2
1
34
8. L&T Finance
9. Ashok Leyland Finance
10. Centurion Bank
11. TATA Finance
2
1
These figures provide the recall practice of the customer. Customer is at least able to re
call the service of the following organizations.
13 customers immediately recalled ICICI and ABN AMRO though they ranked ABN at
4th place but good sign for an upcoming division of an upcoming Bank.
Alert alarm for CITI they are losing gradually their customers to either ICICI or HDFC.
HDFC, again a top performer, with 2nd place and 12 customers out of 20 in hand.
However customers recall them as rigid service provider.
These results are strictly based on the feedback obtained from the 20 corporate
clients hence may not necessarily provide a true picture for the players like SREI and
Kotak, who are having good chunks of retail customers too.
So as per customers number play is as follows:
ICICI
L&T
Then comes HDFC
CITI follows shortly
Success Marketing Wise:

Organizations Performance (As per manufacturers): Organizations
ICICI
HDFC
CITI Bank
ABN AMRO
Kotak
18
14
14
15
7
35
GE Capital
SREI
L&T Finance
Centurion Bank
Ashok Leyland Bank
TATA Finance
2
6
5
4
1
2
These figures provide the number of the manufacturer who were able to recall the service
experience of that particular firm. Manufacturer is at least aware or have dealt with the
services of the following organizations.
Out of 20 manufacturers 18 immediately recalled ICICI for their services and quality.
This signify the wide range of the customer covered by ICICI. Then comes ABN AMRO,
HDFC, CITY with 15, 14, 14 manufacturers in their account. Though they ranked ABN at
4th place but good sign for an upcoming division of an upcoming Bank.
So no doubt ABN is turning out to be big player very soon, scoring in all the directions.
However manufacturers recall them as Corporate customer financiers.
These results are strictly based on the feedback obtained from all the manufacturers
of the construction equipments. Hence its an alarming result for the financiers like
GE Capital, Ashok Leyland, TATA Finance and Centurion Bank.
So as per manufacturers number play is as follows:
ICICI
L&T
HDFC & CITI
Kotak
Conclusion
1.
2.
3.
4.
Market Size: 4576 Equipments sold in the Western region (2013-14).

*Market Size may grow by 180% in 2013-14 around 5687 equipments.
Finance through private players is about Rs. 1110crore.
**The opportunities for financiers with market will increase by 202% in
2013-14
5. Every bodyin the western region for construction equipments expects to grow
by 200%.
Top Manufacturers in the market are as follows(as per last years performance):
36
1.
2.
3.
4.
5.
Market Share
27%
19%
15%
12%& 10%
2.4%
JCB
BEML
Ashok Leyland
TATA & Telcon
Escorts
Top financiers in the market are as follows( as per last years performance &
A/T %):
1.
2.
3.
1.
5.
Market Share
25%
22%
13%
9%
7%
SREI
ICICI
CITI Corp
HDFC
ABN AMRO
* Market size has been calculated as per the sale of the construction equipments by the
manufacturers in the west jone and growth has been estimated as per the manufacturers
target for 2013-14
** Market growth for financiers has been calculated by the targets of the financiers for
2013-14.
Rank Evaluation
Organizations
Ranks Given By
Manufacturers
Contractors
*Self Analysis
ICICI
HDFC
CITI Bank
ABN AMRO
Kotak
1
2
3
4
5
37
1
2
3
4
5
2
2
2
4
5
GE Capital
SREI
L&T Finance
Centurion Bank
Ashok Leyland Bank
TATA Finance
5
1
3
4
3
NA
*In self-analysis Financiers have rank themselves as per their feedback.
Changing Modes of Operation in Equipment Finance
1. Past: Financiers open to corporate customers only.

1. Present: Financiers are more open to retail customers also.
2. Past: Financiers had strict policies and rules for funding.
2. Present: Financiers are more flexible in policies and rules.
3. Past: Financiers were rigid on rate of Interest.
38
3. Present: Financiers are open to negotiations on rate of Interest.

4. Past: Strict documentation with rigid rules and regulations.
4. Present: Easy documentation with customer oriented policies and simple
regulations.
5. Past: Slow transfer of funds and delivery order.
5. Present: Quick dispatch of delivery order and immediate payment facility.
6. Past: Fixed slabs of funding.
6. Present: Flexible upper slabs of finance.
7. Past: Slow and partial payment on the imported machines.
7. Present: Quick and almost complete payment of funds once the invoice is
presented.
8. Past: Bank guarantee not easily available.
8. Present: Bank guarantee easily available.
9. Past: Interaction between the customer and the financier was very limited.
9. Present: Maximum interaction between both the parties.
10. Past: System was more or less translucent.
10. Present: System is more transparent.
Individual Customers Feedback

Customer Profile:
a.
b.
c.
d.
e.
f.
g.
Companys Name: - Balajee Infratech&Constructions Pvt. Ltd

Representatives Name: - Mr. Lalit Bansal
Designation: - Sr. Manager(A/C & Fin.)
Address: - Samruddhi Comm. Complex, Malad(W), Mumbai
Phone no.: - 022-2875 1954
Cell No: Email ID: -excavate@balajeegroup.com
39
h. Website: -www.balajeegroup.com
Feedback:
1. Service: Getting the needful from all the financiers. Hence open to all customers
and are satisfied with every financier.
2. Value: Its fine with every financier. They are getting competitive rate of interest
from every financier, so do not expect any more reduction in the interest
part.
3. Overall Quality: Every financier is under tremendous pressure to deliver the
best of their service quality, so quality is no doubt world class.
4.
Any Issues: Should also participate in infrastructure projects.
5.
Future Purchase: Looking forward for purchase in near future may within a
month as per requirement of the upcoming projects.
My Feedback: Customer is satisfied with the performance of L&T. No need to invest

more on the particular customer, as it is open to all financiers. Better to maintain good PR
with the former and keep close track of it as Balajee is a big player of the west region.
Last year purchased an excavator from L&T, Drill machine &Compressor from ICICI &
Rock breaker from CITI.

Customer Profile:
a.
b.
c.
d.
e.
f.
g.
h.
Companys Name: - Valecha Engg. Ltd.

Representatives Name: - Mr. P.Malatesh
Designation: - Manager Finance
Address: - Valecha Chambers, 7th Floor, New Link Road, Andheri(W),
Mumbai.
Phone no.: - 022-2673 3625
Cell No: Email ID: -valeng@bom3.vsnl.net.in
Website: -www.valechaeng.com
40
Feedback:
1. Service: Getting the needful from all the financiers. Again open to all customers
and are satisfied with every financier. They are dealing with Financiers
only on the PR-basis. Having good relationship with all financiers and
hence are dealing with ICICI, HDFC, CITICorp, ABN AMRO & also
with L&T Finance.
2.
Value: As far satisfaction is concerned, Valecha is very much satisfied with all
financiers. They get good value in terms of low interest and better
preferences from them.
3. Overall Quality: Every financier is under tremendous pressure to deliver the

best of their service quality, so quality is no doubt world
class.
4. Any Issues: Should also participate in infrastructure projects.
5. Future Purchase: Going for purchase in bulk as per the requirement of the
project in region of Chittorgarh within month.
My Feedback: Customer is satisfied with the performance of L&T. Keep close track of
Valecha, they will be going for a big purchase within month. They can prove to be a
significant customer for L&T. Last year purchased 2 pilling rigs from L&T, two
excavators from ICICI, one Tipper from HDFC and one RMC from CITI. CITI has
allocated budget of Rs. 10 cr annually and fund them without any documentation.

Customer Profile:
a.
b.
e.
f.
Companys Name: - Ideal Road Builders Pvt. Ltd.

Representatives Name: - Shailesh V.Joshi
c. Designation: - Sr. Manager(Admin)
d. Address: - IRB Complex, Chandivli Farm, Chandivli Village,
Andheri(E), Mumbai.
Phone no.: - 022-5640 4220
Cell No: -
41
g.
Email ID: -mhaiskar@bom2.vsnl.net.in

h. Website: -www.irb.com
Feedback:
1. Service: Best service is of ICICI and HDFC.
2.Value: As far satisfaction is concerned, IRB is satisfied with all financiers. They
get good value in terms of low interest and better preferences from them.
3 Overall Quality: Every financier is under tremendous pressure to deliver the best
of their service quality, so quality is no doubt world class.
4. Any Issues: Financiers should also participate in infrastructure projects.
5. Future Purchase: Purchase with in 15 days(around 2nd week of June) for NHAI
project in Nagpur.
My Feedback: Customer seems interested in L&T for future deals as is satisfied with past
experience. Need to brief them about ABNs rate of interests and services. IRB has more
than 20 projects in hand hence will be going for big purchase of equipments. Need to
coordinate with them for future business. More interested with infrastructure project
loans. Looking for a financial partner in infrastructure project. Last year purchased
Excavator cum Loader from CITI, RMC plant & Tandem vibrator from ICICI, DumperTipper from HDFC, and an excavator from L&T.

Customer Profile:
a.
b.
c.
d.
e.
f.
g.
h.
Companys Name: - Nityanand Infrastructure Ltd.

Representatives Name: - Jayanath S.Prabhu
Designation: Address: - Cotton Green(W), Mumbai
Phone no.: -022-2470 4120
Cell No: -9821040652
Email ID: -nitya@bom3.vsnl.net.in
Website: - www.nityanand.com
42
Feedback:
1. Service: Service of ICICI and CITI is much better compared to other players in the
market. L&T not responsible towards customer.
2.Value: The two players ICICI & CITI Provide good value of service and are also
negotiable with the rate of interests.
3 Overall Quality: Good and satisfactory service.
4. Any Issues: Financiers should be more accountable and responsible towards their
customers.
5. Future Purchase: Purchase after rainy season.
My Feedback: Customer has lost its interest from L&T. Need to rejuvenate our
relationship with the customer. Nityanand has purchased 5 tippers in last financial year
with L&T, so we need to find out what actually went wrong with our services that the
customer went to CITI &ICICI for two excavators and 10 tippers.

Customer Profile:
a. Companys Name: - RDC Concrete
b. Representatives Name: - Mr.Shantanu
c. Designation: - Dp. Manager- Purchase
d. Address: - Nahar & Seth Inds. Premises, Chakala Road, Andheri(E), Mumbai
e. Phone no.: - 022-5691 0055
f. Cell No: g. Email ID: -mail@rdccocreteindia.com
h. Website: -www.rdccocreteindia.com
Feedback:
43
1. Service: Service wise prefer ICICI & CITI

2.Value: Getting good rate of interest from ICICI and for infrastructure projects no
upper slab from UTI so good value for money.
3 Overall Quality: Satisfactory and customized service is being delivered.
4. Any Issues: Like UTI and DBS other financiers should also remove upper slab on
funding amount.
5. Future Purchase: Purchase after rainy season.
My Feedback: Customer looking after an alternative against CITI, not satisfied with
CITI. L&T should try and push against such parameters, which may bring RDC closer to
it. Last year customer purchased 4 Tippers from ICICI, 1 RMC-Plant from CITI Bank.

Customer Profile:
a.
b.
c.
d.
e.
f.
g.
h.
Companys Name: - Ashapura

Representatives Name: - Mr. Nitin J.Jani
Designation: - Accountant
Address: - Lawrence & Mayo House,276,D.N.Road, Fort,Mumbai
Phone no.: - 022-5665 1862
Cell No: Email ID: - nitin@ashapura.com
Website: - www.ashapura.com
Feedback:
44
1. Service: Satisfied with L&Ts service.

2.Value: Very coordinating and accountable service by the
3 Overall Quality: Similar to that of other financiers but still we have good
understanding with ABN.
4. Any Issues: ABN should be flexible and should provide finance period as per
customers requirement.
5. Future Purchase: Purchase within next 6 months for the upcoming project in
China of worth Rs. 3500cr.
My Feedback: Customer is fully satisfied with L&T. Need to keep time to time
interaction with him seeing the worth of project the customer is undertaking.L&T
Komatsu from ABN, 4 Tippers from ICICI.

Customer Profile:
a.
b.
c.
d.
e.
f.
g.
h.
Companys Name: - Dhollachand Kallaji

Representatives Name: - Mr. Haresh Hirani
Designation: - COO
Address: - 201, Hirani Villa
Phone no.: - 022-2613 0305
Cell No: - 9821020818
Email ID: - haresh@dkassociate.com
Website: -www.dkassociate.com
Feedback:
45
1. Service: Satisfied with the prompt & accountable service of HDFC & CITI.
2.Value: Value wise GE capital is also better. CITI & HDFC are negotiable and open
towards customer. They are transparent & talk genuinely, unlike ABN guys who are
straight forward & do not entertain genuine customers.
3. Overall Quality: Quality wise CITI & HDFC are good but are very fair in their
transaction.
4. Any Issues: ABN has to learn first the way to deal with customers. They only talk
big away from the reality. Not even negotiatible.
5.Future Purchase: Purchase after rainy season. Still 1 RMC plant to purchase
within this month only.
My Feedback: Customer very loyal to CITI & HDFC. But in my opinion in this case it is
the public relationship with HDFC & CITI guys, which is more or less stealing the show.
However if L&T has to eat market share of CITI it has to be more open to such customers
also. L&T has to offer candies to break such customers. Last year purchased 1RMCplant, Transit Mixture, Vibratory Roller from GE Capital, 1 compactor from HDFC, 1
excavator from CITI.

Customer Profile:
a.
b.
c.
d.
e.
f.
g.
h.
Companys Name: - UNITY Infrastructure Ltd.

Representatives Name: - Mr. K.M.Dalal
Designation: - GM (Finance & Accounts)
Address: - Puspajanli, old Prabhadevi Road, Mumbai
Phone no.: - 022-5666 5500
Cell No: -9821174019
Email ID: -dalal@unityinfra.com
Website: -www.unityinfra.com
46
Feedback:
1. Service: Service wise ICICI, HDFC, Kotak, GE Capital and L&T are same.
2.Value: Financiers are having so tremendous competition among themselves that
they are compelled to deliver the best hence as a customer they are enjoying the
best value of the service.
3 Overall Quality: Every financier is under tremendous pressure to deliver the best
of their service quality. So quality, no doubt is world class.
4. Any Issues: Will consider those financiers in near future who are also going to
provide fund for infrastructure projects.
5. Future Purchase: Purchase will be made within next three months, as per the
projects in hand.
My Feedback: Customer is more or less interested in looking for a strategic finance

partner in its infrastructure projects. So bank should think on those lines also at least for
such big customers. He is open to all financiers so opportunities are big for the L&T here.
Last year purchased 1 mobile crane, Excavator from HDFC, 1 compressor, dumper, DG
set, Batching Plant, Excavator from ICICI, then an excavator from Kotak too.

Customer Profile:
a.
Companys Name: - Patel Engg.
b. Representatives Name: - Mr. R.R.Dhar
c.Designation: - Addl.GM-Purchases
d. Address: - Patel Estate Road, Jogeshwari(W), Mumbai
e.Phone no.: - 022-2678 2916
f. Cell No: g.
Email ID: -headoffice@pateleng.com
47
h.
Website: - www.pateleng.com
Feedback:
1. Service: Service wise satisfied with L&T.
2.Value: OK and similar to that of CITI & Kotak.
3 Overall Quality: L&T has to put up a different show in order to differentiate its
service from CITI.
4. Any Issues: With ABN no issues. Problems only with GE Capital.
5. Future Purchase: Ongoing and will continue this year also.
My Feedback: Customer loyal with L&T and hence preference should be provided to
him. L&T should also be flexible with Patel to have an extra edge over CITI, which is
also present in the competition. Last year purchased 1 crushing plant, Ice & Flick plant
from GE,1 drilling & grouting plant from CITI.

Customer Profile:
a.
b.
c.
d.
e.
f.
g.
h.
Companys Name: - S.N.Thakkar Constructions Pvt. Ltd.

Representatives Name: - Mr. Praveen Thakkar
Designation: Address: - 102, Prince Tower, L.B.S.Marg, Ghatkopar(W), Mumbai
Phone no.: - 022-2516 1946
Cell No: Email ID: - snthakkar@vsnl.com
Website: - www.snthakkar.com
48
Feedback:
1. Service: Best service is of ICICI and L&T.
2.Value: Both financiers are similar value wise.
3 Overall Quality: ICICI is better as they are prompt in service.
4. Any Issues: Minimum 5 years experience with ICICI but the way L&T is dealing
it is much better considering its tender age in market.
5.Future Purchase: No after rainy season.
My Feedback: Customer is impressed with L&T so its the right time to hammer the iron
and bag the maximum of his deals. Last year purchased 2 excavator2 from ICICI, 1
Tipper, small batch mix plant and a concrete wedging plant from L&T.

Customer Profile:
a.
b.
c.
d.
e.
f.
g.
h.
Companys Name: - Hindustan Construction Company

Representatives Name: - Mr. Vinay Jadhav
Designation: - GM (Finance)
Address: - Hincon house, LBS Marg, Vikhroli(W), Mumbai
Phone no.: - 022-2577 5959 Ext.5432
Cell No: Email ID: -vinay@hccindia.com
Website: - www.hccindia.com
Feedback:
49
1. Service: Best service is of ICICI, UTI, IDBI and FII.

2.Value: Get their projects financed, hence no need for extra funding, specifically for
construction equipments.
3 Overall Quality: World class in true sense.
4. Any Issues: Financial Institutes should be more flexible in their terms to
customers.
5. Future Purchase: Purchase on going.
My Feedback: HCC is a very big corporate customer. Any financier entering into the
deal with them has to fund their infrastructure projects. They do not take funds for the
construction equipments specifically.

Customer Profile:
a.
Companys Name: - Skan Marines
b.
Representatives Name: - Mr. Manish Walia
c.Designation: d.
Address: - 19 Loha Bhawan, P.D.MelloRoad, Mumbai
e.Phone no.: - 022-2340 1395
f. Cell No: g.
Email ID: -manish@skanmarine.com
h.
Website: -www. skanmarine.com
50
Feedback:
1. Service: Best service is of ICICI and HDFC, deals only with them.
2. Value: Fully satisfied. No more expectation.
3 Overall Quality: Quality of service very interactive.
4. Any Issues: Skan Marine is open to all financiers, if better rate of interest are
available then they can shift from ICICI & HDFC .
5. Future Purchase: Purchase ongoing.
My Feedback: Customer is very flexible, hence L&T should break him by providing
better offers. For Skan Marines only money matters, hence easy to target him. HDFC
gives LC to Skan Marines in one day without any formalities. Mr. Manish is a good
friend of Mr. Rahul Sharma (HDFC). Last year purchased 50 fork lifters from HDFC &
25 fork lifters from ICICI.

Customer Profile:
a.
b.
c.
d.
e.
f.
g.
Companys Name: - Shahpoorji Balaji

Representatives Name: - Mr. Nirmal C. Jagawat
Designation: -Manager A/C
Address: - Ground Floor, Sand Cinema , next to MTNL office, Colaba
Phone no.: -022-2287 1040
Cell No: - 9821264510
Email ID: -nirmal@shahpoorji.com
51
h.
Website: -www.shahpoorji.com
Feedback:
1. Service: ICICI & L&T best for rate of interest, while overall SREI is best.
2. Value: No doubt ICICI & L&T are much better than other financiers in the
market.
3. Overall Quality: SREI much better is service. They are good in adjustments.
4. Any Issues: Documentation of ABN should be reduced. L&T has got a lot of high
formalities. ICICI much better in providing upper slab.
5. Future Purchase: Purchase ongoing.
My Feedback: L&T has to be careful in dealing with Shahpoorji Balaji. L&T may lose
them to other financier if the documentation formalities are either not reduced or made
simple. Last year purchased 1 Excavator from ICICI, soil compactor from SREI and
projects are financed by Bharat overseas bank.

Customer Profile:
a.
b.
c.
d.
e.
f.
g.
h.
Companys Name: - S.C. Thakur & Brothers

Representatives Name: - Mr. Anand Kumar Lal
Designation: - Manager Purchase
Address: - Panvel, Maharashtra
Phone no.: -022-2745 2713
Cell No: -9820803417
Email ID: Website: -www.sctbindia.com
Feedback:
52
1. Service: Services of ICICI, HDFC and L&T are same.

2.Value: Value wise these financiers are providing upper slab to the firm of about 1.5
cr to 2.5 cr.
3 Overall Quality: Quality of each financier is about the same.
4. Any Issues: Financiers should provide the new rules and regulations of their firm
and also the new government policies for the same.
5. Future Purchase: Purchase on going.
My Feedback: Customer satisfied with L&T. Last year purchased an excavator from
L&T, 1 compactor from HDFC, 1 tandem vibrator from HDFC and a tipper from Kotak.

Customer Profile:
a.
b.
c.
d.
e.
f.
g.
h.
Companys Name: - Tarmat

Representatives Name: - Mr. Suniel Henrick
Designation: - Manager Accounts
Address: - off filmcity road, Goregaon(E), Mumbai
Phone no.: Cell No: Email ID: - suniel@tarmat.com
Website: - www.tarmat.com
Feedback:
53
1. Service: Satisfied by the service of L&T & ICICI

2.Value: L&T is negotiable and providing good service to them.
3 Overall Quality: Quality is ok, however ICICI is better in it, with quick and
accountable service. ICICI is initiative.
4. Any Issues: ABN has to make sure that they are able to follow up with the clients.
5. Future Purchase: Purchase is ongoing. Requirement is of mining equipments.
My Feedback: Customer seems very satisfied with L&T but has hinted that he is moved
with the prompt service of ICICI. L&T needs to be in constant touch with this customer.
Last year purchased 2 loaders, concrete mix plant, crusher, 8 Transit mixture from L&T,
then 1 Transit mixture & excavator from ICICI.

Customer Profile:
a.
b.
c.
d.
e.
f.
g.
h.
Companys Name: - Sohams

Representatives Name: - Mr. Sawant
Designation: -Account Head.
Address: - 701,Casa Blanca,Sector11,opp Belapur CBD road.
Phone no.: - 022-37058656
Cell No: Email ID: Website: -
Feedback:
54
1. Service: Not satisfied with L&T is not accountable, while ICICI is comparatively
more concerned for the customers.
2.Value: ICICI is very open & flexible in providing funds, irrespective of the
previous funds.
3 Overall Quality: ICICI service quality is no doubt world class.
4. Any Issues: No issues.
5. Future Purchase: Ongoing.
My Feedback: Customer seems no more interested in dealing with L&T. Warning alarm
for L&T. It needs to retain customers. Service should be such that it strikes directly to the
customers need. Even one deal is sufficient to make that customer your own. Last year
purchased 2 Tippers from ICICI, 1 transit mixture from HDFC, then 1 Volvo excavator
(EC290) from L&T.

Customer Profile:
a.
b.
c.
d.
e.
f.
g.
h.
Companys Name: - PBA Infrastructure Ltd.

Representatives Name: - Mr. N.G.Thatte
Designation: - Director
Address: - Prakash,611/3, V.N.Purav Marg, Chembur, Mumbai-71
Phone no.: - 022-5597 3767, 5595 1490
Cell No: Email ID: -pbaltd@vsnl.net
Website: -
Feedback:
55
1. Service: Good follow up. Timely dispatch of delivery orders and payment
2. Value: Negotiable and flexible to customers
3. Overall Quality: Similar to other players in the market
4. Any Issues: Not applicable
5. Future Purchase: May go for tipper with in a month.
My Feedback: Customer is delighted and positive with the service. He will remain loyal
to L&T. Last year purchased 2-IR compactor, 2DG set, crusher, tandem vibrator, 4
Tipper, 1 Paver, 1 Pilling Rig from L&T. 1 Compactor & a Paver from ICICI. 1 Batching
plant, and a compressor from HDFC.

Customer Profile:
a.
b.
c.
d.
e.
f.
g.
h.
Companys Name: - Atlanta

Representatives Name: - Rajendra Khatri
Designation: - Finance Manager
Address: - JB Nagar, opp.Leela Hotel, Andheri(E), Mumbai
Phone no.: - 022-2838 2929
Cell No: Email ID: - aligen@vsnl.com
Website: - www.atlantainfra.com
Feedback:
56
1. Service: Ok, similar to all the other players in the market, quick and accountable.
2. Value: Flexible to customers.
3. Overall Quality: Similar to other players in the market, still accountable.
4. Any Issues: Should me more prompt.
5. Future Purchase: On going.
My Feedback: Customer is ok and positive with the service but has to be followed
closely. Last year purchased. Last year purchased 2 Rock breakers, 1 Mobile crane,
1Batch mix plant from ICICI. 8 Tippers, 1compactor, and 3 loaders from L&T.

Customer Profile:
a.
b.
c.
d.
e.
f.
g.
h.
Companys Name: - M/S J.M. Mhatre

Representatives Name: - Mr. Narendra Mhatre
Designation: - Account Head
Address: - Market Yard,Plot No.57/58.Sahakar Nagar,Panvel-6,
Dist. Raigad
Phone no.: - 022-5615 9190
Cell No: Email ID: Website: -
Feedback:
57
1. Service: Concerned only with ICICI, however not satisfied with their delay in
payments. Good PR relationship with ICICI for about 5 years down the line.
2. Value: Very negotiable and flexible to customers
3. Overall Quality: Similar to other players in the market
4. Any Issues: Very much delay in payments.
5. Future Purchase: After rainy season.
My Feedback: Customer should be followed, as he is not satisfied with the performance

of the current financier ICICI. ABN L&T has to be flexible and aggressive to target this
customer and close this deal. Last year purchased DG set from ICICI. Volvo excavator
from Centurion. Tipper from SREI, Rock breaker from HDFC, L&T excavator from
CITI.

Customer Profile:
a. Companys Name: - Trupti Constructions
b. Representatives Name: - Mr. Ramesh Thakkar
c. Designation: - President
58
d. Address: - 116,Vikas Paradise Shopping Complex, Opp.Balrajeshwar Mandir,

Mulund(W)
e. Phone no.: - 022-2567 7770
f. Cell No: - 9892339078
g. Email ID: h. Website: Feedback:
1. Service: Not at all happy with L&Ts service. Very poor and unaccountable service
provider. Absconding on the day of payment. Hectic documentation
procedure.
2. Value: Poor investment in equipments through ABN as they waste a lot of time
of the customer bugging him for small-small issues.
3. Overall Quality: ICICI is a much better option than L&T. Presently negotiating
with ICICI for finance.
4. Any Issues: Very much delay in payments and illogical documentation process.
5. Future Purchase: After rainy season.
My Feedback: Customer is not at all satisfied with the performance of L&T. Later should
be responsible enough to deliver payment amount after successful clearance of
documents and other credentials.
Individual Manufacturers Feedback

Manufacturer Profile: a. Companys Name: - Gujarat Apollo
b. Representatives Name: - Mr. A. Prasad
c. Designation: - Branch Manager
59
d. Address: - 112-113, Shrikant Chambers, Nr. R.K. Studio, S.T.Road, Chembur,

Mumbai
e. Phone no.: - 022-2520 4897
f. Cell No: - 98212 10564
g. Email ID: - aprasad@apollo.co.in
h. Website: - www.apollo.co.in
Feedback:
Preference for any Financier: Preferred financier is CITI Bank, Gujarat Apollo is
having MOU with the former.
Opinion about L&T FINANCE: ABN is a new player in the market. Cant rank in
top five even. CITI is much better. No experience with L&T, so need to observe them
first.
Product Range offered: Pavers, Britteni distributors, curbing machines, wet mix plant
(60% market is of Gujarat Apollo), Batch mix plant.
Any Strategic Alliance: Collaboration with Nigata JAPAN & Manufacturing their
designed products.
My Feedback: Gujarat Apollo had only batch mix plant to offer. According to Mr.
A.Prasad L&T still need to prove itself in the market. Its performance is under
observation.
60
Manufacturer Profile: a.
b.
c.
d.
e.
f.
g.
h.
Companys Name: - GMMCO (Engines)

Representatives Name: - Mr. Kiran. N. Tilaganji
Designation: - Sr. Engg. Sales
Address: - Maker Bhawan No.2, New Marine Line, Mumbai-20
Phone no.: - 022-2200 0728/9
Cell No: Email ID: Website: -www.gmmco.cat.com
Feedback:
Preference for any Financier: Preferred financier is ICICI Bank, GMMCO (Engines)
is having MOU with the former.
Opinion about L&T: Bad experience with ABN, so cant deal with them. Ranked it in
fifth position.
Product Range offered: Caterpillar DG sets ranging from 200KVA to 2500KVA.
Any Strategic Alliance: Collaboration with TIL on the sales of their products region
wise. Sales based on the region classified.
My Feedback: Mr. Tilaganji is very disturbed with the service of L&T so he is serious
of not dealing with L&T any more.

Companys Name: - LIEBHERR

61
b.
c.
d.
e.
f.
g.
h.
Representatives Name: - Mr. Pulok Gupta

Designation: - Manager
Address: - 204, Midas, Sahar Plaza, Andheri(E), Mumbai
Phone no.: - 022-2826 2034
Cell No: - 9821072724
Email ID: - pulok.gupta@liebherr.com
Website: - www.liebherr.com
Feedback:
Preference for any Financier: Preferred financier is ICICI Bank, LIEBHERR is
having word of mouth type understanding with the former.
Opinion about L&T: He blamed all the Financier of the country for the poor level of
the services delivered by them.
Product Range offered: Mobile Cranes, Pilling Rigs, Specialized Excavators,
Compactors, Port cranes and grabs.
Any Strategic Alliance: Collaboration with LIEBHERR AG in Switzerland. Deutsche
Bank is the official financier of the firm.
My Feedback: LIEBHERR has hardly 1% share in the market, they are however not
satisfied with the financiers role in India.

Manufacturer Profile: a. Companys Name: - Atlas Copco
62
b.
c.
d.
e.
f.
g.
h.
Representatives Name: - Mr. Nitin Lall

Designation: - Regional Sales Manager
Address: - MG Memorial Bldg, Marine Lines, Mumbai
Phone no.: - 022-2281 4670
Cell No: - 9821635000
Email ID: -nitin.lall@in.atlascopco.com
Website: - www.atlascopco.com
Feedback:
Preference for any Financier: Preferred financier is ABN AMRO Bank.
Opinion about L&T : ABN is good performer. However ranked ABN at third
position. Consider it as good as other top financiers.
Product Range offered: All mining equipments, surface drillers, hammers.
Any Strategic Alliance: Collaboration with companies in Sweden & Germany.
My Feedback: Mr. Nitin Lall is confident of ABNs performance and thus believe that
ABN can beat even ICICI. So do I

b.
Companys Name: - JCB India Ltd.

Representatives Name: - Mr. Sanjay M.Desai
63
c.
d.
e.
f.
g.
h.
Designation: - Chief Manager Sales

Address: - 201, Chintamani Plaza, Andheri(E), Mumbai
Phone no.: - 022-2825 5503
Cell No: - 9820223435
Email ID: - sanjay.desai@jcbindia.com
Website: - www.jcbindia.com
Feedback:
Preference for any Financier: Preferred financier is ICICI Bank, HDFC Bank &
Kotak. JCB is having MOU with the ICICI and Centurion Bank.
Opinion about L&T: Rank it in top five. ABN finances only high profile customers. It
should also finance retail customers.
Product Range offered: Excavators, Backhoes, Track excavator & Front-end loader.
Any Strategic Alliance: NIL
My Feedback: JCB is number one manufacturer in the field. ABN should have a good
relationship with JCB. Reference to customers from JCB can be of great lead to ABN.

Manufacturer Profile: a.Companys Name: - Tractors India Ltd.
b. Representatives Name: - Mr. Sutirtha Guha
64
c.Designation: - Asst. Manager- Sales

d. Address: - 307, Centre Point, M.V.Road, J.B.Nagar, Andheri(E),Mumbai
e.Phone no.: - 022-5643 0192-93
f. Cell No: - 9820375152
g. Email ID: - til_bby@vsnl.net
h. Website: - www.til-ltd.com
Feedback:
Preference for any Financier: Preferred financier is L&T FINANCE, no MOU with
any financier.
Opinion about L&T: ABN though a new player but a top performer. TIL is fully
satisfied with the performance of ABN.
Product Range offered: Mobile cranes, Rische stackers, Port cranes and croller cranes.
Any Strategic Alliance: Collaboration with GMMCO for sale of caterpillar products
and division of regions for sale.
My Feedback: TIL seems absolutely satisfied with L&T. So we should offer them even
better services and offer.

Manufacturer Profile: a.Companys Name: - Schwing Stetter
b.
Representatives Name: - Mr. Rahul Sharma
c.Designation: - Regional Manager- West
65
d. Address: - 620/621, Nirmal Lifestyle Corporate Centre, LBS Marg,

Mulund(W), Mumbai
e.Phone no.: - 022-2562 4863
f. Cell No: - 98206 16810
g.
Email ID: - rahul.sharma@schwingstetterindia.com
h.
Website: - www.schwingstetterindia.com
Feedback:
Preference for any Financier: Preferred financier is ICICI Bank, Schwing Stetter is
Opinion about L&T FINANCE: L&T is a very irresponsible player in the field. They
are never accountable. Even quoted ABN as useless.
Product Range offered: RMC plants, Recycling plant, short cutting machine(for
Tunnel making), and truck mounted pumps.
Any Strategic Alliance: NIL.
My Feedback: Strong preference for ICICI and bad response for L&T, alarming for
L&T.

Manufacturer Profile: a. Companys Name: - BEML
66
b. Representatives Name: - Mr. S.S.Pati

c.Designation: - Asst. Manager (Sales)
d. Address: - Rajmahal, 1st Floor, 84, Veer Nariman Point Road, Churchgate,
Mumbai
e.Phone no.: -022-2204 0519
f. Cell No: g. Email ID: - mwm@rm.beml.co.in
h. Website: -www. beml.co.in
Feedback:
Preference for any Financier: Preferred financiers are ICICI, HDFC, L&T.
Opinion about L&T FINANCE: Ranked L&T at First place. Preference for ICICI.
Product Range offered: Excavator, Loader, Dozer, Dumper, Shovel and Bulldozers.
My Feedback: BEML are second most seller of construction equipments. They supply
equipments to government projects and government contractors. Its good for L&T that
BEML considers it for financing of equipments.

Manufacturer Profile: a.Companys Name: - Volvo(Dealer)
b.
Representatives Name: - Mr. Anish Modak
c.Designation: - Business Development Manager
67
d.
Address: - Khopat, Thane
e.Phone no.: - 022-2547 1108
f. Cell No: - 9322671710
g.
Email ID: - anish.modak@swenskatech.co.in
h.
Website: www.volvoindia.com
Feedback:
Preference for any Financier: Preferred financier is ICICI Bank.
Opinion about L&T: L&T is again ranked at third position after ICICI & HDFC.
Product Range offered: Excavators, Loaders, Motor graders.
Any Strategic Alliance: Volvos dealer in Khopat region, Thane.
My Feedback: Mr. Anish Modak is ok with the servicing of L&T. Though he seem to
be more comfortable with ICICI and HDFC.

Manufacturer Profile: a.Companys Name: - L&T Komatsu
b. Representatives Name: - Mr. Manish R. Parab.
c.Designation: - Sr. Executive - Sales
68
d. Address: -Earthmoving Equipments Division, Gate No.5, Powai (East),

Mumbai
e.Phone no.: - 022-5505 3039
f. Cell No: - 9820728778
g. Email ID: -mrp-ced@powai.ltindia.com
h. Website: - www.ltindia.com
Feedback:
Preference for any Financier: Preferred financier is CITI & HDFC Bank, they have
MOU with them.
Opinion about L&T: According to Mr. Manish ICICI & L&T are the two sides of a
coin. He points that the servicing pattern of both are same.
Product Range offered: Excavator, Backhoe and Loaders.
My Feedback: L&T Komatsu are big brands and for an upcoming financier they can
definitely provide leads by giving references.

Manufacturer Profile: a.Companys Name: - Ingersoll Rand
b.
Representatives Name: - Mr. Janardhan Nair
69
c.Designation: - Regional Manger -IDS

d. Address: - IR India-Ltd., Solitaire Corporate Park-IV, Unit-411-412,
Andheri(E), Mumbai.
e.Phone no.: - 022-5697 5515
f. Cell No: - 93246 44350
g.
Email ID: - janardhanan_nair@irco.com
h.
Website: - www. irco.com
Feedback:
Preference for any Financier: Preferred financier is L&T and is satisfied with the
servicing of L&T. He has good past experiences with L&T to share hence all thumbs up
for L&T from IR. No dealings with Centurion Bank and Ashok Leyland Finance.
Opinion about L&T: Ranked L&T at number two position. Proximity is the quality in
ABN guys by which IR is impressed.
Product Range offered: Compactors, Portable compressors, Pavers, Rock Breakers,
Jack Hammers, Bob cats, Mini excavator etc.
My Feedback: IR shows all signs positive for L&T, now the ball is in L&Ts court to
maintain their relationship with IR and deliver their best.

Manufacturer Profile: a. Companys Name: - Voltas Ltd.
b. Representatives Name: - Mr. Debasis Bhattacharya
c. Designation: - Regional Sales Manager
70
d.
e.
f.
g.
h.
Address: - Voltas House B 3rd Floor, TB Kadam Marg, Chinchpokli, Mumbai

Phone no.: - 022-5665 6132
Cell No: - 98205 56635
Email ID: - dbhattacharya@voltas.com
Website: - www.voltas.com
Feedback:
Preference for any Financier: Preferred financier is ICICI, SREI and GE Capital,
also having MOU with them.
Opinion about ABN AMRO: ABN is not mature enough to be rank among the top
five financiers. Good experience with GE capital. No experience with ABN, so need to
observe them first.
Product Range offered: Crushers, Screens, Mobile and port cranes, excavators and
loaders.
Any Strategic Alliance: Collaboration with German firm and Voltas just import their
machines and sell it in India with their name.
My Feedback: Voltas is a tough customer to deal with since their all machines are
imported. Its difficult for the financiers to finance their machines at the invoices price
since they are much above the market price.

Manufacturer Profile: a.Companys Name: - Escorts
71
b.
Representatives Name: - Mr. Ravi C. Narayan
c.Designation: - Business Manager
d. Address: - Bombay Dying Compound, Admin Bldg, 1st Floor, Worli, Mumbai
e.Phone no.: - 022-2421 8153
f. Cell No: - 9821458206
g.
Email ID: - mumbai@ecel.com
h.
Website: - www.ecel.com
Feedback:
Preference for any Financier:
Preferred financier is Centurion Bank, Escotrs is
Opinion about ABN AMRO: ABN is not doing this much business even that I can
rank them under ten.
Product Range offered: Pick & carry cranes, Fork lifters, compactors and tandem
vibrators.
My Feedback: Escorts seem to be over reacting. ABN is doing business fair enough to
rank it at number four with around 8% of the market share.

Manufacturer Profile: a. Companys Name: - TATA
72
b.
c.
d.
e.
f.
g.
h.
Representatives Name: - Mr. Prasad Kolpkar

Designation: - Senior Sales Officer-CV
Address: - TATA Motors Ltd., LBS Marg, Wagle Estate, Thane
Phone no.: - 022-5592 7272/7122
Cell No: - 9820202686
Email ID: - prasad.kolpkar@tatamotors.co.in
Website: - www. tatamotors.co.in
Feedback:
Preference for any Financier: Preferred financier is TATA Finance, TATA is having
MOU with the former.
Opinion about ABN AMRO: TATA has not rank ABN in top five.
Product Range offered: Excavators, backhoe etc.
Any Strategic Alliance: Collaboration with HITACHI.
My Feedback: This should be of ABNs concern because ABN has been financing
their equipments.

b.
c.
d.
Companys Name: - L&T Case

Representatives Name: - Mr. Shivanath Kamoji
Designation: - Area Executive
Address: - Earthmoving Equipments Division, Gate No.5, Powai (East), Mumbai
73
e.
f.
g.
h.
Phone no.: - 022-2858 1401 Ext: 2763

Cell No: - 9820077165
Email ID: - smk-eed@powai.ltindia.com
Website: - www. ltindia.com
Feedback:
Preference for any Financier: Preferred financier is SREI, L&T case is having MOU
with the former.
Opinion about ABN AMRO: ABN is a new player in the market. Cant rank in top
five even. CITI is much better. No experience with ABN, so need to observe them first.
Product Range offered: Loader Macro, Tandem vibratory compactor.
My Feedback: L&T case is dealing in small construction equipments and thus target is
mainly retail customers. This may be the reason why SREI is a leading financier in this
region.

Manufacturer Profile: a. Companys Name: - Ashok Leyland
b. Representatives Name: - Mr. Saikat Mandal
c.Designation: - Sr. Sales Executive
d. Address: - Electric Mansion, Appa Saheb Marathe Marg, Prabhadevi, Mumbai
74
e.Phone no.: - 022-2430 5093

f. Cell No: - 9870480995
g. Email ID: - saikat.mandal@ ashokleyland.com
h. Website: - www.ashokleyland.com
Feedback:
Preference for any Financier: Preferred financier is ICICI & HDFC, Ashok Leyland
is having MOU with them.
Opinion about ABN AMRO: Ashok Leyland had not ranked ABN anywhere. So they
have ignored ABN, it has to be taken seriously.
Product Range offered: Transit mixture chassis and all types tippers.
My Feedback: Ashok Leyland rating signifies that ABN has to increase its reach.
However Ashok Leyland is only selling tippers hence it does not sound to be a big
threat.

Manufacturer Profile: a.Companys Name: - Greaves
b.
Representatives Name: - Mr. Sachin Sanghai
c.Designation: - ConstructionEqptDiv.BusinessGroupIV
75
d. Address: - Greaves Cotton Ltd., Industry Manor, Cotton Green, Prabhadevi,

Mumbai
e.Phone no.: - 022-24223747
f. Cell No: - 9819134981
g.
Email ID: - sachin@cottongreaves.com
h.
Website: - www.cottongreaves.com
Feedback:
Preference for any Financier: Preferred financier is CITI Bank, Gujarat Apollo is
Opinion about ABN AMRO: Ranked ABN at number four. ABN is not as open as
other financiers. ABN should also finance retail customers. ABN is more or less similar
to CITI.
Product Range offered: Transit Mixtures, Concrete pumps etc.
Any Strategic Alliance: Collaboration with CIFA and are selling all CIFA products.
My Feedback: GREAVES has given a true picture of ABN. ABN is concerned only
with corporate customers. So this means ABN is on right track.

Manufacturer Profile: a.Companys Name: - Telcon
76
b. Representatives Name: - Mr. Pankaj Sharma

c.Designation: - Senior Sales Officer
d. Address: - 301E Poonam Chambers A-Wing, 3rd Floor, Worli, Mumbai
e.Phone no.: - 022-5654 1741
f. Cell No: - 9819520335
g. Email ID: - pankaj.sharma@ telcon.co.in
h. Website: - www.telcon.co.in
Feedback:
Preference for any Financier: Preferred financiers are HDFC, CITI and L&T
FINANCE. No existing MOU.
Opinion about L&T: Ranked L&T at 1ST position. L&T has to be initiative and
innovative in delivery of services. Its servicing is similar to that of CITI.
Product Range offered: Crawler, Cranes, Dumpers, Asphalt plant, Tandem vibrator,
Motor grader etc.
Any Strategic Alliance: Collaboration with HITACHI.
My Feedback: Telcon is having 12% of the market share. Hence it is very

advantageous for ABN to be preferred by Telcon.

Manufacturer Profile: a. Companys Name: - GMMCO (Construction Equipments)
b. Representatives Name: - Shailesh Wagholikar
77
c.Designation: - Sales Manager

d. Address: - GMMCO Ltd.Maker Bhavan No.2,18, Marine Lines, Mumbai
e.Phone no.: - 022-22000728
f. Cell No: - 9820002336
g. Email ID: - shailesh.wagholikar@gmmco.co.in
h. Website: - www. gmmco.co.in
Feedback:
Preference for any Financier: Preferred financier is ICICI Bank, GMMCO is having
MOU with the former.
Opinion about L&T: He has not ranked L&T in top 10 financiers also.
Product Range offered: Loaders, excavators etc.
Any Strategic Alliance: Collaboration with TIL and caterpillar.
My Feedback: Not satisfied with the correspondent, since he himself is disturbed with
the job profile in GMMCO.
Individual Financiers Feedback

Financier Profile: a. Companys Name: - Centurion Bank
b. Representatives Name: - Mr. K. Jaganathan
78
c.
d.
e.
f.
g.
h.
Designation: - Dy. Manager

Address: - 322,Swastik Chambers, Chembur, Mumbai
Phone no.: -022-25226100
Cell No: -9820449478
Email ID: -jaganathank@centurionbank.com
Website: -www. centurionbank.com
Feedback:
Self Analysis by Financier: Centurion Bank is in top five may be at number 4. Number
one in west Goa region.
Opinion about L&T FINANCE: L&T is struggling to stay in the market.
My Feedback: I really feel sorry for Centurion Bank. They are in their own paradise.
They are making a terrible mistake by underestimating L&T. However Centurion is
trying to eat up the customer of Kotak.

Financier Profile: a. Companys Name: - CITI Bank
79
b.
c.
d.
e.
f.
g.
h.
Representatives Name: - Mr. Narendra Virkar

Designation: - Area Manager- Credit
Address: - CitiTower, 2nd Floor, Parel, Mumbai
Phone no.: -022-2410 0060
Cell No: -98210 61448
Email ID: -cfil.narendra.virkar@citigroup.com
Website: -www.citigroup.com
Feedback:
Self Analysis by Financier:
Pioneers in Bank Guarantee.
CITI is at number two, based on regional coverage.
Opinion about L&T FINANCE: ABN is among top competitors of CITI.

My Feedback: CITI is very concern about L&Ts target customer. Down the line they
are having almost the same target like Patel Engg., Valecha etc.

Financier Profile: a.
b.
c.
d.
Companys Name: - Ashok Leyland Finance Ltd.

Representatives Name: - Mr. Raphael G.Fernandes
Designation: - Branch Incharge
Address: - Mittal Towers, Nariman Point, Mumbai
80
e.
f.
g.
h.
Phone no.: -022-2202 1004

Cell No: -9892346711
Email ID: -raphaelg@indusindbank.com
Website: -www. indusindbank.com
Feedback:
Self Analysis by Financier: Rank themselves at number three, taking both construction
equipments and commercial vehicles together.
Opinion about L&T: Ashok Leyland considers only those financiers as their
competitors who are in both that is construction equipments and commercial vehicles.
Hence for them L&T is out of competition.
My Feedback: Ashok Leyland Finance Ltd. is taking CE & CV together as one area of
business, hence things are not easily acceptable.

b.
c.
d.
e.
Companys Name: - SREI

Representatives Name: - Mr. Nitin Thakkar
Designation: - Asso. Vice President
Address: - Nishuvi, 3rd Floor, Lower Parel, Mumbai
Phone no.: - 022-2492 3904
81
f. Cell No: - 98204 92343

g. Email ID: -nitin@srei.com
h. Website: - www.srei.com
Feedback:
Self Analysis by Financier: Ranks themselves as number one. No doubt about that, as
facts and figures too speak the same.
Opinion about L&T FINANCE:
competitors. L&T as number one.
SREI mentioned L&T and ICICI as their top
My Feedback: A positive stroke for L&T. L&T sharing the podium with ICICI.

Financier Profile: a. Companys Name: - ICICI
b. Representatives Name: - Mr. Ganapathy Subbam
82
c.
d.
e.
f.
g.
h.
Designation: - Regional Sales Manager

Address: - Zenith House, Mahalakshmi, Mumbai
Phone no.: - 022-2490 6061
Cell No: -9819797654
Email ID: -subbam.g@icicibank.com
Website: -www.icicibank.com
Feedback:
Self Analysis by Financier: Ranks themselves at number two with SREI at number one.
Opinion about L&T FINANCE: Very aggressive approach by ICICI. As per their
ideology every other player in market of Construction Equipment finance is their
competitor.
My Feedback: ABN considers ICICI as their prime competitor. A lot to learn from
ICICI for L&T. Great sales force with aggressive marketing and prompt service.

Financier Profile: a. Companys Name: - TATA Finance Ltd.
b. Representatives Name: - Mr. Sanjay G Kulkarni
c. Designation: - Senior Manager-CEQ(West)
83
d.
e.
f.
g.
h.
Address: -Bezzola Complex, VN Purav Marg, Chembur, Mumbai.

Phone no.: - 022-2527 6410
Cell No: -9223338107
Email ID: -ksanjay@tatafin.com
Website: -www.tatafin.com
Feedback:
Self Analysis by Financier: Dont believe in number game. They have a totally different
market segment. Targeting only TATA customers.
Opinion about L&T FINANCE:
competitors.
TATA mentioned HDFC, L&T, ICICI as their
My Feedback: TATA provide customized services to their customers. So all TATA

customers get funds with more flexibility from TATA finance.
84
b.
c.
d.
e.
f.
g.
h.
Companys Name: - GE Capital

Representatives Name: - Mr. Jeevan Shinde
Designation: - Sales Manager-CE
Address: - Keshava Commercial Premises, Bandra Kurla Complex,
Bandra(E), Mumbai.
Phone no.: - 022-5668 2007
Cell No: - 9820335062
Email ID: -jeevan.shinde@ge.com
Website: -www.gecapitalindia.com
Feedback:
Self Analysis by Financier: Ranks themselves at number five.
Opinion about L&T: ICICI, HDFC, CITI, and L&T FINANCE are their competitor.
My Feedback: GE is over targeting this year.

Financier Profile: a. Companys Name: - L&T Finance Ltd.
b. Representatives Name: - Mr. N.K.Sudhir
85
c.
d.
e.
f.
g.
h.
Designation: - Sales Manager-CE

Address: - Swatik Chambers, 8th Floor, Chembur, Mumbai
Phone no.: - 022-5575 2700
Cell No: - 98332 64482
Email ID: -nksudhir@ltfinance.com
Website: -www.ltfinance.com
Feedback:
Self Analysis by Financier: Ranks themselves at number three. Over estimating their
performance.
Opinion about L&T : Approach is similar to that of ICICI. They also consider every
other financier their competitor.
My Feedback: Mr. Sudhir is not carrying good will in the market. Even L&T Komatsu
are referring them for finance to their customers. Their performance is not at all in par
with ABN. Hardly 2% share in the market.

Financier Profile: a. Companys Name: - Kotak Mahindra Bank
b. Representatives Name: - Mr. V.Dhanush Kumar
c. Designation: - Regional Manager- West
86
d. Address: - Vinay Bhavya Complex, 5th Floor, Kalina Santa Cruz

(East), Mumbai
e. Phone no.: - 022-2652 4890
f. Cell No: - 9819894761
g. Email ID: -dhanush.vishwanathan@kotak.com
h. Website: -www.kotak.com
Feedback:
performance.
Opinion about L&T: L&T not their competitor as it has more with corporate clients
while Kotak is concerned with retail ones.
My Feedback: Performing well among the retail customers. Struggling out in market
against Centurion Bank.

Financier Profile: a. Companys Name: - HDFC Bank
b. Representatives Name: - Mr. Rahul Sharma
c. Designation: - Area Sales Manager
87
d.
e.
f.
g.
h.
Address: - Trade World, Awing, Lower Parel, Mumbai.

Phone no.: -022-2498 8484
Cell No: -3419 5334
Email ID: -sharma.rahul@hdfcbank.com
Website: -www.hdfcbank.com
Feedback:
performance.
Opinion about L&T: They quote L&T as just born baby in front of them.
My Feedback: Mr. Rahul seems to be lost in his own paradise. For his information this
13 months old baby is eating up their share like a white ant.
Recommendations
1. As per the market size of 2531 equipments having a share of around 8% is worth
appreciation and that only with the 8 months operation in the field, but L&T has
terribly missed big corporate customers and that also to smaller players like
Centurion Bank, L&T Finance etc. L&T lost these deals mainly because of its
delay in the process. These delays cannot be taken for granted.
88
2. L&T now no more requires any introduction in the equipment finance market.
Bank only needs to keep on working on the same track of tapping customers.
3. As per the performance of the other financiers, L&T now has to be more open to
retail customers too. L&T FINANC from the day one seems to be restricting itself
only to corporate customers. Its safe but they need to adopt a wider range if they
need to capture more market share.
4. Individual analysis of customers reveals that as a bank L&T today stands on
those customers who were initially funded by either ICICI or CITI. Hence bank
should try to focus on these big clients more in order to prevent them from
switching back to their former financiers.
5. Marketing wise all thumbs are up for L&T, consequently they need to exploit this
opportunity by following up their customers consistently.
6. L&Ts equipment finance division Mumbai is a good amalgamation of exemployees of ICICI, CITI, and SREI. This gives them an extra edge over their
competitors, as they are well aware of their competitors working strategy. L&T
needs to support & coordinate these talented employees with flexibility in its
approach and norms.
7. In its thirteen months of total working in the field of equipment finance L&T has
funded almost all big contractors of West. Division should keep a close track of
these customers through PR and employee relationship.
8. Among manufacturers Schwing Stetter was the most annoyed manufacturer with
L&T. L&T has to maintain PR with them since former is the number one player in
transit mixers.
9. On the other hand bank should also take concern for smaller contractors. Like
Trupti Contractors in Mulund region never seem to be happy with the service of
L&T. L&T should take up such issues seriously in order to retain customers.
Questionnaire For Customers (Contractor & Developers)

Research and analysis are the two fundamental factors, which provide vision and
direction to an organization. With these lines I introduce, my self VIJAY KUMAR SAW,
89
student of MBA course from batch of 2013-15 from AIAM,G Noida. As a part of my
curriculum I am required to undertake a summer project. I have taken a project to
estimate the financial aspects and growth in the area of Infrastructure Sector. For the
same I require genuine information from three key players of the concerned field viz.
Manufacturers, Financers, and Customers. With respect to above I need your concern and
assistance, which would enable me to go through this research successfully. The
information provided by you is very vital for my study. It would be very nice on your part
if you spare some time to complete the below given questionnaire. I express my gratitude
to you for giving me your precious time. Thanks in anticipation.
Questionnaire
1. Which equipments do you possess now? (Pl. mentioned nos.)
_________________________________________________________________
__________________________________________________________________
_
2. How do you manage your additional machine requirement?
_________________________________________________________________
__________________________________________________________________
__________________________________________________________________
_
3. Which type of equipments do your company prefer?
1. Brand New
2. Second Hand
Why?
_______________________________________________________________________
_____________________________________________________________
4. Which factors do you consider before going for such a purchase?
1. Brand
2. Price
3. Availability of finance with that brand
4. After sales service
5. Other (Please specify)_____________________
5. Which are your favorable manufacturers? Why?

__________________________________________________________________
__________________________________________________________________
6. Which equipments did you got financed in last financial/calendar year, kindly
name them and their respective financer?
90
Equipment Name
Financer
7. Are you planning for a purchase in near future?

1. Yes (What & When_______________________________ )
2. No
8. Which of the Financers are you aware of / dealt with? (Kindly rank them)
__________________________________________________________________
__________________________________________________________________
9. How satisfied are you with current process model of financing?
Very
Unsatisfied Neutral Satisfied
Very
Unsatisfied
Satisfied
Not
Applicable
Overall quality
Value
Service
experience
Why?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
10. Compared to other financers that are present in the market, would you say that
one you are dealing with:
1. Much Better
2. Somewhat Better
91
3. About the same

4. Somewhat worse
5. Much Worse
Why?
________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__
11. What do you expect from any financer?
__________________________________________________________________
__________________________________________________________________
12. Company Profile:a. Companys Name:-____________________________________________
b. Representatives Name:-________________________________________
c. Designation:-_________________________________________________
d. Address:-____________________________________________________
e. Phone no.:-__________________________________________________
f. Cell No:-____________________________________________________
g. Email ID:-___________________________________________________
h. Website:-____________________________________________________
Questionnaire For Manufacturers (Construction

Equipments)
direction to an organization. With these lines I introduce, my self Saurabh Pandey,
student of PGDM course from batch of 2006 from AMITY Business School, Noida. As a
part of my curriculum I am required to undertake a summer project. I have taken a project
to estimate the financial aspects and growth in the area of Infrastructure Sector. For the
92
Questionnaire
2. Do you recommend your customers to go for getting the construction equipments
financed?
1. Yes
2. No
3. Sometimes
3. Which company do you generally prefer for the same? Why?
__________________________________________________________________
__________________________________________________________________
4. What more you expect from financiers?
__________________________________________________________________
__________________________________________________________________
5. Which companies apart from the above are you aware of / dealing with? (Pl. rank
them)
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
6. Which are the product range do you propose for construction industry?
__________________________________________________________________
__________________________________________________________________
7. What were your last years figures (monthly basis) against target?
Target
Achievement
Jan-13
Feb 13
93
Mar-13
Apr 13
May 13
Jun 13
Jul 13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan 14
Feb 14
Mar- 14
8. What is your current years target & achievements against them?

Target
Achievement
Jan-14
Feb 14
Mar-14
Apr 14
May 14
Jun 14
Jul 14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan 15
Feb 15
Mar- 15
9. Who made the payments for the same assets? (break-up of segment)
94
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
9. Any suggestions to improve current process to the best model? How?

__________________________________________________________________
__________________________________________________________________
10. Company Profile:a. Companys Name:-____________________________________________

b. Representatives Name:-________________________________________
c. Designation:-_________________________________________________
d. Address:-____________________________________________________
e. Phone no.:-__________________________________________________
f. Cell No:-____________________________________________________
g. Email ID:-___________________________________________________
h. Website:-____________________________________________________
Questionnaire For Financiers (Competitors of L&T

Finance)
direction to an organization. With these lines I introduce, my self VIJAY KUMAR SAW,
student of MBA course from batch of 2013-15 from AIAM G. Noida. As a part of my
curriculum I am required to undertake a summer project. I have taken a project to
estimate the financial aspects and growth in the area of Infrastructure Sector. For the
95
Questionnaire
1. Which type of facilities do your company provide to your customer?
__________________________________________________________________
__________________________________________________________________
2. Which are your major competitors? (Name at least 5)
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
3. Where would you put yourself? (Your position)
__________________________________________________________________
4. How do you serve your customers differently from your competitors?
__________________________________________________________________
__________________________________________________________________
5. Besides Equipment finance what kind of other options does your organization
provide to the customer?
a. Bank Guarantee
b. Cash Credit
c. Over Draft
d. Letter of Credit
e. Other (Please Specify)________________________
6. What were your last years figures (monthly basis) against target?
Target
Achievement
Jan-13
96
Feb 13
Mar-13
Apr 13
May 13
Jun 13
Jul 13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan 14
Feb 14
Mar- 14
7. What is your current years target and achievements against them?

Target
Achievement
Jan-14
Feb 14
Mar-14
Apr 14
May 14
Jun 14
Jul 14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan 15
Feb 15
Mar- 15
8. How do you target your customers?

__________________________________________________________________
__________________________________________________________________
97
9. What is your target customer?

__________________________________________________________________
__________________________________________________________________
10. Which all areas do you cover? What are the parameters to consider the same area?
__________________________________________________________________
__________________________________________________________________
11. How important role of dealer / manufacturer in your industry?
__________________________________________________________________
12. Do you have any kind of tie-up with any dealer / manufacture? (Please specify
details)
__________________________________________________________________
13. Company Profile:i. Companys Name:-____________________________________________
j. Representatives Name:-________________________________________
k. Designation:-_________________________________________________
l. Address:-____________________________________________________
m. Phone no.:-__________________________________________________
n. Cell No:-____________________________________________________
o. Email ID:-___________________________________________________
p. Website:-____________________________________________________
Contractor Data Analysis (Sample Size 20- All prime Contractors & Developers of
West)
Q1. Which equipments do you possess? Kindly mention the numbers?
98
Split of Construction Equipment Market as per their different

categories
31%
55%
14%
Non-Registered & Movable Equipments
Non-Registered & Non-Movable Equipments
Registered & Movable Equipments
Non-Registered & Movable
1. Tower Cranes-6
2. JCBs (Small)- 63
3. Dumpers/Tippers- 221
4. Gantry Cranes-8
5. Loaders- 70
6. Normal Cranes- 3
7. Transit Mixtures- 57
8. Fork lifters- 200
1.
2.
3.
4.
5.
6.
7.
Non Registered & Non Movable

1. Batching Mix Plants- 26
2. Concrete Mix Plants-76
3. Stone Crushers-13
4. Hydraulic Pilling Rigs-12
5. Ship Grab-1
6. Concrete Pumps-1
7. Hydraulic-Jumbo-Drill- 4
8. Drum Mix Plant- 3
9. Crushers- 17
10. Conveying System- 2
11. Tunnel Boring Machine- 2
12. Wagon Rills- 4
13. Cone Crushers- 1
99

Excavators-104
Concrete Pavers-5
Proclains-4
Paver Fishers- 9
Tandem Vibrator Roller-68
Soil Compactors- 72
Loader cum excavator- 39
Q2. How do you manage your additional machine requirement?
How do you manage your additional machine requirement?

Purchase
Hire
Both
By Finance from Financiers
Both
30%
Purchase
60%
Hire
10%
This question basically identifies the markets need that how they make up their
requirements for additional machinery whenever required. To identify how much
significance they give to purchase or hire?
Inference:
1. Bankers should concentrate more on their basic service of financing the new
construction equipment.
2. Every developer except a few corporate players viz. HCC go for finance of
construction equipments via some or the other financial institute.
2. However there are two face of this coin too. Hiring and purchase are contributed to
various factors like for small developers it is totally dependent on the potential of work to
be done with that machine. If machine can be used in the future projects then they go for
purchase however if the project is small or seasonal work has to be done then they go
only for hiring.
3. Contractors & developers are today more aware about the benefits of new equipments,
they have realized their value of money, so new trends are being set up with market
moving for purchase of equipments than going for hire.
4. Infrastructure developers today are concentrating more on asset building, this again
contributes to the fact of buying rather than going for hiring of construction equipments.
5. New government norms for allocating of a project are also reasonably responsible for
the purchase of these assets rather than going for hire.
6. Then the project for which a specific machine is required may be of seasonal nature.
That is the quantum of work involved may be less or not substantial enough to justify its
purchase.
7. Finally, the most important and substantial factor is lowering down of the interest rates
for finance of equipments. Today EMI of equipments is equivalent to the cost of hiring
equipment.
So why not to purchase an equipment and add to our asset.
100
Q3. Which type of equipments do your company prefer?
Which type of equipments do your company prefer?

Brand New
Second Hand
Both
Both
20%
Second Hand
0%
Brand New
80%
This question is in continuation of the previous question and it estimates the market size
between the two types of machine options available among the contractors & developers,
80% prefer going for purchase of new equipments while 20% still prefer second hand
Inference:
1. There are reasons for the above market results and can be contributed because of the
following factors like Brand new product provides them good productivity.
2. Brand new equipments carry good warranty and on-site service by the manufacturers.
3. Less break down and in fact no-maintenance.
4. Long-life cycle and good turn around time.
5. Minimum break down with manufacturers support and service.
6. Minimum investment, so overall good value for money.
7. However if we look to other option there are reasons to go for them too like good
working condition of a particular machine.
8. Then the project for which a specific machine is required may be of seasonal nature.
That is the quantum of work involved may be less or not substantial enough to justify the
purchase of brand new equipment. Since company has to show these machines in their
asset list so for that sake they go for second hand purchase.
9. Taking the concern of bankers what we must consider is that since market size and
demand of brand new machines is much higher compare to the second hand machines
Financiers should expand their market more on brand new equipments rather spending
man-power on refinance.
101
Q4. Which factors do you consider before going for purchase of

Construction Equipment?
Which Factors do you consider before going for purchase of CE?
Brand
Price
Availability of Finance with that equipment
After sales service
Others
2
5
To Discover the factors, which influence the purchase behaviour of a developer with this
intention the question was framed.
Inference:
1. 75% for the brand clearly indicates the high awareness level of the contractors &
developers. Since equipment in this field involve huge investments so contractors always
look twice before they leap for equipments. Here performance of machine varies
significantly with brand. So those who want best to be delivered they go for best and big
brand.
2. 60% for after sales service, no doubt about it. Machinery involved in the equipments
is imported to a huge extent. So incase of break down if spare parts or feasible service is
not delivered then it is going to hamper the whole work process. So contractors always
look for the best and big deal with good after sales service.
3. 35% for the price. Working capital required for the equipments is so high that an
average performer in the field of infrastructure has to be concerned about the price.
Equipments cost may vary from Rs.12 lakhs to Rs.5 crore.
4. 15% developers also quoted other factors like:
Equipments which can be easily customized.
Tailor made equipments.
Then they also look for the potential of the equipment, which also vary from
significantly from equipment to equipment.
Performance of the equipment
5. 5% only considered availability of finance with an equipment is also significant. Today
every financial institution is ready to finance the equipments. So getting your equipment
financed by them is not a big deal.
102
Q5. Which are your favourable manufacturers?
Which are your favourable manufacturers?

JCB
L&T Komatsu
Gmmco-CAT
IR
TATA-Hitachi / Telcon
211
18
S chwing S tetter
Ashok Leyland
Escorts-Crane
VOLVO
13
5
5
7
Atlas Copco
Tractors India Ltd.
Gujarat Apollo
Voltas
Greaves
L&T Case
LIEBHERR-Crane
This question tries to identify the top market player among all manufacturers present in
the market. This may provide an idea to the bank to keep a close eye on which of the
following manufacturers. As it is the manufacturer who can influence the choice of
financier made by the customer.
Inference:
1. 18 and 13 out of 20, it speaks on its own that JCB and L&T Komatsu are the most
preferred manufacturers.
However it has another aspect too that is the product range offered by both the
manufacturers are the most sought after products. Excavators, Loader & Excavator, Soil
Compactors, Tandem-Vibrator soil compactor etc. are in fact used by almost all the
infrastructure developer in some or the other form.
There are other players too who offer the same products but the un-matched quality
offered by them is unbeatable.
JCB scores on L&T because of its best service and ease in availability of genuine spare
parts that too at reasonable price.
2. The other players like TATA, GMMCO, TIL are also successful in making mark in the
market because of their variety of product range they offer.
Q6. Which equipments did you got financed in last financial/calendar year,
Kindly name them and their respective financer?
103
Number of Equipments financed by the Financier

Transit Units
8
21
6
Tandom Vibrators
Soil Compactors
2
2
5
2
CI
TI
-C
O
21
1
11
11
Escavators
1
on
AB
NAM
RO
HD
FC
RP
Tippers
Ce
nt
ur
i
13
10
Ko
ta
k
18
GE
11
Backhoe
SR
EI
3
12
IC
IC
I
35
30
25
20
15
10
5
0
Number of Equipments financed by the Financiers

6
5
4
GE
2
3
2
1
CITI-CORP
1
1
0
DG Set
Rock
Breaker
1
3
1
Concrete
Wedging
Plant
Crusher
104
1
1
Flick & Ice

Plant
Drilling &
Grouting
Plant
ABN-AMRO
HDFC
ICICI
Number of Equipments financed by the Financiers

14
12
10
8
6
4
2
0
Loader
Paver
Pilling Rigs
3
1
3
ICICI HDFC
L&T
on
Ce
nt
ur
i
Ko
ta
k
GE
Mobile Crane
SR
EI
AB
NAM
RO
Batching Plant
Compressor
CI
TI
-C
O
RP
1
1
1
HD
FC
IC
IC
I
1
2
2
1
13
CITI-CORPSREI GE Kotak Centurion
Escavators
10
Tippers
11
Soil Compactors
2
Tandom Vibrators
1
Backhoe
Transit Units
3
Fork Lifters
50
DG Set
3
Rock Breaker
2
Concrete Wedging Plant
Crusher
Flick & Ice Plant
Drilling & Grouting Plant 1
Mobile Crane
1
Compressor
2
Batching Plant
2
Pilling Rigs
Paver
1
Loader
1
13
6
1
2
5
18
8
1
3
1
3
89
52
46
2
5
1
1
1
1
1
1
2
2
25
2
1
1
1
3
1
1
1
1
13
26
Q7. Are you planning for purchase in near future? What & When?
105
21
49
17
3
4
7
75
5
4
1
3
1
3
2
3
3
16
2
4
Are you planning for purchase in near future?
25%
75%
YES
NO
No doubt about, this question is meant to identify the tentative customer and his needs.
Also about the time frame within which he will do that purchase.
Inference:
1. This question helped me a lot in detecting the tentative customers need.
2. Also helped me to identify the new areas in which he has struck the project,
capital involved and also a fair idea of his future requirements.
3. It also unveiled the intentions of the developer with regards to his process of
getting finance.
4. I have analyzed contractors individually and will throw light on each 1 of them
gradually, in later part of the report.
Q8. Which of the Financers are you aware of / dealt with? (Kindly rank
them)
106
107
Kotak
Mahindra
TATA
Finance
Centurion
Bank
Ashok
Leyland
L&T
Finance
SREI
Kotak
Mahindra
TATA
Finance
Centurion
Bank
Ashok
Leyland
L&T
Finance
GE
GE
SREI
2
1
CITICORP
ABNAMRO
HDFC
2
CITICORP
ABNAMRO
7
6
5
4
3
2
1
0
HDFC
ICICI
9
8
7
6
5
4
3
2
1
0
ICICI
Customers who ranked the Financiers Number1
8
5
Rank1
Customers who ranked the Financiers Number 2
6
4
2
Rank2
Customers who ranked the Financiers number three
Fi
na
Le
nc
yl
e
an
dF
in
an
Ce
ce
nt
ur
io
n
Ba
TA
nk
TA
Fi
na
Ko
nc
ta
e
k
M
ah
in
dr
a
As
ho
k
AB
NAM
RO
CI
TI
-C
O
RP
GE
HD
FC
L&
IC
IC
I
Rank3
SR
EI
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Customers who ranked Financiers for Number 4

7
6
5
4
3
2
1
0
Rank4
G
E
O
IT
I-C
SR
EI
RP
ce
an
C
As
h
ok
Le
y
la
nd
Fi
n
Fi
n
an
ce
FC
H
D
TA
TA
I
IC
IC
-A
M
RO
M
ah
in
dr
a
K
ot
ak
AB
N
Ba
nk
tu
ri
o
en
C
L&
Fi
n
an
ce
Q9. How satisfied are you with current process model of financing?
108
How satisfied are you with current process model of financing?

Overall Quality
14
14
14
Value
Service Experience
14
12
10
8
6
4
2
0
Very S atisfied
S atisfied
Unsatisfied
Very
Unsatisfied
Not Applicable
This question was framed in order to check the mindset of the contractors about their
financiers. This helps in getting a fair idea about satisfaction level of contractors and
developers with respect to their financiers.
Inferences:
1. There was hardly any customer who was unsatisfied or worse than that.
2. Majority is of the opinion that even in this cutthroat competition of delivering
better than the other, their financiers are performing fairly enough to provide them
the best.
3. Even the rate of interests given by them is very competitive.
4. Services delivered to them whether in the form of
Monthly statements
Timely Issue of Letter of Credit
Prompt dispatch of Delivery Order
Check of the current status of their transaction
Monthly installments due date
Reminder services about the important dates in concern with the process
Transparency in the calculation of payments etc.
are very competitive services and provide them edge over their counter part.
Q10. How do you find your financier as compare to others present in the
market?
109
Comparative Study of Satisfaction level

14
12
10
8
6
4
2
0
Much Better
4
3
ICICI
HDFC
Some What Better
4
6
2
4
3
ABNAMRO
CITICORP
About The Same
1
1
SREI
GE
Some What Worse
Much Worse
This question helps in analyzing the comparative study of the satisfaction among the
customers about their financiers.
For instance one customer was satisfied with both ICICI and L&T FINANCE
however another felt that they are providing the services, which are more or less
similar to that of others present in the market. He may be dealing with them not
because they are better but he is having good terms with those financiers.
Like for ICICI out of 20 developers I met 14 contractors who dealt with ICICI, 6
said they are much better, however 5 said they are about the same, 3 were of the
opinion that they are some what better.
Similarly for L&T FINANCE 13 out of 20 had or are still dealing with L&T
FINANCE and they shared a lukewarm response about the service level of the
bank.
This question throws the importance of analyzing each contractor individually.
Since corporate clients in this field of development are few so its possible and
feasible too. In later part of the report I have thrown light on what grounds
contractors are in pain with respect to L&T FINANCE Bank.
Factors which are responsible for the above outcome can be listed under as
follows:
Not prompt service at time of payment
Late delivery of Letter of Credit
Delay in dispatch of Delivery Order etc.
Q11. What do you expect from any financier?
110
This question stands for the identification of factors, which are genuine for the
performance improvement in service of financiers. These factors can be listed under as
follows :1. Competitive Rate of Interests.
2. Prompt Service that includes:
Timely dispatch of Delivery Order
Delivery of Letter of Credit as per requirement
Documentation should not be done on cost of torturing the developer.
Documentation to be fully carried by financier and that to before deadline
of payment
Payment slabs to be accommodated as per customers requirement.
Time period defined for return of money to be increased from 3 years to 4
years, if feasible may be up to 5 years.
Finance available for imported machines to be 100%.
Service preferences for old and reputed customers.
3. Data base to be maintained from financiers side about their old customers so that
future dealings can be smooth and easy without any delay in payment.
4. Relief to old customers from stringent rules and policies.
5. Transparency while calculating the installments.
6. Providing the monthly statements and payment schedule on time.
7. Taking initiatives on tracking contractors as per deal to deal.
8. Providing time-to-time information about their payment policies and also the
government norms for the same.
9. Providing credit cards sort of facility to retain customers and provide them timeto-time loans whenever contractor requires.
10. There should be no upper slab for the big time customers. At least for the
prominent and premium customers.
11. Bank should also provide loans for the infrastructure development, prefer such
banks for equipment finance too.
12. Financiers should not be absconding at the end of the day once the deal has been
finalized and should always follow up, till payment has been made.
13. Sometimes financial status of the customer is not good but his profile speaks that
he can deliver the best as per the expectations. Probably at that time financiers
should ignore his financial status and consider his past performance records.
14. Provide all banking facilities to the customers. They should be ready to provide
big bank guarantees and also over draft facilities.
15. Banks like CITI have increased its upper slab of OD in order to retain customers
like Balajee Infrastructures are redoing business with them. PATEL Engg. goes to
Manufacturer Data Analysis (Sample Size 20- All Manufacturers of West)
Dena Bank for Bank Guarantee.
If the banks started arm-twisting these customers to get finance from them for
equipments too than ABN AMRO may lose good customers.
Q1. Do you recommend your customers to go for getting the construction
equipments financed?
1. Yes
2. No 111
3. Sometimes
Percentage of Manufacturers which recommend customers about the

Financiers
20%
10%
70%
Yes
No
Sometimes
Inference:
1. L&T Komatsu
2. JCB
3. IR
4. Ashok Leyland
5. Telcon
6. Gmmco (CE)
7. LIEBHERR
8. Tractors India Ltd.
9. Gujarat Apollo
10. VOLVO
11. Schwing Stetter
12. Greaves
13. BEML
14.UNITECH
15. L&T Case
16. Gmmco (Engines)
17. TATA
18. Escorts
19. Atlas Copco
20. Voltas
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Sometimes
Sometimes
Sometimes
Sometimes
No
No
Q2. Which company do you generally prefer for the same? Why?
112
Percentage of Manufacturers which prefer the following financiers

5%
0%
15%
45%
15%
20%
ICICI
CITI Bank
HDFC
ABN AMRO
Centurion Bank
Kotak
GE Capital
SREI
L&T Finance
Ashok Leyland Bank
TATA Finance
1. ICICI: Preferred by
Gmmco (Engines)
LIEBHERR
BEML
VOLVO
Schwing Stetter
Gmmco (CE)
Voltas Ltd.
Ashok Leyland
L&T Komatsu
2. CITI Corp: Preferred by
Gujarat Apollo
L&T Case
JCB
Telcon
3. HDFC: Preferred by
TATA
Escorts will never deal with Kotak

Finance.
Delivery Order of Kotak has no
significance.
Documentation never done by
Kotak completely, customer has to
take pains to get them approved.
IR s policy not to do business with:
Centurion Bank
Ashok Leyland Finance

Not satisfactory service and
irrelevant documentation
process.
No proper channel to finance
the customer
Greaves
UNITECH
4. ABN AMRO: Preferred by

Atlas Copco
IR
TIL
5. Centurion Bank: Preferred by
Escorts
113
Q3. What more you expect from financiers?
1.
2.
3.
4.
To provide leads to them, hand in hand business.

More funding for their preferred and dear customers.
Provide flexible slabs to high profile and regular customers.
Flexibility in checking of the concerned documents for the corporate and regular
customers.
5. Quickly approval of the documents as per the needs of the customer.
6. Need to be more accountable to customers, instead of being absconding on the
day of payment.
7. Financiers should do Data mining and maintain all records of customer
performance, so that they need not re do the whole documentation process once
he again turns up to him.
8. Speedy dispatch of all delivery orders.
9. Issue of Letter of Credit to be done as quickly as possible.
10. Improve and increase the funding of the imported equipments.
11. Financiers should provide all banking facilities to the contractors, if they have to
grow and secure their market.
114
Q4. Which companies apart from the above are you aware of / dealing with? (Pl.
rank them)
Organizations/Ranks
ICICI
HDFC
CITI Bank
ABN AMRO
Kotak
GE Capital
SREI
L&T Finance
Centurion Bank
Ashok Leyland Bank
TATA Finance
10
6
7
4
3
2
3
6
3
2
4
2
6
3
3
2
1
3
1
1
1
2
1
1
4
1
1
1
Inference Overall Rank as per manufacturers give an idea about following ranks: 1.
2.
3.
4.
5.
ICICI
HDFC
CITI
L&T
SREI
115
2
2
2
Number of Manufacturers who voted the following organizations at

number one
12
10
8
6
4
10
ce
an
Fi
n
Ba
ok
As
h
TA
TA
nd
la
n
tu
ri
o
nk
Ba
nk
ce
an
Fi
n
G
E
L&
T
en
SR
EI
l
ap
i ta
K
ot
ak
AM
RO
Ba
n
AB
N
IT
I
H
D
FC
I
IC
IC
Le
y
2
0
Rank 1

number two
8
7
6
5
4
3
2
1
0
7
6
4
Rank 2
Fi
n
an
ce
nk
TA
TA
nd
Le
y
la
n
ok
tu
ri
o
As
h
116
Ba
Ba
nk
ce
an
en
C
L&
Fi
n
SR
EI
G
E
ap
i ta
ak
K
ot
AM
RO
AB
N
IT
I
Ba
n
FC
H
D
IC
IC

number thre e
7
6
5
4
3
2
1
0
Rank 3
ok
ce
an
Fi
n
As
h
TA
TA
la
nd
Ba
Ba
nk
ce
an
tu
ri
o
en
L&
T
nk
Fi
n
SR
EI
l
ap
i ta
G
E
K
ot
ak
AM
RO
k
Ba
n
AB
N
IT
I
H
D
IC
IC
FC
Le
y

number Four
6
4
ce
an
Fi
n
Ba
As
h
TA
TA
nd
la
n
ok
Le
y
tu
ri
o
en
C
nk
Ba
nk
ce
an
Fi
n
T
L&
G
E
SR
EI
ak
K
ot
AM
RO
Rank 4
1
AB
N
Ba
n
IT
I
H
D
IC
IC
FC
ap
i ta
7
6
5
4
3
2
1
0

number Five
3.5
3
2.5
2
1.5
1
0.5
0
3
2
117
TATA
Finance
Centurion
Bank
S REI
Kotak
CITI
Bank
ICICI
Rank 5
Q5. Which type of product range do you offer for the construction industry?
Number of Manufacturers which offer the following category of the

equipments
5
8
Non-Registered & Movable Equipments
Non-Registered & Non-Movable Equipments
1. Non-Registered & Movable Equipments: 8 Manufacturers

2. Non-Registered & Movable Equipments: 7 Manufacturers
3. Registered & Movable Equipments: 5 Manufacturers
Q6. What is your last years figure against target?
118
Performance Against Targets
1200
1000
800
600
675
475
400
200
0
500
400
JCB
BEML
385
310
300
300
220
TATA
Telcon
Ashok
Leyland
Target
250
Achievement
All Figures are in number of Units sold
Performance against Target
54
70
75
70
60
42
G
m
30
34
30
32
30
27
25
15
25
26
20
24
19
19
19
17
15
99
75
IR
Tr
ac
V
O
to
LV
rs
O
In
di
a
Lt
d.
G
re
av
es
G
Vo
uj
lta
ar
s
at
A
po
A
llo
t la
s
L&
C
op
T
co
K
om
LI atsu
G
EB
m
H
m
ER
co
R
(E
ng
in
L& es )
T
C
as
e
50
m
c
Sc
hw o ( C
E)
in
g
St
et
te
r
Es
co
rt
s
160
140
120
100
80
60
40
20
0
Target
Achievement
6. All Figures are in number of Units sold

Target
119
Achievement
Last Year's
JCB
BEML
Ashok Leyland
TATA
Telcon
Schwing Stetter
Escorts
Gmmco (CE)
IR
VOLVO
Tractors India Ltd.
Greaves
Gujarat Apollo
Atlas Copco
L&T Komatsu
LIEBHERR
Voltas
Gmmco (Engines)
L&T Case
500
400
300
300
220
70
50
75
30
30
30
25
20
19
19
15
25
9
5
120
675
475
385
310
250
70
60
54
42
34
32
27
26
24
19
17
15
9
7
Q7. What is your current years figure against target?

2000
1500
500
1000
500
1200
100
110
850
800
45
550
120
400
Ashok
Leyland
Telcon
0
JCB
BEML
TATA
Target
Achievement
All Figures are in number of Units sold
121
23
150
18
126
Schwing
Stetter
Gmmco
(CE)
Target
35
32
7
25
9
21
1
15
1
10
L&T Case
5
35
Gmmco
(Engines)
5
40
L&T
Komatsu
4
43
Atlas
Copco
11
45
Gujarat
Apollo
75
Voltas
75
Greaves
80
LIEBHERR
12
VOLVO
16
Escorts
24
IR
120
100
80
60
40
20
0
Tractors
India Ltd.
Achievement
7. All Figures are in number of Units sold
Current Year's
Target
JCB
BEML
TATA
Ashok Leyland
1200
850
800
550
400
150
126
80
75
75
45
43
40
Telcon
Schwing Stetter
Gmmco (CE)
IR
Escorts
VOLVO
Tractors India Ltd.
LIEBHERR
Greaves
122
Achievement
500
100
110
45
120
23
18
24
16
12
11
4
5
Voltas
Gujarat Apollo
Atlas Copco
L&T Komatsu
Gmmco (Engines)
L&T Case
35
32
25
21
15
10
5
35
7
9
1
1
Q8. Who made the payments for the same assets? (Break-up of segment %wise)
Manufacturers
Payment Break Up
Private Bankers
Nationalized Banks
Cooperative Societies
Self Finance
Manufacturers
Payment Break Up
Private Bankers
Nationalized Banks
Self Finance
Manufacturers
L&T Komatsu
L&T Case
JCB
IR
Ashok Leyland
98
50
10
85
10
90
99
40
10
TATA-Hitachi Gmmco-Engine Gmmco-CE

95
95
LIEBHERR
TIL
123
65
15
10
10
BEML
100
Gujarat Apollo VOLVO Schwing Stetter
Payment Break Up
Private Bankers
Nationalized Banks
Self Finance
Manufacturers
Payment Break Up
Private Bankers
Nationalized Banks
Self Finance
30
100
70
40
20
95
60
40
40
Atlas Copco
Voltas
Telcon
Greaves
Escorts
40
40
90
80
16
50
60
60
10
50
Q9. Any suggestions to improve current process of Finance? How?
1. Decision making to be speedy and quick.

2. More systematic and computerized model required to bring transparency and
quick delivery of payment at manufacturers end.
3. Reduce paper work to improve efficiency of the documentation by implementing
more of IT-enabled services.
4. Flexible documentation for regular customers.
5. Instead of manufacturers collecting down payments, financiers should collect that
and then they should pay the full amount to the manufacturers thus reducing extra
burden from them.
6. Financiers should accept the manufacturers invoice for the imported machines.
7. There should be direct interaction between the manufacturers and the financiers
instead of different different DMA s going to them and singing their own song.
This also gives a bad impression to the customer, who then considers the deal to
be a manipulative one.
8. Financiers and manufacturers should directly interact with each other from time to
time to identify each others requirement and target customer.
9. Financiers should also be open to big imported machines starting from three
crores onwards.
124
10. They are more open to common machines keeping their resale value in mind,
trends should change.
11. Data mining to be adopted to keep good track record of the customer and thus
delivering better services to the same.
12. Introduce credit card facility for the regular corporate customers.
13. Stretch the time limit of repayment of the machines viz. deals to be done for four
to five years instead of three years.
14. Transparency in calculation of installments
15. Add on to your services provide all the banking services too to your customers.
16. Essential spares should also be financed by the financiers. For instance hoses need
to run drillers when mounted on excavators are not financed giving an excuse by
the later that they are accessories not the spare parts, but in fact they are the
lifeline of the product.
Financier Data Analysis (Sample Size 11- All Prime Financiers of West)
Q1. Which type of facilities do your company provide to your customer?

This question gives all information about the services provided by the Financiers in the
field of Construction Equipments and the parameters for the same.
1. Finance for all construction equipments:
1. ICICI Bank
2. ABN AMRO Bank
3. HDFC
4. CITI Corp
5. SREI
6. Kotak
7. GE Capital
8. L&T Finance
10. Centurion Bank
11. TATA Finance
2.
1.
2.
3.
4.
Refinance of the equipments:

ICICI Bank
ABN AMRO Bank
Centurion Bank
125
5. CITI Corp
6. SREI
7. L&T Finance
8. GE Capital
9. HDFC
10. Kotak
3.
1.
2.
3.
4.
5.
6.
7.
8.
Issue of Letter of Credit:

ICICI Bank
ABN AMRO Bank
HDFC
CITI Corp
L&T Finance
Kotak
Centurion Bank
4. Finance for hiring of machines:

1. SREI
5. Finance is mainly based on: - Asset Based Funding or Working Capital
Inference:
1. Finance for all construction equipments, based on the following parameters: Profile of customers
Past performance record of the customers
Present project in hand
Financial Condition of the customer
Past payment record of the customer
Upper slab of the loans depend on the clearance of past loans: - like X
company took 5cr 3 years back till date they had paid 70% only so for
them upper slab of loan may fall from 5cr to 4cr this year.
Upper slab also depends upon the type of the machine and customer: - On
imported machines amount of payment varies from company to company
like HDFC, CITI, KOTAK may finance only 60% of the machine on the
other hand ICICI may finance 80-90% of the amount.
It further depends upon the invoice produced by the manufacturers: Invoice usually generated by the manufacturing companies which import
machines has high marked price in their invoice as compare to the market
price this led to only partial payment of loan against such invoices.
Type of the machine namely: - Standardized and Non Standardized i.e.
Standardized machines are those which posses resale value however nonStandardized machines are those which have very less or in fact negligible
resale value.
126
2. Refinance of the equipments, based on the following factors: Amount involved: Made of the machine. For instance 1984 made crane
refinanced by GE Capital only, which nobody will readily do it.
Potential and performance efficiency of the machine to be financed
Depreciation and risk involved.
3. Issue of Letter of Credit.
4. Finance for hiring of machines.
5. Finance is mainly based on: - Asset Based Funding or Working Capital
Q2. Which are your major competitors?

All Figures are in percentage
Percentage of Financiers which consider the following
financiers as competitors
10 10
30 20 10
100
40
90
60
70
80
ICICI
HDFC
ABN AMRO
CITI Bank
GE Capital
Kotak
SREI
Ashok Leyland Bank
L&T Finance
Centurion Bank
TATA Finance
ICICI
100%
127
HDFC
90%
ABN AMRO
80%
CITI Bank
70%
GE Capital
60%
Kotak
40%
SREI
30%
Ashok Leyland Bank
20%
L&T Finance
50%
Centurion Bank
10%
TATA Finance
10%
From above it is clear that every other financier of the construction equipment financing
considers ICICI a tough competitor. That is 10 out of 10 financiers consider ICICI as a
top performer.
HDFC and L&T FINANCE follow it closely with 90% & 80% financiers respectively
considering them as top threats. Similarly other financiers are also considered in the same
trend.
This part of the questionnaire was mend to assist me getting a fair idea where each player
stands in the market as per financiers themselves.
Inference:
1. Stand of firms varied on this question. Financiers consider other organizations
their competitor when they posses threat to their business.
2. Parameters for which they consider the same are as follows:
Competitive Satisfaction level a particular firm delivers to their customers.
Competitive Rate of Interest offered for the other players.
Similar target customer.
Service and volume of Business.
Volume of Achievements against targets.
Competitive Marketing and Targeting trend followed by the firms.
3. Strong customer relationship management practiced by the firms.
4. Distant reach of the firms also matters. For instance ICICI has very strong sales
force comprising of Direct Sales Agents and Direct Marketing Associates. ICICI
128
people can go to any region with in very short notice and thus capture huge
volumes of Business. Consequently every body quoted ICICI as their biggest
competitor.
5. Policy of firm also matters. ICICI and SREI being very flexible in that can
gradually entertain any type of customer with even single penny. Thus ICICI
followed by HDFC tops the chart.
6. Concentrating deeply on fixed and big corporate customers is another trend being
followed closely by three major financiers viz. HDFC, ABN AMRO and CITI
Corp. However they are adapting changes in their policies slowly. This has
provided them edge in gaining good leads. But they still have preferences for their
corporate clients and developers with good profile only.
7. SREI and ICICI have good pocket for debts but prompt and accountable service
of ICICI steals the show. SREI being high in interest rates also takes time in
providing services. Payment may take as long as one month, this can be however
attached to the fact that their corporate office is in Kolkata and they need approval
for the same.
8. Organization like GE capital has their own unique pattern of financing. They are
very strong in refinance of the equipments. However in GE capital its a one-man
show and Mr. Jeevan Shinde has very well handled the western region.
9. Kotak survives in the market mainly because of its policy of financing retail
customers. Kotak can even finance a single person for the same provided he has
good references. Kotak has been threat to Centurion Bank and other financial
institutes which target mainly retail customers.
10. Other players are still struggling to make good-big deal. However things never
remains the same. This market is very variable and position of firms varies with
deal-to-deal. A big corporate deal by L&T Finance can ruin even bigger players
like ICICI.
11. Ashok Leyland Finance has been merged with IndusInd Bank and will now be
doing business under the same bank.
129
12. TATA Finance is out of run because of its policy to finance only TATA products.
So they finance only Telcon and TATA-Hitachi products. But there also they are
facing tough competition from the other players.
Q3. Where would you put yourself? (Your position)
ICICI
HDFC
CITI Bank
ABN AMRO
Kotak
GE Capital
SREI
L&T Finance
Centurion Bank
Ashok Leyland Bank
TATA Finance
2
4
2
4
5
5
1
3
4
3
NA
Inference:
130
1. ICICI ranks itself at number two revealing the presence of SREI in the field.
2. CITI and HDFC rank themselves at number two and next to ICICI in
performance. They do not consider SREI because of its style of working. They
consider ICICI as number one.
3. ABN AMRO ranks itself at number three just next to above players. However
Ashok Leyland Finance also consider themselves at number three. This can be
contributed by the fact that they are big players in the commercial vehicles.
According to them ICICI and HDFC play at number one and number two
respectively.
4. Centurion Bank quotes themselves at number four.
5. But the most honest and transparent ranking seems to done by Kotak and GE
Finance about themselves. They are the players of that step.
Q4. How do you serve your customers differently from your competitors?
1. Very quick turn around time:
ICICI Bank
Kotak
2. Prompt Servicing:
ICICI Bank
Ashok Leyland Bank
3. Service with human touch- relationship:
Centurion Bank
L&T Finance
GE Capital
HDFC Bank
4. Feedback for improvement:
HDFC Bank
5. Transparency:
HDFC Bank
6. Customer Satisfaction level:
HDFC Bank
131
7. Retain customers:
Centurion Bank
ICICI Bank
GE Capital
HDFC Bank
8. Bank Guarantee in record time:
CITI Corp
9. Flexibility in slabs of funding:
ICICI Bank
SREI
10. Always being close to customers:
TATA Finance
11. Personalized Service:
Centurion Bank
ICICI Bank
12. Refinance on short notice:
Centurion Bank
13. Customized Service:
ICICI Bank
SREI
14. Profile based finance:
L&T Finance
ICICI Bank
GE Capital
Identifying the unique selling principle is a very significant thing. This not only helps in
identifying your competitors weapon but also your loopholes. We gradually realize where
we are lacking in our service part.
Inferences:
So the services, which really help and provide you the leads, are as follows:
1. Very quick turn around time:
Very fast response time in servicing.
Documentation has to be quick.
Fast approval and clearance of payment.
Dispatch of payment on time to manufacturers.
Delivery order to be in time.
2. Prompt Servicing:
Issue of monthly statements in time.
Getting documents approved in time with no part left for customers.
Timely informing customers about the policies of bank.
132
3.
4.
5.
6.
7.
8.
9.
Providing an idea about the norms and terms of payment in time.

Service with human touch- relationship:
Taking full interest in delivery of payments and showing full
accountability to the customer.
Feedback for improvement:
Always open to customers suggestions and complaints.
Try to resolve the issues with full interest and intentions.
Implement the suggestions if they are feasible and applicable.

Transparency:
Calculation of installments with full details to be provided to customer

so that there is no suspicion on customer part about the possible
manipulations.
Customer Satisfaction level
Retain customers:
Providing all relevant features to our customer so that he is loyal to the
organization.
Bank Guarantee in record time
Flexibility in slabs of funding:
Variable upper slab for loan funding so that customers need can be
satisfied.
10. No upper slab:

In case of corporate customers upper slab can even be raised depending
upon his requirement.
11. Always being close to customers:
Time to time interacting with customers by new investment policies and
offers.
Delivery of monthly statements.
Informing the customers about the statuesque of their transactions
12. Personalized Service:
Maintaining records of the customers and keeping a close eye on its deal.
Providing preferences to the customer as per his past performance records.
13. Refinance on short notice
14. Customized Service:
133
For corporate customers even firms are ready to bend their policies and
terms of payment.
Even open to negotiations on rate of interest for such customers.
15. Profile based finance:
Banks may provide and share risk as per the profile of the customers. That
is they may finance 90% or even 60% depending upon his performance.
Bank may compromise on its policies even if the financial performance of
the customer is bad as trends may speak in the favour of former.
16. Terms based on record and performance profile of customer:
Time period for return of money may vary from customer to customer.
Rate of Interest may also vary from deal to deal, from customer to
customer.
Q5. Besides Equipment finance what kind of other options does your
organization provide to the customer?
a. Bank Guarantee
b. Cash Credit
c. Over Draft
d. Letter of Credit
e. Other (Please Specify)________________________
a. Bank Guarantee:
ICICI Bank
HDFC Bank
CITI Bank (Flexible in giving it to retained customers)
ABN AMRO Bank
Centurion Bank
Kotak
134
b.
Cash Credit:
ICICI Bank
HDFC Bank
CITI Bank
ABN AMRO Bank
Centurion Bank
Kotak
c.Over Draft:
ICICI Bank
HDFC Bank
ABN AMRO Bank
Centurion Bank
Kotak
d. Letter of Credit:
ICICI Bank (Directly to any contractor depending on the genuine
nature of the case)
HDFC Bank
CITI Bank
ABN AMRO Bank
Centurion Bank
L&T Finance
Kotak
GE Capital (From CITI Corp- MOU)
e.Others:
Finance for Equipment Hiring: - SREI
Work to Customer (All documentation & other needful done by
financier itself no pains on customers part): - L&T Finance
This question identifies the importance, which banks carry in providing the above
facilities over the other non-banking firms. Out of 11 financial organizations studied
hardly six of them provide all the above facilities.
Inference:
1. Banks like ICICI, ABN AMRO, HDFC Bank, Ashok Leyland, Kotak and
Centurion Bank provide all of the above facilities.
2. Bank like HDFC also hesitate in providing all.
3. SREI has no provisions on their for the above services. They look upon other
financiers for the same.
135
4. GE capital has a tie up with CITI for Letter of Credit.

5. L&T Finance does not provide over draft facility.
6. The other facilities comprise of the following: Finance for equipments on rent.
Work to Customer: - Leads to contractors, advice and suggestions.
Q6. What were your last years figures against target?

All Figures are in crore
Last Year's
SREI
ICICI
CITI Bank
ABN AMRO
HDFC
Centurion Bank
GE Capital
(April13-Mar14)
(April13-Mar14)
(Jan12-Dec13)
(May13-Dec13)
(April13-Mar14)
(April13-Mar14)
(Jan13-Dec13)
136
Target
Achievement
215
250
150
62
80
75
60
285
250
154
73
96.3
90
56
Financial Year
Financial Year
Calendar Year
Calendar Year
Financial Year
Financial Year
Calendar Year
Kotak
(April13-Mar14)
L&T Finance
(April13-Mar14)
TATA Finance
(April13-Mar14)
50
30
30
12
38
30
27
10.8
Financial Year
Financial Year
Financial Year
Financial Year
Q7. What are your current years figures against target?

All Figures are in crore
Current Year's
CITI Bank
ICICI
HDFC
GE Capital
Centurion Bank
ABN AMRO
SREI
TATA Finance
Kotak
L&T Finance
Ashok Leyland Bank
Target
Achievement
300
350
400
200
98
150
525
60
90
400
15
72
80
58
36
14
30
50
5
5
100
1
Calendar Year
Financial Year
Financial Year
Calendar Year
Financial Year
Calendar Year
Financial Year
Financial Year
Financial Year
Financial Year
Financial Year
Q8. How do you target your customers?
1. Direct Approach: ICICI Bank

CITI Corp
HDFC Bank
2. Direct Selling Agents/Direct Marketing Associates: ICICI Bank
137
3.
4.
5.
6.
CITI Corp
SREI
Franchisee/Dealers of manufacturers: ICICI Bank
CITI Corp
Ashok Leyland
Kotak
Word of Mouth: ICICI Bank
Centurion Bank
L&T Finance
Retained Customers: ICICI Bank
HDFC Bank
ABN AMRO Bank
Kotak
GE Capital
TATA Finance
SREI
References: ICICI Bank
SREI
ABN AMRO Bank
The question identifies the approach adopted by the financiers to follow the tentative
customers.
Inferences:
The types of approach adopted by the financiers are under as follows: 1. Direct Approach: - Five out of eleven financiers follow this approach to track
down the tentative customers.
2. Direct Selling Agents/Direct Marketing Associates: - Four financiers follow
this approach. This is one of the most aggressive approaches to locate and target
customers.
138
3. Franchisee/Dealers of manufacturers: - This approach may not be always

successful. They may strategically sound good but hardly are able to provide
leads. In fact dealer never goes to financier with whom they are having
memorandum of understanding. They always go to a new financier in the hope
getting better services and favour.
4. Word of Mouth: - Promoting financiers through word of mouth often helps to
develop mutual understanding among the financiers and contractors.
5. Retained Customers: - Old and loyal customers too play a good sport in
targeting new customers. They help in providing references to new customers and
thus help in promotion. These customers are usually retained through good
professional relationship and understanding.
6. References: - No doubt its more effective than all others. They help in providing
good leads to financiers. The more manufacturers and your customers provide this
to financier the more they are able to make business. In fact every financier today
is approaching customers through some or the other references only.
Q9. What is your target customer?
1. Normal or Individual contractor (Retail Customers):
ICICI Bank (30%)

SREI (70%)
Kotak (50%)
CITI Bank (5%)
Slabs: 65%-90%
Slabs: 70%-100%
Slabs: 60%-80%
Slabs: 60%
139
Ashok Leyland Finance (80%)
Slabs: 70%-80%
2. Corporate Customer: HDFC Bank (100%)

ICICI Bank (70%)
(100% on imported equipments)
CITI Bank (95%)
ABN AMRO Bank
Centurion Bank (100%)
L&T Finance (100%)
(60% on imported equipments)
Ashok Leyland Finance (20%)
Kotak (50%)
GE Capital (100%)
Slabs: 60%-90%
Slabs: 80%-100%
Slabs: 60%-90%
Slabs: 60%-90%
Slabs: 60%-80%
Slabs: 60%-80%
Slabs: 60%-80%
Slabs: 60%-90%
Slabs: 60%-95%
3. Government Contractors: ICICI
TATA Finance only for TATA Customers
Types of customers vary with the type of work or project they are involved. These
can be classified under as follows: 1. Normal or Individual contractor (Retail Customers): - These mainly deal with
small and short-term projects. These are financed only on the basis of their as well
as their project profile.
140
2. Corporate Customer: - These developers are very high profile contractors with
very strong financial as well as asset based strength.
3. Government Contractors: - They are mainly involved in the government
projects and they either arrange finance on their own or are funded by the
government itself.
Out of 11 financiers 9 preferred corporate customers. However they all are also open to
retail customers but preferences are for corporate customer. For the reason being:
Less risk involved

Timely payment of the installments.
Corporate contractors are good and uniform performers
Provide good lead through references etc.
They always require equipment finance because of the large number
of projects in hand
However financiers like Kotak, SREI are always ready to finance retail customers. They
are always open to such customers. While financiers like HDFC, ABN AMRO, CITI
Corp are known for their corporate dealings. They prefer such deals. They finance retail
customers too but based on high profile references only. They may also partly share the
risk like it may be a 60%-70% finance deal only. However for corporate customers they
are ready to finance 90%-95% finance.
Q10. Which all areas do you cover? What are the parameters to consider
the same area?
Every financier is now open to cover all areas. They are no more restricted to only urban
customers or metro customers. Financiers have significantly expanded their reach to the
customers and can go to them irrespective of the extreme geographical or demographical
features.
141
There are parameters which financiers do consider while extending the finance facility.
They can be listed under as follows: 2. Areas known for defaulters.
3. Population with strong political back up, which can hamper the return of amount
financed.
4. Less promising areas with respect to infrastructure development etc.
Q11. How important is the role of dealer / manufacturer in your industry?
Every body unanimously agreed to significance attached with the role of dealer /
manufacturer. A dealer may and may not provide lead to a financier. They may also
extend good understanding with financiers etc. Financiers can have a memorandum of
understanding with the dealers, which not only benefit the dealer, but it will be a win-win
situation for all. Manufacturer and dealer can advice contractors or developers about the
various merits involved in getting finance from their customer thus promoting customers.
Hence no doubt about this fact that financiers are advantageous if are promoted by the
dealers and manufacturers.
Q12. Do you have any kind of tie-up with any dealer / manufacturer?
1. ICICI Bank
MOU with Ashok Leyland, Voltas, JCB, Schwing Stetter, GMMCO.
2. HDFC
142
MOU with Ashok Leyland, JCB, L&T Komatsu

3. CITI Corp
MOU with L&T Komatsu, Gujarat Apollo
4. SREI
MOU with Greaves, Voltas, L&T case
5. Kotak
MOU with JCB
6. GE Capital
MOU with Voltas
7. L&T Finance
MOU with L&T
AML (dealer)
9. Centurion Bank
Escorts (Good PR between Mr. Murli and Mr. Ravi C. Narayan)
MOU with JCB and Action Equipments
10. TATA Finance
MOU with TELCON, UNITECH (Dealer)
Inference:
Today on papers no financier is linked or having any strategic alliance with any dealer or
manufacturer. But they are sharing good relationship and word of mouth commitments
with them. This has been very successful for many financiers. ICICI have very good
relationship with majority of the manufacturers and dealers. Consequently they have been
successful in tapping the maximum of the market. Thus memorandum of understanding is
working very profitably for all.
143
Financiers expressed their thoughts and shared experiences about their past tie-ups with
dealers and manufacturers. Their experiences were not as good as expected. Both the
parties always exploit tie-ups in order to make most of the market. Financiers blamed
manufacturers for not providing leads to them once they were in the strategic-alliance.
However things were the other way round once manufacturers were interacted. They
pointed out that the financiers are never accountable. They leak out the deals to other
competitors thus ruining their market. They never share market information and are
always manipulative. Consequently both parties backstab each other thus to make market
share of their own.
References
144
1. Automart magazine
2. www.tata.com
3. www.ashokleyland.com
4. www.volvo.com
5. www.abnamro.co.in
6. www.ltfinance.com/
145

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SUMMER TRAINING PROJECT REPORT

SUBMITTED FOR PARTIAL FULFILLMENT OF THE

Mr. Nilesh Kumar Joshi

Accurate Institute of Advanced Management, Greater

Accurate Institute of Advanced

To acknowledge the invaluable assistance extended to various personalities in the

Student Name: Vijay Kumar Saw

2. Profile of L&T Finance

4. Construction Equipment Market in India

Changing modes of operation in Equipment Finance

Individual Target population analysis

12. Question wise Customer Questionnaire Analysis

13. Question wise Manufacturer Questionnaire Analysis

14. Question wise Financier Questionnaire Analysis

Equipment Finance is a process of extending credit for heavy machinery and

List of Major Banks in this sector are as follows: -

List of Major NBFCs active in this sector are as follows:

Types of deals offered by the financing organizations

Types of customers of Construction Equipment

PROFILE OF L&T FINANCE

Consumer & Commercial Clients, which serves almost 20 million consumer

Wholesale Clients, which provides integrated corporate and investment banking

Transaction Banking Group, which is their product organisation covering all

Focus on the mid-market

We are the heart of our organisation

Researching and developing a new product/ improving the

Random sampling (e.g. namesPurposive

Types of questionsClosed questions (e.g. multipleOpen questions

Observation of subjects Highly structured observation.Unstructured (impressionistic)

Prime targets of the bank and financiers.

Construction Equipments Market in India

Amongst the most important manufacturers there are:

GREAVES LTD.(compaction and concrete pumps) a colonial company since 1870,

Sale of Construction Equipments in India (2008-2013)

Sale Forecast of Construction Equipments in India (2012-2013)

Rough Terrain Lift Trucks

Skid Steer Loaders

Marketing Channels of Major Manufacturers

TELCON/ TATA/ HITACHI

Results & Analysis

Achievement Achievement%Market Share

performing very strongly.

Percentage Break up on the type of Financier involved in the

Last Year's Performance(As per achievement against target)

Analysis of the performance of all the financial organizations is typical since

Last Years (2013-14)

Figures last updated on 30th May 2013

What are your current years figures against target?

All Figures are in Crore

Target **Achievement **Actual Target

* Figures last updated by 31st May 2013

Self Analysis by Financiers

Performance Analysis of the Financiers by Manufacturers

Success Marketing Wise:

Success Marketing Wise:

Market Size: 4576 Equipments sold in the Western region (2013-14).

*In self-analysis Financiers have rank themselves as per their feedback.

Changing Modes of Operation in Equipment Finance

1. Past: Financiers open to corporate customers only.

3. Present: Financiers are open to negotiations on rate of Interest.

Individual Customers Feedback

Companys Name: - Balajee Infratech&Constructions Pvt. Ltd

Any Issues: Should also participate in infrastructure projects.

Target Achievement Actual Target