CE Earthmoving Equipment

Earthmoving Equipment:
`

Sustained Demand Pattern Keeping Manufacturers Busy

MB, CE & Infrastructure Bureau Report

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CE Earthmoving Equipment

t won't be a misnomer to say that

earthmoving equipment is the most
crucial market segment
among all types of construction equipment. The earthmoving equipment segment's health
is often the barometer using which
the overall health of the construction
equipment industry is measured. The
earthmoving equipment industry's share
is estimated to be currently over ` 6,000
crore, which is roughly half of the total
market for the construction equipment
industry pegged at around ` 12, 000
crore in India. All through the economic
upheavals it is one market segment that
has been able to maintain a steady pace
of growth. With earthmoving equipment
also being used in a major way in the
mining industry, this is one market segment which is being closely watched
by almost every leading global player in
recent times.
With the government keen on pushing ahead with reforms and with markets expected to respond positively to
these initiatives, there are enough indications already to suggest that the second wind which infrastructure development was waiting for is round the cor-

India has emerged as a key market for global earthmoving equipment manufacturers

ner. It won't come as a surprise if earthmoving equipment were to steal the

show again during bC India 2013. The
renewed fillip to infrastructure works including, roads, airports, irrigation, ports
and urban development has come as a
shot in the arm for the industry. The earthmoving equipment industry's growth
potential can be gauged from the fact
that a study by Accenture has pegged
the potential of the industry to become
a US$23 billion market by 2020. Apart
from infrastructure development, mining is another emerging area that earth-

moving equipment manufacturers are

watching with keen interest. As rightly
stated by Mr.A.M. Muralidharan, Managing Director, Volvo India Pvt Ltd sometime ago, As the Indian mining industry
grows, we will see both new and the
existing mining players offer significant
wealth creation opportunities to investors and construction equipment manufacturers, these developments could
have a far reaching impact on the Indian
earthmoving equipment industry. With
the economic situation expected to
improve by the year end and the government willing to take calculated risks
by pushing ahead with reforms, as in
the case with retail in FDI, there are
enough indications that the earthmoving industry could be heading for a
period of robust growth during the 12th
Five Year Plan period (2012-17).
No Looking Back
India continues to be the most im-

When the going gets tough use backhoe loaders

seems to be success mantra among Indian contractors

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CE Earthmoving Equipment

We will be looking for new

markets within India for the
various products that we have"

Vipin Sondhi
Managing Director & CEO, JCB India

portant market for backhoe loaders and

this truth was not lost on any of the leading manufacturers. Every passing year
sees a series of new models of backhoe loaders hit the Indian market. The
situation is expected to be the same
come bC India 2013 with several new
or upgraded models expected to rule
the roost during the trade show. JCB
India with its range of backhoe loaders
including the 2DX, 3DX, 3DX Super,
3DX Xtra and 4DX models continued to
rule the roost. Manufacturers are looking to enter hinterlands and further
expand their market. Mr.Vipin Sondhi,
Managing Director & CEO of JCB India

during the launch of its 3DX backhoe

loader model was heard stating, We
will be looking for new markets within
India for the various products that we
have," a strategy that could rich dividends for the company given its distribution and retail strength that enables it
to tap rural markets.
Case India continued to make rapid
inroads into the market with its models
Case 851, 770, and 7700L. With intensifying competition manufacturers are
banking on latest technologies to cater
to the needs of an increasingly technology-savvy Indian customer. Case India
for example offers a dual stage pump
in its 851 model for higher fuel efficiency. Explaining the feature, Mr.Arun
Javali, Head- Sales Development,
Backhoe division of the company said,
During backhoe operations, considering the requirement of simultaneous
operation to facilitate higher productivity this machine is designed with Close
Centre Load Sensing System (CLSS) and
combined flow of 151LPM @2200rpm
by tandem hydraulic pump. However
during loader operation the flow requirement is less as the functional attachments are only two i.e. loader arm &
loader bucket, hence for optimal and
fuel efficient performance; the hydrau-

As the Indian mining industry

grows, we will see both new
and the existing mining players
offer significant wealth creation
opportunities to investors and
construction equipment
manufacturers

A.M. Muralidharan
Managing Director, Volvo India Pvt Ltd

lic system utilizes only one pump flow.

This mode selection results in higher
fuel efficiency. Other big players in fray
too have charted their own success
paths based on incorporation of latest
technologies and features. Good examples being Caterpillar with models such
as the '424B' ,ECEL with its 'Digmax'
backhoe loader model, Mahindra &
Mahindra Construction Equipment division with its 'EarthMaster' model, Leyland
Deere with its '435' backhoe loader and
ACE with its AX130 continued to impress
with their respective growth stories.
Compact Excavators to the Fore
Another market segment which has
been witnessing a flurry of activities off
late has been that of excavators. Almost
every major player in the field has come
out with newer products to cater to the
Indian market in recent times. LiuGong
India for example, announced its new
'D'Series of hydraulic excavators which
according to the company have been
completely redesigned to meet Tier
2/Stage II interim emission standards.
The company offers a wide range of
hydraulic excavators including models
such as 906C, 908C, 205C and 225C.
Compact excavators are now the flavour of the season in a way. LiuGong
India came up with its CLG920D model

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CE Earthmoving Equipment

During backhoe operations,

considering the requirement of
simultaneous operation to
facilitate higher productivity this
machine is designed with Close
Centre Load Sensing System
(CLSS) and combined flow of
151LPM @2200rpm by tandem
hydraulic pump. However
during loader operation the flow
requirement is less as the
functional attachments are only
two i.e. loader arm & loader
bucket, hence for optimal and
fuel efficient performance; the
hydraulic system utilizes only
one pump flow. This mode
selection results in higher fuel
efficiency

for a versatile range of excavators can

be found in the stable of Hyundai Construction Equipment India Pvt Ltd
(HCEIPL), a subsidiary of Hyundai Heavy
Industries. The company has already
made rapid strides into the Indian market with its 'Robex' series of crawler and
wheeled excavators, available in a range
of capacities. It had recently launched
its launched its technologically advanced
'9' Series excavator series in the country. The company launched the models
'Robex220' and 'Robex140' under the
series. According to the company the 9
Series excavators provides stability,
greater digging and crowd force along
with advanced hydraulics for improved
controllability and smoother operation
in arduous conditions like quarries and
mines.
Several global players are now eyeing the rapidly growing Indian excavator market. A case in point is that of
Doosan Infracrore, a company that is
well-known for its range of hydraulic
excavators, wheeled excavators, and
articulated dump trucks. The company
introduced the Bobcat MX 418 model
in India, a compact excavator that has

an operating weight of 1,167 kg and a

dig depth of 1.83 metres. The excavator is ideally suited for working in cramped
urban confines, next to buildings or other
property and areas where it is difficult
to transport equipment. The machine
features zero tail swing (ZTS) with tracks
extended.
The market for excavators is rapidly
evolving with established players trying
to stretch their product portfolio to increase their reach. Telcon, considered
an industry leader for a long time now,
with its models such as TMX 20, EX70,
EX110, EX200iLC, EX210-CCH-V, EX
350 CCH- V Super, EX-1200, EX-1900,
EX2500 and EX-3600 added to its
already extensive range by introducing
the Tata Hitachi Zaxis 50 compact excavator model. The 50 ton class tracked
compact excavator model powered by
the noiseless, compact, and efficient
35.5 HP Kubota V2203 engine. The 05
Series engines are vertical, water cooled
4 Cycle diesel engines. They incorporate Kubota's foremost technologies,
with E-TVCS (Three Vortex Combustion
System), well known Bosch MD type
injection pump & well balanced designs,

Arun Javali
Head- Sales Development,
Backhoe Division, Case India

which offers speedier, efficient, and costeffective solutions. Offering increased

value seems to be the buzzword among
manufacturers. As pointed out by
Mr.Rohit Punjabi, General ManagerStrategy Development Department of
LiuGong India, One of the major reasons behind LiuGong excavators being
a success in the industry today is that
LiuGong offers the best value proposition for its customers, a statement
that shows that the Indian market is
evolving by the day and suppliers
are leaving no stone unturned
in offering the best product
'package'.
Among manufacturers
product design and variety seems to be the name
of the game. A good example

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Skid steer loaders have immense growth potential in India

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CE Earthmoving Equipment

thereby giving greater power, low fuel

consumption, low vibration, & quieter
operation.
Other established players too further consolidated their positions in the
market. Volvo Construction Equipment
for instance made further inroads into
the market with models like Volvo
EC380D and EC480D, which are ideally
suited for a range of heavy-duty applications including mining, quarry work,
civil construction, trenching, hauler truck
loading, large scale road building, and
mass excavation. Similarly, JCB India
continued on its growth path with a
wide range of excavators including
JS81, JS120, JS140, JS200, JS200HD,
and JS210LC. Caterpillar is another
major brand offering models ranging
from 8 to 90 metric ton capacities as
part of its mini, small, medium, and
large hydraulic excavators range.
Growth Across the Spectrum
The growth story of earthmoving
moving equipment spanned across

One of the major reasons

behind LiuGong excavators
being a success in the industry
today is that LiuGong offers the
best value proposition for its
customers

Rohit Punjabi
General Manager
Strategy Development Department, LiuGong India

almost every type of construction machinery falling under the category. Skid
steer loaders for example, are now becoming a familiar sight across Indian
cities and even in rural areas, given
their versatile application areas including in infrastructure development, construction sites, and agriculture. Case
Construction India had introduced the
Case Sr130 and SR150 models to tap
this increasingly growing market segment. Similarly, the going was also
smooth for wheel loader manufacturers too. LiuGong India continued to
make its presence felt with wheel
loader models including 835BSIII and
856BSIII. JCB India also offers a solid

LiuGong - Wheel Loaders

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range with its 3DX, 430ZX, and 432ZX

models. Hyundai Construction Equipment is another player in fray with models in its 'HL' series. Caterpillar is another
leading name in fray with its wide range
of compact, small, small medium and
large wheel loaders.
With highway projects being executed around the country, it was not surprising to find motor graders in demand.
LiuGong India had earlier in the year
launched the CLG414 BSIII motorgrader,
with a water-cooled Cummins engine
rated at 112kW for tough highway jobs.
Caterpillar is another big name in the
field with its 'M','K' and 'K2' series of
motorgraders. Dozers are another type
among the earthmoving equipment
which have found favours with Indian
contractors. Chetra Machinery India is
a good example for a company offering
both wheeled and tracked dozer models ideally suited to Indian working conditions.
Digging Deep
The near future of the earthmoving
equipment industry hinges on proactive
steps by the establishment towards
infrastructure development. The demand
for excavators in the range of 8-20 tonnes
capacity is expected to be steady. Similarly, another distinct trend that has
emerged in recent times has been the
interest in compact excavators that are
ideally suited for working in cramped
urban environs, so typical of Indian cities and towns. The market for wheel
loaders which is about 3000 units is also
expected to maintain a steady growth
rate given the gradual increase in scale
of infrastructure projects, plus the push
being given to mining sector. The
growth story of the versatile backhoe
loaders is something that is expec-ted
to continue for a few more years. With
over 23,000 units being sold annually,
backhoe loaders will continue to be the
most intensely competitive market segment. A period of transition with the
focus shifting towards higher capa-city
machines could be in the offing given
the gradual rise in scale of infrastructure projects in the near future.