七妹导航

The Indian used construction equipment market is largely populated with unorganised players, leading to a sloppy market condition within its 90 per cent section. Only 10 per cent of the market reports well-structured deals, catering to customer benefits in totality. In 2014, the construction equipment market witnessed a total sale of approximately 48,000 units and its used segment marked a sale between 10,000 to 11,000 units; thus resulting in a ratio of around 1:0.23 between new and old construction equipment.

Market trends
The existence of used rollers within the Indian market has remained quiet due to a low demand. The delay of various road construction projects due to an unstable government scenario within the country has made a huge impact on the overall business of used rollers. But, the current government is working upon uplifting this stumpy market scenario by pushing the new and other stopped road projects. Nowadays, even the contractors are focusing on spreading out rental equipment business due to uncertain project deployment in future. The financiers are holding back their hands in funding for new construction equipment purchase, which has made way for immense demand generation in the near future.

Sales pattern
The overall roller market recorded a sale of approximately 2,200 units in 2014, out of which 53 per cent contribution came from the tandem rollers and 47 per cent from soil compactors. Within tandem rollers, 8-10 tonne rollers and 2.5-4 tonne baby rollers have been witnessing major demand from the buyers? side. These baby rollers account for 25 per cent of tandem roller market. In soil compactors, 10-12 tonne rollers get maximum sale.

Customer requirements and brand preference
The key factors that drive the demand for used rollers at Shriram Automall are its manufacturing date, documentation and working condition (easy to get refinance from parent company). Two to three year old rollers are always a preferred choice. Customers only want to own machinery which is driven for less number of operating hours. That ensures a long-term usage of that particular roller. Paper work also plays a pivotal role in the purchasing decision of our customers. A used roller with all the paper work done is always on the number one position in the list of preferred equipment at Shriram Automall. Out of all the brands available in the market for used rollers, the most demanded brands are Volvo (IR), Atlas Copco (Dynapac) and Wirtgen (Hamm). The other demanded brands are Escorts, Case and JCB.

Equipment segments
Indian construction equipment market consists of five main segments, including mining equipment, road construction equipment, concrete equipment, material handling equipment and material possessing equipment. If we go by the market share of each segment, then at the top position is mining equipment and road construction equipment, accounting for 68 per cent of the market. At second position stands the concrete equipment segment, which holds 15 per cent market share. Then comes material handling equipment and material possessing equipment, holding 11 per cent and 6 per cent of the market, respectively. If the road construction projects pick up pace in near future, then demand within overall market will remain medium size with major contribution from the road construction equipment.

Complete solution provider
The beginning of used construction equipment segment at Shriram Automall India (SAMIL) in 2013 was aimed at giving a new direction to the existing market scenario where we could evolve as a transparent player with complete solutions in the acquisition and disposal of used construction equipment. Being a market leader in the used commercial vehicle segment, our motto was to create the same perception within the construction equipment segment as well.

Only a few players are working towards giving some direction to this under-developed market. Their services are either restricted to the online or auction front. However, at Shriram Automall, we act as a complete solution provider with our services that cater to every need of used CE buyers and sellers. We are a one-stop platform from where people can not only own or dispose used equipment but also avail the benefits of our easy finance, valuation, parking and documentation services.

Within a span of two years, we have witnessed major challenge coming from a sluggish overall market. The delay in road construction projects has made a huge impact on the business. However, the future looks highly promising and we are eyeing at 10-12 per cent growth in FY15-16.

At Shriram Automall, we endeavour to bring a change within the market scenario with our holistic solutions that match up well with the customer needs.

2014 Rollers Sales Pattern Total units 2,200
Tandem rollers 53 per cent
Soil compactors 47 per cent
Within tandem rollers 2.5-4 tonne Baby rollers accounts for 25 per cent
In soil compactors, 10-12 tonne rollers find more demand

The author is CEO, Shriram Automall.