Service shall always be our forte
The market outlook is optimistic this year and we think by the end of the year, we will be in a better position, says Sowmil Shah, Director, CS Diesel Engineering. Excerpts from the interview...

Could you brief us on the core strength and competencies of your company?
With an engineering excellence for 34 years right from basic engine dealership to earthmoving and mining equipment now, CS Group of companies has dealerships of various construction and earthmoving equipment.

We market construction equipment and provide the most preferred quality equipment for each civil activities. We also provide after sale service and maintenance solution for customer requirement.

Kindly elaborate on the various equipment you deal with. Which equipment/class does find demand in the market?
We deal with construction equipment from L&T (primarily after sales), Pewag tyre protection chains and Pewag bucket and conveyor chains (Austria), Allight Sykes solid handing dewatering pumps (Australia) Bburg crawler (blasting) drills (Germany) and Poqutec rock breaker (South Korea).

What is the price range for each category of equipment? Who are your major customers?
Price ranges are pretty competitive with the best-in-quality products. Segments are open but mainly we concentrate on the corporate segment.

Which territories/regions/markets do you operate in?
For L&T, our market spread between Mumbai to Goa, while for other products it varies.

Is there a shift in buying pattern from your customers in the recent past?
We could see the shift to buy more sophisticated products during 2008-2012. But in the current market conditions, the demand for sophisticated machines is less and customers would even settle with second hand (new) products which are easily available.

What are the challenges you face in the current industry scenario?
Many projects have been awarded but implementation rate is low due to no funds allocated. Primarily project funding need to move faster for the industry to start growing at a faster pace.

Please elaborate on your sales performance last year.
Last year was not good and the fund flow has further slowed down and is continuing so till date. However, the market outlook is more optimistic this year and we think by the end of the year, we will be in a better position.

How do you look at the demand from various infrastructure sectors, real estate and mining?
Projects have been announced in a big way, but it needs to take off in a big way. Currently, the projects start without major clearances from the various authorities which needs to be changed. There should be a reform in place so that the projects are announced after getting all the necessary clearances from the respective authorities.

Brief us on the services provided by your company.
We provide services for all the products we sell. CS Diesel Engineering has been a service-cum-sales dealer for the past many years with construction equipment and engines. Service has been, and shall always be our forte. We are not only responsible for the sales and marketing of these engines/constructions equipment, but all the very important functions like spare parts, services support and annual maintenance contract (AMC) supporting these equipment.

What are the demand drivers for the product range that you deal with?
The products we are involved provide a faster return on investment (ROI), better reliability and better performance.

How do you assess the future potential/opportunities?
Projects awarded should be closely monitored, which would determine the short-term potential and opportunities. India lags behind in infrastructure and actual growth for any country starts with infrastructure. The present government?s announcements of the projects and their actual commencement will determine the further opportunities.

What are your future plans?
Though there are announcements on project implementation, the actual plan of the government will take shape by budget thus our plans to horizontal segmental business growth mainly will take a final shape by March 2015.