Component makers are staying invested for a bright future

Since the fortunes of the component and accessories manufacturers are closely linked with the market conditions for the original equipment manufacturers (OEMs) of infrastructure and construction equipment (ICE), it is no wonder that the component makers are feeling the heat from drop in sales by OEMs. But despite this, the component industry is bullish on the prospects of the industry which was amply reflected in their large participation at the EXCON 2013, the 7th edition of South East Asia’s Biggest Construction Equipment Event organized by the CII, from 20-24 November at the Bangalore International Exhibition Centre, Bangalore.
In EXCON 2013, 386 component manufacturers and 93 accessories makers took part and accounted for 65 per cent of the total number of exhibitors, a record for this prime exhibition. Participation of component and aggregate manufacturers has grown every year since the inception of EXCON. Their overwhelming response in EXCON 2013 is particularly enriching the exhibition despite a slowdown in the economy. This only shows the optimism in the industry,” said Mr. Pratik Kumar, President, Wipro Infrastructure Engineering, specialist in designing and manufacturing custom hydraulic cylinders, actuators and precision engineered components.
Mr. Vipin Sondhi, Chairman, EXCON 2013, and Managing Director of JCB India also thinks that India can emerge as a major outsourcing destination for construction equipment and components. At the Inaugural Session of the EXCON 2013 Mr. Vipin Sondhi said, “To cater to the international demands, ICE and component industry from India have huge export opportunities in countries like West Asia and Africa.”
Mr. Sanjay Patwari, Head – Mobile and Wind Sales Development of Bonfiglioli Transmissions (Pvt.) Ltd., felt that the current slowdown is only a temporary aberration and the industry has a bright future. The company has been continuously investing since its inception in India and has recently expanded its product line in anticipation of larger demand. “In my opinion the ‘India Growth Story’ is intact. A large number of global OEMs are coming to India and they will certainly look at local sourcing for components so I think there is a great opportunity for serious and quality players,” he said.
Mr. Abhimanyu Kumar Shaw, Managing Director, AAA Hydraulics (India) Pvt. Ltd. expressed similar views on the prospects of the OEM market.  He further said that “India is a developing market, and a growing economy would need many more construction equipments for infrastructure so there will be strong demand for components in the future”.
However, Mr. Pratik Kumar feels that for the industry to prosper in the future there is a need to have a multi-pronged approach. “Industry needs to invest to benchmark themselves against the world’s best companies in terms of technology and R&D facility. Skill development for engineering products is another area where the industry needs to work closely with engineers and technical institutions,” Mr. Pratik Kumar added.
Mr. Sanjay Patwari urged the industry to take the cost arbitration advantage of India in manufacturing by investing in engineering and skill development.