Construction gear in dizzy growth

More and more global firms are keen to enter the fledgling Indian earthmoving and construction equipment (ECE) market through subsidiaries or joint ventures to cash in on the opportunities in the booming infrastructure sector, industry experts said.

More and more global firms are keen to enter the fledgling Indian earthmoving and construction equipment (ECE) market through subsidiaries or joint ventures to cash in on the opportunities in the booming infrastructure sector, industry experts said.

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“With the government projecting a whopping $1 trillion (Rs 1 lakh crore) investment in the infrastructure sector during the 12th Plan period (2012-17), several foreign firms are mulling to set up wholly-owned subsidiaries or joint ventures for manufacturing and marketing construction equipment and components in the Indian market,” said Glenville da Silva, chairman, Indian ECE Industry Association.

"The Indian ECE industry revenue is set to grow six-fold to $23 billion in 2020 from $3.3 billion in 2010 with a CAGR (cumulative average growth rate) of 21% as against 18% CAGR registered in the past five years (2006-10) to reduce the deficit and meet the growing demand from urban to rural areas," Silva said.

According to London-based global consulting management firm Off-Highway Research, the growth momentum of the global ECE industry is shifting to emerging markets like India and China from matured markets, where finance has become scarce and business confidence is low due to sovereign debt crisis.