The mining equipment industry is going through a temporary slowdown. The market is, however, poised to grow in the near future on the back of support from the government. PuneetVidyarthi, Brand Leader, CASE India, speaks about the current state of the mining equipment industry, technological trends, the company’s new offerings for the Indian market and future outlook for the sector. Excerpts…
What is the current scenario in the construction and mining equipment industry?
The year 2019 witnessed a slowdown due to sluggish economic conditions in the country and this impacted every sector. We expect this phase to not last too long and with the kind of reform measures being taken, the conditions will soon change.
Budget 2020 announced a lot of projects which benefit the infrastructure and construction sector and charted a roadmap for the multi-pronged, long-term development of the sector. The keen focus on highway projects and monetisation of highway bundles gives an impetus to construction companies. Although the mining industry did not see significant investment from the government this year, we are nevertheless hopeful that in the time to come the government will introduce measures to boost the mining sector as well.
What are some of the issues and challenges being faced in light of the current industry slowdown?
India is blessed with abundant mineral resources and these resources are pivotal to the country’s development. The growth in the mining equipment segment has been relatively moderate at 5-10 per cent. The recent orders of Coal India Limited (CIL) for the purchase of approximately Rs 100 billion worth of mining equipment is a good sign for mining projects in the country.
By its very nature, the mining industry is highly complex. The hazardous conditions of open cut and underground mining pose many challenges to the mining industry and mining equipment makers. Fast diminishing resources, worker health and safety, low wage concerns, high wear and tear of equipment, and lack of enough maintenance solutions in the vicinity of mining sites are some of the challenges that impact the industry and its equipment makers.
What are some of the new offerings by CASE for the Indian market?
We have recently launched our first-ever excavator, CX 220 LC, at the biggest construction equipment event, Excon 2019, in December 2019. The CASE CX 220 LC is a 22 tonne excavator especially designed for the Indian terrain and delivers faster cycle times, higher productivity and fuel savings. The machine is highly suitable for quarrying, road and general construction, and earthmoving. The CX 220 LC product positions CASE as a full liner in the Indian construction equipment industry, further strengthening its leading position in the market.
What are some of the emerging technologies gaining traction in the Indian mining equipment industry? What are the challenges being faced by original equipment manufacturers (OEMs) in adopting these?
Technology will always be a game changer and plays a key role in making machines better suited to their environment. CASE has always believed in using technology to benefit the user and intervene where necessary to add immense value to the construction process.
While power and productivity are claimed by most players, our CX 220 LC excavator, for example, comes with a world-renowned, highly advanced, six-cylinder Fiat Powertrain Technologies’ engine that delivers notably higher productivity and faster cycle times than other engines. The machine also delivers 4 per cent greater fuel savings due to five energy saving modes programmed into the eco-gauge function.
Besides this, we have a state-of-the-art telematics system that gives the user inputs on machine usage, service intervals, location of the machine, etc., enabling better decision-making and servicing and thus reducing downtime.
The biggest challenge which stops OEMs from bringing in more advanced machines in the industry is the unavailability of skilled and knowledgeable operators. Operator training is paramount to ensure that the best features of the machine are used and the benefits reaped. To an extent, every machine is only as good as its operator. Lack of training also means that operators may overwork a machine beyond its capability, resulting in downtimes due to frequent service requirements. CASE has a fleet of trained operators and we are working on establishing a training programme to train more personnel to try and reduce the impact of poor machine operations.
What is the future outlook of the construction and mining equipment industry?
The outlook for mining equipment is expected to be positive, exemplified by CIL’s recent massive equipment orders. CIL has already floated tenders and factoring in a 9-12-month period for delivery, the demand for mining equipment should increase in 2020.