MARKETING AND SALES PLAN ( FY 12-13)Construction Market

Amit

Kum

ar N

aray

an

Indian Construction Equipment Industry

Source : CRISIL,CII-Mckinsey,RNCOS Rsearch,Chris Sleight

• Construction equipment industry (CE) in India is approximately $6-6.5 Bn ( 2011-2012)

• Growing at 12-13% p.a, will double ( $12-13Bn) in terms of Revenue by 2015

• Unit sale 40909 in 2009 to 86420 units in 2014, recording an overall growth of +112%.

• The CE includes • Earthmoving equipment(EM)- biggest in size ( 57% of industry)• Road construction• Material handling• Concrete equipment.

• The earth-moving segment, in particular, has been driving the overall construction equipment industry in India, with the strong demand emanating from the government-backed infrastructure projects.

• EM segment is poised to register CAGR of around 21-24% during 2011-15.

Amit

Kum

ar N

aray

an

Source: CRISIL,jcb press release

• Overview : • Backhoe loader : 50% plus (largest segment in unit terms)• Hydraulic excavators : 19% • Mobile cranes : 15% . • Wheeled Loader/Compactor/Dozer/Dump trucks etc : 16%

• Backhoe : JCB is the market leader in the backhoe loader segment, next is Telcon. • Excavators : Telcon is the Market leader followed by Komatsu . • Wheel loader : Caterpillar is the leader.• Dumper and Dozer : Dominated by BEML and CAT.• Pick and Carry (PNC) : Dominated by Escorts and ACE, • Compactor : Case, ECEL and Volvo India Private limited (Volvo).

JCB possesses a 55 percent market share in EM industry

Overview on Earthmoving (EM) Market

Amit

Kum

ar N

aray

an

Amit

Kum

ar N

aray

an

Source : Wikipedia

EM Manufacturers in India

Atlas Copco Volvo Escorts Doosan

BEML Kubota ACE Bull

CASE Kobelco TIL Standard

Caterpillar Inc. Komatsu Telcon-Hitachi LeeBoy

CNH Global Liebherr Group Liugong Indofarm

Leyland Deere Terex Apollo

Hyundai Construction Equipment

Sany Godrej

JCB Mahindra & Mahindra Greaves Cotton- Bomag

Amit

Kum

ar N

aray

an

Source : Wikipedia

Below are prominent market players for certain broad category of equipment in India:

BackhoeLoaders

HydraulicExcavators

WheelLoaders

Dozers &Dumpers

RoadCompactors

Cranes ForkLifts

JCB India Telcon(Hitachi)

CaterpillarIndia Ltd.

BEML Case Escorts Godrej

Telcon Komatsu Telcon CaterpillarIndia Ltd

Escorts(ECEL)

ACE Voltas

Case Hyundai JCB India TatraUdyog

Greaves Ltd(Bomag)

TELCON TIL

BEML JCB India BEML Voltas Volvo JCB

CaterpillarIndia Ltd

CaterpillarIndia Ltd

Komatsu Volvo JCB TIL

Major EM Manufacturers By Applications

Amit

Kum

ar N

aray

an

Location

2005 20062007 20082009

                                                                                                       

2005 20062007 20082009

                                                                                                       

20000400006000080000100000120000140000Escorts ITL John Deer M & M TAFE

Sales In Quantity2005 20062007 20082009

                                                                                                       

Coimbatore

Bangalore

Pune

Mumbai

Chennai

Jamshedpur

Delhi

Construction Sector

Pithampur

Nasik

Nabha

Baddhi

Barnala

Hyderabad

Kolkatta

Dharwad, Hubli Sri City

Customer Location Indofarm BaddhiStandard BarnalaTerex Greater NoidaEscorts FaridabadJCB FaridabadAce FaridabadTIL tractors India KolkattaTelcon- Hitachi Jamshedpur,DharwadLiugong PithampurCase PithampurApollo GandhinagarAtlas Capo NasikGodrej MumbaiMahindra & Mahindra PuneHyundai PuneJohn Deere PuneUniversal Construction PuneLiebherr PuneSany PuneJCB PuneChTZ Equipment india HyderabadKobelco Sri city, A.PLeyland deer ChennaiCaterpillar ChennaiGreaves Cotton ChennaiL & T CoimbatoreBull CoimbatorePuma BangaloreVolvo BangaloreDoosan BangaloreMaini BangaloreL&T Komatsu BangaloreLeeBoy India BangaloreBeml Kolar Gold FieldAjax Fiori Doddaballapur

Amit

Kum

ar N

aray

an

• Backhoe• Excavators• Wheel loaders• Dozer, Dumper• Road compactor• Cranes• Fork lift

Market Segment

Amit

Kum

ar N

aray

an

• India is the largest Backhoe Market in the World due to its versatility and value for money.

• Backhoe contributes 50% of total EM sector.

• Unit sale exceeding 33,000 units in 2011

• Production forecast is around 43000 unit for 2012-2013

• CAGR for Backhoe is around 40%

• Other Manufacturer : Terex, CAT and new players• Recent entrants in 2011-2012 :- Mahindra, Escorts and Leyland Deere

Market Segment - Backhoe

Source : Off-highway, telcon, JCB, perss release

75%

12% 5% 8%

Market Statistics

JCBTelconCaseother

Amit

Kum

ar N

aray

an

Market Segment - Excavator

Source : Off-highway,Leiugong,Kobelco,TIPL press release

• Excavator market observed to be growing equally fast as Backhoe

• Excavator account to be 19 % of EM Market Segment. • Current market demand is around 12000 and projection is 27,000 units by 2015.

• Projected Growth of 114% in next 5 years.

• Other Manufacturer : JCB, CAT ,Volvo and Kobelco.

• Recent entrants in 2011-2012 :- Kobelco54%

21%

11%14%

Market Statistics 2011

TelconKomatsuHyundaiOthers

Amit

Kum

ar N

aray

an

Market Segment – Wheeled loaders

Source : ICRA,Euipment India,Telco press release,off-Highway

• Market for wheel loaders in India is about 2,700 units, estimate for 2012-2013

• Growing at approximately 20 per cent YoY.

• Chinese EM companies currently hold over 12% in the wheeled loader segment through Import.

• Other Manufacturer : Komatsu ,JCB, BEML and CAT .

48

20

12

20Market Statistics

CATTelconChina SupplyOther

Amit

Kum

ar N

aray

an

Market Segment – OTHERS

Source : off-Highway,case and Escorts press release

• Mobile crane:• Mainly of pick & carry was up 36% to 9500 machines from 2010 ( 15% of EM)• Dominated by Escorts and ACE

• Compactor:• Current market demand is around 5000 units • CASE having 32% market share in Compactor followed by Escorts (25%), Greaves

Volvo and JCB

• Dozer and Dump Trucks:• The total volume contribute to 2800 units pa• Three Chinese EM companies currently hold around 13% of the dozer segment• BEML is a local manufacturer for Dozer• Very few articulated dump trucks are sold. • Dump Truck market has traditionally been dominated by two manufacturers, BEML

and Caterpillar, which jointly account for 90 % of sales.

Amit

Kum

ar N

aray

an

Backhoe Seat Excavator seat Wheeled Loader

Other EM Sector

Seats

Amit

Kum

ar N

aray

an

• Volume of Seat : 33000 pa• Seat Specification : Two type of seats Requirement:

• Type 1 :Static Seats with Height riser, Turntable, For & Aft and Reclining with plinth/base and seat belt

• Type 2 :Suspension seat with Weight Adj, Turntable and Reclining with plinth/base and seat belt only Used in JCB but contributing 75% of volume

Backhoe Seats

Current Market Seats

Note :It is assumed that all the Backhoe manufacturer will shift towards the Suspension seat than Height riser version to follow the JCB move.

Amit

Kum

ar N

aray

an

• Total Volume of Seat : 12000 Pa• Type 1 Basic ( 2T ):• Static seat with Fore and Aft, Armrest, Reclining with plinth• Contribute to 20% volume

• Type 2 Medium ( 2T-33T )• Mechanical suspension with weight Adjustment, Slide rail ,Armrest, Headrest, seat belt

2 point ( Equivalent to CVG 100 series)• Contribute to 60% of volume.

• Type 3 Heavy ( 33T-120T)• Mechanical suspension with weight Adjustment, Slide rail ,Adjustable Armrest and

Headrest, 2 point seat belt ( Lap/ALR)( Equivalent to CVG 400/800 series suspension) . Option for 3 point seat belt also required)

• Some are Imported along with the cabins some of them are with Air suspension

Excavator Seat

Current Market Seats

Amit

Kum

ar N

aray

an

• Wheeled Loader/Compactor/Dozer• Volume of Seat : 10000 pa ( 50% is the compactor only)• Seat Specification : Mechanical Suspension seat with Weight

Adjustment ,Fore& Aft, Reclining backrest with plinth/base and 2 point seat belt ( Lap/ALR) ,Adjustable armrest, no head rest, Mid backrest. Options for Turntable in Compactor required.

• Price target : Starting from Compactor INR 5000 to INR 12000• Cranes –Pick and Carry /Mobile

• Volume : 9500 Pa ( 90% is Pick and carry)• Seat Specification : For Pick and Carry, it is same as Indian Agriculture

Market Low segment. Price target : INR 1800 ( with one armrest) • For Mobile crane : same as Compactor but some have Headrest.

Wheel Loaders and Other

Current Market Seats

Amit

Kum

ar N

aray

an

• Case, Volvo, Komatsu, CAT, Deere, HyundaiGrammer

• Mahindra , Escorts, Caterpillar, BEML, Telcon, Komatsu, Voltas

Harita

• JCB, Escorts, StandardMajestic

• Escorts, ACESietz Technologies

• CAT, Terex,CaseSpack Automotive-Sears

Need to be confirmed from Customer

Earth Moving Segment-Competitor and Supplies

Amit

Kum

ar N

aray

an

Excon

• Location : Bangalore ( South India)• Timing : 21-25th Nov 2013 ( every Two years )• South Asia's largest event for Construction Equipment

Connex

• Location: India Expo Mart, Greater Noida, Delhi-NCR (North India)• Timing : 12-15 Sept 2012

Bauma

• Location : Mumbai ( West India)• Timing : 5-8 Feb 2013 ( every two year)• JV between two internationally successful trade-show organizers: Messe München

International, organizer of BAUMA, and Association of Equipment Manufacturers, organizer of CONEXPO-CON/AGG.

IMME

• International Mining and Machinery Exhibition organized by Confederation of Indian Industry (CII) In association with Ministry of Mines, Ministry of Coal, Government of India

• Location : Kolkatta• Timing : 7-10 Nov 2012 (every two years)

Marketing and Sales Approach-Trade Shows