India’s construction equipment industry is likely to witness over $ 4.5 billion worth of investments in the next 5-7 years, as demand arising out of infrastructure projects touches a new high.
The expected investments will come from the original equipment manufacturers (OEMs) and their suppliers, claims Deepak Garg, MD Sany India.
Talking to Autocar Professional, Garg stated that in the past 2-3 years, the manufacturing capacities of almost all major construction equipment players have maxed out and everybody is currently in expansion mode. Garg spoke on the sidelines of a road show organised by CII-Excon 2023, in the run-up to the Excon event which is scheduled on December 12-16 in Bengaluru.
In FY23, the CE industry for the first time breached the 1 lakh unit sales mark for machines and it is expected to grow by 12-15% in FY24, industry data suggests. In monetary terms, the FY23 sales translated to over $ 6 billion in topline.
As per an estimate by the Indian Construction Equipment Manufacturers’ Association (ICEMA), a lobby body representing over 80 companies, the construction industry in India is expected to reach $1.4 trillion by 2025. The development should be seen in the context of bolstering India’s infrastructure to reach the economic growth target of $ 5 trillion.
As per ICEMA, various national-level schemes and policies including the National Infrastructure Master Plan- Gati Shakti, the National Infrastructure Pipeline (NIP), and the National Monetization Pipeline have provided momentum in attracting investments for infrastructure, increasing industrial growth and opening new development opportunities.