Roads are the arteries of an economy, a route for carrying goods, people, aspirations and stories of everything that moves. India, with the world’s second-largest road network, still has vast white spaces awaiting development. Building strong roads requires not just a coat of bitumen but multiple layers of materials and specialized equipment such as pavers and compactors – an opportunity identified early by Ammann India.
The company has made steady inroads in India, with its machines powering projects such as the Ganga Expressway. Pavers, in essence, are machines that lay asphalt and ensure proper compaction of roads. “If you look at any road in India, chances are high it has been built using Ammann’s pavers,” said the company’s managing director Dheeraj Panda.
“Road construction equipment such as pavers may account for only 7–8% of the overall sector, but they are among the most critical machines for creating strong, long-lasting roads,” he added.
The demand for these machines is closely tied to government spending and the awarding of tenders, which typically carry a long gestation period of two to three years. This dependence was evident in FY25, when the construction equipment industry grew by just 3%, a sharp slowdown from 26% in FY24, largely due to election-related delays. This year (FY26), too, the industry is expected to remain flat. Ammann, however, managed to grow about 5% last year.
India stretches over 64 lakh kilometers of roads. Yet, much of it requires upgrading to meet modern standards of durability and connectivity. This scale of demand has kept the spotlight on road-building machinery, from compactors and pavers to asphalt and concrete plants. For Ammann India, a key player in this ecosystem, the opportunity is as vast as the challenges.
“According to Crisil, road awarding is projected to grow by around 12% in FY26 over FY25. That means more contracts will be handed out, and naturally, construction activity will follow. For equipment makers, whether it is backhoe loaders, excavators or niche machines like pavers, this pipeline signals steady demand,” said Hemal N Thakkar, Senior Practice Leader & Director at Crisil Intelligence.
Domestic Slowdown, Long-Term Potential
The Rs 947 crore company is a part of the Swiss Ammann Group. It has been operating in India for the past 30 years with a 37 acre facility in Ahmedabad’s Mehsana comprising both plants and machines.
“We see a lot of growth potential, but in the near term, there are slowdowns due to land acquisition and payment issues. Many contracts have been stuck for the past six to seven months,” Panda noted.
Policy shifts are shaping this outlook. The National Monetisation Pipeline (NMP) is encouraging toll-operate-transfer (TOT) and hybrid annuity (HAM) models, while schemes such as the Pradhan Mantri Gram Sadak Yojana (PMGSY) continue to generate demand for rural connectivity equipment.
Thakkar explained the difference between various toll models, “Earlier, most road projects were bid out under the BOT model—Build, Operate and Transfer. In this, the private developer not only built the road but also operated it for a concession period and recovered their investment through toll collection. Once the concession period ended, the road was handed back to the government. The problem with BOT was that developers had to put in a lot of money upfront, often borrowing heavily. Some projects turned unviable, banks’ NPAs (non-performing assets) piled up, and the model lost favour.”
“To resolve this, the government introduced TOT (Toll, Operate and Transfer). Here, the government first builds the road and makes it operational. Once traffic levels are established, the asset is auctioned to private players for long-term operation and toll collection. Companies or funds bid by paying an upfront amount to the government, and in return they get rights to collect toll and maintain the road for, say, 20–30 years. Since the traffic is already proven, TOT became attractive for global pension funds and infrastructure investors who typically look for stable, annuity-like returns. It brought predictability into the sector and revived private interest,” Thakkar explained further.
“At the same time, Hybrid Annuity Model (HAM) also became popular. Here, the government shares part of the project cost with the developer, reducing their risk. Between TOT and HAM, road construction picked up pace again,” he said.
“The National Monetisation Pipeline is now being pursued more actively than ever. Existing assets are being monetised and handed over to private players, generating funds for the government to build new infrastructure,” said Panda.
The NMP, prepared by NITI Aayog in consultation with infrastructure ministries, identified core public sector assets with a monetisation potential of Rs 6 lakh crore over the four-year period 2021-22 to 2024-25.
“This represents a fundamental shift in the way projects are financed. In the short term, however, it has led to fewer contracts being awarded, as the transition plays out. That said, the long-term focus on infrastructure remains intact, and we expect growth to improve this year,” Panda added.
Ammann has steadily diversified beyond its asphalt heritage. Its acquisition of Apollo (in 2013) and ABG (in 2024 from Volvo) pavers gave it a strong foothold in India’s road equipment market. The Elba line of concrete plants acquired in 2017 added another growth leg, tapping into the rising demand for urban infrastructure and housing. With these additions, the company now commands a full portfolio covering asphalt, pavers, and concrete solutions.
“We now have a complete portfolio for roads and concrete. Rather than adding new categories, we want to consolidate and grow here,” Panda said.
Production Scale and Growth Targets
For 2025, Ammann plans to roll out about 1,200 machines (pavers, rollers, compactors) and 200 plants (asphalt, drum mix, and concrete). Production largely runs on a single shift, with flexibility to expand as demand rises.
By 2030, Ammann is targeting topline growth of 60–70%, implying a CAGR of 12–15%. Exports, aftermarket services, and a balanced product portfolio will drive this momentum.
Ultimately, Ammann believes India’s roads must move beyond patchwork fixes. “The layers beneath asphalt—the sub-base, the wet mix, the soil—determine road quality. If we build better roads, we reduce maintenance and potholes,” Panda noted.
For Ammann India, the next five years will be about laying not just asphalt, but the foundations for a stronger global footprint, deeper localisation, and sustainable growth.
Export Push and Localisation Drive
Exports are emerging as a strong hedge against India’s cyclicality. Ammann supplies plants and machines to Latin America, Africa, West Asia, Southeast Asia, and Australia, with exports set to grow from 17–18% of revenues last year to 23–24% this year. “We are not happy with current numbers—we can do more. Global growth should outpace India for us,” Panda said.
At the same time, localisation is a key priority. Ammann has localised 95% of its machines and works with over 450 vendors across India, while still importing critical high-tech components. The company is pushing to deepen its supply chain in India to reduce costs and align with the government’s Make in India thrust.
Tapping on Aftermarket/Recycling
The company is also sharpening focus on aftermarket services. Spare parts and services currently contribute 15% of revenues, targeted to rise to 20–25% in the next three years. Refurbishment and retrofitting are a growing niche, given that most plants have a 7–10 year economic life.
Recycling is another frontier: reusing reclaimed asphalt and materials is gaining momentum as India moves toward sustainable infrastructure. Ammann India currently recycles 60% of the road asphalt and wants to achieve 100% in the coming years.
Emission norms are also raising the bar. Indian standards are now close to Europe’s, pushing manufacturers to innovate. “India has become one of the fastest markets in terms of emission norm changes,” Panda said. But compliance comes at a price. The Construction Equipment Vehicles (CEV) Stage-V has added significant change with cost rising by 12-15%, another challenge.