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Small players upbeat

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BS Reporter Chennai/ Bangalore
Last Updated : Feb 05 2013 | 2:36 AM IST
Excon 2007 gave several small and medium enterprises (SMEs) a chance to showcase their expertise in making components for the sector.
 
The Indian construction equipment industry, which has tripled to 31,000 units of machines in the last five years and is aiming at 60,000 units by 2010, is presenting a huge potential to local component manufacturing industry.
 
In many ways the local component manufacturing industry has been the workhorse of the construction equipment sector.
 
However, to grow further and to be able to cash in on this boom the Indian component manufacturing industry must continue to build competencies in supplying international quality products, on time and at competitive prices.
 
According to Lalit Sethi, Managing Partner, Hydrolines India, the construction equipment components industry foresees a big role in the coming years in view of robust growth of the infrastructure sector coupled with positive growth forecasts and expansion plans of global and domestic Original Equipment Manufacturers.
 
Highlighting the challenges being faced by the industry Indranil Dasgupta, General Manager (Design), UT Ltd., elaborated that the threat of cheap imports from low-cost manufacturing centres does not seem to bother the indigenous players.
 
"There is definitely no threat from imports at least for Indian companies that focus on niche products," he added.
 
SMEs were also focused on the OEM market in order to build sustainable businesses and to grow their presence globally. SME players felt that the replacement market seems to be left for the unorganised players and cheap imports.
 
Therefore, component players want to be OEM suppliers for two reasons: One, they can be assured sustained business over a period of time and secondly, the OEM route could be the only route to global markets.

 
 

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First Published: Nov 21 2007 | 12:00 AM IST

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