In your views share with us your assessment on the opportunities in the CE segment.
With Government announcing financial outlay in Roads, Irrigation, Railways and also importantly in the Rural Economy, there seems to be opportunities for growth in the future. Urban rejuvenation is another area that can significantly create demand if focused on as an opportunity by the Government. With the implementation of large-scale projects, including projects of national importance, the road equipment industry is on a path to gain momentum.
Roads and Highways followed by Water Conservation and Irrigation are the leading growth sectors at present. Going forward, projects such as Sagarmala, Bharatmala, Jal Marg Vikas, Smart Cities and AMRUT housing together with a strong focus on rural development, we are hopeful that this will have a positive impact in imparting stability to the sector in the near future. As rural further integrate, we are hopeful of seeing more activity in terms of building infrastructure in this sector. The Pradhan Mantri Gram Sadak Yojna has been one such program. Also, with a focus on water, Har Ghar Jal and Conservation projects, lakes and reservoirs are further expected to boost demand. With concerted efforts, the long-term prospects look positive and we are hopeful of seeing a strong growth trajectory in the Construction Equipment industry in the next year.
In the recent years, IoT has had a vast impact on the construction equipment sector? How do you look at it?
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Tepid Demand: Awaiting Projects Execution
The industry has a tepid demand in 2019. However, towards the end of the year there were signs of revival and the industry is hopeful to clock 8-10 percent growth in FY2020-21. But, it all depends on how sooner the government’s projects are put on track.
We have lined up few capexes, the payback period are quite attractive
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