Haulotte Group, established in 1881, is the largest European manufacturer and supplier for people and material handling equipment with revenue in excess of US$450-million with extensive worldwide coverage. Haulotte markets a full range of self propelled access equipment, ranging from 6.0m to 43m, and Telehandlers.


Despite the improvement in infrastructure development activity, there are some major projects that are yet to be launched. Once they kickstart, there will be a growth in the AWP industry, feels Souma Ray, Director, Haulotte India Pvt Ltd, as he talks to EPC&I ahead of the upcoming bC India 2016.

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As an established leading player in the Construction Equipment market in the country, what is your opinion on Infrastructure development activity in the country?
Although there has been an improvement in the infrastructure development activity, yet there are some major projects especially in Mumbai which are yet to commence like the Navi Mumbai International Airport and the Mumbai Trans Harbour Link (MTHL), also known as Sewri-Nhava Sheva Trans Harbour Link. Once these projects are launched we shall definitely see an upsurge in requirement of Aerial Work Platforms and the overall construction equipment market during various phases of construction.
On a global perspective the demand of AWPs has certainly increased both in the government and private sector. The rental sector is also seeing a good demand of our equipments which is an encouraging sign. But, going forward, we are sure the Construction Equipment Sector is expected to sustain market growth for the next four years, albeit at more sustainable levels.

While some research analysts and economists claim that it is skewed more towards road building activity, development of power plants, ports, airports, etc continue to lag behind. Do you subscribe to this view?
Yes I do agree to this view. There hasn’t been much focus as yet in development of power plants, ports, airports, etc., although the government has reaffirmed their commitment towards development of all such sectors and in few cases announcements have also been made. However, most to them are yet to take off in reality and the actual results would only be visible in the times to come.

What would you say are the main growth drivers in a highly competitive market?
We at Haulotte always believe in the principle of “Customer Proximity” and that is the reason even for a nascent market like India is today for AWP Industry, we have foreseen the potential that this country has and decided to base ourselves in India as an Indian registered company. The local presence acts as a major catalyst in customers minds and thus builds customer confidence on us as an organisation and our products. The key growth driver in a competitive market is being there where the requirements are, being able to respond to the needs of your customer at the shortest possible time and most importantly position your products in terms of specifications and price points that customers find lucrative.

How have the policies and initiatives taken by the government to develop the country’s infrastructure reflected on your company’s growth?
Growth of business in any country is intrinsic with the development of the economy and the steps that the government takes to improve the business environment. The impetus that is being put by the government towards infrastructure development has certainly motivated newer business potentials to emerge, and this has certainly helped us to strengthen our position with strong YoY growth over the past two years.

What are the company’s expansion strategy and potential segments in Indian construction equipment business?
As I have stated in the past, requirements of Aerial Work Platforms are not specific to any particular sector, but across sectors wherein people are required to work at heights safely and productively.
India is a big country, and most important for any company is to have its footprint across the country to ensure growth and success of its business. We, at Haulotte, take this as our topmost priority in order to expand our reach. Telehandlers is another segment which has immense potential going forward, and we are laying a lot of emphasis in increasing awareness on the use of Telehandlers, and also showcasing our product offerings to potential interested customers across the country.

In the face of aggressive competition putting strong price pressure, coupled with the liquidity in the market which will impact cash flow and profitability, what are the transformations that leading companies such as yours need to bring about to ensure that you not just grow at a predetermined rate but grow substantially?
More than the strong price pressure, it is the lack of liquidity in the market that is affecting the flow of business. Today, financing is a major issue for any purchase. In order to address this issue, we at Haulotte have started Haulotte Financial Services (HFS) so that we can provide in-house finance at attractive rates to our customers. HFS offers a wide range of financial solutions designed to meet the varying needs of customers business.

How is the technology placed to suit Indian requirements taking into consideration that the equipment works for extended duty cycles and adverse conditions within the country?
Requirements of Aerial Work Platforms are defined by height and application of use. Based on these parameters, the suitable variant is chosen and offered. Hence, at Haulotte, we strongly believe in doing the application study for our customers so that the best suitable machine can be suggested to them. There are various machines that the available for each variant and based on the customers need the same are offered.

What would you say are the primary challenges going ahead?
The primary challenges that continue to plague the growth of AWP industry are the non-existence of any legislation when it comes to working at heights, and also no restriction or embargo to import used machines of any age and condition into the country.
Although the awareness of the use of AWPs are growing across sectors which is an encouraging sign of a bright future of the AWP industry in the country, yet the impetus in the growth can only be achieved once we are ready to accept the best practices followed in developed countries, where safety while working at heights is of utmost importance, and it is mandatory to use AWP when working at heights.

What is your forecast of CE demand in the days ahead?
Although there has been an improvement in the infrastructure development activity, yet there are some major projects especially in Mumbai which are yet to commence like the Navi Mumbai International Airport and the Mumbai Trans Harbour Link (MTHL), also known as Sewri-Nhava Sheva Trans Harbour Link.
Once these projects are launched we shall definitely see an upsurge in requirement of Aerial Work Platforms and the overall construction equipment market during various phases of construction.
On a global perspective the demand of AWPs has certainly increased both in the government and in the private sector. The rental sector is also seeing good demand of our equipments which is an encouraging sign. But, going forward, we are sure of the growth in the construction equipment sector, and this is expected to sustain market growth for the next four years, albeit at more sustainable levels.

Lastly, any new products and services expected to be launched at bc India 2016?
Haulotte has been a regular participant in BAUMA across the world. We have been with BAUMA India since 2011, and have participated in all the three exhibitions held till date. This year, too, we shall be there for BAUMA CONEXPO 2016 at Gurgaon. We shall be located at Outdoor Stall No.840.
This is the only international show which we find as an appropriate platform to exhibit our products. We expect that customers from both end user sector and rental sector who shall be visiting our stall would be made familiar to the latest technological advances that we have done in our range of Aerial Work Platforms and Telehandlers.
For Bauma Conexpo 2016, we shall be exhibiting our latest generation of Rough Terrain Articulated Boom, Vertical Mast, Electric Scissor and Telehandler. Each variant has its own USP, but one of the many distinguishing notable feature is in the lower ground control Box of our articulating boom.
We have incorporated the Haulotte Diagnostic screen in the panel which shall enable the user to get all details of performance and related parameter at a touch of a button. Further, any fault diagnosis can also be done on this screen which gives a pictorial description of the nature and location of the fault. This tremendously helps in reducing the downtime of the machine and any intervention can be done in the shortest possible time.

Haulotte Financial Services
Financial Lease (with a Financial Lease, a company acquires ownership following the end of lease).
Features
Level monthly payment
Lessee owns equipment at end of lease term
Deduction of full rentals for tax consideration
Payment of equipment over time
Benefits
Fixed costs aid budgeting
Borrower takes full advantage of tax benefits
Conserves working capital

Hire Purchase
With a Hire Purchase option a customer can purchase the equipment for an amount specified at the beginning of the contract.

Features
Level monthly payments
Option to purchase for a fixed price
Payment of equipment over time

Benefits
Fixed cost aids budgeting
Operational ownership
Conserves working capital

“The primary challenges that continue to plague the growth of AWP industry are the non-existence of any legislation when it comes to working at heights, and also no restriction or embargo to import used machines of any age and condition into the country.”