Q.Please tell us more about the cutting-edge offerings of your company that are made to address the challenges of large-scale infrastructure projects like Highways, Metro Rail, Tunneling, Mining, Railways, etc. and on top of that how is your company commercializing technological advancements like AI, IoT and autonomous systems to improve the operational efficiency, safety and the duration of projects?
India is poised to become the third largest economy by 2030 with India share of Global GDP to be 5.1% from current 3.5%. This will be at a CAGR growth of ~9% during this period. This growth would be a part of our venture of a Viksit Bharat by 2047 and infrastructure growth that will be a keystone for the Construction Equipment Market. Such an opportunity comes with its own set of drawbacks and responsibilities. We have an understanding that our products should deliver high duty cycles, deliver productivity and economy, make sure the safety of the users and durability is one of the major components of our commitment and priority. These factors are our top priority and at the core of our design and manufacturing goals and we are self-assured that with each new development we are able to deliver supreme products as per the requirements of our customers. Our product range is designed in such a structure that can address the constant changing needs of construction. For example, Telematics is linked with load safety so that it is monitored well at large infrastructure sites. IoT is also helping us in making smarter machines connected to the customers which provides connectivity and productivity. So this makes us the preferred partner for our customers in nation building..
Q.Sustainability is one of the major components of modern infrastructure. How is your company contributing to the Sustainability vision of the industry? Could you please tell us about some of the projects of your company in which you have incorporated the sustainability measures?
We are too focused on the sustainability aspect from the very beginning of the equipment design which is designed for lower fuel consumption per unit of work done. The materials which are used both by us and our suppliers abide by all the guidelines and good practices. We are actively adopting energy-efficient technologies in our equipment to reduce environmental impact, for example compliance to CEV stage V is an important step towards reducing carbon footprints. Our new product range is more fuel efficient as compared to outgoing models due to innovative solutions provided in our hydraulic & engine systems which reduce the overall energy demand. Our manufacturing facility is energy and water efficient, which generates our own solar power and harvesting water.
Q.For the past few years, your company has been focused on exports. What are the market strategies of your company to stand out in this competitive landscape where there are barriers like price competitiveness, tariffs, logistics, etc?
Our approach to understanding the needs of global customers makes us stand in the market and our upgraded products with the latest level of emissions and safety are increasing the acceptance of our products in the global market.
The gap between the products from developed markets and developing markets is gradually reducing and new products are more acceptable due to lower cost base from India. For example our newly designed export backhoe loader, which has features like, Extending dipper, Rock breaker, Multiple bucket options, AC/HVAC and suitability to extreme subzero climate is making a large difference for our position in global markets. Our distribution is expanding and the share of business is well spread over more than 20 countries now.
Q.For the past few years, your company has been focused on exports. What are the market strategies of your company to stand out in this competitive landscape where there are barriers like price competitiveness, tariffs, logistics, etc?
Our approach to understanding the needs of global customers makes us stand in the market and our upgraded products with the latest level of emissions and safety are increasing the acceptance of our products in the global market.
Q.How is your company dealing with the rising costs of production and operational challenges? Are there specific innovations and collaborations that are enhancing the quality of your product without any compromises?
Our innovative product spectrum constantly adopting the efficient operations through the KPS (Kubota Production System). This also resulted in improved capacity to handle the future demand and to deliver a high level of quality, while minimizing the waste. Our supply chain has gone through a complete procurement assessment program and supplier quality upgradation for uniformity of processes and delivery. There is a Kaizen Community which is also participated by experts from Kubota Japan, which works on the theme-based projects for cost, productivity, efficiency of operations at our suppliers. The capacity enhancement for critical suppliers is also noted by us and there are investments that have been made to meet the levels for the upcoming boom in the industry.
Q.Please shed some light in the MSME sector and are there any government collaboration in which your company is involved to uplift the MSME standards?
The MSME sector is very crucial to the construction equipment supply chain. To upskill the MSMEs to take a leap in producing high quality components, we are closely working with these industries. We provide technical assistance to MSMEs through Establishing our standards / Process, Promote the adoption of international quality standards like ISO 9001 and TS 16949. This can help MSMEs establish a reputation for quality and reliability, making them more attractive to OEMs and other buyers. This can help them adopt best practices, improve their production processes, and enhance their product quality. Recommending them to participate / engage with government agencies, industry associations etc. through various events organized by the ICEMA / CII. These programs are focused on areas such as quality control, lean manufacturing, and the use of advanced technologies. Also driving the “Make in India”, This flagship initiative aims to promote manufacturing in India and encourage MSMEs to participate in the global supply chain.
Q.Do you want to see any changes from the government sector to uplift the CE Industry? If you would get the chance to introduce any policy then what do you suggest to the government?
Government’s continuous focus on CE industry and faster response to industry issues through platforms like ICEMA has created an environment where innovative products and solutions are serving the customers. Government’s vision on energy and self-sufficiency and climate change is driving the industry to develop fuel efficient and carbon neutral products. Adoption of carbon neutral technology will also need external environment support, and this would require initiatives from Govt as well as industry. Through the PLI scheme the CE gets encouragement to pace the industry’s growth and when there is a need for the manufacturers to invest in these technologies, it is vitally important. The Indian government is going through a major evolution with the partnership of the private and public sector. However, there are challenges we should recognize and address which may become a priority with the scale at which we are advancing in infra development. One such area to focus on would be bringing uniform standards across different types of equipment used, in terms of emission, safety, registration laws etc and a roadmap for say a decade, which will give directions for manufacturers to plan the capacity and capex requirements. Infrastructure industry including manufacturers are facing growing challenges on skilled manpower availability and though credible efforts are being done by various Govt & private agencies but to meet the demand on numbers and quality these efforts need to be more coordinated by design and outcome based to meet certain standards.
Q.As the most awaited event for the Construction Industry, Bauma 2024 is coming up with lots of excitement, what are key highlights for your company for this edition?
Our participation in Bauma Conexpo India 2024 aligns with the theme ‘Innovation for Nation Building’ where safety, productivity and efficiency remain our top priorities. We are going to introduce the innovations that are focused to enhance the efficiency, operations, real time monitoring and automation. These technological advancements reflect our commitment to support India’s infrastructure growth trajectory. All our new products are CEV V compliant and CEV II Safety legislated with various innovative features to serve the diverse needs of the customers, be it captive usage or rental applications. Our product range represents 55% of the CE industry by volume and we are always focused on our role in leading the technologies and solutions for our customers.
