Mahindra & Mahindra expects construction equipment industry exports to more than double by FY27

Jalaj Gupta, the Business Head of Commercial Vehicles at Mahindra & Mahindra, anticipates a significant surge in exports of construction equipment for the industry. Gupta expects these exports to more than double, reaching approximately 25% by FY27. This projection indicates a notable increase from the 11–12% export rate recorded during the peak of FY19.

Mahindra Construction Equipment (MCE), a subsidiary of the esteemed Mahindra Group, specialises in providing backhoe loaders for the earthmoving segment and motor graders for the roadbuilding machinery segment. Currently, MCE holds the fifth position in the backhoe loader segment, capturing a 2.2% market share. In the motor grader segment, MCE demonstrates its dominance as the leading player, boasting a robust market share of 25.3%.

In an interaction with Autocar Professional on the sidelines of Excon 2023 in Bengaluru, Gupta said, "Exports are gaining a lot of traction." He attributed this growth to two key factors: India's transition to higher emission norms and the country's flourishing manufacturing capacities within the construction equipment industry.

As for MCE, the company is diligently working towards expanding its export reach to various countries. Alongside its existing markets such as Sri Lanka and Bangladesh, the Mumbai-headquartered company has set its sights on new destinations, including Kenya, Mozambique, Uganda, South Africa, Saudi Arabia, Brazil, and Tanzania. By exploring these markets, the company aims to broaden its global presence and seize the promising opportunities that lie beyond its neighbouring countries.

Further talking about the domestic demand, Gupta highlighted that within the product portfolios in which MCE operates, the demand was high at 47,000 backhoe loaders and 1000 graders during FY19. However, with the pandemic striking in the following years, in addition to the inflationary pressures arising out of rising commodity costs and the transition to stricter emission norms, these segments went into a slight dip before picking up again during the past two years. He expects these segments to grow at a CAGR of 4-5% from FY23 to FY27.

Talking about road construction, Gupta went on to say that the government's investment in roads is the highest among all infrastructure segments, at Rs 2.7 lakh crore. He added that road construction will play a key role in realising the government's vision of developing rural and tier-2 and 3 towns to boost India's economic growth. "Demand for graders will continue to remain strong, given the focus on expanding road connectivity across the country under various government programs" Gupta explained.

Meanwhile, Mahindra’s Truck and Bus Division (MTBD) and Construction Equipment Division (MCE) launched its latest offerings at EXCON 2023 on December 12. The launch includes Mahindra Blazo X m-Dura and the new CEV5 range of construction equipment. The company also displayed its entire range of BSV construction equipment like RoadMaster and EarthMaster, as well as the extensive truck range like the BLAZO X m-DURA 35 Tipper, the BLAZO X 28 Transit Mixer, the FURIO 10 Fuel Bowser with 6KL, and the Loadking OPTIMO Tipper were on display. Mahindra also demonstrated the new concept LiftMaster compact crane, with loading and hauling capacity, which aims to provide a versatile solution for construction needs.

Mahindra Truck and Bus Division is a division of the automotive and farm sectors of Mahindra Group. The new range of medium and heavy commercial vehicles is being manufactured at the new green field plant at Chakan (Pune). The plant, which spans over 700 acres, has been set up with an investment of over Rs 4,000 crore and is producing other Mahindra products as well. The entire range of LCV trucks and buses is manufactured in the Mahindra & Mahindra Ltd. facility at Zaheerabad (Telangana State).