Issuu on Google+

```` Earthmoving

& Construction Equipment

February ’2012

An Insight into the ECE and Farm & Defense Equipment Industry from TATA STEEL PROCESSING AND DISTRIBUTION LIMITED.

ECE & Tractor Industry Overview  Mahindra & Mahindra is targeting to become the 3rd largest tractor manufacturer in China and the US markets within the next 3 to 5 years. The company has two joint ventures in China.  After a strong volume growth over the past two and half years, Indian tractor industry is likely to face a slow down in sales in this quarter, thereby resulting in a volume growth in the range of 10-11% for FY 12.  Mitsubishi Heavy Industries agreed to sell its entire stake in Caterpillar Japan to Caterpillar. Under the accord, Mitsubishi Heavy will sell the 33% stake it holds in Caterpillar Japan to in a deal valued at Y36.5 billion ($450 million approx) that will make Caterpillar Japan wholly owned by the Peoria, Illinois-based heavy equipment maker. The transaction will be completed in the Q1, FY 13. Caterpillar Japan manufactures and sells Caterpillar-brand construction and earth moving equipment, such as hydraulic excavators, tractors and wheel loaders.  TML has displayed Tata Prima 3138.K in Excon 2011 which is a 31tonne, 4-axle GVW tipper with Allison automatic transmission. The 8 X 4 tipper powered by Cummins ISLe engine will have a maximum horsepower of 370 HP. Last year Tata Motors has launched 2518HD 9Speed MAV Tipper. As of now, this has become the 1st choice Tipper in the 9 Speed Tipper category.

Production & Sales of Tractors in India (in units) 80,000

Total Production

70,000

Total Sales 58,357

55,236 51,473 48,613 52,076 60,000 50,251 48,089 53,369 51,240 48,116 50,000

56,047 54,041 52,699 55,516 49,134

40,000 30,000 20,000 10,000 0 J11 F11 M11 A11 M11 J11 J11 A11 S11 O11 N11 D11 J12

Total domestic production of Tractors in India with all OEM’s put together, for the month of January’ 2012 was 52,699 units, whereas the total sales figure for January’ 2012 was 49,134 units. (Production & Sales grew by 8.4% & 2.11% as compared to January 2011) Source: Tractors Manufacturing Association of India

ECE Report - 1 February 2012

Following the path of M&M, several players are looking at Rajkot for setting up manufacturing units of mini tractor, either on their own or by joining hands with local companies. M&M has been producing mini tractor in collaboration with city-based Field Marshal Group since 2009 at Rajkot. Amul Industries Pvt Ltd has forged alliance with Escorts Group for manufacturing mini tractor in the city. Amul and Escorts have signed a memorandum of understanding (MoU) in August and formed a special purpose vehicle named Adico Escorts Pvt. Ltd. in December. In Rajkot and Saurashtra, about 15-20 companies manufacture mini tractor which have capacity of below 25 HP. Most of the companies are unregistered and hardly 3-5 companies are working in organised way. The Rajkot region alone produces 400 – 450 units mini tractors every month with turnover of Rs. 300 – 350 crores. Rajkot has chances of becoming the tractor manufacturing hub of India.


Performance of some Major OEMs Category

OEM JCB

Telcon ECE

CAT

Tractors

M&M John Deere TAFE

Location

Jan Actual

Feb Plan

Feb Actual

March Plan

Fbd Backhoe Pune Excvtr JSR Drwd KGP (Frnt Ldr 2021) (Back Hoe 424) (Off Hghwy 770) (Off Hghwy 777) (Off Hghwy 773)

2,270 1,900 33 575 139 70 74 1 48 24 24,500 5,100 9,950

2,250 2,200 54 499 143 80 78 Not available 50 40 27,000 6,200 10,300

NA 1,601 37 418 134 78 77 0 42 32 26,456 5,135 9,500

NA 2,400 61 484 143 80 80 3 55 36 27,000 6,000 10,800

Pune Chennai

ECE / Tractor Industry News Mahindra Navistar Automotives Ltd (MNAL) MNAL has planned to enter the South African market over next couple of years. The SouthAfrican bound trucks will be exported as completely-built-units from M&M’s Chakan plant to South Africa. Following exports to South Africa, other right-hand drive markets may be targeted. It may also export truckcabins to partner Navistar for the American market. They have announced that 7-8 new products will be launched in FY 13, including 49-tonne trailers and a 25-tonne tipper. The company which has rolled out 3,000 heavy trucks so far on the road has targeted to hit the 50,000 units per annum mark in the next 3-4 years. Plans are there to double the dealership count from 50 to 100. They have displayed an MN25 tipper & an MN31 bulker in the Delhi Auto Expo. Entry into the Heavy-Bus segment is also expected by MNAL in next few years. Daimler India Commercial Vehicles (DICV) DICV presently has a plant in Chennai where it produces commercial vehicles in 6 to 49 tonne range & the annual capacity is 36,000 units. DICV has plans to double this capacity. Very soon, DICV will launch “Bharat Benz“ branded trucks. DICV has invested hugely in localization program. Of the over Rs. 4,000crore budgeted for Indian operations, Rs. 1,200 crores has been spend in localizing parts / aggregates. Currently, DICV has 80 – 85 % localization levels, with a further 5 – 10 % critical parts such as fuel-injection pumps are indigenized. DICV has displayed a 49-tonne tractor in the latest Auto Expo held in Delhi. DICV planned to have 100 dealers by the end of 2013, covering 88 % of Indian market. DICV planned to launch 17 trucks in next 20 months in the 7 to 49 tonne category.

JCB JCB opened a new 3S Integrated facility in Guwahati. This facility has 8 bay state-of-theart facility. This dealership is fully equipped with International Standard servicing for JCB customers to provide them with 1-stop solution for Service & genuine parts. JCB also opened new dealerships in Uttarkhand & Bangalore very recently. JCB India has launched 3 Backhoe loaders (3DX Super, 3DX Xtra & 4DX) & a 12T Tracked Excavator (JCB JS 120) very recently. Meritor HVS: Pune-based Meritor HVS makes makes axles for HCVs. As of now, they are also planning to start making axles for LCVs as the sub 7-tonne GVW market is growing by about 30%. Jost India Jost & German Axle manufacturer Gigant have entered into a JV in India to manufacture Trailer Axle designed especially for the Indian Market. They will be manufactured at Jost’s Jamshedpur plant. TAFE The $1.3 billion TAFE has entered into a Strategic Alliance with Captain Tractors Pvt. Ltd. To make sub-20 HP (Horse Power) in Rajkot. Captain Tractors has, at present, an installed capacity of 12,000 tractors annually. Captain Tractors will design, develop and manufacture application-focussed compact tractors in the sub-20 hp segment for TAFE. This is an exclusive arrangement for TAFE with Captain Tractors. TAFE will be the sole distributor of sub-20 hp tractors produced by Captain and the latter will be integrated into the distribution network of TAFE.

ECE Report - 2 February 2012

Ashok Leyland ALL displayed 5 vehicles in CONSTRUCTION & MINING MACHINERY EXPO 2012 held in Ahmedabad during Feb 15-18. The 5 vehicles that were displayed include 2 tippers on the future-ready U-Truck platform and 3 construction application vehicles with enhanced features. The U-Truck Tippers offer flexibility, greater load carrying capability and better grade ability that are critical for the use of these vehicles at mining sites and stone quarries. ALL has launched Indian’s first 37tonne haulage truck with highest payload of up to 27 tonnes and also displayed 2 buses (JanBus & Solo) in Delhi Auto Expo. Volvo: Volvo launched FM480 (10X4 deep mining tipper with a 13-litre Euro III engine delivering 480hp at 1,400-1,800 rpm) at Auto Expo. Paccar- DAF: DAF trucks exhibited its interest in the Indian market by showcasing the FA CF65, a 16-tonne GVW tipper. PACCAR is the parent-company of DAF trucks. Currently they do not have any manufacturing facility in India but it is being speculated that PACCAR is in consultations with few Indian companies to set up a new alliance. This publication is strictly for internal and private circulation. No part of this is intended for commercial use. If you have any suggestions please send them to: amitbasak@tspdl.com


asas