Construction Equipment India | Constuction Dissertations

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Review of the Construction Equipment Scenario In India


This research was an attempt to assess the current status of Indian construction equipment industry and the underlying opportunities and challenges. However, the aspects and objectives that were dealt in the research are; the current structure, status, competition, financing opportunities and challenges of Indian construction equipment industry. The research was conducted wholly based on secondary data. Following are the key findings of the research.

Indian construction industry has entered into a new phase, where prospect of the industry appears extraordinary bright. Indian construction equipment industry is passing through a phase of hurried renovation, where the shifting is taking place from low volume concentrated use of equipment structure to high volume explicit one. Apart from these, the current and future trend also shows that the key segments of construction equipment that will have potential market prospects are excavators, loaders, dozers, dumpers and cranes.

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The growth of Indian construction equipment industry is the outcome of the fast liberalization and globalization of the Indian economy and the construction sector. The real competition in Indian construction equipment industry has been created by foreign players such as Volvo, Komatsu and many others. These companies are leaving no stone unturned to exploit the opportunities in Indian industry. The industry is at the critical juncture (particularly for domestic players) and therefore companies need to equip with safety measures in relation to post – WTO market setting.


(Chapter 1)

1.1 Indian Construction Equipment Industry Background & Historical Trends

Construction and mining equipment cover a variety of machinery such as hydraulic excavators, wheel loaders, backhoe loaders, bull dozers, dump trucks, tippers, graders, pavers, asphalt drum / wet mix plants, breakers, vibratory compactors, cranes, fork lifts, dozers, off-highway dumpers (20T to 170T), drills, scrapers, motor graders, rope shovels etc. They perform a variety of functions like preparation of ground, excavation, haulage of material, dumping/laying in specified manner, material handling, road construction etc.

These equipment are required for both construction and mining activity. With a wide production capacity base, India is perhaps the only developing country, which is totally self-reliant in such highly sophisticated equipment. India has only a few, mainly medium and large companies in the organized sector who manufacture these.

The technology barriers are high, especially with respect to mining equipment and therefore the role of SME’s is restricted to manufacture of components and some sub-assemblies. Prior to the 1960s, domestic requirements of mining and construction equipment were entirely met by imports. Domestic production began in 1964 with the setting up of Bharat Earthmovers Ltd. (BEML), a public sector unit of the Ministry of Defence, at Kolar in South India to manufacture dozers, dumpers, graders, scrapers,

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