Construction equipment sector sees green shoots

With the irrigation sector witnessing a revival, the construction equipment industry is mopping more orders.

“The sector, which is largely dependent on roads and highways, is now getting orders from the irrigation sector with large-scale projects being taken up by way of canal construction, desilting of ponds/lakes, and revival of traditional ponds in a few States,” said Vipin Sondhi, Chairman, CII-Excon 2017.

“Major irrigation projects are being carried out in Andhra Pradesh, Telengana and Maharastra, which is encouraging. Also, the Central government’s UDAN scheme envisages new airport at remote locations. The Railways is also building more lines to decongest busy routes. All these are beneficial to our industry,” he added.

“The sector, which peaked in 2011, went through a down cycle for four straight years from 2012 until 2015. This year as an industry, we will surpass our previous best year of 2011 with a growth of 14 per cent,” Sondhi said.

“The industry is headed for a projected stable growth of 10 per cent CAGR over the next 5 years compared to 7 per cent in the previous decade,” he added.

The Confederation of Indian Industry (CII) will organise the ninth edition of Excon 2017 – construction equipment exhibition from December 12 to 16 at the BIEC, Bengaluru.

Sondhi said this year’s expo has a gross display area of 2.50 lakh square metres and will be attended by 925 exhibitors, including 275 companies from abroad. The event is expected to attract over 40,000 business visitors.

Virendra Gupta, Deputy Director General, CII, said that as part of Excon, CII is organising an Infrastructure Summit on December 12.

A CEOs’ roundtable session will be attended by global and Indian CEOs in the infrastructure and construction sectors. A CII-ICEMA eeport on Indian construction equipment industry is also expected to be released at the meet.

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