Sensing bright prospects of business in the construction equipment manufacturing segment, the commercial vehicle makers are increasingly entering into the sector to manufacture equipment including backhoe loaders and excavators. The Germany based CV manufacturer Man AG and commercial vehicle giant Ashok Leyland are all set to roll out their first construction equipment fleet for the Indian market very shortly.

According to the Chairman, Man AG, Hakan Samuelsson, the company is rolling out its 6x4 and 8x4 tippers this year and is scouting for dealership in India. The company has a 50-50 joint venture with Firodia’s Force Motors and the tippers will be made at Pithampur in Madhya Pradesh. The Man AG finds the infrastructure thrust initiated by the Indian government very interesting and the move will create demand for construction equipment in a big way, he said.

That apart, the Chennai-based commercial vehicle giant, the Ashok Leyland which in 2008 entered a 50-50 venture with US company John Deere, is rolling out its first range of backhoe wheel loaders and excavators very shortly, the Managing Director, R Seshasayee, said adding that the construction equipment business on the back of an increased infrastructure spending by the government in the coming years is acting as the main draw.

Commenting on the emerging scenario, the executive director, construction and allied equipment business, A N Amrolia said that the size of the construction equipment business in India is estimated at about Rs.12,250 crore and is expected to post a compounded annual growth rate of 18 to 20 per cent in the next two years. The growth would come primarily from construction activities in the road sector, residential and office complexes and a large infrastructure projects like ports and dams across the country. In addition to this, the construction equipment financing is also expected to grow at a compounded annual growth rate of 20 per cent from around Rs. 10,000 crore now.