Tie-Ups: Adding New Dimension To Marketing
Tie-Ups: Adding New Dimension To Marketing
Tie-Ups: Adding New Dimension To Marketing
T
he present growth of the channels well structured, through
construction equipment market in upgrading networking capabilities,
India is increasingly being through adequate, well trained service
characterized by marketing engineers deployment, and sufficient
collaborations among equipment components availability. All to aid better
manufacturers. The backdrops behind product promotion and create brand
the collaborations is burgeoning value for their parents.
equipment demand, which a better Product sales are being done through
marketing tie-up among manufacturers business development, in case of newer
can take upon. Tie-ups are also being equipment as well by distributors, who
carried with the business intention to are also manufacturers in many cases.
promote newer products, for the fast Notwithstanding, challenges confront
becoming mechanized construction many in way of sales through tie-ups.
market.
Consolidation of market position is Sound Product
also one of the "prime intentions" behind Placement
collaborations in the fast growing
Right product positioning has allowed
competitive market. As per the
notable equipment manufacturers drive
equipment industry estimates, size of
sales. Coupled with this have been
India’s construction equipment market,
adequate market knowledge base to
based on its value is likely to reach Rs
push up sales.
12,000 crores in 2008 from Rs.9,000
The proven case is Telcon, excavators
crores during 2007.
manufacturing major, with more than fifty
A comprehensive random survey
five percent market share in the Indian
done among country’s construction
excavators market.
equipment marketing companies across
Explaining the success
the value chain shows, behind looking
behind the wholesome
for greater market access, companies
market share, Mr.
are banking on their existing market
Vikram Raje, Vice
network under their own product
President and General
domain. On this, manufacturers are
Manger, Sales &
undertaking right product positioning
Marketing, Telcon said,
coupled with making promotional
“the success behind our markets share of construction equipment in its basket,
has been our product offering, consisting like heavy duty crawler lattice boom
wide range of excavators, based on the cranes, used for construction of ports,
customised requirements of the end refinery, power stations etc. Telcon is the
users.” distributor of Hitachi-Sumitomo crawler
He points out, “to gain business lattice boom cranes in India.
volumes in a construction market like Success for Telcon has also been
India having heterogeneous demand due to its adequate back up service and
requirement, it is much pertinent for an component support capabilities. The
equipment manufacturer, precisely one’s company has a mother warehouse at
involved in producing earthmoving Nagpur and four feeder warehouses. In
equipment to place wide range of addition, it has 35 dealers and 150
products for its customers.” service outlets, operating across the
Mr. Raje informs, “Telcon can offer country for providing after sales services
excavators ranging from capacity of 2 support.
tonnes-120 tonnes and even beyond Taking service support further
through import from Hitachi, our efficient, over the years, Telcon has been
principal technical collaborating laying emphasis in offering customized
partner.” support solutions and maintenance
However, Mr. Raje points out Telcon’s packages for the customer at a mutually
success has also to be greatly attributed agreed cost. Under the maintenance
to the competitive features of its package it undertakes upkeep of the
excavators, which the company has been equipment for the customers over its
able to gain through its technical lifetime.
collaboration with Japan’s Hitachi Right product positioning, efficient
Construction Machinery Limited, ever market knowledge, adequate network
since 1984. This has allowed Telcon access locations across the country
create brand value for its excavators in complemented with networking
the market over the years. capabilities, through offering requisite
Mr. Raje elaborates, “Hitachi being service support have also yielded
a world leader in hydraulic technology illustrious success for
have enabled us to create machines, ECEL. As Mr. Rajesh
which can operate with high productivity. Sharma, Chief General
Besides, Hitachi technology has allowed Manager Sales, Escorts
Telcon in creating machines by operating Construction Equipment
all its integrating functions, functions of Limited points out, “for
the engine with the boom, engine with efficient product
the under carriage and so on. promotion market
Improvements through the collaboration knowledge base is the
have been done to reduce the overall prime tool. However, this has to be much
weight of the machine to make it more complemented with right product
flamboyant in its performance. The placement having competitive features.
reduced overall weight of the machine Further, product offerings have to be
as a consequence have gone on to backed by adequate service and
minimize fuel consumption, thus component support and ECEL as a major
checking its lopsided performance.” Indian construction equipment
He adds, “All the refined operational manufacturer have always heavily
features created through the adhered to this norm.”
collaboration have gone on creating Rightfully said this, today ECEL is
acceptance of the product in an the market leader in pick-n-carry cranes
increasing order over the years.” with more than 66 percent of the market
Technical collaboration with Hitachi share. ECEL manufactures wide range of
has allowed Telcon introduce new range
92 NBM&CW MAY 2008
Cover Story
through the products.” The Furukawa Indian market, crawler telescopic cranes.
telescopic cranes have been in use The wide range of cranes on offer by
by majority of the construction TCM can be used for various customized
companies in the country. lifting applications, ranging from
Chowgule has its sales and industrial to construction applications.”
service locations based in Mumbai, Mr. Shah informs to sell TCM
Goa, Delhi, Kolkata, Chennai, products, C. S Diesel would be looking
Hyderabad, Bangalore Ahmedabad, to market the cranes directly to the end
and Pune. The company have been users, comprising, industrial users,
able to sell 150 units ever since its construction companies rather that crane
tie-up with Furukawa three and half hiring companies.
years ago. C.S Diesel, which incidentally is the
Company willing to make ground distributor of L&T Komatsu’s excavators
in the construction market through in Mumbai and Goa and also for
offering customized lifting solutions Cummins, have adequate market network
is Mumbai based, C.S. Diesel base on the equipment requirement of
Engineering Pvt Limited. C.S Diesels construction industry.
which has entered into a marketing
alliance with Italian crane Solutions on other end of
manufacturer, TCM during mid Value Chain
September 2007 wants to make it big in
Offering products to suit customized
the Indian crane market.
construction solutions for end users is
Mentioning on the tie-up and wide
also the marketing strategy for
range of cranes available
distributors, selling products, away from
with TCM, Mr.
the core value chain.
Sowmil.C.Shah, Director,
The top most category to fill this slot
C.S Diesel mentiones,
can be accorded to Multiquip. The
“TCM manufactures wide
company has reaped success on
range of truck mounted
marketing collaborations front, through
cranes, rough terrain
offering products for tailor made
cranes and also a crane,
construction solutions is also for Multiquip
apparently new for the
Construction Equipment Pvt Limited.
C.S Diesel Multiquip Construction Equipment is the
distributor of US based, Multiquip’s
C.S.Diesel is the sole distributor of TCM cranes in India. TCM is
construction equipment in Indian
a dynamic Italian company specialized in design, construction
subcontinent, Middle East and at
and assembly of cranes. TCM is an ISO and CE market company
Common Wealth of Independent States
and works with most countries in the world.
of the erstwhile, Soviet Union.
Among the few prominent products,
The company
Multiquip sells out of its wide range of
produces wide range
construction equipment includes,
of truck-mounted
hydraulic power trowels, super screed
cranes from 30 tons
fixed form pavers, generators, lighting
to 180 tons capacity
systems for construction sites etc.
for booms extension
Multiquip Construction Equipment Pvt
with hydraulic system
Ltd, entered into a distribution
for lifting capacity
collaboration with Multiquip during 2004.
and return with boom
Ever since the tie-up, it has sold around
in horizontal position.
1000 various equipment registering a 10
percent increase in turn over in recent
years. Apart from distribution, the
Voltas
Voltas Mining & Construction Equipment Division (M&CE) has
been serving the cause of mechanisation and modernisation for
almost 50 years, serving as a vital value-adding link between
manufacturers, suppliers and end-users.
Over the decades, it has established a large and appreciative
customer base from both public and private sector. In conjunction
with globally renowned manufacturers, M&CE offers its
customers a comprehensive package–proven expertise, long
experience, the world’s best equipment and value-added service
support. compared to other construction labor
Voltas offers the world’s best technologies for infrastructure material lifting platforms in terms of its
building, along with a highly professional support engineering safety offerings.”
team. Voltas has technical tie-ups with some of the most reputed He says, “the rack and pinion
names in the field, such as Boss Trucks–UK and Terex Inc–USA, technology used in the platforms makes
Terex Mining O&K, Germany, Terex Equipment, Scotland, Hyundai, it lift larger quantity of load and also
Dressta, Powerscreen and P&H for their world-class equipment renders it safer as compared to
which they represent in India. conventional bamboo platforms.” Ispat,
which entered into a collaboration with
Piat during the year 1995 has in its
credit to sell 140 platform units till
date. Ispat has its mother component
warehouse at Mumbai, while it has its
sales and service branches at Mumbai,
Delhi, Kolkata, Hyderabad, and
Bangalore.
Offering value added products is also
Mumbai based, Mehta EarthMovers
under it’s business domain. The company
has a distribution tie-up with Korean rock
breaking equipment manufacturers for
distribution of their products in the
satisfactory service support throughout country. It has tie-ups with manufacturers
the lifetime of the equipment. based on the time period ranging from
Sales through offering value added 7-10 years each. Mehta Earthmovers is
products is the marketing strategy also into the business of crane rentals.
adopted by umpteen number of Indian Behind the gain
construction equipment manufacturers made from the tie-ups
and distributors, representing the bottom Mr. Mehul Mehta,
end of the value chain, through their Director, Mehta Earth–
marketing tie ups with foreign Movers says, “wide
manufacturers. range of product
This category is filled by Mumbai placement, aided by
based, Ispat Infrastructure India Pvt Ltd. sincerity and efficient
Ispat has a distribution arrangement with customer support have
Piat of Italy for enabled us to gain dividends.”
marketing its rack and In the category to offer value added
pinion passenger and products also comes, Pakona Engineers
material hoists and (India) Limited. Pakona Engineers is a
platforms. As per Mr. joint venture company with Colombia
Kapil Ghai, Director, Machines, Inc USA. It manufactures
Ispat Infrastructure “the automatic plant for interlocking pavers,
platforms have its valued USP as
112 NBM&CW MAY 2008
Cover Story
Pakona
Pakona Engineers (I) Pvt Ltd. has been manufacturing machine since 1983
and has a well-proven track record of service backup. The company
manufactures model 15L machines at its plant at Vadodara in India under
license from Columbia Machine Inc. USA. The model 15 L can produce
4,000 blocks of 20x20x40 cm or 10,000 unistone pavers (225x112.5x80mm)
or 30,000 flyash bricks per 8 hr. shift.
Columbia Machine Inc is a world leader with over 70 years experience
in manufacturing machines for producing a limitless range of concrete
products with its unique vertical vibratory sysem that enables the production
of all types of premolded concrete products, including concrete blocks and
pavers with quick and simple change of moulds and saving in cement
consumption.