Indian Construction Equipment Manufacturers Association

Indian Construction Equipment Manufacturers Association Activity Report 2013-14 At the last Annual General Meeting of ICEMA held on 9 th May 2013 at New Delhi, Mr. Amit Gossain, Executive Vice President, JCB India Ltd. took over as the President of the Association for the period 2013-15. Mr. Anand Sundaresan, Vice Chairman & Managing Director took over as Vice President of ICEMA on the same day. During the period 2013-14, following Panels were constituted with the objectives to deal with specific areas of work : Industry Government Interface Panel Convener Mr. Vikram Sharma Technical Panel Convener Mr. Anand Sundaresan Skill Development Panel Convener Mr. Glenville da Silva Market Data & Statistics Panel - Convener Mr. Vivek Anand Membership Panel Convener Mr. V G Sakthikumar Promotion Panel Convener Mr. A. M. Muralidharan EXCONConference Panel Convener Mr. P Ravi Shankar bc India Conference Panel - Convenor Mr. Anand Sundaresan Budget & Taxation Panel - Convenor Mr. Arvind Garg ICEMA Activity Report 2013 2014 1

The panels have been very active in their respective work areas. Industry Government Interface Panel The Panel mainly focused on policy related issues of the Government. Industry issues were taken up with the various Government departments from time to time. Some of the major initiatives of the Panels are given below : ICEMA s recommendations for correcting list of duty exempted road construction equipment / machinery were accepted by the Government. In this connection several meetings were held with the Ministry Finance and Department of Heavy Industry. Industry Government Interface Panel continued to interact with the Government for further correction to the list of duty exempted items.y ICEMA delegation had a meeting with Mr. R K Singh, Joint Secretary, Department of Heavy Industry on 29 th April 2014 to discuss on key issues of concern of the industry. ICEMA delegation was informed that the Government would consider entire funding of setting up an independent test center for construction equipment industry. Several other issues relating to Chinese imports and skill development were also discussed at the meeting. Office bearers of ICEMA had meetings with Mr. Rajesh Bhushan, Joint Secretary, Ministry of Rural Development & Director General, National Rural Road Development Agency on a regular basis for organizing a National Confeence on Rural Roads in New Delhi. Industry Government Interface Panel reviewed the issues of industry from time to time and took up the same with the Government Department concerned. The Panel ICEMA Activity Report 2013 2014 2

coordinated in formulating Industry recommendations for the Union Budget and submit the same to the Government. DHI took up ICEMA s recommendations with the Ministry of Finance from time to time. ICEMA was represented at the various meetings convened by the Department of Heavy Industry from time to time. ICEMA office bearers had a meeting with Mr. L Goyal, Secretary, Ministry of Rural Development to discuss on ICEMA s support on providing technology for building rural roads. ICEMA members were advised to hold regional level workshops on advancement on technology on rural roads. Ministry would extend their support for getting concerned officials from the State Government. A group of ICEMA members led by Mr. Vikram Sharma, Past President & Mr. Amit Gossain, President met on several occasions to frame the 2012 Budget Proposals which was then submitted to Government. The Government Interface Panel convened by Mr. Vikram Sharma has been proactively taking up issues with Government which has resulted in fostering a growing recognition for ICEMA within relevant Government Departments. Technical Panel The major initiatives of the Panel were to have close interaction with the Department of Heavy Industry and other concerned organisations for setting up a separate Test Centre for construction equipment industry. ICEMA, through the Technical Panel represented to the Department of Heavy Industry, the need for a separate body for testing of Construction Equipment Vehicles (CEVs) similar to what ARAI is for automobile industry. ICEMA Activity Report 2013 2014 3

In this connection a series of meetings were held with the Department and senior executives of existing centers (ARAI, ICAT, NATRIP, etc) for collecting inputs for preparing the proposal. ICRA Management Consultant was engaged to prepare a detailed feasibility report for setting up the test center. Several meetings were organized with DHI and concerned organizations for finalizing the draft feasibility report. The final feasibility report was submitted to the Government for sanctioning fund for the project. At a meeting with Mr. R K Singh, Joint Secretary, DHI it was informed that the Government would consider entire funding of the project. The estimated cost for the project as per the feasibility report would be around Rs.430 crores. The location of the center would be Indore. ICEMA Technical Panel is in the process of interacting with the ministry and other concerned bodies for drawing up action plan for the project. The Technical Panel convened by Mr. Anand Sundaresan also reviewed the CMVR rules applicable to construction equipment industry and prepared a draft proposal for an independent Rule / Act for the Construction Equipment Industry. The proposal would be presented at a meeting to be convened by Department of Heavy Industry in September 2014. Skill Development Panel This Panel was actively involved for setting up of Sector Skill Cyouncil for Construction Equipment industry. ICEMA Activity Report 2013 2014 4

ICEMA s proposal for setting up Sector Skill Council for construction equipment industry has been approved by the National Skill Developmhanent Corporation (NSDC). The council has been renamed as INFRASTRUCTURE EQUIPMENT SKILL COUNCIL (IESC). The IESC has been registered under Societies Registration Act XXI of 1860. Memorandum & Rules of IESC has also been registered. Governing Body of the Council includes representatives from equipment manufacturers, construction companies / Associations, Department of Heavy Industry, academia and National Skill Development Corporation. Mr. Glenville da Silva is the Chairman of the Council and Mr. Vikram Sharma - the Co-Chairman. Mr. H S Mohan has joined as CEO. 22 members of ICEMA have so far joined the council and made the payment towards industry contribution for this initiatives. Those who have not signed off have also been requested to join and take active role in the Council. A logo contest was conducted by CEMA to finalise the logo of the Council. Out of 59 entries received by ICEMA, the logo created by Schewing Stetter India was selected. The Council organized a full day Workshop in July 2014 to discuss on the plan of action and steps to be taken towards setting up National Occupational Standards and other action points. NSDC representatives attended the workshop and made a detailed presentations on the steps to be taken by the Council for skill mapping and manpower training. NSDC s funding would be Rs.5 crores and contribution from Industry would be Rs.50 lakhs. ICEMA Activity Report 2013 2014 5

Market Data & Statistics Panel The Panel worked very closely with the members on a regular basis for collecting sales data from members. From October 2013, sales data are being collected on monthly basis in addition to quarterly and Annual Updates. Monthly industry updates are also being released regularly. The Market Data & Statistics Panel convened by Mr. Vivek Anand had created a more meaningful reporting format which has been successful to a very large extent to demonstrate to members the importance & relevance of data sharing which helps the industry as a whole. Online data management system was launched in November 2013 for posting sales data to the ICEMA website through given users id and password. All the members are now posting their monthly sales data to the website. The quality of monthly and quarterly industry updates released by ICEMA has been substantially improved. Almost all the members (OEMs) are providing data through online. Membership Panel During the course of last one year, following companies have taken up membership of ICEMA : (a) Mahindra & Mahindra Limited (b) Ajax Fiori Engineering (I) Pvt Ltd. (c) Amman Apollo (I) Pvt. Ltd. (d) Spartan Engineering (e) Nakoda Machinery Pvt. Ltd. (f) Bonfiglioli Transmissions Pvt. Ltd. ICEMA Activity Report 2013 2014 6

(g) Carraro India Pvt. Ltd. The total membership strength is now 57 which comprises 41 Primary Members and 16 Associate Members. Member Panel has been making efforts to achieve a total membership strength of 60 very soon. Membership Panel also introduced a new concept of displaying a board MEMBER ICEMA at the entrance of their stalls in EXCON 2013. This was found very useful in terms of promoting ICEMA brand and generating membership enquiry. Many non-members indicted their interest to join ICEMA after the EXCON. ICEMA would also work on similar plan for putting up MEMBER ICEMA board at the members stall at bc India Show 2014. During EXCON 2013, a 4-5 member team of Membership Panel visited nonmembers stalls and requested them to take up membership of the Association. Most of the non-members whom the team met had shown their interest to join the association. Promotion Panel The Promotion Panel brought out the new brochure of ICEMA which give detailed information of the product range of member companies. The brochure was displayed and distributed among the participants of the ICEMA conference at EXCON 2013. The Panel. also created new promotional posterspl of ICEMA. These posters were displayed at the ICEMA stall at Conexpo 2014, Las Vegus. ICEMA has planned to take stall at bc India, IMME, Intermat exhibition. ICEMA Activity Report 2013 2014 7

Conference Panel Coinciding with EXCON 2013, a two-day Conference on Sustainable Infrastructure Development was organized on 21-22 November 2013 at Bangalore. The conference focused on key infrastructure projects in the country, present trends and implementation status, opportunities for construction equipment manufacturers, policy initiatives of the Government for accelerating implementation of stalled projects, role of banks and financial institutions for equipment financing / renting, training & skilled manpower etc. Dr. E.M. Sudarsana Natchiappan, Minister of State for Commerce & Industry, Department of Industrial Policy and Promotion, Government of India inaugurated the Conference and released a Report on Roadmap for Realising ECE Industry s Long Term Potential which was prepared jointly by ICEMA and AT Kearney. The report mainly covered the issues that the ECE industry faces as bottlenecks to realizing its long term potential both in terms of the demand side, as well as in supporting areas of its ecosystem. The report also explores some of the potential best practices from other parts of the developing world that India could draw upon, apart from expanding the scope of some of the best practices being followed in small pockets within India itself. t The Conference was participated by over 270 delegates. Members of the Conference Panel headed by Mr. Ravi Shankar made all efforts for the success of the event. All the participants found the conference very useful in terms of the topics, speakers profile and deliberations. ICEMA Activity Report 2013 2014 8

Budget & Taxation Panel The Panel convened by Mr. Arvind Garg had a series of meetings to review the points and suggestions received from member companies with regard to recommendations for the Union Budget 2014-15. The Panel prepared the draft ICEMA pre-budget memorandum and submitted the same to Industry was finally cleared by the Governing Council for submitting the same to the Government. ICEMA s recommendations for reviewing the list of duty exempte d items and reducing excise duty from 12% to 10% have been accepted by the Government. Budget & Taxation Panel has been engaged in reviewing the tariff related issues and suggesting industry view points and recommendations. bc India Conference Panel ICEMA has set up bc India Conference Panel recently to organize a one-day Conference on Infrastructure Equipment Re-scripting the Growth Story which will take place on 16 th December 2014 at India Expo Mart, Greater Noida. This Conference is being organized concurrently with bc India Exhibition. Conference Panel is headed by Mr. Anand Sundaresan. The Panel had a meeting in May 2014 to draw up action plan for organizing the conference. AT Kearney would be the Knowledge Partner. ICEMA Activity Report 2013 2014 9

Participation at EXCON 2013 ICEMA was the Sector partner and was actively involved in the EXCON 2013. Several of ICEMA members were on the Steering Committee of Excon 2013 and actively contributed to the successful staging of the largest Exhibition on Construction Equipment & Construction Technology in India. ICEMA members were the main Exhibitors at the event. ICEMA President addressed the gathering at the Excon Inaugural Ceremony. Interaction with CEMA and KOCEMA ICEMA organized meetings with Korean Construction Equipment Manufacturers Association (KOCEMA) and Japan Construction Equipment Manufacturers Association (CEMA) during EXCON 2013 at Bangalore. Meeting with Korean delegation mainly discussed on the cooperation between India and Korea on strengthening partnership between the two associations in terms of sending delegation and sharing of information. It was agreed that ICEMA would be taking part in Conex Korea exhibition in September 2014. ICEMA would also make a presentation on Indian Construction Equipment Industry at the India Seminar at Conex Korea. The Meeting with CEMA mainly discussed on the activities of both the association and how best they can cooperate each other for mutual benefits. Mr. Karasawa of CEMA made a presentation highlighting the organisation structure of CEMA, membership strength with product range, various committees, gross domestic production year wise and exports, product wise sales, etc. ICEMA Activity Report 2013 2014 10

ICEMA AT Kearney Report During the Conference on Sustainable Infrastructure Development held on 21-22 November 2013 during EXCON, a Report on Realizing ECE Industry s Long Term Potential was released by ICEMA AT Kearney. The report mainly covered the issues that the ECE industry faces as bottlenecks to realizing its long term potential both in terms of the demand side, as well as in supporting areas of its ecosystem. The report also explores some of the potential best practices from other parts of the developing world that India could draw upon, apart from expanding the scope of some of the best practices being followed in small pockets within India itself. ICEMA s Participation in CONEXPO CON/AGG, Las Vegas An 8-member delegation from the Indian Construction Equipment Manufacturer s Association (ICEMA), visited CONEXPO CON/AGG, an international exhibition on construction equipment which was held in Las Vegas, USA between 4 th and 8 th March, 2014. CONEXPO-CON/AGG is an international exhibition showcasing latest innovation and technology on the entire spectrum of construction equipments, material handling equipments and road planning equipments. Around 2,400 exhibitors from worldwide showcased more than 1,000 new products and services across major construction industry. The ICEMA delegates had the opportunity to meet the Association of Equipment (AEM), the organizers of the show which led to useful exchange of information. AEM was keen to collaborate with ICEMA on various fronts. ICEMA Activity Report 2013 2014 11

Mr. Amit Gossain, President, ICEMA made a presentation on the Emerging Market Session in India and highlighted on the enormous growth potential in the Indian Economy and the issues and challenges faced by the infrastructure and construction equipment sector in India. The session was attended by exhibitors, contractors and distributors apart from the Indian delegation. ICEMA had a stall at CONEXPO which mainly displayed Construction equipment industry and activities of the association. posters on Indian Interactions with CII ICEMA was represented at the CII National Council Meetings, Capital Goods Committee Meetings and Associations Council Meetings. Issue of the industry were taken up at these meetings.in the Capital Goods Committee Meeting, ICEMA made presentations and highlighted industry issues and recommendations. Meetings with Department of Heavy Industry ICEMA members took part various meetings convened by Department of Heavy Industry from time to time. These meetings mainly deliberatd on industry view points on recommendation for the Union Budget, issues on import of used equipment, setting up test center for construction equipment industry, FTA related issues, etc. ICEMA Activity Report 2013 2014 12

ICEMA Members (As on April 2014) Action Construction Equipment Ltd AKG India Pvt Ltd Ammann Apollo India Pvt Ltd. Aquarius Engineers Pvt Ltd Ashok Leyland John Deere Construction Equipment Company Atlas Copco India Ltd BKT Ltd Bharat Earth Movers Ltd Case New Holland Construction Equipment (India) Pvt Ltd. Caterpillar India Pvt Limited Chowgule & Co. Pvt Ltd. Doosan Infracore Construction Equipment Eaton Corporation Eimco Elecon (India) Ltd Escorts Construction Equipment Limited Fleetguard Filters Pvt Ltd Gates India Pvt Ltd Gmmco Limited Greaves Cotton Ltd. Hyundai Construction Equipment India Pvt Ltd JCB India Limited Kobelco Construction Equipment Pvt Ltd Kobelco Cranes India Pvt Ltd Komatsu India Pvt. Ltd. Kotak Mahindra Bank Ltd L&T Finance Limited ICEMA Activity Report 2013 2014 13

Larsen & Toubro Limited Leeboy India Construction Equipment (P) Ltd LiuGong India Pvt Ltd Metso Minerals (India) Pvt Ltd MTU India Pvt Ltd Nawa Engineers & Consultants (P) Ltd Potain India Pvt Ltd. Putzmeister Comcrete Machines Pvt Ltd Puzzolona Machinery Fabricator Sandvick Asia Pvt Ltd Sany Heavy Industry India Pvt Ltd Schwing Stetter India Pvt Ltd SREI Equipment Finance Pvt Limited Tata Capital Ltd Tata Hitachi Construction Machinery Ltd Terex India Pvt Ltd TIL LTD Universal Construction Machinery & Equipment Ltd Voltas Ltd Volvo India Pvt Ltd Veena Industries Ltd Wipro Infrastructure Engineering Wirtgen India Pvt. Limited ZF India Pvt Ltd. ICEMA Activity Report 2013 2014 14