Business Daily from THE HINDU group of publications
Sunday, Aug 23, 2009
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Business Daily from THE HINDU group of publications Sunday, Aug 23, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Industry & Economy
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Engineering Industrial engines revving up Sagar Bhadra Mumbai, Aug. 22 Industrial engine manufacturers, who primarily supply to the construction equipment sector, are seeing a revival in demand following a trickle down effect from the Centre’s infrastructure spending of around Rs 1 lakh crore. “Production is back at the 2007-08 record levels,” says Mr S. Venkatasubramanian, Executive Director (Manufacturing), Simpson, which supplies engines for forklifts, trucks, mobile cranes and other construction equipment. The company produces 700-800 industrial engines a month, about three-and-half times 250 per cent higher from the March 2009 levels. Demand for industrial engines is, however, not expected to outstrip supply, with Simpson’s utilisation rate still at 40-50 per cent due to additional capacity in 2008. “We can add one more shift to our production subject to demand,” Mr Venkatasubramanian said. Kirloskar Oil Engines, another major manufacturer of industrial engines, is also in the midst of a buoyant demand phase from the construction equipment industry. “Production is on in full swing and we are making 4,000 engines a month, significantly higher from the 500-odd units in the first quarter of the fiscal,” said Mr Rajiv Bandivadekar, Business Head, Global Agricultural & Off-Highway. Based on the current trend, the company expects to reach its production peak of 2008 by the end of next year. Easy availability of credit to construction companies has played a role in boosting demand for construction equipment, and consequently, industrial engines, he added. Nearly 45 per cent to 60 per cent of construction is done by small to midsize companies which require stable access to credit. More Stories on : Engineering | Real Estate & Construction
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