Mr. Sandeep Mathur | Brand Leader CASE INDIA
COVID 19 pandemic is a global health emergency that has impacted almost every country since its outbreak in December 2019. A lot of people and economies have been affected, forcing deceleration in economic activities. The pandemic-induced lockdown resulted in slow import and export, the logistics and transportation activities were restricted and only essential businesses were open. During the early months of the pandemic and lockdown, rating institutions like ICRA mentioned that in the upcoming time for the construction equipment sector will face a downturn in the demand. The GDP forecast given by ICRA amid the COVID-19 outbreak suggested that the economy will grow at 2% in this fiscal.
Due to the lockdown in the country, the infrastructure and construction sector witnessed an accumulation of a lot of projects which impacted the on-time completion and cost. The stark situation impacted payment to the contractors as well. As the projects came to a halt, the CE companies saw a further decline in the rental and leasing of the equipment to the projects. Labor unavailability was another issue that the construction industry faced during the lockdown. Although now, as the situation is getting better and people are using proper safety and sanitation equipment on site, we are witnessing a reverse migration of the laborers back into the cities.
The Road construction equipment industry is coming out of the stagnant phase. Infrastructure growth is a big factor in order to revive the economy’s growth rate. The government is trying to turn the sector’s growth around by announcing the start of projects like Bharatmala. Under Bharatmala Pariyojana the government awarded a total of 322 projects for the construction of 12,413 km of roads. Additionally, MoRTH has set a target to build 12,000 km of highways for this current financial year and has ensured that it will reduce the build-up of arbitration cases. The government has also partially released bank guarantees which will help in releasing some liquidity for contractors. Authorities like NHAI also announced the removal of land acquisition hurdles which will speed up the project completion rate. According to Off-Highway Research “the market is believed to fall by 27 per cent to 61,225 units in 2020 but assuming the Covid-19 pandemic comes under control by the year-end, robust recovery is expected in 2021. Sales may increase 25 per cent to 76,375 units in 2021 and a further 16 per cent to 88,700 units in 2022. The market is forecast to touch 100,300 units in 2023 with a growth of 13 per cent..” The result of the government projects is expected to yield positive results for the construction sector in the upcoming time.
Case Construction has been helping the growth of the Indian infrastructure and economy for more than 30 years through their smart construction equipment with superior technology CASE India throughout this lockdown has been actively looking after its employees and customers. Case India’s employees have been working from home since the beginning of the lockdown and connecting with each other via multiple digital platforms.
CASE team is constantly in touch with the dealers and conducting online training to keep them updated on the latest developments. We’re also engaging with the customers online and have given them loan extensions to ease out any pressure. Our plants are currently working in shifts to ensure the lesser number of people on the floor at the same time while maintaining efficiency and output. Through the CASE financial arm CNH Capital, we’re offering lucrative schemes that can help potential customers in buying equipment. We have also introduced a 48 hours loan approval policy to facilitate easy loan service. The finance arm, CNH Capital, has boosted its capital availability which is a big boon for customers who wish to make any purchases. For Fleet owners, Case offers Maintenance Contracts with dedicated service manpower available at the site to ensure uptime. In terms of spare parts and product support, we have a good amount of stock supplies at key locations and even in these challenging times, we are delivering parts and scheduling services via our comprehensive dealer network, keeping all the safety precautions in mind. Despite the pandemic, CASE India has also been giving back to the community and helping them in these tragic times.
Recently, Case India donated a Blood Tubing Device and a Reverse Osmosis System for water purification and Dialysis treatment to the Chief Civil Surgeon & Resident Doctor of the Dhar District Hospital as a tribute to the services rendered by the frontline warriors. This is a challenging time and CASE India stands with the government’s order of following the strictest protocol at the workplace to ensure employee safety. At CASE, we walk shoulder to shoulder with our customers and never shy away from going the extra mile for them. As far as the market is concerned, it has become a little sluggish but the government is trying its best to contain the situation and lead us on the path to recovery. We’re hopeful the next quarter will be better and CASE will be ready to hit the ground running.