Escorts Construction Equipment Ltd CEO KK Vij

Demand for materials handing equipment in India is growing as the country develops its industrial, urban and rural infrastructure, according to Indian publication Project Monitor.

A report for the newspaper by Escorts Construction Equipment Ltd CEO KK Vij says construction is the second-largest economic activity in India, with up to USD1 trillion invested in infrastructure projects by 2017. "Materials handling is definitely the frontrunner in the construction equipment business growth."

"Construction spending as a percentage of GDP has been increasing steadily over the last four to five years. Huge investments [are] envisaged in infrastructure projects for world-class airports and ports, power and coal plants, railways and communication networks, iron ore, steel, cement and aluminium industry," Viji writes.

He predicts the materials handling segment will grow 15-20% in the next few years. The market is worth INR50 billion (USD1.113 billion).

Escorts has grown 25% in the first quarter of 2011 and is expected to register similar growth for the rest of the year. It claims a 55% market share for pick-and-carry cranes in India in unit terms and a 40% market share for slewing mobile cranes. Besides cranes, the company also supplies Doosan and Heli forklifts, Manitou telehandlers and aerial work platforms.