India: boom in infrastructures and construction machinery

The Indian construction machinery market will grow by nearly 50% by 2019. The forecast drafted by Off-Highway Research, the economic research firm specialising in the field, outlines the dimensions of the new climate of growth characterising the sub-continent and perfectly explains what prompted Confindustria Modena, Veronafiere-SaMoTer and Unacea to undertake joint action: organise the collective attendance of a group of Italian companies at Excon, the main construction machinery trade fair in Southern Asia scheduled in Bangalore 25-29 November 2015. Enrolments are open until 5 June. The last edition of the event attracted more than 700 exhibitors over a show area of 200,000 square meters, with 7 international halls and more than 28,000 visitors.

Following the economic slowdown experienced in the last two years, India's growth rate should reach 6.4% in 2015 and then settle at 7% for the next two years. The construction machinery sector, thanks not the least to the Government's infrastructural development plan involving expected investments of 1,000 billion dollars through to 2017, is experiencing a new period of growth. According to analysis by Off-Highway Research, sales of construction machinery in 2014 came close to 49 thousand units and should grow this year by 13%, followed by 15% in 2016 and 14% in 2017.

The Italian construction machinery industry has turnover of 2.7 billion euros and employs approximately 6 thousand people directly and additional 30 thousand in allied trades. There are about 200 companies including SMEs and transnational groups. There is a very strong export vocation, since 70% of production is sold on markets all over the world.

“Thanks to the intuition of a number of member companies, since 2005 Confindustria Modena has organised Italian collective attendance at this important trade fair,” said Giovanni Messori, Director of Confindustria Modena. “Over time, we have seen growing interest from companies and institutions for this show, one of Asia's most important events in the sector. The partnership signed with the Confederation of Indian Industries allows our companies to take part in the event in order to create and develop strategic partnerships with Indian companies, thereby ensuring that Italian manufacturing excellence can hook up with growth on the Indian market”.

“Veronafiere's DNA embodies being a service platform for companies on established and emerging markets in many sectors where we directly organise leading international trade shows,” said Ettore Riello, President of Veronafiere. “SaMoTer is already present in North Africa and, thanks to this strategic partnership, we are now opening up other opportunities on the Indian sub-continent for Italian manufacturing SMEs, whose products and technologies are highly appreciated by foreign operators, as we saw at the 2014 edition that attracted buyers from 57 countries”.

“The Italian construction machinery industry,” said Paolo Venturi, President of Unacea, “has responded to the severe economic crisis in recent years by focusing on foreign markets experiencing particular strong development. India, in view of its sheer size and number of inhabitants, has a great need for infrastructures. Many companies are already working on the spot at both production and distribution levels alike. The aim of our association, through collective attendance at Excon, is to achieve a step forwards for the Group of companies that will take part”.

 

Source: SaMoTer-Veronafiere Press Service, Unacea, Confindustria Modena

 

Confindustria Modena (www.confindustriamodena.it) is the Confindustria regional association for the province of Modena. It has about 1,000 member companies active in various industrial sectors: engineering, ceramics, food, textile-clothing and biomedical. It is a member of Confindustria's Club of 15, which brings together Italy's regional realities with the strongest manufacturing vocation. 

 

SaMoTer, the Triennial International Earth Moving and Building Machinery Exhibition (www.samoter.com)), has been held in Verona since 1963 and is the leading event dedicated to the construction machinery sector in Italy. The Exhibition is a partner event in the cycle of European trade fairs sharing the patronage of Cece - the European Committee which brings together building machinery manufacturers.

 

Unacea (www.unacea.org) is the association of Italian construction machinery builders and a member of Cece, the Committee for European Construction Equipment, which brings together national associations in 14 countries representing about 1,200 companies, for turnover of about 23 billion euros and 130 thousand direct employees.