Q&A: Suhas Baxi, MD, Demag India
'Demag India aims to capture 20 %market share in 5 years'
Apart from standard cranes and crane components, the product range of Demag India, also boasts of the technically more complex process cranes. Following a recent expansion of the company’s production capacity, it is clear that the company intends to concentrate on requirements of the Indian consumers and needs of the domestic market. Suhas Baxi, managing director, Demag India spoke to Pravda Godbole about the production facility, present and future plans of the company.
What is the pattern and current production capacity of your plant at Chakan?
Our production facility at Chakan is on a sole pattern designed for standard and process cranes and monorail tracks, which are manufactured here. Standard cranes are made at a capacity of 600 per year, process cranes at 100 per year and mono rail tracks at a capacity of 24 kms per annum. Our spare parts logistics also happens here.
Is the company planning to get into capacity expansion?
We think this current capacity will be sufficient for the next two years. The company will now look at more of localisation making products which are meant for India market. So, we will divert investment towards this and not capacity expansion.We expect the Indian market to grow at a compound aggregate of 20 per cent per year over the next five years.
Besides standard cranes and crane components, how is your product range slated to look in the future?
From 500 kg to 3 tonne, 3 tonne to 50 tonne to 200 tonne process cranes will be a part of our product portfolio. We would be working on more complex applications and depending on which industry and the nature of the demand.
How does your product portfolio cater specifically to the Indian market?
Indian market for cranes is based on Indian Engineering Standard for cranes so lot of companies demand cranes according to them. Hence, our product portfolio for India is as per those standards.
Which countries are you focusing on internationally?
Demag India solely concentrates on the Indian market. In the future however, we can supply to other Demag companies worldwide.
Are there some components that the company does not manufacture or assemble?
Yes, there quite a few components that Demag India doesn't make on its own. We have a local supply and global supply chain for the same.
What is Demag India’s market share?
We currently stand at approximately 12 per cent and we wish to go up to 20 per cent market share in the next five years.
What was the company's turnover last year and what target does the company have for this fiscal?
It was more than eight million euros last year which was diverted for building the manufacturing facility at Chakan.