The Indian construction equipment market is projected to grow at a CAGR of 10% during 2019-2025
First large scale physical expo INFRACONEX for construction industry to be held in August 2021
Informa Markets in India and K and D Communication Ltd. (KDCL) in a Joint Venture today unveiled a brand new Exhibition ‘INFRACONEX’ that will cater to the Indian construction equipment and automation sector. The three day Expo slated for 6th-8th August, 2021 at Gandhinagar, Gujarat, will focus on new launches, automation technology in construction, provide solutions to the industry drivers and forecast the challenges of the India construction equipment market through high content-driven conference, seminar & product presentations.
The announcement was virtually marked by the presence of Shri Satin Sachdeva-Founder President- Construction Equipment Rental Association (CERA); Shri Arvind Patel Chairman Gujarat Contractors Association (GCA); Shri Sanket Shah- Hon. Secretary, GIHED CREDAI, Shri Yogesh Mudras, Managing Director, Informa Markets in India and Shri Samir Kapoor- Head Projects – KDCL at the Virtual Press Conference.
The Indian construction equipment market is projected to grow at a CAGR of 10% during 2019-2025 and is expected to be cross $ 4.7 billion by 2025 to become the world’s 3rd largest construction market by 2022. However, the reality market, already facing challenges, was further stricken by COVID. According to industry reports, the construction equipment & building material market is presently depending on the infra projects by the government. But in the present scenario where the government is facing funds issues due to depletion in the taxes; the overall construction sector in under financial stress. The exhibition aims to create a timely platform for the Indian construction equipment market, while also having a foreign interface with countries such as Germany, Italy, the USA, UK, Australia, Canada, Korea, Japan, and South-East Asian countries in the form of country pavilions. The presence of the countries will be subject to market condition and travel policies at that time.
In the last few years, new shows launched in tier 2 cities have eaten into the share of bigger shows as the regional players prefer local shows. This would be a timely show to highlight the potential in Western India which is overseeing the launch and execution of major infrastructure projects. Significantly, INFRACONEX will have a Startup village for upcoming entrepreneurs, Innovation Product Gallery, Industry Awards & Focus on MSME sector.
With the Government’s vision to increase MSMEs contribution to India’s GDP to over 50% from the current 29%, the event will also facilitate the MSME companies with special pricing at the MSME Pavilion and will allow meeting the policymakers & buyers. Apart from providing ease of doing online business, the expo will act as a catalyst for global networking with foreign manufactures. In this context, Mr Yogesh Mudras, Managing Director, Informa Markets in India said, “InfraConex will create a business /experience for all the industry stakeholders such as construction equipment companies, distributors, policy makers, government, financial institutions, associations, organizations, forums, and alliances related to construction equipment market. The expo will also help the MSME companies from the construction sector to connect with the financial institutions to better understand the government policies of funding MSME. This would be especially useful given that 30 % of equipment manufacturers in India comprise Gujarat based MSMEs. Special products zone will be created to display the innovative products manufactured by the MSMEs.”
Such exhibitions hold relevance in the backdrop of the fact that the urban population has increased at CAGR of 32% between 2001 & 2011 but pace of urban planning (roads, flyovers, etc.) is lesser than pace of population growth. Hence, the focus area of infrastructure development is expansion of road network within the city, upgrading existing roads, newer infrastructure to connect mainland city with urban sprawls, and sanitation & waste disposal for urban slum areas. Railway infrastructure is of key significance here with investment in the same estimated to be in the tune of Rs 50 lakh crores till 2030.
The Government is working towards the improvement as there are strong policies for Smart cities development, urban development, & provision of affordable housing. Some of the policies include Development of 100 smart cities, Atal Mission for Rejuvenation and Transformation of 500 cities/towns with over 100,000 population (AMRUT), Pradhan Mantri Awas Yojana, Heritage City Development and Augmentation Yojana (HRIDAY), National Rurban Mission (NRum), and The Fly Ash Utilization Policy. All these developments would increase the demand for construction equipment, chemicals, precast, and related products.
Exhibitors at the event will be from various industries related to construction such as Earthmoving, Demolition & Transport Equipment; Roads, Ports & Foundation Equipment, Building & Concrete Sector; Lifting, Handling & Hydraulic; Automation & IT; and Safety Equipment. The first physical expo of the construction industry after the COVID pandemic is likely to attract Architects, Builders / Developers, Consultants, Contractors, Distributors /Retailers, Large EPCs, Financial/Leasing Companies, Government Officials, Industry Associations, Mining Companies, OEM Manufacturers, Oil Refineries, Port Companies, Power Plants, Public-Sector Decision Makers, Rental Companies, Safety Companies, and Spare Parts & Component Manufacturers.
According to industry market research by Informa Markets in India and KDCL, most of investment opportunities lie in Real-Estate sector & Transport (proxy to infrastructure development) sectors with new business opportunities for investors emerging from South Indian states - Karnataka, Kerala, Maharashtra, MP, Tamil Nadu, Andhra Pradesh and Telangana.
The exhibition is getting support from associations such as Indian Construction Equipment Manufacturers Association-I-CEMA, Construction Equipment Rental Association- CERA, Crane Owners Association Of India- (COAOI), Builders Association Of India- BAI, Gujarat Chamber Of Housing Industry- GIHED, Confederation of Real Estate Developers' Associations of India (CREDAI), CREDAI Gujarat, National Real Estate Development Council- NAREDCO, Tunneling Association OF India- TAI, Gujarat Contractors Association, Ready Mix Concrete Manufactures Association –RMCMA, and Fluid Power Society Of India.