MVAR Earth Movers
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MVAR Earth Movers

MVAR Earth Movers, located at Habsiguda is just a few kilometers away from heart of Hyderabad city rendering impeccable services to all its esteemed clientele over a decade.

Today the construction industry in India is growing at the rate of about 15% every year and construction equipment industry like the earth moving equipments are primarily dependent on the level of construction activity and the amount of infrastructure development work that goes on at any point of time. Apart from this the industry also caters to mines, stone quarries, builders and infrastructure developments

Trends in Construction Industry

Construction Industry in India has seen a rapid growth in the last decade which was the result of the reality boom. Lots of SEZ's, IT Parks, Gated Communities & Townships have come up in various cities and towns in India. Apart from the Metro's & A grade cities, B grade towns also have seen tremendous growth which was again in lieu with the demand. The buying power of individuals have rose and investing in an immovable asset was a safe bet any day. New methods of construction got into deployment, which also increased the pace of delivery.

Finished prestegious projects from the Central & State governments were inaugurated. New Airports, Sea Ports, Express Highways, 4 laning of National Highways & many more have seen the light. Multi-storied structures stand tall today showing the extreme engineering that has revolutionized Indian construction Inc.

After math of the slowdown in the world markets, correction of land & constructed site prices have also showed up. The way the prices grew exponentially over the last decade, the slow down couldn't reverse them, but halted new projects. Occupancy levels dropped in the new projects and the proposed new projects deffered their dates of beginning. Added to the woes, our political situations have added their quota to it to further slow down.

Initiatives & Measures

Innumerable initiatives to lift the sector from its current dormant conditions have been taken by the Govt on their behalf. The measures include authorizing the Indian Infrastructure Finance Company Limited (IIFCL) to raise funds that will be used in construction of highways and port projects. Other measures like liberalization of the external commercial borrowing (ECBs) policy, revision in the cap for home loans, increase in foreign institutional investors limit in rupee denominated corporate bonds, close monitoring of the government spending to expedite expenditure for all schemes and programmes. The Planning Commission has estimated that an investment of about $492 billion will be required for the infrastructure sector during the Eleventh Five Year Plan. Private investment seems difficult to come by in the current scenario, so public investment can be expected to materialize or even increase. The government needs to plays a vital role in improving the pace of implementation of key projects & at the same time, construction companies need to upgrade their project management expertise and ensure that there is adequate capacity to undertake and execute projects on time.

Construction Equipment Scenario

This industry has also witnessed a slowdown. Prior to the crisis, the Indian equipment market was growing at a rate of about 35% for almost seven years. New equipment purchases have come down due to a lack of funds since buying involves large upfront payments. New equipment sales have taken a hit of about 20%, while equipment already leased out is unaffected. Due to a steady decline in the number of new projects it has led to a significant fall in new leasing contracts. This situation is expected to continue for the next couple of quarters. Many construction equipment companies have cut down production & have approached the Govt to come for their rescue. In unfinished critical projects, contractors are resorting to selective leasing and renting of equipment. Companies involved in renting equipments are seeing good days as the demand is going up, but will not last long. As a matter of fact, the fundamentals of the Indian growth story are sound, and the demand for infrastructure and industrial activity continues to be strong. With the government planning to support the infrastructure sectors along with adequate finance & credit flow, the situation is expected to stabilize in the equipment sector, but with some lag.