Looking deep
The CII’s Global Mining Summit at the International Mining & Machinery Exhibition (IMME) 2024 highlighted a number of issues the industry is facing and the need for government intervention for growth. “India’s construction equipment (CE) industry is worth $9-10 billion. The government should take measures to counter unfair competition from cheap Chinese imports”, said Sandeep Singh, MD, Tata Hitachi at the summit. “The growth of domestic players in India’s construction equipment industry is getting ‘distracted’ due to rising cheap Chinese imports. The Chinese players benefit more from India’s infrastructure development than Indian construction equipment manufacturers,” added Singh. Tata Hitachi, the market leader in the excavator segment of India’s CE market, lost 5 per cent market share in five years mainly due to cheap Chinese imports.
The Chinese penetration in the excavator segment has intensified in recent months, reaching 20-22 per cent. Five years back, it was not even 10 per cent. Their penetration had also increased in other segments of the CE industry. The discussion at the summit also suggested creating some entry barriers to protect Indian companies’ interests and urged the government to take measures to encourage companies that have invested heavily in ‘Atmanirbhar Bharat’ and ‘Make in India’ initiatives.
Another important point is that Bharat Earth Movers Ltd (BEML), a public sector enterprise had earlier exited from the construction equipment space due to intense competition from cheap imported products. After a hiatus of nearly five years, the company has re-entered the sector as a part of its restructuring plan. “The company has recently undergone a significant business restructuring, establishing 11 strategic business units (SBUs) and two micro business units to drive sustainable long-term growth,” said Shantanu Roy, CMD, BEML, on the sidelines of the summit. “We have re-entered the construction equipment business, focussing on higher capacity products to tap into the huge market of R45,000 crore”. The company has outlined a capital expenditure of over R900 crore in the next two financial years. The capital expenditure will be to modernise its facilities, invest in new technologies, and expand its manufacturing capacity.
Apart from taking part in the summit, Tata Hitachi has also showcased its advanced mining solutions at IMME 2024. As a trusted partner in nation-building, Tata Hitachi’s presence at IMME 2024 reflects its dedication to advancing technology and efficiency in the mining sector. The latest range of products is designed to enhance productivity, safety, and sustainability in mining operations. Other prominent players in the CE industry in India include JCB, Volvo, Caterpillar and Hyundai.
Emerging trends With the theme Viksit Bharat: Role of a Sustainable Mining Industry, the summit delves into the significant growth and emerging trends within the Indian mining sector. “Mining sectors lay the foundation for economic growth”, said Moloy Ghatak, minister for labour, West Bengal. Between April and November 2023, the state’s manufacturing sector has grown at 7.2 per cent against the national manufacturing growth rate of 5.8 per cent, added Ghatak.
Besides the Global Mining Summit, CII also organised the 17th edition of the International Mining and Machinery Exhibition (IMME) 2024. The two events were organised in association with the ministries for mines and steel. The government of Odisha is the partner state and the event is supported by West Bengal Mineral Development Corporation. The Indian Construction Equipment Manufacturer’s Association (ICEMA) is the sector partner and Australia is the partner country at IMME 2024.
Talking about the mining sector of West Bengal, Ghatak mentioned the approval of the mining plan for the Gourangdih ABC Coal Mine in the East Burdwan district with a potential of extractable coal deposit of about 62 million tonnes. He further highlighted that Deocha-Pachami-Dewanganj-Harinsingha, a proposed coal mine in Birbhum district, if completed, would be the world’s second-largest coal mine.
Ujjwal Tah, directorate general for mines safety, informed about the constant depletion of mineral resources and advocated for the conservation of minerals. He advocated for an increase in R&D investment in deep sea mining and further emphasised the need for larger mining companies to support smaller players in transitioning towards sustainable mining practices.
Talking about the potential collaboration between India and Australia in the mining of critical minerals, Denise Eaton, Trade and Investment Commissioner, Green Economy, South Asia, Austrade, solicited for a holistic approach towards a green economy and urged the industry to ensure a balance between productivity, safety and environment.