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MARKET & OPPORTUNITIES
I. II. III.
INTRODUCTION SUMMARY EQUIPMENT EDUCATION A. B. C. D. E. DUMP TRUCKS HIERARCHY STD DUMP TRUCK RIGID OFF HIGHWAY DUMP TRUCK ARTICULATED DUMP TRUCK MINING TRUCK
3 3 4 5 6 7 8 9
ECONOMIC TRENDS A. B. C. D. E. F. MINERAL RESOURCES IN INDIA BREAK UP OF SECTOR LOCATIONS OF INDUSTRY RELEVANT MINES MINERAL PRODUCTION MINING CAPEX COAL INDIA PROJECTION OF PRODUCTION, DEMAND AND SHORTFALL 10 11 11 11 12 14
MARKET TRENDS A. B. COAL INDIA PROJECTION OF ESTIMATED DUMPER REQUIREMENT BEML ESTIMATE – PROJECTED ,MARKET DEMAND FOR DUMPERS 15 17 19 20 20 21 24 24 24 25 30
VI. VII. VIII. IX. X. XI. XII. XIII. XIV. XV.
SALES PRICING TECHNOLOGY PRODUCTION COMPONENT SOURCING FOREIGN TRADE MARKET SHARES DISTRIBUTION AND MARKETING SWOT ANALYSIS ANNEXURE I A. INDIA: OFF HIGHWAY DUMPER MODELS
ANNEXURE II A. INDIA: OFF HIGHWAY DUMPERS COMPARISON : 30 TO 35 TONNE PAYLOAD CLASS 34
This report examines the Indian market for Off Highway Dumpers. Although there are a wide range of machines with payload capacities ranging from 25 T (Metric Units) to 362 T, the most popular models currently in India are in the range between 30 T and 50 T. These models traditionally comprise 6 to 12 cylinders, 235 KW to 510 KW Turbocharged Cummins Diesel engines or proprietary engines as in the case of Caterpillar and Komatsu. They also feature either Allison make or Proprietary Transmissions, with 5 to 7 forward gears and 1 reverse gear. Other common features are fully floating axles, a 30% gradeability, and a 3 stage telescopic hoist for dumping. Although this is the most popular category in India currently, the demand for machines with higher Tonnage and AC/DC drives, is steadily growing.
SUMMARY India: Summary of Off Highway Dumpers,* 2009 Number of Suppliers Number of Joint Ventures Market Leader BEML Market Share BEML Sales (Units) BEML Population (Units) Est. Market Size 2008-09 (Units) Demand Forecast 2012-13 (Units)
* Source : Unverified Publications and presentations
7 2 BEML 70 - 80 % ------825 930
BEML, Caterpillar, L&T Komatsu, Telcon, Voltas, Tatra , Volvo L&T Komatsu, Telcon – Hitachi Euclid --------To be Sourced To Be Sourced -------
The history of the off highway truck in India stretches back to 1964, with the setting up of Bharat Earthmovers Ltd. (BEML), a public sector unit of the Ministry of Defence, at Kolar in South India, to manufacture, amongst other equipment, dumpers, under license from Komatsu, Japan. Subsequently, in the private sector, the Hindustan Motors’ Earthmoving Equipment Division, was established in 1969 at Tiruvallur, near Chennai with technical collaboration from Terex, UK for the manufacture of dumpers. This factory has since been taken over by Caterpillar in 2001 for their Indian operations. The market has traditionally been dominated by these two manufacturers, jointly accounting for 90 per cent of sales.
There are other players too in this product category, such as TELCON, L&T Komatsu, Tatra, Volvo and Voltas. Telcon has a Joint Venture with Hitachi – Euclid for their range of dumpers, and L&T with Komatsu.
Applications for Off Highway Dumpers are strictly confined to mines. Government regulations do not permit their usage outside the designated area. This is as opposed to Tippers, also colloquially referred to as dumpers, which are used for load hauling within mines and also outside the designated mining area. A majority of both off highway dumpers and tippers, are deployed at coal mines and the balance at Iron Ore, Bauxite and areas of other ore sources.
Demand for Off Highway Dumpers, over the past nine years has grown from a modest 200 units in
2000 to a projected demand of 930 units for FY 2012- 13, indicating an over 4 fold growth. The future trend, according to various industry forecasts, is skewed towards machines with higher payload capacities of a minimum of 50 T and above. No doubt, the current regressive economic scenario will suppress demand and the forecast has to be adjusted as deemed necessary.
On a positive side, a majority of the demand for Mining Equipment in India originates from Coal India Ltd. at almost 80% according to various sources. Coal India though, has projected a significant increase in production over the next decade. Currently all of Coal India’s production is consumed domestically, and even requiring imports to meet the domestic requirement. Hence irrespective of the dampened economic scenario, Coal India’s projection of increased production is likely to hold good and their demand for equipment will be the barometer for the mining equipment industry.
Before we progress further, let us understand what a dump truck is and where it is positioned among the myriad models in the industry.
The dump truck was first conceived in Saint John, New Brunswick when Robert T. Mawhinney attached a dump box to a flat bed truck in 1920. The lifting device was a winch attached to a cable that fed over a pulley mounted on a mast behind the cab. The cable was connected to the lower front end of the wooden dump box which was attached by a pivot at the back of the truck frame. The operator turned a crank to raise and lower the box. Today, virtually all dump trucks operate by hydraulics and they come in a variety of configurations, and are classified accordingly. Classification of commercial vehicles is is carried out on the basis of Gross Vehicle Weight.
Gross Vehicle Weight ( G.V.W) = Unladen Weight + Payload Unladen Weight : Weight of the empty unit, including Motor oils, fuels etc. Payload : Weight of the Cargo alone -4-
STANDARD DUMP TRUCK
LOAD HAUL TRUCKS
SINGLE AXLE G.V.W ≤ 16 T TANDEM & MULTI AXLE G.V.W ≤ 31 T RIGID ARTICULATED (Payload Tonnage) 24 T 28 T 33 T OFF HIGHWAY DUMPERS (Payload Tonnage) MINING TRUCKS (Payload Tonnage) 38 T 39 T
25 -35 T 40 T 45 T
109 T 136 T 154 – 172 T 172 – 186 T 218 T 236 T 245 T 326 T 362 T
G.V.W = UNLADEN WEIGHT + PAYLOAD
50 T 55 T
= XXXXXXX RANGE (20, 30, 52 T)
60 T 63.5 T 70 T 85 T 90 T 100 T
STANDARD DUMP TRUCK
A standard dump truck is a full truck chassis with a dump body mounted to the frame. The dump body is raised by a hydraulic ram mounted behind the the front bulkhead, between the truck cab (traction unit) and the dump body (semi-trailer). The tailgate can be configured to swing on hinges or it can be configured in the "High Lift Tailgate" format wherein pneumatic rams lift the gate open and up above the dump body. A standard dump truck has one front axle, and one or more rear axles which typically have dual wheels on each side. Common configurations for a standard dump truck include the six wheeler which has one rear axle, the ten wheeler with two rear axles, and the tri-axle with three rear axles. The intermediate axles are present to support the weigh over the length of the chassis and sometimes to provide additional braking power.
There are various suppliers of these Standard Dump Trucks in India. They are 1. Tata 2. Ashok Leyland 3. Asia Motor Works ( AMW) 4. Tatra Trucks 5. L&T Scania 6. Volvo 7. Mercedes 8. Eicher Motors 9. Man Force
Traditionally, in India, these standard dump trucks are referred to as “Tippers”.
Tippers may be classified as follows:
1. Single Axle ( 1 Front + 1 Rear axle)
G.V.W ≤ 16 T (~9 T of Payload. Practically upto 22 T)
Although the indicated GVW should not exceed 16 T, which implies a payload of approximately 9 T, for all practical purposes, the vehicles are overloaded to carry payload capacities alone of 22 T. -6-
2. Tandem Axle & Multi Axle ( 1 Front + 2 or More Rear Axles)
G.V.W ≤ 25 – 31 T (~ 16t Payload. Practically upto 40 T)
Although the indicated GVW should not exceed 31 T, which implies a payload of approximately 16 T, for all practical purposes, the vehicles are overloaded to carry payload capacities alone of 40 T.
RIGID OFF- HIGHWAY DUMPTRUCK
Off-road dump trucks more closely resemble heavy engineering vehicles than they do highway dump trucks. They are used strictly off-road for mining and heavy dirt hauling jobs. As the payload is unloaded from the rear, they are referred to as “Rear Dump Trucks” . They have payload
capacities between 20 T and 360 T.
The following are the suppliers of Rigid Off Highway Dump Trucks in India
1. BEML 2. Caterpillar 3. HM ( Still available under “HM” Brand, but produced by CAT) 4. Telcon 5. L&T Komatsu 6. Voltas 7. Tatra Vectra Trucks -7-
ARTICULATED DUMP TRUCKS
An articulated dump truck has a hinge between the cab and the dump box, but is distinct from semi trailer trucks in that the cab is a permanent fixture, not a separable vehicle. Steering is accomplished via hydraulic rams that pivot the entire cab, rather than rack and pinion steering on the front axle. This vehicle is highly adaptable to rough terrain. Only articulated dump trucks can operate in water logged areas. This is usually the case when the mine depth goes below Mean Sea Level. In line with its use in rough terrain longer distances and overly flat surfaces tend to cause driveline troubles, and failures.
The following are the suppliers of Articulated Dump Trucks in India
1. Caterpillar 2. Volvo 3. Komatsu
A mining truck is a larger version of the rigid dump truck with payload capacities of 100 to 400 tonnes. As opposed to the rigid dump trucks , mining trucks are powered by diesel engines to drive generator , which in turn power individual AC / DC motors at each wheel.
The following are the suppliers of Mining Trucks in India
1. BEML 2. Caterpillar 3. Voltas 4. L&T Komatsu
The global financial crisis is quite visibly having an impact on India’s industrial sector. Export growth dropped Sharply in November 2008 to -10.42% from 12.2% y-o-y in the preceding month, as Indian exporters faced a sharp decline in demand from overseas buyers. A number of companies have since reined in their production plans as export orders have plunged.
However, despite falling commodity prices, India’s mining sector is continuing to post strong Growth, driven by strong domestic demand. Between 2008 - 2013, BMI Market Research forecasts that the sector will grow by a compound annual growth rate of 9.75% reaching a total value of US$47.12bn. This represents 2.6% of GDP, however, the country is still not exploiting its true potential and needs to improve productivity and invest in exploration and infrastructure.
MINERAL RESOURCES IN INDIA
India is endowed with significant mineral resources and the mineral industry constitutes an important segment of the Indian economy. India produces 89 minerals which include 4 fuel, 11 metallic, 52 non-metallic and 22 minor minerals. Globally, the country is the largest producer of Sheet mica, the third largest producer of coal, the fourth largest producer of iron ore and the fifth largest producer of bauxite. Besides these natural resources, India also hosts significant reserves of copper, zinc, gold and about 26 other metallic and minor minerals.
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BREAK UP OF SECTOR
The Indian mineral sector represents a unique blend of small scale and large scale mining operations. In spite of large-scale mining operations, India is essentially a country of small-scale mining, since as much as 87% of the operations can be considered as small scale. India has 2326 private and 292 public sector mines. Over 80 percent of the mining activities in India are in coal.
Table 3 : Locations of Industry relevant mines Coal Iron Ore Bauxite Chromite Copper Ore Granite Lead and Zinc Ore Manganese Ore Tamil Nadu, Chhatisgarh, Maharashtra, Orissa, West Bengal and Andhra Pradesh Andhra Pradesh, Bihar, Goa, Karnataka, Madhya Pradesh, Maharashtra, Orissa, Rajasthan Orissa, Andhra Pradesh, Madhya Pradesh, Gujarat, Maharashtra Byrapur, Karnataka, Boula, Kathpal, and Orissa Madhya Pradesh, Rajasthan, Bihar and Sikkim Andhra Pradesh, Bihar, Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Meghalaya, Orissa, Rajasthan, Tamil Nadu, Uttar Rajasthan, Andhra Pradesh, Bihar, Gujarat, Maharashtra, Sikkim, Tamil Nadu, Uttar Pradesh Madhya Pradesh, Goa, Maharashtra, Andhra Pradesh, Bihar, Gujarat, West Bengal and Karnataka
MINERAL PRODUCTION Table 4 : Mineral Production in India Million Tonnes Mineral Coal Iron Ore Bauxite Chromite Copper 2002 -03 341 99 9.86 3.06 0.152 2003 - 04 361 121 10.95 3.2 0.143 2004 - 05 383 146 11.96 3.62 0.137 2005 - 06 407 154 12.33 3.42 0.124 2007 – 07 430 172 13.07 4.1 0.115
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As is evident from the above tables , Coal is the most important and abundant / mined reserve in India, with the country ranking third in worldwide production. Coal accounts for around sixty percent of the country's energy need, with reserves being estimated by the Geological Hard coal deposits, spread over 27 major coalfields, are mainly confined to the eastern and south central parts of India. India has a potential coalbearing area of about 22,400 sq.kilometers, of which only about 45 percent has been partially explored.
Large capacity additions planned in Power, Steel, Aluminium and Cement, implies large demand for coal, iron ore and bauxite. Consequently, industry sources believe mining capex is likely to rise sharply – primarily in coal and iron ore. India’s coal consumption was 460MT in FY07, while domestic production was only 432.5MT. Remaining 27.5MT of demand was met through imports. Ministry of Coal has estimated domestic coal demand to touch 731.1MT by FY2012 – implying CAGR of 9.7% in domestic demand. In contrast, CAGR in coal production was 2.53% during the 9th plan (FY1997-2002) and 5.7% during the 10th plan (2002-07). Coal Ministry targets CAGR of 9.47% in coal production during the 11th plan – i.e. from 432.5MT in FY07 to 680MT in FY2012.
“The bottleneck in coal production is not availability of coal reserves (which is estimated to be 216 BT), but availability of mining capacity”
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Industry sources believe just the coal mining sector could see capex of more than US$7-9bn over the next five years. In addition to increasing the productivity of existing mines and setting up new mines, new coal blocks are likely to be awarded to private and public sector companies in power, steel and aluminium.
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Table 5 : COAL INDIA LTD PROJECTION OF PRODUCTION, DEMAND, SHORTFALL PARTICULARS COKING PRODUCTION NON COKING TOTAL COKING DEMAND NON COKING TOTAL COKING SHORT FALL NON COKING TOTAL YEAR 2016 - 17 35.00 1020.00 1055.00 105.00 1020.00 1125.00 70.00 --70.00
2011 - 12 27.65 652.35 680.00 68.50 662.60 731.10 40.85 10.25 51.10
GRAPHICAL REPRESENTATION OF PRODUCTION ESTIMATE
ESTIMATED COAL PRODUCTION (Mill Tonnes)
800.00 600.00 400.00 200.00 0.00 2011 - 12 YEAR 2016 - 17 COKING NON COKING TOTAL
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The Indian market for mining and mineral processing equipment is estimated at $ 2.2 billion. Around 80 percent of this is estimated to be in the coal mining sector. CIL is the biggest buyer of mining equipment in the country and has had a dominant influence on the development of the mining equipment industry. It has spearheaded adoption of innovative procurement and maintenance practices in the country. Increased mining activity at Coal India coupled with replacement demand for aged heavy engineering and mining machinery is expected to boost demand for mining equipment. The $60 billion anticipated investment in power generation between 2007-2012 is expected to create significant market opportunity for mining and material handling equipment providers. Ten per cent of the cost of setting up of new thermal power plant is material handling equipment. The Coal Ministry estimates that an investment of $21 billion in opencast mining and $5 billion in underground mining will be required to attain the target production level by 2025.
COAL INDIA LTD. PROJECTION OF ESTIMATED DUMPER REQUIREMENT YEAR PAYLOAD 240 T 170 T 120/110 T < 110 T 2007 - 08 (Existing) 0 35 260 2945 2011 - 12 55 125 400 2975 2016 - 17 95 250 600 2975 % INCREASE 2011 - 12 55 257 54 1 2016 – 17 73 100 50 0
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As is evident from Coal India’s projected Off Highway Dumper population, it is worthwhile to note that, although a majority of Coal India’s Dumpers lie in the below 110 T category, they intend to gradually phase out further purchases of dumpers in this category. Purchases of Dumpers in all categories above 110 T, though significantly increase year on year.
This can be visually represented as below. PAYLOAD COMPOSITION Vs. YEAR – COAL INDIA LTD ESTIMATE 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2007 - 08 (Existing) 2011 - 12 2016 - 17 ` < 110 T 120/110 T 170 T 240 T
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BEML’s market research data though indicates that segment in the 50 T to 60 T category will witness the most growth. Contrary to Coal india’s estimate, BEML’s estimate indicates that the although the category in the 35 T – 40 T segment is not likely to grow, the demand for similar nos. of units is expected to remain over the years.
PROJECTED MARKET DEMAND FOR DUMPERS – BEML ESTIMATE
2008 - 09 EQUIPMENT PAYLOAD 35 - 40 TON 50 - 60 TON 85 - 100 TON 170 - 240 TON TOTAL 175 150 120 30 475 2011 - 12 EQUIPMENT DUMPERS 35 - 40 TON 50 - 60 TON 85 - 100 TON 170 - 240 TON TOTAL 150.0 200.0 150 30 530 150 125 50 5 330 300 325 200 35 860 COAL NON COAL TOTAL 150 75 30 0 255 325 225 150 30 730 COAL NON COAL TOTAL
2009 – 10 COAL NON COAL 150 100 40 10 300 TOTAL
2010 – 11 COAL NON COAL 150 100 50 10 310 TOTAL
150 175 120 25 470
300 275 160 35 770
150.0 200.0 150.0 30 530
300 300 200 40 840
2012 – 13 COAL NON COAL 150 150 50 0 350 TOTAL Grand Total Average / Yr
175 225 150 30 580
325 375 200 30 930
1550 1500 910 170 4130
310 300 182 34 826
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CONSOLIDATED PROJECTED MARKET DEMAND – BEML ESTIMATE
PAYLOAD 2008-09 2009-10 35-40 T 325 300 50-60 T 225 275 85-100 T 150 160 170-240 T 30 35
YEAR % CHANGE 2010-11 2011-12 2012-13 2009-10 2010-11 2011-12 2012-13 300.0 300 325 -8 0 0 8 300.0 325 375 22 9 8 15 200.0 200 200 7 25 0 0 40.0 35 30 17 14 -13 -14
DUMPER MARKET REQUIREMENT TREND – BEML FORECAST 400 350 300 250
35-40 T 50-60 T 85-100 T 170-240 T
200 150 100 50 0 2008-09 2009-10 2010-11 2011-12 2012-13
In recent years, mining companies have been off-loading excavation work to private contractors leading to the development of a new segment in mining. The Government of India is actively considering privatisation of coal mining to give a boost to power generation. This development is expected to stimulate demand for mining machinery. Mining in India has been kept as a government undertaking since 1950s. In the last few years, however, the economy has been liberalized, tariffs lowered, state enterprises privatized and the country opened to investment in mineral exploration. There is a need for upgraded equipment and technology in many of India's mines and modernization is underway, particularly in the coal sector.
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Off highway research indicates the following projections for equipment demand by end 2009. In view of the slackening demand world over the forecasts for 2999, are based on a reduced growth rate of 12 % in the construction equipments industry. , Year wise sales
India Sales of Construction Equipment, 2007-2009 (Units) 2007 ASPHALT FINISHERS BACKHOE LOADERS COMPACTION EQUIPMENT CRAWLER DOZERS CRAWLER EXCAVATORS MOBILE COMPRESSORS MOBILE CRANES MOTORGRADERS RIGID DUMP TRUCKS SKID STEER LOADERS WHEELED LOADERS OTHERS Total Construction Equipment 954 21761 3219 627 9606 2670 8115 544 594 215 2386 57 50748 2008* 1040 16500 3225 700 9700 3150 8400 500 825 400 2700 60 47200 2009* 1150 18000 3600 775 11500 3400 9200 550 975 450 3200 80 52880 % Change 2007 - 2008* 9 -24 0 12 1 18 4 -8 39 86 13 5 -7 2008*-2009* 11 9 12 11 19 8 10 10 18 13 19 33 12
* Forecast ** Articulated Dump Trucks; Crawler Loaders; Mini Excavators; Rough Terrain Lift Trucks; Wheeled
Source: Off Highway Research
Individual sales of Off Highway Dumpers by the various suppliers is to be sourced.
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The pricing provided below is only for reference and is not based on verifiable sources. Efforts are in progress to obtain the data
Off Highway Dumper
Price (Ex Works) 84 Lakhs 165 Lakhs 75 Lakhs 180 Lakhs
Excise Duty 8.24% 8.24% 8.24%
CST / VAT
BH 35 -2 BH 50 M HM 1035 773
31.5 Mt 54.5 Mt 33 Mt 58 Mt
CAT KOMATSU TELCON ARTICULATED CAT VOLVO KOMATSU
CST @ 2 % with Form C, Else VAT @ 4 % CST @ 2 % with Form C, Else VAT @ 4 % CST @ 2 % with Form C, Else VAT @ 4 % CST @ 2 % with Form C, Else VAT @ 4 %
200 Lakhs* 100 - 130 lakhs*
Off highway dumper technology has progressed rapidly since the first models introduced by BEML in the early 1960’s. High payload capacity machines though, did not find a large market requirement as their demand is directly proportional to the GDP of the country. Since then, India’s Industrial output has grown in leaps and bounds post the economic liberalization regime of the 1990’s. An Increased demand from the Indian consumer for Power, Cement, and Steel has forced the country’s mining behemoths to augment output substantially. This set in motion, a flurry of activity amongst mining equipment solution providers to satiate the demand for larger, and technologically advanced Mining equipment. Amongst the various suppliers of Off Highway Dumpers in the Indian market, BEML alone has been charged with the task of indigenous technology development. Other manufacturers in India such as Caterpillar India, Komatsu India & Tatra Udyog, have access to in house technology developed at their parent companies. Voltas imports the completely built Unit Rig from Terex. Telcon has access to technology through it’s joint venture partner, Hitachi – Euclid.
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BEML, is the second largest manufacturer of earthmoving equipment in Asia. The PSU had initially begun producing Dumpers under an agreement with Komatsu, Japan. Following Komatsu’s withdrawal from the same at a later period, BEML signed a memorandum of understanding with Terex Corporation during April 2008 for technical assistance to manufacture the heavy duty dumpers, which will cater to the mining sector in the country and abroad. This alliance brings AC Drive technology for haulage trucks
BEML has already invested around Rs. 10 crore to establish the unit in its Mysore complex which is set for expansion with an additional investment of Rs. 35 crore. The Mysore complex already manufactures dumpers of 35 tonnes to 120 tonnes capacity. The Terex agreement will enable BEML to manufacture Dumpers upto 360 Tonnes. BEML claims that this is the first time that any manufacturing unit in Asia will produce a 360tonne capacity dumper.
With this technology transfer BEML will also manufacture critical components for the heavy-duty dumpers. As preferred supplier to heavy users of its equipment to CIL and other customers, the firm will aim to leverage its expertise in manufacturing a whole range of high-end mining and construction equipment for public and private sector firms.
BEML is expanding its current production capacity by investing Rs.418 Crores during 2008-09 & 2009-10. BEML will have an installed capacity to manufacture 1400 Mining Equipment and around 2000 Nos. construction equipment by year 2010-11.
Paid-in capital : INR745 million (Approx. JPY2 billion) Equity : 100% by Komatsu Ltd. Location : Oragadam SIPCOT Industrial park, near Chennai (formerly Madras), India Land area : Approx. 240,000 square meters Building area : Approx. 10,000 square meters - 21 -
No. of employees : 63 (as of March 28, 2007), Over 100 (planned for March 31, 2008) Investment : Approx. INR 70 Cr for the initial phase (incl. land, buildings and machinery) Products : Off-highway dump trucks Production capacity : 200 units per year
In addition to Komatsu’s alliance with L&T, for the manufacturing and distribution of excavators and other Heavy earth moving equipment, Komatsu has established a Plant at Chennai in January 2007, solely for the production of Off Highway Dumpers. It is located at Oragadam SIPCOT Industrial park, near Chennai The facility occupies a building area of approximately 10,000 square meters on approximately 240,000 square meters of land area, involving a Rs 50 crore investment. It has a production capacity of 200 units per year. Most of the components will come from its 100 per cent owner, Komatsu of Japan
Komatsu India's plant shares the basic design concepts with the Ibaraki Plant in Japan, which also opened in January this year, featuring a simple assembly line configuration and assembly instruction display system, among others. By making the production processes "visible" at the plants, Komatsu has established a solid quality assurance system.
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CATERPILLAR : Manufacturing Plants in India 2008 * Area 2 (000 m ) 2007 Production (Units) 700 846 270 1303 456
Products Backhoe Loaders
Thiruvallur, Tamil Nadu
Wheeled Loaders Rigid Dump Trucks Bare Engines Diesel Generator Sets
Hosur, Tamil Nadu
*Source : Off-Highway Research
Caterpillar currently has two manufacturing plants in the country. The large Thiruvallur plant is located 45 kilometres west of Chennai, in Tamil Nadu province, where it produces construction equipment and components. It also houses the administration and training centres as well as a large warehouse, storage facilities and demonstration areas. The Hosur plant is located 45 kilometres south of Bangalore in Tamil Nadu, and is engaged in the assembly of diesel engines and generator sets.
Caterpillar has announced in Aug 2008, a four-year, US$200 million investment to increase manufacturing capacity in India for machines and engines.
Caterpillar plans to significantly increase production of off-highway trucks being manufactured at its Thiruvallur facility, which is already a global source for rigid dump trucks for the company, the only one outside the USA. It also plans to expand engine production at Hosur by adding production of the 3508 engine, which will be primarily used in trucks being manufactured by the company locally.
TATRA VECTRA MOTORS LIMITED(TVML) Tatra Vectra Motors Limited (TVML), formerly known as Tatra Trucks India Limited, is a joint venture between Tatra a.s. of Czech Republic (a part of Terex corporation, USA) and the Vectra group, a UK based NRI company, having substantial business interests in UK, the Czech Republic, Slovakia, CIS, Singapore and India. The Joint Venture was established in July 1997 and the first dumper rolled out in June 1998.
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The manufacturing plant is located in Hosur, Tamil Nadu, around 35 kms from Bangalore. The fully integrated manufacturing facility includes an engine assembly and testing plant, a cabin welding shop, a frame fabrication shop and a test track.
COMPONENT SOURCING ( TO ADD HM)
PARTICULARS ENGINES TRANSMISSION HYDRAULIC PUMPS AXLES STEEL WORK CABS TYRES
BEML Cummins Avtec / BEML In House In House In House In House Various
CAT/HM CAT CAT CAT CAT CAT Various
KOMATSU Komatsu Komatsu Komatsu
TELCON Cummins Allison
Completely Built Unit Imported
Completely Built Unit Imported
FOREIGN TRADE / EXPORTS
BEML has established its presence in more than 52 countries and has been consistently focusing on the international business activities with major thrust on Asia Pacific, Middle East and African markets. To increase its overseas market penetration, the company has set up its offices in China, Malaysia and Brazil. Further, BEML plans to establish a Sales Office cum Repair Facility and Spares Depot at Balikpapan in Indonesia within the next three months.
BEML and CAT combined have a total market share of 90 % in the Rigid Dump Trucks segment. Volvo appears to be the leader in the Articulated segment. Individual sales figures are yet to be sourced for an accurate market share analysis.
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DISTRIBUTION & MARKETING
SUPPLIER BEML Caterpillar L&T Komatsu Telcon Tatra Vectra Volvo Voltas
OFFICES / BRANCHES 30 1 20 32 4
DEALERS 22 2 45 38 8
OUTLETS 80 100 125 10 (Warehouse)
BEML has a national network of 10 regional offices controlled from Bangalore and Chennai
Regional Offices NORTH CENTRAL New Delhi Bilaspur Singrauli & SOUTH Chennai Hyderabad EAST Sambalpur Ranchi Kolkata WEST Mumbai Nagpur
These are supported by a network of 16 smaller district offices – some located at customer premises which provide sales, training and support:
District Offices NORTH CENTRAL Bhilai Jammu Udaipur & SOUTH Hubli Madurai Ramagundam Neyveli Kothagudem Hospet EAST Dhanbad Bhubaneswar Asansol Guwahati WEST Panjim(Goa) Ahmedabad Chandrapur
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In addition, Beml has established a national network of 22 dealers covering the whole of India as well as four large service and machine activity centres:
Ongole (AP) Katni(MP) Bangalore Hospet
Caterpillar has two dealers in India, namely GMMCO Ltd, covering southern and western India, and TIL Ltd, covering northern and eastern India.
GMMCO distributes its products through a network of eight regional offices with each responsible for the operation of branches, site offices and repair and service centres located within its area. These offices are located in:
Nagpur Mumbai Ahmedabad
In all there are 57 site offices and parts and repair centres supported by sales staff and service personnel located at 26 branches:
Ahmedabad Bailadila Bangalore Bhilai Chandrapur Chennai Cochin Coimbatore
Gandhidham Goa Hospet Jabalpur Korba Madurai Mumbai Nagpur
Pondicherry Pune Ranchi Sambalpur Secunderabad Singrauli Surat Visakhapatnam
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In addition GMMCO supports the needs of major coal producers throughout India and has service personnel located at:
Ranchi – Central Coalfields Ltd Singrauli – Northern Coalfields Ltd Bilaspur – South-eastern Coalfields Nagpur – Western Coalfields Ltd Sambalpur – Mahanadi Coalfields Ltd
TIL’s main office for the eastern region is in Kolkata, where there is also a large parts warehouse. In addition there are 13 sales and customer support centers in:
Asansol Barbil Bhubaneswar Dhanbad Guwahati
Jamshedpur Jharsuguda Noamundi Ramgarh
Siliguri Talcher Tisukia West Bokaro
For the northern region the main office is in Sahibabad near New Delhi which also has a large parts depot. The main sales and customer support centres are at:
Amritsar Baglihar Chandigarh
Jaipur Karnal Lucknow
Ludhiana New Delhi Udaipur
In addition there are a number of service workshops in both the Northern and Eastern regions.
Both the dealers of Caterpillar have Cat rental stores that deploy a large number of backhoe loaders in their fleet. Currently there are 11 rental stores in India, a number that is expected to more than double in 2008. This is a captive market for Caterpillar backhoe loaders and an integral part of its strategy.
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L&T is the sole distributor for L&T-Komatsu and Komatsu machines in India which it sells through its network of 31 offices as detailed below:
NORTH & CENTRAL Delhi Kota Bhopal Jaipur Chandigarh Rajkot Udaipur Lucknow Durg
SOUTH Hyderabad Vishakhapatnam Madurai Kochi Coimbatore Bangalore Vijayawada Chennai
EAST Kolkata Dhanbad Guwahati Ranchi Bhubaneswar Jamshedpur Rourkela
WEST Pune Nagpur Mumbai Goa Ahmedabad Vadodara
TATRA VECTRA MOTORS LTD.
Tatra Vectra Motors has four regional offices for sales as well as territory management.
Greater Noida Hyderabad Kolkata Nagpur
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Service Dealers Tatra Vectra has a total of eight service dealers located along the mining belts
Guwahati Asansol Bhubaneshwar
Amhedabad Asansol Bhubaneshwar Chandrapur
Chattisgarh Guwahati Hospet
Kothagudem Sikkim Tehri
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XXXXXXX OFF HIGHWAY DUMPERS : SWOT ANALYSIS
2. Aggregates from internationally re-known suppliers
3. XXXXXXX Brand Name
1. Non PSU mine owners / Subcontractors
As discussed earlier in the sector breakup, as much as 87% of the operations can be considered as small scale. India has 2326 private and 292 public sector mines. In addition, Coal India’s reforms aimed at allowing private interests in coal mining operations, would essentially mean that operational costs would be more prudently managed by the private sector participants, as opposed to Public Sector Units. Thus XXXXXXX’ possible cost advantage would be a bonus.
1. Existing 2. Standard Dump Trucks (“Tippers”) - 30 -
Standard multi axle Dump trucks or “Tippers” would definitely be a threat to XXXXXXX Off Highway Dumpers. As industry practices of overloading the trucks, to validate costs of operations is an immutable practice, the XXXXXXX range will collide with the likes of Volvo, MAN, Mercedes, AMW and more recently TATA World Trucks too. The primary advantage that these “Tippers” offer, is the comfort of operation and thereby an increased efficiency. The fact that they are road worthy too as opposed to an Off Highway Dump truck, would probably not be significant, as the vehicles GVW when overloaded to the extent that they are, would not be permitted on Indian roads.
3. Chinese Image
As with any manufactured product from China, inspite of a reasonably proven product quality, the ”Chinese Trash” image will take a greater effort to overcome. Over the course of discussions with several mine owners, one user of XCMG Wheel Loader actually said: “ We broke it in one week. “. This is not to say that such views enforced by all personnel in the mining industry, in fact one mine operator conceded that “ Liugong Wheel Loaders, are performing satisfactorily for the price.” But the fact still remains that the Chinese Image will be detrimental.
4. Consistency of Parts Supply / Service expertise
Mining operations are very cost centric and any avoidable delays are not entertained. With this background, the importance of consistent spare parts supply and service expertise cannot be overstated as a factor critical to success. Industry stalwarts such as Caterpillar, are facing the ire of the consumer, for failure to provide spare parts on time and for non experienced service personnel deployed at mining sites. VOLVO is currently taking advantage of Caterpillars deficiency and is provides spare parts at a moments notice, albeit at exorbitant prices. Slack operations from a new entrant will not be entertained a second time.
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INDIA : OFF HIGHWAY DUMPER MODELS
Payload in Tonnes
OFF HIGHWAY DUMPERS RIGID 20 T - 30 T HD255-5 31-40 T BH 35 41-50 T 51-60 T BH 40 BH 50 BH 60 BH 70 61-100 T BH 85-1 BH 90 BH 100 101-150 T MT3000 MT 3300 151-200 T 201-250 T 251-360 T 360 ARTICULATED 23-30 T 725 730 735 31-39 T 740 23.6 31 32.7 38 HM400-2R 36.5 A35E/A40E 33.5-39 HM300-2R HM350-2R 27.3 32.3 A25E/A30E 24-28 MT 3600B MT 3700 B MT4400 35 40 50 60 70 85 90 100 109 136 154-172 172-186 236 789 C 793 D 177 218 730E 830E-AC 930E-4 960E 186 228 291 327 785 C 136 HD1500-7 136 MT 3600B MT 3700B 154-172 172-186 773 D 775 F 785 D 777 D 54 63.5 85 90 HD785-5 HD985-5 91 105 MT 3300 136 HD465-7 HD605-7 55 63 HM 1035 770 D 772 35 36 45 HD325-6 HD405-6 36.5 41 25 EH 600 33 T 815 Hemang 20 28 BEML Model Payload Model CAT Payload KOMATSU Model Payload TELCON Model Payload VOLTAS Model Payload VOLVO Model Payload TATRA Model Payload
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INDIA : OFF HIGHWAY DUMPERS : 30 – 35 T PAYLOAD CLASS
` Model Weight
Parameters Model Empty Weight Payload (T) Make Type Power Torque
Komatsu HD325-7R 31.6 32 Komatsu Diesel Water Cooled Turbocharged 386KW 2167Nm Power /Economy Mode selection, Automatic Idling Setting System Komatsu Fully Automatic Planetary Type With Lock up Clutch 3 Elements,1 Stage, 2 Phase 7F +1R Electronic Shift Control 70 Km/h
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CAT 770 D 34.2 36.3 CAT Diesel Water Cooled Turbocharged 381 KW 2320 Nm Electronic Control Module, Modular Radiator,Hydra ulic Demand Fan CAT Mechanical Drive Powershift Type with lock up clutch and lock up torque convertor
BEML BH 35 21.88 32 Cummins Diesel Water Cooled Turbocharged 272 KW 1450 Nm
Telcon EH 600 26.49 33 Cummins Diesel Water Cooled Turbocharge d 283 KW 1857 Nm
Allison Fully Automatic Planetary Type With Lock up Clutch Allison
Type Transmissi on
Poweshift with Lock up Clutch
Torque Convertor Range Shift Control Max Travel
tc 497 7F+1R Transmission Chassis Control 74.8 Km/h 5F+1R
Speed Drive Special Features Rear Axle Axles Special Features Type Make Supplement ary Steering Turning Radius Special Features Body Capacity Struck Body Capacity Heaped Dumping Angle Heating Structure Special Features
left Skip Shift Function Fully Floating
left Throttle Lock Fully Floating
Fully Hydraulic PS
Fully Hydraulic PS
Fully Hydraulic PS Electrically Driven Hydraulic Pump & motor 14.32 m
Fully Hydraulic PS
Supplement ary Steering Pump
24 cu.m 48 deg Exhaust V shape body Castings at High stress Areas Ind Hydropneumatic Suspension Ind Hydropneumatic Suspension
Exhaust with 3 Routing Options Dual Slope and Flatbed Castings at High stress Areas Ind Hydropneum atic Suspension Axle Mounted hydropneuma tic
Front Suspensio n
Rear Special Features
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ROPS &FOPS Cab Special Features Service Brake Front Rear Viscous Cab Mounts Fully Hydraulic oil Cooled Caliper Disc Multiple disc
Fully Hydraulic oil Cooled
Dual Shoe type Air over Hydraulic Wedge Actuated Internal Expanding Shoe Type
Air over oil Caliper Disc Oil cooled wet disc Drum brake on transmission output flange
Oil cooled multiple Disc 2 Independent circuits within service brake manually applied
Special Features Make Hoist Cylinder Hoist Time Special Features Fuel Tank Service Refill
Fully Hydraulic Controlled Wet Multiple Disc Brakes and Retarder Komatsu Twin, 2 Stage Telescopic 10 sec Flat Face to Face O-Ring Seals 484 Lt Extended Oil Change Intervals,Centrali zed Filter Arrangements 8465X3660X4000
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Electronic Hoist control 8.1 Sec
Twin, 3 Stage Telescopic
one 3 stage telescopic hoist 12 sec Steering priority over Dump 550
Productivit y Features
Author: SRINI P TEL : 9740528425 For XXXXXXX June ‘09
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