If you are keen to know about the overall market scenario, read the answers of Mr V Senthilkumar, managing director, Propel Industries to the questions posed by the Equipment India team.
Here are the excerpts from the interview -
What is the demand trend of aggregates for construction in India?
The aggregates industry in India is one of the biggest in the world because there is huge investment happening here. India is one the largest global consumers of aggregates and is touted as the epicentre of the world construction industry market. The COVID-19 pandemic has applied brakes but the aggregate sector is already showing signs of a strong recovery and the demand is steadily increasing.
What is the current scenario of aggregate and M-sand production?
There is a brilliant demand and supply circle here. The plant owners are producing good quality manufactured sand (M-sand) which is leading to higher demand and so happens the optimisation of plants in the aggregates business. The restrictions imposed on natural river sand are also making customers shift focus to M-sand. More than 50 per cent of the demand comes from the road construction sector, followed by core construction and real estate sectors. As the emphasis on creating sustainable projects rise, the demand for quality M-sand meeting specific requirements is also set to rise. M-sand is produced with the desired particle shape, gradation and silt content with the absence of deleterious materials, by crushing and washing. The most important point to note here is that the usage of cement in projects will be reduced by at least 5-6 per cent. Producers are promising consistent supply of M-sand to job sites as per the specifications and plant manufacturers are bringing in advancements into their sand producing equipment and promoting the same.
What is the market size of crushers and screens in India? What is the current market scenario?
The market size of crushers and screens is estimated to be approximately Rs 30 billion per year comprising both organised and unorganised sectors. This is for aggregates which is 100 tph and above. Out of this figure, trackmounted plant is estimated at Rs 6 billion, tyre-mounted plant at Rs 10 billion and Rs 14 billion for skid-mounted and unit equipment.
Which segments drive the demand for crushers and screens?
The demand for crushers and screens is rising consistently due to the construction and infrastructure development projects such as roads, dams, and railways which are lined up. The retail market for construction also plays a vital part. The ban on usage of river sand is also promoting the demand. Rapid urbanisation due to increase in population and better living standards is expected to propel the demand further.
How do you compare the demand trends of various crusher types?
It is very important that the product should meet all the requirements of the customer. The advantages and disadvantages of each type should be analysed thoroughly before selecting a product. The aggregate market demand is increasing and Cone and VSI crusher range is indigenously manufactured with the help of technological advancements. Customers have a wide range of crusher types to choose from. The capacity of demand, technology used in the crusher, financial back-up of the customer, relevant government policies and quality of the finished product are the factors that decide the selection. Cone crusher is more sought after because of its capital expenditure, owning and operating cost and quality of the product.
What are the new technology trends in crushers and screens?
The incorporation of technology in the features of crushing and screening plants and its increased usage are fuelling the market growth in this sector. Automation in the mining and construction industry is also a key factor in propelling the industry growth. Track plants operated with electric power rather than by hydraulic means is the latest trend.
How do you look at the long term market opportunities for crushers and screens?
It is interesting to note the final report on the National Infrastructure Pipeline projects with investments worth Rs 111 trillion between 2020-25, using both government and private funding. Projects worth Rs 44 trillion are already under implementation while projects worth Rs 33 trillion are at the conceptual stage and projects worth Rs 22 trillion are still under development, according to an offi cial statement. Priority sectors include energy (24 per cent), roads (18 per cent), urban infrastructure (17 per cent) and railways (12 per cent). So, the long term outlook for the crusher market is excellent.
The interview was first published in the August 2020 edition of Equipment India.