Schwing Stetter bullish on domestic and export earnings
Schwing Stetter India, a leading manufacturer of concrete and construction equipment, expects to end 2021 with impressive performance thanks to an increase in the order book due to the massive focus on infrastructure development by the Center.
The company expects to end this calendar year with double-digit revenue growth. In 2020, hit by the pandemic, the company reported total revenue of around 1,730 crore. With a huge increase in the size of the order book and a brief lockdown phase this time around (unlike all lockdowns in India like last year), the company saw its sales increase and almost hit revenue. from last year in September.
Revival of demand
“The recovery in demand for the construction equipment sector was good this time, driven by projects in the road sector, the metro network and high-speed train projects. Also, this time we only suffered for two months – May and June. Overall, we will end this calendar year with strong growth, ”said VG Sakthikumar, Managing Director of Schwing Stetter India Ltd. Activity area.
He said the increased spending on infrastructure development by the Center had boosted demand for all lines of construction equipment in the country. The overall volume of Construction Equipment (CE) industry is expected to cross 1 lakh of units in 2021.
Industry analysts say the EC industry will continue to witness an increase in orders as road construction activity now picks up as the monsoon recedes. Road construction has been a major volume driver for the electrical equipment industry, with the execution pace remaining healthy at 37 km per day in fiscal 2021.
In FY22, it is targeted at 40 km. This, in turn, is expected to support post-monsoon volume growth, in line with the government’s push on infrastructure.
As domestic activity continues to grow, Schwing Stetter has also witnessed a boom in equipment exports. In 2020, the company’s exports were worth 70 crore. This year it will more than double its exports to around 200 crore.
Earlier this year, the company launched its new 300 crore plant in Cheyyar, about 90 km from Chennai, with the aim of shipping India-made machinery such as boom pumps, stationary pumps, blenders to automatic loading, shot pumps, excavators, wheel loaders and graders to ASEAN, South America and other markets.
Schwing Stetter also took the qualification of people as a major initiative to address shortages in the industry.
Sakthikumar said that due to the second wave, the company had to start the vocational training program in August and has so far trained more than 100 people. “Our goal is to train more than 10,000 young people in the handling of concrete and construction equipment in the coming years,” he added.