Market Study and Potential for EOT Cranes, Essay

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Market Study and Potential for EOT Cranes, Gantry Cranes, Jib, and the Market for Imported European Hoist and Crane Components in India.

A boom in the construction industry caused a corresponding boom in the demand for construction building equipment (specifically in cranes and hoists), which shows prediction of increasing in the future. Cement, steel, and construction industries have all been involved in this popularity, all of them requesting EOT cranes, Gentry cranes, JIB cranes and European-imported hoist and crane components. The market for machinery is huge, particularly for used machinery coming from Europe with the latter mostly being used in the unorganized sector. Off Highway Research (OHR), reported that in 2009, India sold 6,499 mobile cranes, most of which have been the pick and carry type. As of 2011, the market size for EOT cranes and hoists is approximately Rs 1,500 crore to 1,700 crore (Project Monitor). By the year 2010, alone the value number of cranes in total was estimated to exceed Rs5,43,500 core. Some skepticism is current regarding the European second-hand machines. However, it is predicted that with growing realization of the cost-effectiveness of these machines and with growing pressure of demand that will push up prices, the market for these second hand machines may yet flourish.

The crane market is also divided according to tonnage with it falling here into three categories: light, medium, and heavy capacity. With the project sizes in core and industrial construction expanding, machines at the far end of the heavy capacity are most in demand (Basistha, 2008).

India's EOT crane market has risen dramatically since the beginning of the new millennium with sales exceeding 34% per year, and this growth is predicted to continue. The average EOT crane life in India is 25 years. The average life of the other cranes approximately the same, or shorter. As the government continues with is building projects, demand seems to be exceeding supply, and so the market for all cranes in India - EOT Cranes, Gantry Cranes, Jib, and Imported European Hoist & Crane Components -is large and poised for growth.

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Sector and Region-Wise Requirement.

India is split up into tier I and tier II cities and in both regions cranes are constantly being used and in demand. In both tiers, crushing and screening equipment are in demand, whilst popularity for technology that is mobile rather than stationary is growing.

Dramatic increase in steel plants such as for the construction industry, vehicle manufacturers, machinary producers and so forth have called forth a demand for electric overhead travelling (EOT) cranes. Since the size of these plants are growing, the tonnages of these equiqments are growing too, with the average size being 50 to 70 ton.

The mining industry uses Goliath cranes, whilst the power industry and engineering industries use overhead cranes. Goliath cranes are also used for scrap handling.

Gentry cranes are hugely required for precast segment yards, and for bridge constructions, whilst specialized hoisting equipment is required for bridge launching girders (Project Monitor).

Other industries that show a large demand for cranes include the automobile and ancillaries, power, infrastructure construction, shipyards, capital goods manufacturers, general engineering and fabrication industries (Project Monitor, 2011).

One of the largest segments in India, aside from the construction sector and government that is interested in hiring and buying cranes is small time hirers. Their main interest lies in mobile cranes that can travel long distance between cities without needing to be lifted and transported on trucks. Most of these small time-hirers go for the large and precise TRX model 2319. Until recently, it was the pick and carry cranes that have traditionally been used for products, but the improved height and carrying capacity of the TRX is masking them popular with a growing population. The crane can also be used for plant erection and installation, and it is, paradoxically, significantly cheaper than the classical pick and carry product (Cranes Today. Online).

Potential for Next FiveYears.

The market for cranes is expected to grow by more than 5% by 2012 and more for years exceeding that, with India producing approximately 11,500 cranes.....

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