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Following the global trend, India is bound to eventually enact legislations for protecting human life at work. Currently, the use of AWP at work depends on the discretion of the concerned managers. Further, the growth of this industry has been stunted by the high acquisition price of such equipment. As a result, mostly used equipment has been imported in to India by equipment owners and hiring companies as well.

The journey
There is a fairly large growth of AWPs in the past few years, though not a great journey for new equipment. But particularly for the used equipment, the Indian customers and the end-users have been able to benefit out of this technology which is so popular abroad. Because the lives are much more valued internationally, the safety norms are very stringent which not the case in our country. But many organisations realised the benefits and have made use of this technology. The industry is adopting this technology more and more, and the journey has been very good over the past decade.

The use of aerials in India began with the multinational companies setting up their facilities here. They started insisting their contractors to use AWPs instead of conventional methods of working at heights. Shedding light on the changing scenario, Souma Ray, Director, Haulotte India, says, ?We as manufacturers have been privy to the change in perception by noticing the increase in awareness in the user segment. During the first edition of bC India 2011, visitors at our stall asked what the applications of the machines were. In the later editions of bC India, we have noticed that people are more aware and educated. This is a significant step forward.? He adds, ?In the years ahead I am confident that AWPs will become a necessity for all sectors when it comes to working safely at heights.?

?There has been a slight uptick in numbers in the last three to four years,? says Rakesh Kumar, Country Manager - AWP, India & SAARC Countries, Terex India. This can be attributed to, as Kumar explains, customers who have become more conscious on quality and safety. He avers, ?These machines are still in its infancy vis-a-vis other countries as a lot of further handholding needs to be done.? However, he is quite confident on the exponential growth for aerials from the next fiscal.

The market
It is very difficult to give an accurate size of AWPs as consolidated data is not available. However, according to Kumar, a ballpark figure would be 400-500 units per annum which would be worth $10-12 million. It comprises all segments starting with small segment AWPs to medium and large ones.

Usage trends
Boom lift type AWPs are most popular in India, particularly the YZ booms. The scissor lift goes up to a particular height only, but booms? reach is much more as they can reach up to 60, 70, 80 ft and above. Booms are much popular, particularly in the infrastructure sector, where one cannot set up scaffolding because the pace of work is faster. But scissor lifts are getting popular outside construction industry, like in maintenance etc. Scissor lifts are also fast moving in the automotive industry for plant maintenance and in aviation sector too, whereas in shipyards, only straight booms find applications.

According to Ray, the industry has been witnessing a definitive shift in requirement towards boom lifts (both articulating and telescopic). This is being fuelled with the major infrastructure projects currently underway in various parts of the country. However, he adds, ?We also expect similar growth to happen in the tele-handler segment, which as of now has very limited market mainly due to lack of awareness about its versatility.?

AWP configurations in demand
According to Kumar, AWPs can be categorised into two based on usage - battery-operated and engine-operated. For in-house usage, one generally relies on battery-operated machines as they are pollution-free and require less power whereas for outdoor usage or rough terrains, one normally opts for engine-operated machines as they require high power. Kumar says, ?We have a wide range of product portfolio ranging from 20 ft to 180 ft height which are priced between $10,000 to $350,000, excluding taxes. We have all types of AWPs like scissor lifts, boom lifts, articulated boom lifts and RT versions of boom lifts. We have four dealers, two based in Delhi and one each in Mumbai and Chennai. Our Chennai dealer Senthamarai Engg Pvt Ltd is planning to strengthen set-up in Hyderabad.?

Ray takes a different approach to what determines the selection of AWPs. For him the demand of the type of machine varies between an end-user and a rental company and the selection of the type is purely based on the application. Depending upon the type of application to perform a job at height, indoor or outdoor, the relevant type of AWP is selected. Ray elaborates, ?In the end-user segment it is mostly the battery-operated push-around, vertical mast, scissor lifts and electric articulated booms that are preferred. Some major construction, infrastructure and mining companies also procure diesel scissors, boom lifts and tele-handlers. When it comes to the rental segment, the percentage of scissor vs booms is between 60 and 40 per cent, respectively. He adds, ?We at Haulotte always do application studies for our customers so as to suggest the right machine to them.?

Rentals
There are about 5,000 various types of AWPs in use in India, out of which, two-third are booms. Also, two-third is used equipment. This is because the rentals are low and people want to reach and work at heights but they don?t want to pay much. So there is a sweet spot for the rental companies. The prominent players are mt&t, Manlift, Reach International, ABC, Arya Aerials, JNK, Eastman Logistics, Swastik etc.

There is a huge growth potential for aerials in both rental and end-user segment. However, in contrast to the developed countries wherein the rental sector are the largest buyers of new AWPs, in India the rental companies still procure more of used machines and very few new ones. The competition faced from smaller rental players is huge and they find the purchase of new equipment to be unviable, owing to the lower rental rates that they get.

Says Kumar, ?Globally, the rental market accounts for 70 per cent of the total pie. But in India, it is the other way round as the majority of the volumes are owner-driven. Most of the multinational companies buy them for captive use. Of late, there has been a pick up in the rental business in our country too and eventually it will follow the global business model. We anticipate it to be majorly rent-driven market.?

According to Ray, the end-user segment drives new machine sales in India. A new machine is state-of-the-art and as per the latest technological innovations and have the advanced safety features that have been introduced with time. All manufacturers strive to make technological up-gradation in their machines so as to ensure better safety. The users who rent in such machines have a major role to play by stipulating that they would not allow deployment of a very old used machine. Some regular reputed end-users stipulate that such used machines should not be over 2-5 years old, which is a good sign.

Safety concerns
The uncontrolled import of second-hand equipment is a point of concern mainly because of condition of equipment and its residual safe usage life. The continuous use of second-hand equipment having crossed its normal usage life is always a potential safety concern. So what is the impact of the unbridled import of used machines on the sales of new machines and also on the safety of man and machines?

According to Ray, this trend is worrisome to all manufacturers and the AWP industry in India as a whole. He says, ?Due to lack of proper legislation and with no embargo in import of used machines of any age and condition, there are a lot of old used machines that have completed their serviceable age finding its way into the Indian market at very cheap cost. In contrast, import of used machines is banned in China, which allows the AWP industry to grow both with local manufacturers as well as European and American manufacturers producing in the country.?

Ray further explains, ?I do agree to the fact that used machines are required so as to run a viable rental business, but then such used machines should be younger in age and in good working condition. Reputed rental companies who have a mix of fairly younger used machines alongside new machines are finding it hard to sustain at lower rental rate which is being perpetuated by new entrants in the rental segment offering very old used machines.?

Kumar says, ?In the rental segment, it is predominantly governed by used AWPs. They (buyers) are sourcing it from multiple channels and route from various countries. Unlike in other countries, machines here are not scrapped or discarded even after a decade of use. As a result, a lot of safety aspects are getting compromised. Even though we are not in favour of putting an abrupt ban on these machines, we wish there was an authority to certify and evaluate these machines on safety, quality and other parameters.?

Safety norms, a must
The way forward is to bring in appropriate legislations in the country for working at heights. Across the developed countries there are proper legislations in terms of working safely at height and also the maximum age that an AWP can be used. According to Ray, till date there are no policies on safe working at heights, which is proving to be an impediment in the growth on the AWP industry in India. He says, ?If like in developed countries use of AWPs are made mandatory to work at heights then we will see an exponential growth of this industry. For example in the US, Europe and Australia, it is mandatory to use an access platform when working at a height of over 2 m.? He adds, ?In the interest of better safety when working at heights, it is important that in India our government takes a cue of the best practices followed across the developed economies and formulate regulations which shall encourage usage of AWPs.?

Rising ahead
Increased activities in shipyard industry, ports, airports and residential constructions is expected to drive the demand for AWPs; in short, the AWP industry expects a lot of upward movement with ?Make in India? move. And, with growing awareness on safety, and better productivity at a faster pace, the AWP industry is sure to rise ahead of the current challenges and register exponential growth in the near future.

AWP FACTS

?Huge growth potential for aerials in both rental and end-user segment
?Rental segment predominantly governed by used AWPs
?End-user segment to drive new machine sales
?Around 5,000 various types of AWPs in the country
?Two-third of market is used equipment.
?Definitive shift in requirement towards boom lifts (both articulating and telescopic)

CHALLENGES

• The uncontrolled import of second-hand equipment
• Absence of set of legislation for working at height
• Differential rates of taxations in different states
• Unviable rates and delays in payments from the users
• High initial cost a major deterrent

APPLICATIONS GALORE
AWPs are used across sectors, in construction, infrastructure, factories, airports, warehouses, malls, hospitals, hotels, facility management, ports, shipyards, defence, etc wherever there is need to work safely at heights.

Commercial malls: There is tremendous potential of growth in utilisation of AWPs in commercial malls. These machines help with maintenance work, stock picking, and inventory management. For example, Walmart has over 28 Haulotte electrical scissors working across their outlets in India.

Ports & airports: Ports, airports, hotels and hospitals are another major demand pullers. The new Terminal T2 at Mumbai International Airport has 21 Haulotte machines of different variants used for facility maintenance purpose. According to Kumar, most of the airports in India even airports in Tier-II cities are utilising Terex AWPs.

Power and Defense sectors: According to Kumar, the major buyers are the government sector, especially the power sector. Terex has already tied up with the India Navy and supplied booms worth $2 million. Terex is also exploring options in the aviation, aerospace and shipping industries. Companies like Powergrid, NTPC, IIFCO, IOCL, HAL etc, have been regularly buying aerials.

Automotive sector & shipyards: In 2011-12, Haulotte supplied 23 telescopic booms to ABG Shipyard in Gujarat. In the automotive segment, companies like Tata Motors, VECV, Renault Nissan, Ford, Suzuki, Cummins, etc, are regular buyers of AWPs.

Application Segments

• General construction
• Facility management - commercial malls, hospitals, airports
• Repair & maintenance - Automotive and ancillary sectors and industrial sector
• Power, defence, ports and shipyards