Sales of construction equipment seem to have bottomed out after a 25% drop in the first half of the fiscal, thanks to a revival in government projects, especially in the southern states.
The industry reported marginally improved sales over preceding months in September, October and November although none of these months recorded growth year-on-year, two industry insiders told ET.
Construction equipment include machines used for earth moving, road building, handling concrete, material handling, and material processing, among other special equipment.
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Apart from a revival in government infrastructure projects, an improvement in financing from non-banking financial companies (NBFCs) is pushing sales, said Ravi Chawla, managing director at Gulf Oil Lubricants. NBFCs had tightened their lending in the aftermath of the IL&FS crisis last year, drying up funds for potential buyers, thus sending the manufacturing and housing sectors into a tizzy.
Source: Economic Times
