Action Construction Equipment draws up big plans for tractor segment
ACE has tied up with a Turkish company named Boom Makina. The machines will be imported into India and sold under the ACE brand name
J Srikant | ETAuto | Jun 30, 2016, 08.34 PM IST
NEW DELHI: Action Construction Equipment, the construction equipment major, is now also looking to make strong presence felt in tractor segment as well.
ACE entered the tractor segment nearly five years back and today sells around 3,500-4,000 units annually. "We will be doing around 5000 units annually this year itself but our plan is to reach sales of around 15,000-20,000 in next three to four years itself," said Sorab Agarwal, executive director, Action Construction Equipment.
ACE recently launched a 60-65 HP tractor and now in the prototype testing stage for a 75-80 HP which it expects to introduce in next six months.
For tractors, ACE is now present in a few states namely Rajasthan, UP, Haryana, and has now started in south states as well. It has around 200 dealerships around the country which it started expanding last year.
ACE at present manufactures mobile cranes, tower cranes, loaders, tractors, truck-mounted cranes, crawler cranes, forklifts.
The company also sees a huge possibility in the backhoe loaders as well as road making machinery which is also a new segment for them.
Looking at the growth prospects, the company will also start importing mobile boom which is used to spread and pour concrete. For this ACE has tied up with a Turkish company named Boom Makina. The machines will be imported into India and sold under the ACE brand name.
In mobile cranes, which is the biggest product line for the company, the company claims to be the biggest player in the industry with a market share of around 62 percent. Last year, ACE sold around 2,500 units of mobile cranes. Agarwal informed that this number was around 4,500 units during the peak period of 2010-11. ACE manufactures Mobile cranes till 25 tonnes.
"This year we hope to sell around 3,200 to 3,300 units, However this will still be around 30-40 percent lower than the peak of 10-11," said Agarwal.
It was during the FY 2011-12 that ACE saw its revenue touch the peak too. In 2012, the company registered a revenue of Rs 856 crore and a net profit of Rs 30 crore. However, the crash in the infrastructure and real estate sector hit the company hard and the revenue fell to Rs 637 crore last year.
"The things are looking up now in the industry in most segments. Looking the last few quarters, we are expecting a revenue of around Rs 725 crore," said Agarwal. "If the growth in the second half of the year picks up in different sectors, we could expect a little more as well."