Today customers are looking for energy efficient products

  • Interviews
  • Jul 01,18
India is emerging as one of the fastest growing material handling equipment markets globally with pick-up in industrial activity and favourable government policies.
Today customers are looking for energy efficient products

India is emerging as one of the fastest growing material handling equipment markets globally with pick-up in industrial activity and favourable government policies. With an increase in number of warehouses and need for quick turn-around time, customers are demanding high-quality and energy efficient equipment. In this interview with IPF, Nimesh Karelia, Managing Director, Jay Equipment and Systems Pvt Ltd, throws light on evolving material handling equipment market and his growth plans for the company. 
 
What is driving the demand for material handling equipment (MHE)? 
The demand of material handling equipment is correlated with the growth of industry and warehousing sectors. India still needs to develop in a big way, thus there is substantial scope for the growth of industry and warehousing sectors. In the current market scenario, this is growing at a very slow pace, but it is expected to boom by 2020. With the initiative of Make in India, the increasing investment in industry and warehousing sectors will support the demand for material handling products.
 
What types of products/services do you offer in material handling/logistics/warehouse space?
We have a very wide range of products to our credit. We not only offer equipment, but also our expertise is providing the right equipment and its solution after studying the customer’s requirements. Primarily, we have complete range suitable for any sector, but we also specialise in manufacturing and providing customised solutions. We have many customers who have special customised solution provided by us and using since years, which have ultimately increased their efficiency and production. Jay Equipment manufactures range of lift trucks, dock levellers, scissors & aerial platforms, drum handling equipments, rentals & many more. These products can suffice the requirements of all industrial & warehousing sectors. With our qualified service team, we make sure that our customers get the maximum uptime for equipments. 
 
How does the user (customer) benefits from your products?
We are fully equipped to meet with the demand of our customers. Today customers are invariably looking for energy efficient products such as battery operated equipment which are more efficient and user friendly to reduce operational costs, so at Jay Equipment we provide the one stop solution for all customers needs. Supply chain visibility is crucial for warehouses and distribution centres where fast and efficient movement of goods is the solution to satisfy the customer demand. JAY material handling equipment are the right choice which is fully backed by our qualified service team.
 
Is India self-reliant in MHE? Or India is still dependent of imported material handling equipment?
India is emerging as a key market for material handling equipment with an increase in number of warehouses. To meet the requirement of this ever-growing market, there is always a demand for new and high-rise equipment. Since India is a growing market, there are still limited manufacturers for these equipment. So the country is dependent on imported European or American equipment. But, the scenario is expected to change in coming years due to the Make in India initiative of the government.
 
Automation (especially robotics) plays a big role in material handling & logistics segment. Are you seeing this trend in India as well?
Yes, it is playing a big role in material handling & logistics sector, but the trend is still new, but catching up very fast, many multinational e-commerce are already using automation in India. The fast-growing e-commerce sector, in particular, is expected to demand more automated equipment because the business will be conducted in bulk with lightly staffed warehouses. Supply chain visibility is crucial for fast and efficient movement of goods and there is a need for solutions to fulfill this demand of the customers. Most companies today are not satisfied (in terms of efficiency) the way materials are moved from source to destination. Consequently, companies are seeking new ways to get the 
right goods to the right place at the right time. 
 
Demand in India is currently driven by overall industrial production and the requirement of companies to automate production and facilitate the efficient flow of goods to market. The manufacturers have put this automation as the back-bone of infra-growth. 
 
Do you offer automated products/solution for material handling & warehousing?
We do offer customised automation products, such as AGV (automated guided vehicles), and automated storage & retrieval systems through our sister concern. We have many projects already executed in India.
 
How is the demand for third party logistics (3PL) in India? What is driving the demand?
This is a system started far back somewhere in 1970 in logistics and supply chain management to outsource part or all of a business distribution and fulfillment services. Although they do not hold ownership, they are legally bound and responsible for performing the requested fulfillment. Now the demand for the 3PL has exploded. It is estimated that 86 per cent of the Fortune 500 companies and 96 per cent of the Fortune 100 companies use their services globally. 
 
India is not far behind. Now a majority of all multinational companies and companies belonging to automobile & FMCG sectors are using the 3PL services in India. The main reason of this is the fast growing consumer segment, in which order to deliver time is becoming more crucial day by day.
 
The main advantage of assigning a 3PL is that they will save you time by automating fulfillment. Instead of you having to worry and hire staff to handle the shipment of your products, you will have a partner (3PL company) whose sole focus is ensuring your products end up in your customers hands 
 
What are the challenges in material handling industry?
One of the biggest challenges faced by the material handling equipment industry is related to the easy availability of technology import, which is far easy in other countries due to the government support. There is also a stiff competition from low-price Chinese equipment. Indian manufacturers are facing a big challenge, as customer often get misguided due to cheap pricing. Material handling equipment are capital items which play a very important role in your production and warehousing, thus indirectly affecting your business. So, it is always recommended to go for the products which are economical, efficient and easy serviceability. At Jay Equipment, we always guarantee that our customers get all under one roof.
 
Has introduction of GST helped the material handling & logistics sector? 
We can say GST is the game changer for almost all sector, including MHE industry. Logistics sector has benefited the most due to the implementation of GST. 
 
Earlier the tax structure for logistics sector was more complex. At the same time, local taxes such as octroi were the main hindrance in this sector. But now with GST, it has become very simple, thus enabling logistics sectors to consolidate and increase warehousing size, which in turn will reduce cost.  
 
What are the emerging trends in material handling equipment sector? 
Earlier, conventional material handling equipment were more in demand. Now, due to the high-rise warehouses and requirement of fast storage & retireval, the market demand has changed a lot. Today, more and more customers are opting for automation in material handling. 
 
What are your growth plans for the company?
We at Jay Equipment have a highly qualified team, which is more focused and customer oriented. Due to our in-house R&D capability, we keep pace with the ever changing market demands. Keeping in tune with this strategy, we have also entered in the high-rise equipment and rental equipment business, which has given a good boost to the overall company’s growth. We have many new equipment in the pipeline to be launched soon. We are already in the league of one to the top material equipment manufacturers in India, which we want to take to the global level.

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