...says Guruprasad S P, COO, Baka Liftec (India) Pvt Ltd, as he sheds light on the dynamics of material handling equipment (MHE) industry and growth plans for his company.

 

What is the current status of Indian MHE industry? 

Material handling equipment market in India is still in its nascent stage and has to go a long way in terms of knowledge, use and importance of MHE. Some of the challenges include lack of standards of palletisation, unsafe handing practices (especially in the small scale sector). MHE industry in India is growing at 10 per cent CAGR as per industry experts. However, the total market size (for industrial and warehouse trucks) has still not reached ‘big numbers’ when compared to other countries. Considering India as the growing hub for manufacturing, the MHE market should have been 15,000-20,000 units per year. 

 

Manufacturing industry will be the biggest demand driver followed by warehousing.

 

The need for customised solutions brings in more business opportunities. Make in India initiative for MHE industry is yet to take off. Many players still import from the mother plant outside India.

 

What types of products do you offer?

Baka Liftec India is a manufacturer of standard MHE like HOPT, BOPT, stacker, tow trucks, dock leveller, scissor lifts and goods lifts. We specialise in manufacturing custom made products for various applications, such as high capacity BOPT up to 10T/BOPT integrated with scissor lift, lift tractor, die loaders and furnace loaders, etc.

    

How does the user (customer) benefits from your products?

Baka Products are engineered in Germany, but produced in India. The benefits gained by the customer are on cost of operation and life cycle cost. On an average the uptime of Baka products is close to 98 per cent, which results in higher productivity and lesser maintenance cost.

 

How is the demand for automation in MHE segment? Do you offer automated products?

Industry 4.0 is creeping into Indian industries. As a process, AI (Artificial Intelligence) plays a big role in automation. This trend has been catching up in India as well. 

 

Baka has the expertise of automated solutions for material handling. The demand for such products is still very low in India. Recently, we received an enquiry for automated guided vehicles (AGVs) and we are working on it.

 

How is the demand for third party logistics (3PL) in India? 

Third party logistics demand has been on the rise since almost 4 years and the outlook is set for future growth. The 3PL segment is driven by retail, E-commerce, FMCG and manufacturing sectors. With the implementation of GST, it facilitates the logistics sector of moving goods throughout the country without hindrance. This also increases the efficiency of supply chain.

 

What are the challenges in material handling industry?

Challenge is intense competition among the major players, as the Indian market is price-sensitive, and low switching costs from buyers increase competition. Second, the maturity level of MHE users has to still improve with relation to selection of right MHE for the right application. Lack of standardisation among Indian MHE manufacturers is leading to high product variant within a range of product. For example, an electric stacker is offered with lift height greater than 6.0 m, though the international standard is 5.3 m. 

 

What are the emerging trends in the sector? 

The general trend in the MHE industry is towards increasing automation, enhancing productivity and maximising safety. A lot of innovations are also taking place to develop equipment specifically to one sub-sector of a particular industry and in turn provide a highly customised solution for a very niche requirement.

 

What are your growth plans for the company?

Baka plans to cater more towards custom built equipment for various industry segments. We are working on some special products for a couple of industries this year. In the years to come, Baka plans to establish a strong product portfolio 

of customised equipment to serve Indian industries.