Heavy equipment sales soar on building frenzy

- POST REPORT, Kathmandu
Heavy equipment sales soar on building frenzy

Apr 12, 2015-

The country is in the midst of a construction frenzy and sales of heavy equipment such as excavators, backhoe loaders, rollers, cranes and bulldozers have swelled accordingly.

Building activities usually start intensifying in the second half of the fiscal year starting in mid-January due to favourable weather, and heavy equipment traders said that this is when 60 percent of their total sales happen. Dealers of brands like JCB, Kobelco and Komatsu said that the heavy equipment market would see a 20-60 percent growth this year. 

According to the Department of Transport Management, registration of heavy equipment rose 13.37 percent during the first eight months of the fiscal year. The data shows that 1,907 excavators, backhoe loaders, cranes and heavy trucks were registered during the period against 1,682 units during the same period in 2012-13. 

“We are seeing an increase in demand for excavators, backhoe loaders and rollers from construction companies for road, bridge and hydro projects,” said Sanjeeb Deuja, marketing manager of MAW Enterprises, the authorised distributor of JCB in Nepal. He added that farming activities were also being conducted with heavy equipment these days. 

The company recently launched loadalls and tunnelling robots in the domestic market. JCB loadalls cost in the range of Rs4 million to Rs4.5 million while prices of robots start at Rs5 million. Its excavators are priced between Rs4.3 million and Rs8.8 million while backhoe loaders have a price tag of Rs2.6 million. 

Likewise, Sanjeeb Kumar Deo, senior manager of the heavy equipment division at Pooja International, said, “Sales have been encouraging so far.” The company launched Kobelco heavy equipment in the domestic market by rolling out two new excavators. A burgeoning cement industry and increasing road expansion and real estate projects have been cited for the growth in heavy equipment sales. Kobelco excavators are available in the range of Rs5.3 million to Rs8.7 million. 

Similarly, Tanka Bhatta, general manager of Continental Trading Enterprises, the authorised distributor of Komatsu excavators in Nepal, said, “Although we have not been able to produce substantial sales as prices have risen due to a stronger US dollar, sales growth has been satisfactory.” 

The company imports heavy equipment from Thailand. “We will see more growth next year as the vehicles will be imported from India from the next fiscal year,” added Bhatta. Komatsu offers three models of excavators with prices starting at Rs9.5 million. Similarly, bulldozers cost in the range of Rs14 million to Rs30 million. 

Published: 13-04-2015 10:25

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