Construction equipment business to grow in double digits
News: Sales of construction equipment a barometer of economic activity is expected to increase in healthy double digits in the ongoing financial year on the back of increased government spending on infrastructure projects, especially in rural areas. The industry estimates sales of construction equipment (domestic sales and exports) to grow 15-20% in fiscal 2023, compared with an 8% fall last fiscal year. Even though exports grew 60.5% to 7,802 units in FY22, local sales fell 11.4% to 77,583 units.
Views: This will be big positive for Action construction who is the market leader in Cranes and Earth Moving segment. Last fiscal year didn’t go well for ACE due to several lockdown, increased raw material costs and due ti transition to BS 4 and BS 6 engines which increased the price of machinery to almost 50%.