Indian Rental Leader: ‘OEMs Should Not Rent’
A senior figure in India’s equipment
rental business said manufacturers should not rent equipment and has called for
a debate on the role of OEMs in rental.
Jitender
Aggarwal, Chairman and Managing Director of AGGCON Equipments International,
said OEMs were entering the rental business and that it was detrimental to the
industry; “All the stakeholders of the infrastructure sector need to work in
synergy together. We all need to find a profitable balance where all
stakeholders can support each other for mutual growth.
“When construction companies or
contractors want to purchase equipment, OEMs should sell, but when [they] want
to rent, OEMs should not supply on rent, [but] instead coordinate with
equipment rental companies to provide equipment”.
Aggarwal
said the rental industry had raised its concerns about the role of OEMs in the
past; “the matter has not been discussed effectively yet. Therefore, this is an
opportune time for the rental industry leaders to deliberate on this and
discuss with OEMs.”
AGGCON, which is based in Faridabad close to
New Delhi, rents heavy equipment throughout India. It was established in 2003
and provides equipment mainly for customers in infrastructure and mining.
A spokesperson for AGGCON told International
Rental News that both equipment dealers and OEMs were getting
directly involved in rental, and it was the role of the OEMs that was of
primary concern.
Satin
Sachdeva, Founder and Secretary General of the Indian Construction Equipment
Rental Association (CERA), gave his support to Aggarwal, commenting;
“Manufacturers should focus on equipment sales and after service only, rather
than entering into the rental vertical.”
He
echoed the call for a debate; “OEMs have to work in harmony with rental players
by giving them 100% support.”
IRN reported earlier this year on a study
by Off-Highway Research revealing that as much as two thirds of construction equipment
in India is sold to rental companies.
