homebusiness NewsThis Indian crane rental firm's order book shows a capex boom in India and it expects the growth to continue too
This Indian crane rental firm's order book shows a capex boom in India and it expects the growth to continue too
In an interview with CNBC-TV18, Rishi Sanghvi, MD of Sanghvi Movers said that the company remains confident in its ability to meet the rising demand for crane services and solidify its market leadership with a robust order book and anticipation of strong financial performance.
Sanghvi Movers, a leading provider of crane services in India, is poised to benefit from the ongoing capex upcycle across sectors. With a strong focus on capacity addition and an optimistic outlook, the company anticipates a robust order book and revenue growth starting from Q2FY24.
In an interview with CNBC-TV18, Rishi Sanghvi, MD of Sanghvi Movers said that the company remains confident in its ability to meet the rising demand for crane services and solidify its market leadership with a robust order book and anticipation of strong financial performance.
He said, “All the capacity addition along with metros, railways, bridges, and ports being built around the country is going to have a significant increase in the demand for cranes. And going forward, we have a very strong order visibility by some of our focus reaching out into FY24-25 as well. So, I do believe that the capex upswing will create a very strong demand, and it's a very good growth story for the company.”
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Sanghvi Movers is the largest crane rental company in India with a fleet of 400 plus medium to large-sized heavy-duty telescopic and crawler cranes used in the power, steel, cement, fertilizers, petrochemicals and refineries, metros, and windmill sectors.
As businesses and industries ramp up their investments in infrastructure and expansion projects, the demand for specialized services such as crane rentals is expected to surge. Sanghvi Movers, being a key player in the crane services sector, is well-positioned to leverage this opportunity.
Indian corporates now have more appetite to borrow money, and the Indian banking system has a large room and opportunity to lend further. The credit growth has been decent in the last year with accelerated demand from metals, chemicals, power and fuel sectors.
Talking about capacity addition, he said that to meet the rising demand for crane services, Sanghvi Movers is focusing on capacity addition. The company is actively investing in expanding its fleet of cranes, which will not only cater to the existing demand but also prepare for future growth.
In India, we think infrastructure, capital goods, and manufacturing sectors are immediate beneficiaries of the government's focus on investment-led growth.
Rishi Sanghvi also expressed his optimism about the company's revenue prospects, stating that the capex investments are expected to start adding to the company's revenue by Q2FY24. As projects progress and utilization of their crane fleet increases, Sanghvi Movers is poised to witness steady growth in revenue, further solidifying its market position.
While talking about the growing traction in the wind energy sector, he said that the company is witnessing significant interest and potential opportunities in this sector, with expectations of adding approximately 4.5-5 gigawatts (gw) of wind energy capacity in the upcoming year.
For more details, watch the accompanying video
(Edited by : C H Unnikrishnan)
First Published: Jun 5, 2023 11:51 AM IST
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