Subhamoy Ghosh is the Managing Director of Palfinger Cranes India Pvt Ltd. It is responsible for manufacturing as well as conducting business in India and neighbouring countries for Palfinger, an Austria based heavy duty equipment manufacturer. Ghosh joined Palfinger India on in June 2010 and looks after product management and business development of Palfinger Cranes in India along with overseeing finance and human resource functions. He was in Nepal recently to understand the market demands and requirements for Palfinger Products here. In an interview with New Business Age, he shared his understanding of the Nepali market and plans for Palfinger here. Excerpts:

Can you tell us something about your products?

We come from the field of transport solutions and our job is to make easy and quick loading as well as unloading of a truck so that it can go for another trip without wasting time. Transporters earn money when they make more trips and our main job is to give transport solution to the transporters. Besides being a lifting and shifting solution provider, we are a multiproduct group having seven major products. We are making our entry in Nepal with the truck loader crane and, in a couple of years from now, we will be introducing more from our product line. The Nepali market has some experience of using second hand Japanese trucks which come fitted with these kinds of cranes. On our part, we will be bringing two cranes: Stiff Boom Crane and Knuckle Boom Crane. Normally, cranes are known for loading and unloading using hooks but this one can perform even clamping and grabbing operations. The Knuckle Boom Crane can even drill a hole.

Is there any special reason behind choosing these two cranes specifi cally?

In Nepal, everything has got stagnant and the market has become slow in the last five years. I believe that it is a good time to become better and catch up with the rest of the world. Nepal needs to develop its infrastructure very fast by constructing more roads, bridges, buildings, modernised airports etc. If the industrialisation in Nepal has to take place, abundant infrastructure needs to be there first. These cranes combined with trucks can play a fantastic role in infrastructural projects because these can lift materials and deliver to the projects. As Nepal is a geographically difficult terrain, it is not possible for any project to keep materials close to its vicinity. With truck loader cranes, we are adding versatility as they are more suitable for rental companies. Owning a crane independently may not be economically viable for companies in a small market like Nepal. Besides private players, the public firms too can be better served by these machines. Mechanisation is the solution for efficiency and can save human resource for other purposes while ensuring safety at the project sites.

How can small and large projects alike benefi t from these equipments?

These can be used mainly in medium to large projects since they may not be cost effective for small projects due to the price factor. We are in the initial stage and trying to increase visibility of the product in the market as people should know what they can do with this kind of equipment. This crane can be used in various aspects such as construction, electrification, municipal waste, cargo distribution, at factories etc. So, we want to let the market decide how can the crane be best utilised as per various needs. Our job as a supplier is to give exposure to the market about the functionalities of these cranes.

How do you see the market prospects in Nepal? Are there any competitors in the Nepali market for you?

Our ambition is to introduce 20 to 25 cranes in the first year in Nepali market for various applications. Then we can expect to grow along with the economic growth of Nepal. In advanced countries, manpower is expensive and it is not ready to do manual jobs and even the law prohibits it to some extent. So they have one crane for every five to 20 trucks whereas in Nepal and India, there is not even one crane for 100,000 trucks. I believe that 20 to 30 cranes should be fitted to every 100 trucks deployed. As of now, there is no competition for us in Nepal for new trucks and new cranes. The only competition is from the used trucks which I believe is not good for Nepali environment as they do not even meet environmental safety standards. If the import of these used trucks can be stopped, we will have no competition at all.

After sales service becomes a major issue whenever new equipments are launched. How do you plan to address this?

This is the main reason why we have selected an able partner in Infratech. They have a strong presence in the market and enjoy recognition among customers. They will be further trained and groomed for this purpose but most importantly, these are maintenance free vehicles. Customers can not damage it even by choice as it has a host of safety protections, however, we don't want to take any risks and hence, we will also have a spare parts shop for the machines locally.

What are your strategies to establish your brand image in Nepal?

What we do in any new market will be done here as well. Once the dealership is announced, we will try to reach our customers through various media vehicles. We have certain branding plans targeting our users and customers. We normally try to reach as many potential customers as possible and as frequently in a year. We will organise likeminded customers meet, for example, one meeting for construction people while another for government officials. We believe that communication exercises will help us establish a decent brand image here in Nepal.

What are the challenges you see for yourself in the Nepali market? How do you plan to overcome them?

From a commercial point of view, the duty structure is unimaginably high particularly for a non-manufacturing country like Nepal. Such a heavy duty is actually bound to put a lot of pressure on buyers since they might be discouraged to buy such products despite wanting to have them. Secondly, there is almost no general awareness about this product so convincing the customers on a priority basis will be a big challenge. For the commercial solution, we have to meet the government of Nepal to see if anything can be done because this is a product of national interest for the country. It is not for somebody's personal use and promises to add value to the growth and development of Nepal. Educating the market is our duty and I hope that our marketing efforts and visible involvement in the market will ensure this.