Tower Crane Market and Opportunities

TOWER CRANES MARKET AND OPPORTUNITIES

CONTENTS

I. INTRODUCTION II. TOWER CRANE SCENARIO IN INDIA A. CONSTRUCTION EQUIPMENT INDUSTRY STRUCTURE B. TOP SLEWING TOWER CRANES – PROJECTED DEMAND C. CURRENT INDUSTRY PLAYERS 1. POTAIN 2. HUBA 3. ZOOMLION 4. HUAXIA 5. ZHENGXING 6. CMAC-CMAX 7. JWY 8. FUSHUN YONGMAO 9. ESCORTS HUATA

III.PROMOTION STRATEGIES A. TECHNICAL VS PRICE B. BRANDING VS PRICE C. EUROPEAN VS CHINESE

IV.

CHINA TOWER CRANE MARKET ANALYSIS

V. POSSIBLE TIE UPS

VI.

CONCLUSION

VII. APPENDIX A. ACE 1. ZOOMLION QUOTE 2. HUAXIA QUOTE 3. HUAXIA INVOICE 4. ACE RENTAL QUOTE

B. IDEB QUOTE C. SPARTAN QUOTE D. ABG CRANES QUOTE E. CHANGLIN INDIA QUOTE F. CONMECH AUTO CONSULTANTS QUOTE

INTRODUCTION

It was 1982, when Potain of France, begun its operations in India. Signing a licensing agreement with Pune-based Shirke Construction Equipment, to manufacture and distribute Shirke – Potain range of Tower Cranes, the joint venture has so far supplied a little over 500 tower cranes for the domestic market. A lot has changed over the past 25 years. Primary among them is, Real Estate.. The Indian real estate sector has witnessed a revolution since then. Driven by the booming economy, favourable demographics and a liberalised foreign direct investment (FDI) regime, the demand for Tower Cranes has risen from 500 machines in 25 years, to a projected demand of 500 machines in FY ’09 alone! An estimate provided by ASSOCHAM, a leading industry body, suggests that the size of the Indian real estate sector is around US$ 16 billion, with a Cumulative Aggregate Growth Rate (CAGR) of 30 per cent per annum. According to 'Housing Skyline of India 2007-08', a study by research firm, Indicus Analytics, there will be demand for over 24.3 million new dwellings for self-living in urban India alone by 2015. In fact, an estimated US$ 25 billion investment will be required over the next five years in urban housing, says a report by Merrill Lynch. In addition to Housing, the rapid growth of the Indian economy has had a cascading effect on demand for commercial property to help meet the needs of business, such as modern offices, warehouses, hotels and retail shopping centres. Commercial office space requirement is, led by the burgeoning outsourcing and information technology (IT) industry , organised retail and ITES . ITES alone is estimated to require 150 million sqft across urban India by 2010. Similarly, the organised retail industry is likely to require an additional 220 million sqft by 2010. Road Ahead With the economy surging ahead, the demand for all segments of the real estate sector is likely to continue to grow. The Indian real estate industry is likely to grow to US$ 90 billion in by 2015. What such massive figures spell for the Tower Crane market is clearly visible.

From a monopoly in 1982, to over a dozen suppliers in 2009, with several more in the pipeline, and showing no signs of slowing down.

TOWER CRANE SCENARIO INDIA Tower Cranes are primarily used for real estate construction. The segments which come under real estate construction include residential construction; commercial construction and retail construction. The real estate segment is expected to contribute around 61 per cent of total investments in construction over the next 3 years. Over 90 per cent of the real estate developed is residential and the rest comprises of commercial and retail. Construction Equipment Industry Structure Construction equipment accounts for around 5–24 per cent of the total cost incurred in any construction project. The Indian Construction equipment industry can be broadly divided into the following categories.

Statistically, material handling equipment constitutes 13% of the construction equipment sales. They include Pick and Carry Cranes, Forklifts, Slew Cranes, Crawler Cranes, and Tower Cranes. Our focus being Tower Cranes, as of 2005, the total material handling equipment market size in value terms, was US$ 325 Million.

Tower cranes commanded a market share of 5 % or about US$ 15.6 million. That translates to a figure of 175 units. As of Fy ’09 though, figures from PINC Research, project the following figures to constitute demand

Mkt SIZE (Units)

TYPE Pick & Carry Cranes

8000

Forklifts

4000

Fixed Tower Cranes

500

Mobile Tower Cranes

350

Crawler Based Cranes

300

As can be seen, Fixed or Top Slewing Tower Cranes are projected to have a demand of 500 units. As Tower Cranes are primarily used in the real estate sector, it would be logical to assume that the demand for tower cranes would parallel the demand for real estate. According to industry sources, real estate will experience a CAGR of 30 % over the following years. Maintaining year 2005 sales as a reference, the projected demand for tower cranes would be as depicted below. VIII.

IX.

TOP SLEWING TOWER CRANES – PROJECTED DEMAND

2011-12

1098

2010-11

845

2009-10

650

2008-09

500

2007-08

384

2006-07

CAGR 30 %

296

2005-06

228

2004-05

175 0

200

400

600

Units

800

1000

1200

CURRENT INDUSTRY PLAYERS Though the Indian construction equipment industry is a fraction of the global market, whose size is over US$ 75 billion, it has been growing at an average of 30 per cent annually compared to the global growth of 5 per cent. India is one among the top 10 markets for construction equipment and is one of the key international markets. These attractive growth figures have spurred several Indian and international (primarily Chinese) into action. Tie ups with international companies for technology and marketing rights for the Indian subcontinent seem to be the order of the day. There are several players in the Tower crane market today. They range from stalwarts such as Potain, and Bhai, to fledgling entrants. The following is a near exhaustive list of Tower cranes available in India as of today.

SL. No

ORGANIZATION 1 2 3 4 5 6 7 8 9

MANITOWOC GROUP ACTION CONSTRUCTION EQUIPMENT (P)Ltd ACTION CONSTRUCTION EQUIPMENT (P)Ltd ESCORTS CONSTRUCTION EQUIPMENT (P) Ltd. BHAI SYNCON INFRASTRUCTURE SPARTAN ENGINEERING INDUSTRIES IDEB OMEGA

10

CHANGLIN INDIA (P) Ltd.

11

ABG CRANES CONMECH AUTO CONSULTANTS

12 13 14

16

ENGINEERS ENTERPRISES HOUSTON MACHINERY UNIQUE INDUSTRIAL HANDLERS UNIQUE INDUSTRIAL HANDLERS

17 18

TEREX COSMOS

15

TOWER CRANE ON OFFER

ORIGIN

APPROX Mkt. SHARE (%)

POTAIN

INDIA

50

ZOOMLION

CHINA

HUAXIA

CHINA

HUATA

CHINA

BHAI JIANGLU

INDIA CHINA

JWY HUBA HUBA JIANGSU ZHENGXING FUSHUN YONGMAO

CHINA CHINA CHINA

25

CHINA CHINA

CMAX

CHINA

XCMG SYS

CHINA CHINA

SCM

CHINA

UNIQUE SAEZ

SPAIN

TEREX COMEDIL CAMAC

ITALY SPAIN

25

POTAIN

Manufacturer Origin Distributor Total No. M/c Sold FY’07 Sales URL

: Potain India (P) Ltd : India : Potain India (P) Ltd :Approximately 500 : :www.manitowoc.com

PROFILE Potain, is the Tower crane brand of the US-based Manitowoc Crane Group. Potain, which is a world leader in the construction crane business, was acquired by Manitowoc in 2001. Potain had begun its operations in Pune in 1982, when it signed a licensing agreement with Pune-based Shirke Construction Equipment, part of the BG Shirke Group. Shirke had earlier been distributing Richier Tower Cranes in India, a brand later acquired by Potain. In July 2007, Manitowoc acquired 100 per cent shares of Shirke Potain and named the entity Potain India Pvt Ltd to have a wholly owned manufacturing facility in India. In addition to the Pune facility, Manitowoc also manufacturers Potain tower cranes in France, Portugal, Italy and China. Tower cranes with capacities ranging from five tonnes (maximum capacity) and 50-metres maximum jib length to 25 tonnes and 80-metre jib capacity, are manufactured at their Pune facility The joint venture has so far supplied close to 500 tower cranes for the domestic market. Potain commands almost 50 per cent market share in the Indian subcontinent. Sales Figures Shirke sold 120, or 60%, of the 200 crane towers sold in India in 2006-07 Distribution Distribution centers are present only in Pune,. Plans are afoot to open outlets in Bangalore, Hyderabad, New Delhi, Service Support Inferring from customer responses, Manitowoc offers excellent service support. They have a special service helpline and unit by the name

Manitowoc Crane Care. All spare parts are directly flown and delivered to the customers site. Post installation and commissioning of the machine, trained operators are provided, and service technicians personally train the site personnel on appropriate maintenance and operation procedures. Customers rate Potain service as Excellent. QUALITY

FABRICATION

DESCRIPTION

SECTION

VISUAL REPRESENTATION

REMARKS

Angle Sections

Mast connections are through hardened, non rusting reusable pins.

PINS /BOLTS

Inner View. Pin systems offer Easy erection and dismantling

Weld Quality

Weld quality throughout the machine is good ,as shown.

Paint Quality

The photo shows a section where the paint has peeled off. Note the thick layer of primer prior to painting

The condition of the jib even after 1 year of use is exceptional.

Dimensional Accuracy

Dimensional accuracy throughout the machine is good. All mast sections mate perfectly. Shown here is the counter weight inserted into its frame.

CONTROL PANEL

DESCRIPTION

CONTROLS

WIRING

LABELLING

VISUAL REPRESENTATION

REMARKS

All Controls are of Telemecanique make by Schneider Electric

Wiring and connections are ordinary connector based systems.

All points are neatly labelled with printed numbers

Control panel inner flange lined with rubber / Foam padding to prevent water entry into unit.

OTHER

HOIST MOTOR

DESCRIPTION

VISUAL REPRESENTATION

REMARKS

MOUNTING / HOUSING

Hoist motor is mounted on the Main Jib. No external Housing, but the paint quality is good, thus no rust formation

GREASING / OIL LEAKAGE

Excessive grease not required. No oil leakage

RCV BLOCK

DESCRIPTION

VISUAL REPRESENTATION

REMARKS

All lead wires are suitably connected through bushes, to prevent any entry of water.

LEAD WIRES

SAFETY LIMIT SWITCHS

DESCRIPTION

MOUNTING / HOUSING

DESIGN

VISUAL REPRESENTATION

REMARKS

All limit switches are mounted in enclosed housings. Critical rust damage is prevented

The Design ensures that the Sensing Element and Actuating Element attain full contact when necessary. No rusting of sensing element

ADDITIONAL SAFETY FEATURES

DESCRIPTION

CLIMBING LADDER

Climbing Ladder Extension

GUARD RAILS

VISUAL REPRESENTATION

REMARKS

The climbing ladder has a ring cage around it at all sections. This insures safety of the personnel.

The climbing ladder extends past the slewing ring so as to enable ergonomic and safe access to the Cabin level.

Guard rails are made of heavy gauge pipes. They are clamped sufficiently and are fixed rigidly.

PRICING Though factual quote copies are yet to be obtained, reliable customer feed back places Potain’s pricing between 55 to 60 Lakhs for a model comparable to Escorts Huata 5013.

Description

Qty

Upto Free Std. Height( 40.5 M) Customs Sub Total Clearance Sub Total Conversion @ Rs 44 / USD Escorts Commission Total

1 29% 2%

HUATA 5013

POTAIN

Amount (CIF Chennai)

Amount ( Ex. Works)

$ $ $

82000 23780 105780 $ 2115 $ 107895 Rs 4747406 Rs 5,00,000 Rs. 52,47,406

55 – 60 L

B/w 55 – 60 lakhs

POSITIONING

In the Indian Tower Crane Market, Potain is positioned as a premium product. In their early years of monopoly, their machines were priced substantially higher than their current price offers. Over the past year though, they have drastically slashed prices due to competition from substantially cheaper Chinese offers. Regardless, as their products enjoy a favourable brand image, with the additional advantage of Manitowocs brand image, POTAIN TOWER CRANES are still positioned as a premium offer.

HUBA Manufacturer Origin Distributor Total No. M/c Sold FY’07 Sales URL

: Zhejiang Huba building machinery : China : IDEB Projects (P) Ltd. , Omega Construction Equipment : : :www.zjhuba.com; www.idebequipments.com ; www.gifindia.com/

PROFILE Founded in 1985, Zhejiang Huba Construction Machinery Co., Ltd. covers an area of 135,000 square meters, including a construction area of 60,000 square meters. The company is located in the Haining City, with the total assets of USD1,230,500. Their main products are tower cranes, crawler cranes and topless cranes. DISTRIBUTION In India, there are 2 distributors of Huba Tower cranes. They are 1. Omega Construction Equipment 2. IDEB Projects (P)Ltd Omega Construction Equipment claims to be the authorized distributor, having entered into a contract with Zhejiang Huba Building Machinery. IDEB sources Huba machines mainly for internal use for their vast projects across the country. In addition they sell and also provide these machines on rent. IDEB has a strong presence in Banglore, where their Head Quarter is located SERVICE SUPPORT As Omega Construction equipment also manufactures pick n carry cranes etc., they claim to have a strong service team across India. Customer feedback reveals the contrary. IDEB has a strong service network as their machines work on company owned projects. In addition the rental arm is required to maintain the assets deployed at customer sites.

QUALITY The quality aspects of a machine are discussed below under their respective categories.

FABRICATION

DESCRIPTION

Section

Pins / Bolts

Weld Quality

VISUAL REPRESENTATION

REMARKS

Extruded box section. No welding to form the box section.

Mast connections are through bolts. They show extreme rust formation in under a few months.

Weld quality better than average on the mast and jib sections.

The photo shows a section where the paint has peeled off. Note the lack of a primer coat prior to painting.

Paint Quality

The condition of the jib after 1 year of use is average. Due to the lack of a primer coat, rust formation is rampant.

Paint Quality

CONTROL PANEL

DESCRIPTION

CONTROLS

WIRING & LABELLING

VISUAL REPRESENTATION

REMARKS

All Controls are of Telemecanique make by Schneider Electric

Wiring and connections are of ordinary connector based systems. Labelling on all points is handwritten.

HOIST MOTOR

DESCRIPTION

VISUAL REPRESENTATION

REMARKS

MOUNTING / HOUSING

Hoist motor is mounted on the Counter Jib. The pulley block is mounted behind the Hoist motor thus providing constant line tension

GREASING / OIL LEAKAGE

Excessive oil leakage and greasing required

RCV BLOCK

DESCRIPTION

LEAD WIRES

VISUAL REPRESENTATION

REMARKS

All lead wires are suitably connected through bushes, to prevent any entry of water.

SAFETY LIMIT SWITCHS

DESCRIPTION

MOUNTING / HOUSING

DESIGN

VISUAL REPRESENTATION

REMARKS

Safety Limit switches are mounted in enclosed housing.. Inspite of the housing sensing and actuating elements are extremely corroded.

Design of Sensing Element and Actuating Element less than satisfactory. Extremely corroded.

ADDITIONAL SAFETY FEATURES

DESCRIPTION

CLIMBING LADDER

VISUAL REPRESENTATION

REMARKS

No ring cage around the climbing ladder. But rest platforms are welded on all mast sections proving to be very useful.

Climbing ladder extends beyond slewing bearing and onto cabin level. Safer and easier to climb up to cabin level.

PRICING COMPARISON Below is the the pricing offered by IDEB Projects, as on Jan 2008, based on a quote from IDEB Projects. as on Jan 2008, Technicals Marketing Arm Model No. Section Mast Ht. Jib Free St. Max Ht Max Load Tip Load Anchor Concrete Bucket Cage

Huata

Huba (IDEB)

Escorts 5013 Angle/Box 70 50 40 120 6T 1.3T 1no. Incl. 300 lts yes

IDEB H5013A Box 70 50 40 140 6T 1.3T 1no. Incl. no no

-

Rs. 29,16,000 (USD 72900 @Rs.40 )

Commercial / Quote Format Ex Works China Basic Ocean Freight/Insurance/Container/Picku p/Customs/Doc.Fee/Booking Fee Customs Duty @31.10% Clearing,Concur,liner & other Charges

Incl. of Incl. of Incl. of

Rs. 8,80,000 Rs. 11,80,556 @act. Approx Rs. 3,00,000

Freight From Chennai Port to Site

Actuals

-

Local Freight Within Blr to Site Crane Charge for Erection Crane Charge for Unloading

Actuals Actuals

Actuals

Labour Charges for Erection Service Tax on Service Charges@ 12.5 %

Actuals -

Service / Warranty Free Service Warranty

Rs. 4,50,000

Rs.

56250

12 m

3 12 m *

10%

30% 0f Basic

85% on HSS, Bal post erection

70% LC at Sight

55.5

58*

Payment Terms Advance Bal TOTAL (in Lacs)

* Final offer may be lower by upto 10%

The Pricing offered by OMEGA CONSTRUCTION EQUIPMENT as of SEP 2008 is as below: Technicals

as on SEP 2008 Description Marketing Arm Model No. Section Mast Ht. Jib Free St. Max Ht Max Load Tip Load Anchor Concrete Bucket Cage

Huata

Huba (OMEGA)

Escorts 5013 Angle/Box 80 50 40 120 6T 1.3T 3no. 300 lts yes

OMEGA H5013A Box 80 50 40 140 6T 1.3T 3 no. Incl. Negotiable Negotiable

Commercial

Description

Upto Free Std. Height (40.5 m) For 80 m Add Mast Section @USD2200 Anchor @USD2200 Sub Total Customs Sub Total Clearance Sub Total Conversion @USD 47 Rs Escorts Commision Total

Qty

1 16 3 29% 2%

HUATA

HUBA

Amount (CIF Chennai)

Amount (CIF Chennai)

$

82000

$ 35200 $ 6600 $ 123800 $ 35902 $ 159702 $ 3194.04 $ 162896 Rs. 7656114 Rs. 500000 Rs. 8156114

All Inclusive

Rs. 68,000,00

POSITIONING

HUBA is positioned in the lower price segment with respect to it’s pricing. It does not enjoy any mileage with respect to brand image either in China or india as it is a lesser known Company. Competitive pricing is HUBA’s USP.

ZOOMLION Manufacturer

:Changsha Zoomlion Heavy Industry Science & Technology Development Origin : China Distributor : Action Construction Equipments Total No. M/c Sold : Approx 275 ( Including Huaxia) FY’07 Sales : URL :www.zoomlion.com

PROFILE Changsha Zoomlion Heavy Industry Science & Technology Development is principally engaged in the development, production, distribution and leasing of heavy industrial equipment. The Company primarily provides hoist machinery, road machinery, municipal and environmental machinery, concrete machinery and the related components. Zoomlion signed a licensing agreement with Action Construction Equipment Ltd. in 2006 to distribute their range of tower cranes in India. SALES FIGURES: Sources at ACE claim to have sold between 275 – 300 machines pan India, till date. Approximately 25 machines are on rent. The following is a snapshot of their performance as projected by PINC equity research.

DISTRIBUTION: ACE has a good sales and distribution network pan India. They also offer their machines on rent. SERVICE: Customers claim to be relatively satisfied with service. ACE has approximately 5 service engineers for the south region (Karnataka, Tamil nadu, Kerala) alone. PRICING

Below is a comparison of ACE ZOOMLION offer based on a Quote , as on January 2008. as on January 2008. Technicals Marketing Arm Model No. Section Mast Ht. Jib Free St. Max Ht Max Load Tip Load Anchor Concrete Bucket Cage

Huata Escorts 5013 Angle/Box 70 50 40 120 6T 1.3T 1no. Incl. 300 lts Yes

Zoomlion Ace 5013B Box 70 50 40 140 6T 1.3T 1no. Incl. 400lts Yes

-

-

Ocean Freight/Insurance/Container/Pickup/C ustoms/Doc.Fee/Booking Fee Customs Duty

Incl. of Incl. of

Incl. of Incl. of

Clearing,Concur,liner & other Charges

Incl. of

Incl. of

Freight From Chennai Port to Site

Incl.of

3,00,000

Local Freight Within Blr to Site Crane Charge for Erection Crane Charge for Unloading

Incl.of Incl.of

75,000 20,000

Labour Charges for Erection

Incl.of

40,000

Commercial / Quote Format Ex Works China Basic

Service Tax on Service Charges@ 12.5 %

-

-

12 m

6m

10%

25%

85% on HSS, Bal post erection

75% against despatch before delivery

55.5

63*

Service / Warranty Free Service Warranty Payment Terms Advance

Bal TOTAL (in Lacs) as on Jan 2008

At a revised USD exchange rate of Rs. 47 / USD. The following would be the current machine cost for the same configuration. As can be seen there has been an approximate 30% rise in cost.

Description

Qty

Upto Free Std. Height For 70 m Add Mast Section @USD2200 Anchor @USD2200

1 12 2

HUATA

ZOOMLION

Amount (CIF Chennai)

Amount (CIF Chennai)

$

82000

Conversion @ Rs 47 / USD Escorts Commission

$ 26400 $ 4400 $ 112800 $ 32712 $ 145512 $ 2910.24 $ 148422.2 Rs 6975845 Rs 5,00,000

Total

Rs. 74,75,845

Sub Total Customs

29% Sub Total

Clearance

2% Sub Total

Rs. 63,000,00 ADD 30%

Rs. 82,000,00 *

* ZOOMLION Final prices could be lower by upto 10 %.

QUALITY: A detailed quality analysis of the machine yet to be carried out. Customer feedback though, indicates a satisfactory quality level, with minimum downtime.

HUAXIA Manufacturer Origin Distributor Total No. M/c Sold FY’07 Sales URL

: Shandong Huaxia : China : Action Construction Equipments : Approx 275 ( Including Zoomlion) : :www.hua-xia.com

PROFILE Shandong Huaxia Group lies in Weihai. The group has several subsidiaries like Huaxia Heavy Industry, Huaxia Pharmaceutical Industry, Huaxia Medicine, Huaxia International, and Huaxia Technical School. With a total registered capital of USD36.7 million, their total sales amount exceeded about USD316 million in 2004. PRICING: as on SEP 2008

DESCRIPTION

SPECIFICATIONS

Mast Height

40 Mtrs.

Jib Length

50 Mtrs.

Max. Lifting Capacity

6 Ton

Max. Lift.Cap. at Jib end Mast Section (LxWxH)

Escorts Huata 5013

ACE Huaxia TC 5013A

CIF Chennai

CIF Chennai

1 SET

USD 80,000

USD 62,000 *

1 No.

USD

2,200

USD

2,200

1 No.

USD

2,200

USD

2,200

Qty.

1.3 Ton 1.6m x 1.6m x2.5m

Walling Anchor Commisionning and Erection Charges

Rs. 5,00,000

Rs. 5,25,000

* Prices can be lower by upto 5%

ACE also offers the same machines on rental basis for Rs. 2,50,000/- per month. POSITIONING Huaxia has been positioned to avail business from those customers who are only price conscious.

ZHENGXING Manufacturer Origin Distributor Total No. M/c Sold FY’07 Sales URL

: Jiangsu Zhengxing Construction Machine Co. Ltd. : China : Changlin Engineering Services India (P) Ltd,. : : :http://jszhengxing.en.alibaba.com

PROFILE: Changlin Engineering Services India (P) Ltd,. is based out of Hyderabad. They offer Changlin construction equipment, wholly imported from China. In addition to this they offer Zhengxing Tower cranes. DISTRIBUTION: Dealer Outlets are present in Hyderabad, Kolkata and Delhi. PRICING:

TECHNICALS Marketing Arm Model No. Section Mast Ht. Jib Free St. Max Ht Max Load Tip Load

HUATA Escorts 5013 Angle/Box 80 50 40 120 6T 1.3 T

Description

Qty

Upto Free Std. Height For 80 m Add Mast Section @USD 2200 Anchor @USD2200

ZHENXING Changlin India TC5013 Box 80 50 40 140 6T 1.2 T

HUATA

ZHENXING

Amount (CIF Chennai)

Amount (CIF Chennai)

1

$

80000

16 3

$ $

35200 6600

$

121,800

$

Total

$

104,000

104, 000

Description Additional Mast Sections Service and Commission Charges

Qty 1 1

HUATA

ZHENXING

Amount (CIF Chennai)

Amount (CIF Chennai)

$ 2200 Rs. 500,000

$

1500

$

5000

POSITIONING Changlin’s Tower Crane is positioned in the mid segment. Their market visibility and sales is still poor. Changlin aggressively promotes the product by offering to take every customer for an all expenses paid factory visit in China.

CMAC - CMAX Manufacturer Origin Distributor Total No. M/c Sold FY’07 Sales URL

: CNBM : China : Conmech Auto Consultants (CMAC),. : : :www.cnbmmech.com

PROFILE Conmech Auto Consultants is based out of Hyderabd. They have a licensing agreement with CNBM of china to distribute their brand, CMAX Tower Cranes in India. The Tower Cranes manufactured at Beijing. CNBM claims be ISO 9001:2000 Quality Certified and with annual sales of around $ 3.5 billion. CNBM is exports their equipment to Middle East, Europe and North American countries. PRICING

TECHNICALS Marketing Arm Model No. Section Mast Ht. Jib Free St. Max Ht Max Load Tip Load

HUATA Escorts 5013 Angle/Box 80 50 40 120 6T 1.3 T

Description

Qty

Upto Free Std. Height For 80 m Add Mast Section @USD 2200 Anchor @USD2200

1

CMAX CMAC TC5013 Box 80 50 40 140 6T 1.3T

HUATA

CMAX

Amount (CIF Chennai)

Amount (FOB CHINA)

$

80000 $

16 3 Total

$ $

35200 6600

$

121,800

$

105000

105, 000

Description

Qty

Additional Mast Sections Additional Anchors Service and Commission Charges

1 1 1

HUATA

CMAX

Amount (CIF Chennai)

Amount (FOB CHINA) $

$ 2200 $ 2200 Rs. 500,000

1620

$ 1980 Rs. 1,75,000

JWY Manufacturer Origin Distributor Total No. M/c Sold FY’07 Sales URL

: Jarlway Holdings : China : Spartan Engineering Industries (P) Ltd. : : :www.jarlway.com

PROFILE Jarlway Holdings PLC was incorporated on 11 December 2004 and is the holding company of the Group. Jarlway is engaged in the development and sale of large-scale construction machinery including trailer concrete pumps, truck mounted concrete line pumps, placing boom , tower crane. JWY provides large discounts to customers to promote sales Spartan Provides JWY machines at very competitive rates. They now also offer flat top machines at very low prices. PRICING as on Jan 2008 DESCRIPTION

SPECIFICATIONS

Mast Height

70 Mtrs.

Jib Length

50 Mtrs.

Max. Lifting Capacity

6 Ton

Max. Lift.Cap. at Jib end

1.3 Ton

Mast Section (LxWxH)

1.6x1.6 x2.5m(Huata) 1.6x1.6 x 3 m(JWY)

Walling Anchor Commisionning and Erection Charges

Escorts Huata 5013

Spartan JWY C 5013

CIF Chennai

CIF Chennai

1 SET

Rs. 55,50,000

Rs.58,000,00 *

1 No.

USD

2,200

1 No.

USD

2,200

Qty.

Rs. 5,00,000

Rs. 1,00,000

* Prices could be lower by upto 10%

FUSHUN YONGMAO Manufacturer Origin Distributor Total No. M/c Sold FY’07 Sales URL

: Yongmao Holdings : China : ABG Cranes Pvt. Ltd. : : :www.yongmao.com.cn

PROFILE Yongmao is a designer and manufacturer of tower cranes based in Fushun City, Liaoning Province, PRC. Its cranes are sold to construction and equipment rental companies in China and overseas. During FYMar2007, 78% of sales were outside China. Yongmao's operations are located in Fushun City, Liaoning Province, and occupy total land area of 160,000 sq m, with annual capacity of about 200 cranes.Yongmao operates in a competitive market. Major competitors in China include Zhangjiagang Potain Construction Machinery Co, Sichuan Construction Machinery Co, Shenyang Sanyo Heavy Industry Co, and Changsha Zoomlion Heavy Industry Science & Technology Development Co. Major overseas competitors include The Liebherr Group (Germany), Linden Comansa Group (Spain), Potain (Manitowoc Cranes, USA), Terex Comedil (Italy), and Wolffkran (Germany). It currently offers a variety of towercranes under the Topless STT series, ST series, and Luffing STL series and the Derrick Q series. Yongmao towercranes are sold under its own brands: YONGMAO and SUNCRANE in the PRC and exported to the USA, Panama, Zambia, South Africa, UAE, Saudi Arabia, Bahrain, Belgium, UK, Ukraine, Hong Kong, Macau, Singapore, Indonesia, Thailand, South Korea and India.

PRICING

TECHNICALS Marketing Arm Model No. Section Mast Ht. Jib Free St. Max Ht Max Load Tip Load

HUATA Escorts 5013 Angle/Box 80 50 40 120 6T 1.3 T

YONGMAO TOPLESS STT113-6T ABG CRANES TC5013 Box 80 50 40 140 6T 1.3T

HUATA

Description

Amount (CIF Chennai)

Qty

Upto Free Std. Height For 80 m Add Mast Section @USD 2200 Anchor @USD2200

1

$

80000

16 3

$ $

35200 6600

$

121,800

Total

HUATA

Description Additional Mast Sections Additional Anchors Service and Commission Charges

Amount (CIF Chennai)

Qty 1 1 1

$ 2200 $ 2200 Rs. 500,000

YONGMAO TOPLESS STT113-6T Amount

CIF

$

229,680

$

229,680

YONGMAO TOPLESS STT113-6T Amount

CIF $

2900

Rs. 500,000

POSITIONING Yongmao is positioned as a very premium product. As a majority of its sales are from exports, confirmation to all European quality standards is granted. Hence, this quality focus allows Yongmao to demand a premium price for their machines. Sales of Yongmao machines in India, are limited and only to large corporates.

ESCORTS HUATA FABRICATION

DESCRIPTION

Section

Pins / Bolts

Weld Quality

VISUAL REPRESENTATION

REMARKS

Angle and Box Sections

Mast connections are through bolts. Bolt quality is poor and rusts severely in just 2 months.

Weld quality throughout the machine is very average ,as shown.

The weld to form the box section of the mast, is not seamless.

Paint Quality

The photo shows a section where the paint has peeled off. Note the absence of a primer coat.

Visible signs of rusting on the jib after only 3 months of use.

Dimensional Accuracy

Dimensional accuracy is poor. The picture shows a situation where a counterweight cannot be lowered due to an obstruction

Dimensional Accuracy

The figure shows a situation where the bolt sleeve between two mast sections is not aligned. Hence 1 bolt cannot be inserted. This could be catastrophic later.

CONTROL PANEL

DESCRIPTION

CONTROLS

WIRING

LABELLING

VISUAL REPRESENTATION

REMARKS

All Controls are of Telemecanique make by Schneider Electric

Wiring and connections are of ordinary connector type

All points are labelled with hand written numbers. They have faded in only 2 months and are unclear

HOIST MOTOR

DESCRIPTION

VISUAL REPRESENTATION

MOUNTING / HOUSING

REMARKS

Hoist motor housing, suffers from rusting issues

Hoist cable comes out of contact with pulley. Excessive grease required.

GREASING / OIL LEAKAGE

RCV BLOCK

DESCRIPTION

LEAD WIRES

VISUAL REPRESENTATION

REMARKS

RCV motor control box wires not suitably enclosed. Water entry into the box caused a short.

LIMIT SWITCHES

DESCRIPTION

MOUNTING / HOUSING

DESIGN

VISUAL REPRESENTATION

REMARKS

No housing for limit switches. Exposure to rain has caused severe rusting.

Sensing Element and Actuating Element not suitably aligned. Extra washer had to be welded to ensure contact.

SAFETY FEATURES

DESCRIPTION

CLIMBING LADDER

VISUAL REPRESENTATION

REMARKS

No ring cage around climbing ladder. Ladder does not extend past the slewing ring, resulting in difficulty in reaching cabin level.

No ring cage around ladder leading to counter jib. Foot rests placed such that thee is no space to insert foot. Extremely dangerous.

Positioning

Weihai Huata is positioned in the mid range with respect to pricing. Huata enjoys the Brand Mileage of ECEL in the Indian Construction equipment market.

OTHER PLAYERS There are several more brands of Tower Cranes available in India. The follwing is list. These players do not have substantial volumes, either due to their very recent entry into the field, such as SCM, or because of a very high price such as Terex Comedil. Jianglu on the other hand, distributed by Syncon Infrastructure, has a very good sales volume. As further information is forthcoming, it has also been included.

SL. No

ORGANIZATION

TOWER CRANE BRAND

1

Bhai

2

Syncon Infrastructure

JIANGLU

3

Engineers Enterprises

XCMG

4

6

Houston Machinery Unique Industrial Handlers Unique Industrial Handlers

7 8

Terex Cosmos

5

BHAI

MANUFACTURER

SYS

Bhai Industries Jianglu Construction Machinery Co. Xuzhou Construction Machinery Group Shenyang Sanyo Heavy Industries

SCM

Sichuan Construction Machinery

UNIQUE SAEZ TEREX COMEDIL CAMAC

SAEZ Comedil ----

FUTURE ENTRANTS In addition to the above there are several firms vying for tie ups with international tower crane manufacturers to introduce their products in India. Two known companies who have voiced this plan are Race Automotive Systems, and Surin Construction Equipments Pvt. Ltd.

PROMOTION STRATEGIES The Tower crane market comprises primarily of builders and infrastructure developers. Housing and real estate, cement plants, power plants dams etc. are the only areas where these machines are put to use. TECHNICAL VS PRICE

Infrastructure projects require machines which are technologically advanced. Concerns investing in tower cranes for such projects necessarily place a concentrated focus on the technical parameters of the machine when comparing the available suppliers. As a majority of the infrastructure developers are public limited concerns, access to funds is not of prime concern. Price therefore, takes a back seat. Real estate developers on the other hand, do not have access to large funding options. Hence, price is of key concern in this segment. Only those real estate developers who have gone public, are prepared to consider machines which promise exceptional quality at marginally higher prices. General sales volumes indicate a greater proportion of sales to be derived from reale estate developers over infrastructure projects. Several manufacturers such as Yongmao, Terex Comedil etc, would not find favour with builders and developers. These markets thus are dead segments for them. The question thus is, between high sales volumes v/s high quality. An ideal strategy would be to offer machines to both segments, with a strong service force to meet the inevitable machine malfunction issues associated with the cheaper product. From the available data, ACE seems to have taken this route. BRANDING VS PRICE

Branding goes a long way in promoting sales. Brand recall is the single largest factor that customers place their trust in. The Escorts brand is highly visible in certain segments of the construction equipment industry. This has definitely helped allay any fears with respect to machine quality and after sales support. Thus customers are willing to entertain q relatively unknown Chinese brand as Escorts is their first point of contact. This goodwill must be taken full advantage of. The question again, is whether to provide highly reliable machines, at marginally premium prices, thereby living upto the Escorts Promise of quality, or whether to provide machines of reasonable quality, at substantially lower prices, but with a very strong service network, thereby again living up to Escorts standards.

EUROPEAN VS CHINESE

Chinese equipment have taken the world by storm. Reasonably good quality coupled with enormous savings monetarily, are a winning combination. European Tower crane manufacturers are thus confined to the developed countries which enforce a very high level of safety norms. Ironically, investing in tower cranes, is a very serious matter for builders in developed countries. Tower Cranes can cost anywhere upto a $ 1,000,000 and skyrocket further. Given a choice, builders and developers there too, would opt for Chinese manufactured machines for all their projects. The Indian construction industry on the other hand, fortunately or unfortunately, is not regulated by such strangling safety norms. Tower cranes costing several crores, will not find favour, when a comparable machine is available at 1/3rd the cost. Granted, there will be several maintenance issues, and safety issues to boot, but savings of several lakhs of Rupees, will bear heavily on the Indian buyers mind. Chinese machines are all that and more for consumers in India.

China's Tower Crane Market Analysis The following is an article published by a reputed industry research group in China. The article succinctly summarizes the Chinese tower Crane market.

“Since the 1980s, China's tower crane industry has been growing rapidly, especially in recent years, tower crane sales have been climbing. Industry statistics showed that sales in 2001 were 9,738 units, while it became the first country with output exceeding 10,000 units in 2002. Due to government macro control and industry consolidation, tower crane output retreated in 2004. From 2005 onwards, China's tower crane sales resumed its fast growing trend, exceeding 20,000 units in 2006. China has now become a major producer country of civil tower crane machinery, as well as one of the major demand markets. Technical developments Since the 1990s, as many large scale projects such as urban construction, water dams, power plants and bridges flourishing to the market, technical requirements for tower cranes from both domestic and international markets continue to get higher. During this period China has gradually developed product types such as 400tm and 900tm lever arms and 300tm luffing arms, equivalent to technical level of 1990s in developed countries, which substantially reduced the need and volume for tower crane imports. Some key technical issues have also been solved during this development period, such as high power lifting bodies CVT, PLC control and crane remote control.

In 2006, Sichuan Construction Machinery Group launched the largest tower crane in China, a super tower crane M1500 (1500tm) with maximum lifting capacity of 60t. Fushun Yongmao Construction Machinery also launched the largest tonnage flat-top crane STT553 (550tm). State-owned enterprises restructuring and private enterprises rising There were many provincial tower crane manufacturers in the 1980s. But as the market developed, private enterprises had rushed to capture market shares from their state-owned counterparts. Some provincial companies, such as Sichuan Construction Manufacturing and Shenyang Construction Machinery, have been successfully restructured and gained stable market shares and recognition. On the other hand, many private companies have become prominent in the tower cranes market, such as Yongmao Construction Machinery, Shandong Fangyuan Group, Jiangsu Zhengxing Construction Machine, Zhejiang Huba Group and Beijing Construction Engineering. Currently, first-tier tower crane manufacturers in China consist of Sichuan Construction Manufacturing, Shenyang Sanyo, Changsha Zoomlion and Yongmao, which are collectively leading the industry direction and export markets. Although industry profit margins are getting slimmer in recent years, especially in small to medium tower cranes market, many new entrants are still joining in. Strong export growth, foreign capital difficult to enter Along with the prosperous domestic market, tower crane exports are also booming. For first-tier manufacturers, export sales have made up more than 50% of their total revenue. From 2001 to 2006, China's tower crane annual export has grown from 67 to 1,748 units, and export destinations grown from 11 to 63, including some developed countries. Due to rapid growth of exports, it is expected that further expanding the export market will become an important strategy for many Chinese tower crane manufacturers in the future. Compared with exports, there have been much fewer tower crane imports into China in recent years, and even rarer for foreign crane manufacturers gaining success in China. A handful of joint-ventures or wholly owned foreign producers did enter the Chinese market in past two decades, but most of them today have either pulled out or are still struggling, mainly due to pricing and cultural issues. Existing industry problems Although China's tower crane industry has significantly narrowed the gap from developed countries in the past 50 years, there are still apparent issues related to overall structure, performance and quality, especially in areas of manufacturing quality and product reliability. There are currently several hundred producers in China, but few of them possess scale advantages. Crane output numbers

have been large but quality varies considerably, and most products are still in the small to medium crane category. China has so far produced more than 200,000 units of tower cranes, but product types are still in a narrow range, with shortage for large and mega cranes but surplus in small and medium types. One reason for such phenomenon is due to the restriction on product developments by technical regulations. Back in the 1980s, in order to facilitate resource management and then customer demands, the regulator issued regulatory prescriptions on crane specifications. Although the market became more organised, it has nevertheless restricted the diversity and innovation of tower cranes in China, resulting in fierce market competition. Industry experts pointed out that in developed countries, product developments are driven by market forces, from 1-2tm micro cranes to mega tower cranes of 5,000 tm. China has a large crane output volume, but the quality varies considerably, due to significant capability differences between producers. Some have strong technological capabilities, reliable products and brands, while others possess limited production equipment and weak capabilities, cutting into the market with low prices and illegitimate means. As China's construction booming, many small to medium construction companies, which have limited strategic planning and capital, have taken the risk to purchase cheap cranes with low technical contents and unreliable quality. Coupled with reckless project management process, it may lead to significant dangers to construction safety.

Some industry issues are related to government regulators. There are too many local bureaus in charge of setting regulations, inspection, licensing and approval, while too few to implement regulations and take real responsibilities. In certain regions, fee-charging local governments will grant market access to any crane products and companies, opening the door for inferior products to flood into the market. Tower crane industry outlook Due to an ongoing flow of large infrastructure projects and rural expansions in China, the demand for tower cranes of all sizes should continue to be strong, and large and medium crane companies should continue to co-exist. The Chinese crane industry should improve its technological capabilities and quality levels of large tower cranes, in order to satisfy the requirements from large engineering projects and export markets. The smaller cranes segment needs to consolidate, in order to improve product safety and reliability. In terms of technical developments, China's tower crane industry should develop crane products of various structural types. Flat top cranes and luffing cranes have gained significant progress in China in recent years. Because the boom of a luffing crane can flexibly manoeuvre r to some extent, suitable for projects in high density and narrow fields, it has attracted increasing attention in the Chinese market. In some steel structured skyscraper projects, such as

Shanghai World Financial Centre, new CCTV headquarter and International Trade Centre 3 in Beijing, various large luffing tower cranes have been imported from Australia-based company FAIVO. “

POSSIBLE JOINT VENTURES

Possible joint venture options would depend on the promotion strategy to be followed. Assuming that Chinese machines would satisfy our parameters, then again the deciding factor is quality v/s price. As evident from several articles on the Chinese Tower crane industry and widespread information available on the internet, there are only several Tier 1 manufacturers. They are: 1. 2. 3. 4.

Changsha Zoomlion Heavy Industries Sichuan Construction Machinery Shenyang Sanyo Heavy Industries Yongmao Construction Machinery

Zoomlion is represented in India by ACE, Sichuan Construction Machinery by Unique Industrial Handlers, and Yongmao by ABG Cranes. That leaves Shenyang Sanyo Heavy Industries. They are also represented by Houston Construction Machinery from Hong Kong. They do not have an India office. Another interesting development in the Chinese Tower Crane industry is the Joint Venture Hangzhou Comansa Jie. In 2006 Spanish COMANSA invested $20.4 million to form a production JV with Hangzhou Jie Holding, but the result remains to be seen. The company is in the same location as Zhanjiagang Potain. The products from this venture may be of relatively European Quality, at Chinese prices. On the other end of the spectrum, is an Asian manufacturer with a plant in Europe. The machine branded as BKT. BKT is a German firm , bought out by Potain in 1998. But it resurfaced a few years ago, by a new company set up by BKT’s Korean dealer. The machines are made exclusively for the South Korean Market. BKT Engineering compensates for Germany's high wages, and shipping the cranes half way around the world, by only producing cranes to order, and by taking advantage of German government grants for development in rural east Germany. The cranes are being designed by engineers who worked for PEINER, but lost their jobs when TEREX closed down the plant after it took over Peiner. If the intention is to supply low priced machines to the Indian market, then there are several hundred Chinese manufacturers from whom one could be shortlisted.

CONCLUSION The Indian construction equipment industry is a key segment of the manufacturing sector and is poised for excellent growth in the coming years, based on India’s overall manufacturing sector and infrastructure growth. The overall industry has been growing at 30 per cent CAGR and is projected to grow at 15 to 20 per cent over the next few years. The tower crane industry will grow at a larger pace as it is primarily dependant on the Real Estate boom, which currently is at a trough, but will definitely out pace the CAGR of all other sectors. As the goodwill enjoyed by the Escorts brand is enormous in India, this factor alone should cashed in on further. Our healthy brand image in India will offset the resistance by customers to entertain a relatively unknown Chinese brand. But this should be accompanied by products which offer a better than average quality, and the ability to service the product at very short notices. Conversely, offering a machine of exceptional quality with little or no maintenance required, is also a worthwhile consideration.

APPENDIX

ACE – ZOOLION QUOTE

ACE HUAXIA OFFER OFFER Ref: ACE/SASIP/08/FTC-R September 11, 2008 M/s Sri Arul Sakthi Infrastructure and Projects TamilNadu

Email:- [email protected]

Kind Attn. : Mr Srinivasa P. – Asst. Manager Sub: Our offer for ACE- Fixed Tower Crane, Model TC5013A (on CIF basis) Dear Sir, We are pleased to give below our offer for ACE- Fixed Tower Crane, Model TC5013A :S. No. 1.

Description Tower Crane (ACE-Fixed Tower Crane) Mast Height Jib Length Max. Lifting Capacity Max. Lift.Cap. at Jib end Mast Section (LxWxH) Walling Anchor

Model TC5013A (Outrigger Stationary) 40 Mtrs. 50 Mtrs. 6 Ton 1.3 Ton Size: 1.6m x 1.6m x2.5m

Qty. 1 Set

CIF-Chennai Price (USD) USD 62,000

1 No. 1 No.

USD 2,000 USD 2,200

Terms & Conditions:1. The above prices are on CIF Chennai Port basis. 2. Customs Duties/Port Clearance Charges - Extra at actuals. 3. Erection & Commissioning Charges @ Rs.5,25,000/- + Service Tax shall be charged extra (mobile cranes, unskilled labour & concreting etc. to be provided by you at site). 4. Transportation - Extra at actuals (Ex-Chennai Port). 5. Payment – 35% advance with firm order and balance 65% payment prior to dispatch of machine from Factory. 6. Delivery: Within 6 to 8 weeks Ex-Chennai Port. 7. Demurrage & Port Charges – shall be to your account, if the balance payment or required documents in full are not released before arrival of the consignment at the port. 8. Validity – 30 days from the date of this letter. 9. Warranty - ACE- equipment are warranted against manufacturing defects for One Year. 10. Placement of order:- your order may please be placed on Action Construction Equipment Ltd. Plot No. 7, 2nd Floor, Pocket-H Market Sarita Vihar, New Delhi - 110 076 11. Statutory variations in Taxes, Duties and other Govt. levies are to Customer’s account. Should you require any further information, please inform us for our immediate response. Yours sincerely, for Action Construction Equipment Ltd.

( Arun Bishnoi) Product Manger 09871194629

ACE HUAXIA INVOICE

ACE RENTAL OFFER

ACE TC RENTALS (P) LTD. 5th Floor, TDI Cerntre, Jasola, New Delhi - 110 076 (INDIA) Phone: +91-11 - 40549900 Fax: 40549922 email: [email protected]

OFFER Ref: ACE/2008-09 11.09.2008 To

:

Sub:

Mr. Srinivasa P E-Mail : [email protected]

Our offer for ACE Fixed Tower Crane, Model TC5040A on Rental basis

Dear Sir, This has reference to our telephonic discussion regarding your requirement of Fixed Tower Crane on rental basis. We take this opportunity to introduce "ACE" as the leading crane manufacturing company in India with a wide product range : • Mobile Pick & Move Cranes ( 3 tons to 18 tons) • Backhoe Loaders/Loaders. • Fixed/Mobile Tower Cranes. • Crawler Cranes • Truck Cranes (upto 50 Tons) • Concrete Pump • Forklifts ACE has 15 offices in New Delhi, Mumbai, Chennai, Kolkata, Kanpur, Ahmedabad, Raipur, Ranchi, Vizag, Trichy, Hyderabad, Bangalore, Cochin, Coimbatore, Pondicherry and Bhubaneswar and also have a Nationwide network of 49 Outlets at all major locations to provide for fast supply of spare parts & Services. As desired by you, we are pleased to give below our offer for ACE Fixed Tower Crane on rental basis :a) Model ACE TC5040A (5013):S.No. 1.

Description of Equipment Model ‰

Quantity

01 Unit

‰

Free Standing Height (HUH)

40 Mtrs. (40 mtrs. provided)

‰

Jib Length

50 Mtrs.

‰

Max. Lifting Cap.

06 ton

Max. Lifting Cap. At Jib End 1.3 ton Monthly Rent : ACE TC5040A (5013) Equipment shall be provided by ACE TC Rentals Pvt. Ltd. on rental basis @ Rs. 2,50,000/- (Rupees Two Lacs Fifty Thousand only) rental charges per month for availability of 10 hours a day x 26 days, total 260 hours in a month (Morning 9.00 am to evening 8.00 pm including one hour lunch break from 1.00 pm to 2.00 pm). Sunday is weekly off. This is our minimum rent per month whether equipment is operated for 260 hours in a month or less. However, if the equipment is operated beyond available 10 hours in single shift on any single working day, then the rental charges shall be charged extra on pro-rata basis. 40 Mtrs. Height Under Hook provided : If extra height under hook is required then rental will be charged @ Rs.4,000/- (Rs. Four Thousand only) per mtr. extra. ‰

‰

‰

ACE TC5040A (5013) (Outrigger Stationary)

Terms & Conditions :Payment

Electrical Power

Rental Tenure

Deployment Time Site Inspection Mobilisation / Demobilisation / Handling

Octroi/Check Post Charges /Entry Tax / Way Bill / Entry permit etc. Loading & Unloading Repair & Maintenance / Breakdown period

Two months rental in advance as a deposit, which shall be refunded after completion of contract and settlement of account. Mobilisation and demobilization charges in advance. Power (440 Volts) to operate the Tower Crane shall be provided by the Customer on Free of Cost basis. If power will be supplied through Genset, the 125 KVA Genset should be provided with the Voltage output of 440 Volts. ‰ The Initial rental period shall be at-least 10 months. (However, in case the customer intends to return the machine before a period of 10 months, ACE TC Rentals Pvt. Ltd. reserves the right to charge rent for a minimum period of 10 months). ‰ Rental charges will be started as soon as the tower crane reaches to customer site. ‰ Rental tenure can be extended for a period of two months each by mutual consent in writing. Minimum 3 weeks after receiving advances as per contract. (Subject to prior rental sale). Site Inspection will be carried out by ACE TC Rentals Pvt. Ltd. personnel before deployment. Mobilisation / Handling expense from Nhava Sheva Port, Mumbai / Chennai port to Customer project site will be paid by the customer at actuals in advance. Demobilisation / Handling expense from Customer’s project site to nearest ACE TC Rentals Pvt. Ltd. godown will be paid by the customer at actuals in advance. If applicable, shall be borne by Customer at actuals. ‰

Taxes / VAT / CST

Loading & unloading of crane at site shall be borne by customer. Shall be borne by the ACE TC Rentals Pvt. Ltd. The customer will accommodate 48 hours in a month for service & repair if required, without any deduction in our monthly rental bill. Shall be done by ACE TC Rentals Pvt. Ltd. But foundation casting, Counter weights casting, un-skilled labour, mobile cranes etc. for erection & dismantling of tower crane shall be provided by the customer at site. As per your site requirement, if load testing certificate is required from any certified agency the cost for the same shall be borne by the customer only. Customer shall be solely responsible for safety and security of the rental equipment at customer site. One Operator shall be provided by ACE TC Rentals Pvt. Ltd. on single shift basis. Accommodation & fooding for him at site shall be provided by customer on free of cost basis. One Helper shall be provided by the customer on free of cost basis. Extra as applicable at the time of supply (presently 4%).

Validity Placement of order

This offer is valid for 30 days from the date of offer. Your order should be placed on:-

Erection / Commissioning & Dismantling

Load Testing

Storage / Parking / Safety of Equipment & Parts. Operator Boarding & Lodging

X. ACE TC Rentals Pvt. Ltd. A-1 Fifth Floor, TDI Centre, Jasola, New Delhi 110 076

Note: Statutory variations in Taxes, Duties & other Govt. Levies are to Customer’s a/c. Should you require any further information, please inform us for our immediate response, Yours Sincerely, for ACE TC RENTALS (P) LTD.,

1. ( VIKAS SHARMA ) Business Manager (Rentals) a) Mobile 09811264494

SPARTAN QUOTE

IDEB QUOTE

ABG CRANES QUOTE

CHANGLIN INDIA QUOTE

CONMECH AUTO CONSULTANTS QUOTE

Ref : CMAC/TC/09/08-09. 16.09.2008.

Date

The Assistant Manager - Purchase , M/s. Sri Arui Sakthi Infrastructure & Projects, Kind Attn. : Mr. Srinidhi PK. Mobile : 097405 28425. E – mail : [email protected] Dear Sir :

Sub. : Quotation for CMAC – CMAX, Make Model 5013 – Tower Crane. ******

XI. In reference to the discussion you had with undersigned, we suggest you CMAC - CMAX, Make 5013 model crane. XII. We have been given to understand that you have number of on going projects in and around Mumbai and using the Tower Crane. XIII. We supply CMAC - CMAX brand Tower Cranes manufactured at Beijing, China, which is a well established and high quality manufacturer of Tower Cranes and other construction equipments with ISO 9001:2000 Quality Certification. They are one of the largest crane manufacturer and building material supplier from China with annual sales of around $ 3.5 billion. CNBM is a leading exporter of equipments to Middle East, Europe and North American countries. XIV. We have entered into an exclusive agreement for India and they have given us special introductory prices. Thus we can give you the 5013 Model, height 82.5 mtrs., Jib 50 mtrs. and 1.3 tons tip load for USD 105,000 F.O.B China.

Contd….2.

- :: 2 :: -

We assure you that we shall give you good back up after sales service and we shall maintain the fast moving spares at our end to avoid any downtime of Tower Crane. All the electrical panel components will be of SCHNEIDER Make. Enclosed, please find commercial and technical details with terms and conditions. We hope the above is in line with your requirement and wait for your valuable purchase order. Thanking you and assuring of our best service at all the times. Yours truly, for ConMechAuto Consultants India Pvt. Ltd.,

RAMBABU CHERUVU. DIRECTOR.