‘We are looking for a long term relationship with the Nepali market’

Ramesh Palagiri, managing director and CEO of Wirtgen India, was recently in Nepal to officially launch Hamm soil compactors in the Nepali market. Hamm products are manufactured in India, China and Germany using German technology by Wirtgen Group. Siromani Dhungana of New Business Age talked with him on the business prospects of Hamm soil compactors in Nepal. 

Excerpts:

What are the products you are currently supplying in Nepal?

We are supplying Hamm soil compactors. By the end of the year, we are coming up with a tandem roller. Because most of the roads are on hilly terrain, there is lot of hope for road recycling in Nepal and we have a very good solution for that: technology called cold recycling (very popular worldwide.) By this technology, roads can be rehabilitated.

What prospects do you see for your business in Nepal?

In the last few years, the development activities in Nepal have gone down. So there are lots of possibilities for infrastructure to come up. We expect the market to grow in coming years. As of now, the market size is roughly 35-40 machines per year. We are looking for a long term relationship with the Nepali market. 

Why to choose your products?

We have 100 years of experience. We are leaders in road technologies, both for constructing new roads and for rehabilitating the existing ones. We have premium products in economic range. The consumer gets best value for money with our products. We have patented a three point articulation engine with clear and simple information displayed. So even a operator without much experience can handle it. It’s easy in maintenance and high in productivity.

How do you see the South Asian market?

The South Asian market is vital for us. There is almost the same level of opportunity for us with similar competition. The market is growing and that is important too. Our target is to become market leaders.

What is the level of competition you face in Nepal?

The level of competition is the same we face in India. There is a throat-cutting level of competition. We are selling premium products. Our market share is 35 percent now, our target is 40-45 percent by the end of next year. We are also focusing in good after sale services and spare parts to get close to the customer.