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Construction Equipment Finance in India

2015-07-21 Posted By:Infrabazaar

Infrastructure is an important part of the Indian economy and it plays a major role in the country’s economic development. This industry remains under intense focus by high ranked government officials as they have to frame policies and then need to execute it within stipulated time limits. They are bound to create world class infrastructure for the country. This particularly includes dams, power, roads, and urban infrastructure development.

Demand of Construction Equipment

The Indian Construction equipment demand would expect to grow to US$9.9 by 2015 at compound annual growth rate of 24.1% (CAGR). The increased momentum in infrastructure development is attracting investments from various institutional investors. With cumulative foreign direct investment (FDI) inflows of US$ 234.7 lot of activity is observed.

The Indian construction equipment industry revenue is estimated to reach approximately US$22.7 billion by 2020. The sale of construction equipment is expected to grow to 96,730 units by 2020. Gross Domestic product would increase to 7-8%, which would also provide employment to more than 30 million people in country.

Equipment Finance in India

The Equipment finance business is growing rapidly across India. Before purchasing any equipment you will have to decide whether you want to purchase goods from available cash flow or finance them.  In both cases cash flow and taxation will have implications in your business.

Few Top Finance Companies

L & T Finance stands at the top position in the construction equipment finance business in India. It provides all kinds equipment financing loans including re-financing for used equipment.

GE Capital India provides construction equipment loans and lease services. It is one of the top financial solutions company addressing unique challenges of your organization loan needs and it offers flexible solutions across diversified industries.

Shriram Equipment Finance Company Ltd. (SEFC) is a wholly owned subsidiary of Shriram Transport Finance Company Ltd. (STFC) which is one of the largest non-banking financial companies in the country with assets close to INR 525 billion. SEFC caters to the financing needs of all classes of customers in the fast growing infrastructure industry in the country. 

Srei BNP Paribas is amongst the largest NBFCs in India – with sectoral focus on Infrastructure having offices in over 86 locations with an employee base of over 1,500, covering almost the entire geography of India.

Tata Capital’s Infrastructure Finance business caters to specialized needs of the infrastructure sector. It has a range of offerings including Equipment Finance, Project Finance, Equipment Rentals, Working Capital Loans, Bill Discounting/ Factoring, Refinance, Top up Loans and Loan Syndication.