AGGCON’s 20 years journey is a story of conviction, path breaking rental solutions, excellence, courage, and commitment, says Jitender Aggarwal
AGGCON is celebrating 20 years of illustrious journey. The journey, over these years, has been the story of conviction, path breaking rental solutions, excellence, courage, and commitment. Jitender Aggarwal, Chairman & Managing Director, AGGCON Equipments International Pvt Ltd shares the journey and vision with The Rental Time
As AGGCON has completed 20 years, please tell us about AGGCON. When was it founded and how has it evolved since then?
We are glad to share, AGGCON has completed 20 years. From a modest beginning in 1970s, AGGCON was formally registered and incorporated as a company in 2003. In 20 years, AGGCON has become one of the fastest growing and leading infrastructure equipments rental companies in India.
In totality, it has been 50 years of illustrious journey so far, during which AGGCON has crossed many milestones contributing to infrastructure development of India and serving the construction and renewable energy sector with excellence.
The journey, over these years, has been the story of conviction, path breaking rental solutions, excellence, courage, and commitment. AGGCON has introduced and adopted 6T approach – Transparency, Technology, Team Work, Training, Time (24×7) and Transformation to serve with excellence. We believe in oneness of the infrastructure ecosystem, where all the stakeholders work together for infrastructure development of the country.
Today, AGGCON has become one of the leading and fastest growing infrastructure and mining equipment rental companies in India and has an integrated operations network in all states and union territories of India. We see ourselves as a rental partner of construction companies/contractors and follow modern practices that helps them build more sustainably. We think proactively and with flexibility to work out the best rental solution for infrastructure companies. We have a large fleet size of latest infrastructure equipments and a team of experts, skilled operators, and maintenance staff. We provide all equipments including specialized equipments on rental basis across India.
How big is AGGCON’s fleet and what are the different categories of equipments?
AGGCON has a large fleet size of latest infrastructure equipments and a team of experts, skilled operators, and maintenance staff. We provide all equipments including specialized equipments on rental basis across India.
We have equipments in all categories – earthmoving, piling foundation, tunneling, road construction, cranes, mining equipments and specialized equipments including the latest technology equipments and cranes for installation/erection of Wind Turbine Generators (WTG).
Our policy is to buy new and latest technology equipments only and we do not deal in used equipments at all. We always keep our fleet young. Our operators are skilled and our maintenance division maintains equipments well. Therefore, we hardly face any breakdown in all categories of machinery types.
How do you see AGGCON in next few years? What has been AGGCON’s achievements in last two years?
Our company has performed well in last three years and added many equipments in the fleet. Today AGGCON is one of the leading and fastest growing rental companies in India. We will keep moving ahead and serving the infrastructure sector with excellence.
In 2022, AGGCON Equipments has been conferred with the four awards. In 2023, AGGCON was conferred the prestigious BAI (Builders Association of India) Award 2023 for “Best Construction Equipment Rental Company”. We received the award from Minister of State for Communications, Shri Devusinh Jesingbhai Chauhan.
The awards and honour have given recognition to India’s equipment rental industry.
In 2022, we were honoured for distinguished services in infrastructure equipment rental sector by Nitin Gadkari, India’s Minister of Road Transport and Highways. AGGCON was also adjudged “Best Emerging Company of the Year” by Builders’ Association of India (BAI) and received this award from Union Minister of Road Transport and Highways Minister Nitin Gadkari.
We also got ASSOCHAM’s MSME Excellence Recognition of Haryana Awards for “Most Socially Responsible Company of the Year 2021-22” and for “Fair Businesses Practices company of the year 2021-22”.
We will invest Rs 500 crore in next two years to further increase the fleet size in and will try to get AGGCON listed on National Stock Exchange after 2025.
You have been appointed as advocate of G20 EMPOWER? What is it about?
Yes, I am an advocate for G20 EMPOWER (Empowerment and Progression of Women’s Economic Representation), a private sector initiative and part of overall G20, focusing on women empowerment. Our PM Narendra Modi has highlighted the need for ensuring women empowerment as it is important for development of any nation.
We run a CSR programme called – “EWOT – Empowering Women of Tomorrow”, where we focus on ensuring free education to every girl child of AGGCON team member and training of women team members to prepare them for bigger roles in the equipment rental industry. We believe opportunities for women should be created in every sector for women led development.
You started a mission – Tree of Friendship in infrastructure sector. Please tell us about it.
I am inspired by PM Narendra Modi’s vision – One Earth, One Family, One Future. AGGCON always cares for sustainable development and environment. We started a mission – Tree of Friendship, our CSR initiative to reduce carbon footprints. It is green practice of planting or donating a tree when our machines arrive at any project site. We feel tree is a beautiful friend and heals the earth, makes it a better place for everyone. It is an effort to sensitize people to plant tree and care for environment. Therefore, our team at every project site plants a tree, befriends the tree, waters it, and nurtures it and ensures it grows. Planting a tree may be the smallest but an important step and the simplest way to care for our Earth and fight the challenge of climatic change.
What is the CSR Policy of AGGCON?
With every business comes the responsibility. AGGCON focusses on ESG – Environmental, Social and Governance concerns. AGGCON works for the communities wherever it works. AGGCON has a well-defined CSR Policy. In 2022, it has contributed Rs 75 Lakhs as part of their CSR policy during the Sewa Pakhwada on 17th September – 2nd Oct 2022 towards the PM Cares Fund, Swachh Bharat Kosh and National Defence Fund (for the welfare of our soldiers) and also contributed Rs 5 Lakhs in Assam CM Relief Fund in 2023.
Women empowerment is an important focus area in AGGCON’s CSR policy. AGGCON also promotes sports and India as a sport playing nation as we believe sports is essential for physical and mental well-being of people. We recently sponsored 5th PHDCCI Golf Tourism Conclave and tournament at Ahmedabad. AGGCON also has its own cricket team.
Towards promoting mental health, AGGCON contributed Rs 5 Lakhs to Art of Living foundation for creating a stress-free society.
We recently installed water coolers and water filters in schools and places of worships in places where the team was working – West Bengal, Jammu. Haryana and other states.
We also renovated the kids playing room at Police Station in Gurugram for the minor children of parents who are allegedly involved in domestic violence cases.
How is the rental market in India now?
Indian Equipment Rental Industry has grown steadily over the past decade and has been able to create a significant space for itself owing to increased focus of government on infrastructure. India is seeing a rapid increase in infrastructure construction especially metro projects, highways, bullet train projects, airports, smart cities, wind energy projects, oil refineries and mining activities, which is raising demand for equipments especially those which have integrated new technologies, including digitalization for automated services, sensor-based controls, telematics for equipment tracking and mapping, and for predictive maintenance.
Secondly, the higher cost of advanced machines makes them quite capital intensive for infra companies and contractors, hence they are opting for renting them. Besides saving the capital for their core business activities, renting also saves them the cost of hiring an operator, running, and maintaining them. Rental companies continuously upgrade their fleet with new and more advanced equipments, and provide latest machines to their customers based on the projects’ requirements.
According to Off Highway Research that was also published in International Rental News, two thirds of construction equipment sales in India are to rental companies. It clearly shows rental penetration has seen considerable growth in India over the last decade. The proportion of machines sold to rental companies has risen from 47% in 2010 to 67% in 2020 and 2021. These figures indicate that India’s Equipment Rental industry is growing noticeably and is an important sector today. It is not a mere buyer of construction equipments, it has become an important pillar in infrastructure sector as it runs equipments, maintains them and serves construction industry with excellence.
Which products are in demand in the rental market and why?
There is a market for all categories of infrastructure equipments in Indian rental market depending on the need of the client and projects. There are two types of market for rental companies – a localized one that is around your town and a national market. Both markets have different needs, demand, and different clients. A localized need can be met from a small rental company which generally has conventional equipments like backhoe loaders or small cranes but to cater to infrastructure sector at national level, a rental company has to be organized and should have good fleet strength with latest technology and specialized equipments.
How is AGGCON playing a role in major infrastructure projects?
Currently, India is focussing on infrastructure and PM Modi’s government is increasing expenditure on it. The major projects that are already under construction are highways projects, bullet train projects, metro projects, oil refineries, coastal projects, etc. Metro Rail projects are huge, it will be gradually built in every city of India.
AGGCON has latest technology equipments in all categories in its fleet. We provide all equipments including specialized equipments on rental basis across India in all the major and prestigious projects. We are rental partner of all top infrastructure companies of India.
How significant is the role of India’s rental industry help in reducing carbon footprints?
Infrastructure Equipment Rental Industry has an important role to play in green, sustainable development. Renting is not only an important and profitable option for construction companies and contractors but it also helps in reducing carbon footprints. As per research commissioned by ERA – European Rental Association, renting can lead to significant reductions in carbon emissions, in the range of 30% and sometimes over 50%. Therefore, as a policy for reducing emissions, government should incentivize renting for construction companies. All the stakeholders of infrastructure sector – construction companies, infra equipment rental industry, OEMs and financers should come together and complement each other and contribute towards sustainability goals.
The G20 theme – ‘One Earth, One Family, One Future reflects the priority of Green Development, Climate Finance & LiFE reflects vision of Prime Minister Narendra Modi that accelerated, resilient and inclusive growth is a cornerstone for sustainable development. Union Minister for Road Transport and Highways Shri Natin Gadkari has underlined the significance of shifting from diesel variants towards electric and ethanol based equipments. Indian rental industry should therefore focus on sustainability – its economic, social, and environmental aspects in line with the goals of Global Rental Alliance (GRA). The rental industry leaders should come together and work on the policy for reducing carbon footprints.
Do you think digital transformation is important for the growth of rental industry?
Digital transformation is very important. It is the future in equipment rental industry and will transform it. It will make the rental industry organized especially in India where transformation to organized form is the need of the hour but still a challenge. Presentation on Digitalization in ERA Convention last year in Riga indicated clearly that digitalization would impact the equipment rental sector and the future rental market will be different from what it looks now.
Is skilled manpower key for the growth of rental industry?
Trained operators are key in the rental industry. They are the brand ambassadors of a rental company and hence important for image of a rental company. AGGCON, therefore always supports skill development of operators and to support women empowerment we are also looking forward to include women operators in our team.
Currently, there is a shortage of skilled manpower in India’s rental industry and it affects two important aspects – one is safety and other is purchase of latest technology equipments. When it comes to safety – we mean safety of both men and machine. A trained operator runs machine safely, efficiently and meets timelines of the project. Second when you have trained operators, you can purchase new equipments easily as you know they will be operated safely and efficiently.
What are the challenges that rental business is facing today? How do you see them?
OEMs are entering the rental business in India and competing with the rental industry is the challenge that needs to be addressed urgently. Knowing that the rental industry is the biggest customer of construction equipment, this move of OEMs is detrimental to the rental industry. This is a most important issue of rental industry today and finding a profitable balance where all stakeholders can support each other for mutual growth is needed. All the stakeholders of the infrastructure sector need to work in synergy.
The other challenge is the imbalance of demand and supply of infrastructure equipments in the market owing to the buying of large number of equipments by rental companies. Though this shows growth of rental industry but rental industry needs to maintain a profitable balance of their fleet for economic viability and sustainability. Focus should be to always maintain a conducive business environment for rental industry. Therefore, transformation and good policies are significant for rental industry to progress.
Third, Indian equipment rental industry is largely unorganized and this factor has been detrimental for the image of rental industry. Hence, transformation is important and it is our collective responsibility. Rental industry should not be seen as mere equipment buyer now. We are a serious industry and important stakeholder in infrastructure sector.
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