A survey conducted by Timetric’s Mining Intelligence Center (MIC) has revealed that Indian miners intend to switch from local suppliers of mining equipment in the long-term.
Respondents of the survey conducted for more than 100 key decision makers at operating Asian mines were asked if they anticipate switching heavy mobile equipment suppliers in the next five years.
A total of 60% said that they may choose a different supplier and a further 20% of them indicated they were not sure if they would switch or remain with the same company.
The results have contrasted with the high satisfaction ratings that respondents gave to suppliers such as Larsen & Toubro (L&T) and Bharat Earth Movers (BEML) in India.
Out of the 16 factors measured, L&T is said to have secured the highest satisfaction ratings in ten including all cost-related factors and the ‘availability of replacement parts’.
Respondents, who were satisfied with their choice, expressed that improvements such as ‘better quality’ and ‘broader product range’ were necessary to suit different mining conditions.
As only 20% of one supplier’s customers intend to stay with them within the next five years, the suppliers are warned not to be complacent in the market.
Companies tend to depreciate equipment over five years, which is said to be a typical lifecycle for the majority of mining equipment.
Timetric MIC Mining lead analyst Cliff Smee said: "The results of the survey suggest that although Indian miners seem highly satisfied with their suppliers, customers are looking to upgrade to those providers, particularly the multinationals, who can offer a broader product range, with greater customisation and considerably higher quality."
Timetric provides online data, analysis and advisory services on key financial and industry sectors.