Construction equipment sector growth slows down to 10%
The growth of construction equipment sector has hit a bumper after liquidity crisis gripped NBFCs following the IL&FS default, a construction equipment makers’ body has said.
“The construction equipment sector was growing around 20 per cent prior to the IL&FS crisis. The growth has now slowed down to 10 per cent,” Indian Construction Equipment Manufacturers’ Association president ArvindGarg said.
The Infrastructure Leasing & Financial Services (IL&FS) and its subsidiaries have defaulted on many debt instruments in the past few months due to insufficient funds.
“Almost 90-95 per cent of construction equipment are financed. NBFCs are the largest players in this sector with about 70-75 per cent share of financing,” he said.