The first half of the year 2014 had been lacklustre in absence of any significant policy announcements ahead of the general elections. Not many new projects were announced as everyone wanted to wait for the elections to get over. Thus, the Construction Equipment / Material Handling businesses, which depend largely on the activity in the infrastructure sector, remained lacklustre.
However, there has been some activity of late on the back of renewed optimism generated following the new stable government in the Centre. With the hopes of end of policy paralysis, the Indian economy certainly looks to be on the path of recovery and an increase in demand for capital equipment is a natural outcome of a growing economy. Renewed push is expected in infrastructure projects and other related areas. We at ElectroMech are expecting an upswing in the coming months.