The chief contributor to the boom is an order from the public sector Coal India Ltd to the tune of Rs 204 crore this year for 135 units of 50 tonne dumpers. Sales to Coal India account for 50 per cent of the company's earth moving equipment division's turnover. Some of the other companies which have benefited from Coal India's international tender are TIL India (for supplier of cranes), Voltas for excavators, and Bharat Earth Movers Ltd (BEML) for 53 numbers of 85 tonne dumpers. Bharat Earth Movers Ltd is expected to get some more orders in the dumper segment.

On the international front, the US-based Unitrig is expected to be another beneficiary of the Coal India tender for the 120 tonne dumper category.

Coal India hasgot a $1.1-billion loan from the World Bank to purchase such equipment for a major rehabilitation programme. The investment for Coal India is to be in two phases, with orders for the first phase tied up. The second phase of investment is expected in December. This is expected to keep the coffers ringing for the local companies for the next two years at least.

The earthmoving equipment/construction segment is seeing further investments, joint ventures, and new products. HM's earthmoving equipment division plans to invest from Rs 3 crore to Rs 4 crore for vendor development and material handling facilities to execute the Coal India order. It will also undertake service maintenance for three years for the equipment supplied.

The division, which has a significant market share in the dumper segment (50 per cent in 50 tonne, and higher in the 35 tonne and 25 tonne dumpers) plans to get into the excavator market where it has a negligible presence.

"There are five manufacturers apart from imports in thissegment," HM earthmoving equipment division senior divisional manager (marketing) MS Shankar said.

But the division plans to relaunch its existing excavator in three months time in the 20 tonne category which accounts for 80 per cent of the market. The product would have improved fuel efficiency and swing speed. Telco is the leading player in the excavator market with 61 per cent share, followed by L&T (20 per cent) and BEML (8 per cent). The balance is shared by HMEED, Hyundai, Daewoo and Samsung.

Along with the trench borer, HMEED is launching a bulldozer of 325 HP developed indigenously to be used in core sectors of steel, coal and cement will be launched this month. HMEED already has a bulldozer of 125 HP in collaboration with Caterpillar used by contractors.

Meanwhile Telco has launched a backhoe loader, with technology from John Deere International Equipment. It also plans to bring out a mini excavator in the future. Escorts JCB is the market leader with 81 per cent share. The total backhoe loadermarket is 2200 units. The latest joint venture is that of L&T with Komatsu of Japan to give it the cutting edge in competition.