Phoenix Conveyor Belt India is only targeting the high-end market in the mining business, because it feels it is not competitive in the low end of the market in particular where the products are heavily commoditised and customers have also started experiencing severe performance and quality issues from time to time, a senior company official informed ISMW.
For the company, which has a strong presence across steel, cement, ports, power plants and coal, the share of the mining business in the overall pie, in terms of value, is 60% and industry 40%. “Of the business in the mining segment that we are looking to garner, CIL’s share should be 15-20%,” the source said.
There is no immediate plan for further investment by the company since a sizeable investment made in the last few years have to achieve the slated rate of return in terms of capacity enhancement, upstream investments and in the global R&D hub, the source added.
The company is looking at service in a big way which can be through advanced splicing technology, monitoring systems, enhanced cover grades and new applications. Secondly, it is looking at solutions ‘with and beyond rubber’ focusing on high engineering controls.