There are few key players in the rental industry in
India who work through their network in the country. SREI was the first
to introduce the concept of equipment rental in India by establishing
Quippo, to promote equipment renting rather than ownership. Today it is
one of the largest organized equipment rental company in India. There
are also few other regional rental companies, besides an estimated 10000
unorganized small players The top 10 players together have an estimated
market size of around 30 - 40 percent
Entry of organized players into the segment is expected to
significantly increase penetration of rentals in the coming years.
Equipment majors in India strongly believe that the renting industry
holds huge potential, specifically for smaller equipment and also for
small to medium size contractors.
Rentals have always remained a small scale, unorganized business in
India due to several factors.
- Market is not matured and new machines are often not available on
rent.
- Contractors reluctant to pay higher rentals for the latest
equipment, even if available
- Lack of operator training / licensing
- another factor that impedes growth of rentals, as rental players
are not assured of proper usage of the equipment
