H

eavy equipment distributor PT Hexindo Adiperkasa will continue to concentrate on the agribusiness and forestry sectors, which other firms also betting on to counter slowing demands, particularly in the mining industry, thus creating tighter competition.

Hexindo is targeting to sell 2,680 units of the Hitachi-branded excavator '€” its main product '€” in the present financial year, which began in April and will end in March next year. That figure is 5 percent lower than its previous achievement of 2,820 units in the same period.

'€œThe [heavy equipment] industry is under pressure and demand is slowing as [global] economic turmoil has affected Indonesia,'€ Hexindo director Syamsu Anwar said on Thursday.

Heavy equipment players, particularly those focusing on deliveries to coal miners, have seen significant demand declines as their clients are suspending expenditures over worries of weakening selling prices.

Indonesian coal miners have reported declining profits due to massive falls in their selling prices on the back of weakening economic growth in China, their main customer.

Most heavy equipment distributors have been trying to diversify deliveries to other sectors, such as infrastructure, agribusiness and forestry, creating neck-and-neck competition.

The sole local distributor of Hitachi brands, Hexindo sold 1,018 units of heavy equipment, including 956 excavators, between April and August this year. The firm sold 1,024 excavators in the same period last year.

Of total sales in the five-month period, 34 percent went to the agribusiness sector, 26 percent to forestry, 20 percent to construction and the remaining 20 percent to the mining industry.

'€œAlthough the market is slowing down, our market share [in excavators] has increased,'€ Syamsu said, adding that the company would maintain its existing customers and would offer improved technology in its products to attract new clients.

According to its report, Hexindo'€™s market share in the excavator market stood at 24 percent as of the end of August this year, higher than its 23.5 percent market share in August last year. It is targeting to control 26.6 percent of the market by the end of next March.

Hexindo reaped US$199 million in revenue between April and August and is targeting to book $561 million by March next year. The March target would be an 11 percent decline from its achievement of $633 million a year earlier.

Hexindo is 48.59 percent owned by Japanese Hitachi Construction Machinery Co., Ltd., 25.04 percent by Itochu Corporation, 5.07 percent by Hitachi Construction Machinery Asia and Pacific Lte., Ltd. and the remaining 21.3 percent by the investing public.

Hexindo'€™s shares traded on the Indonesia Stock Exchange (IDX) under the code HEXA at Rp 3,825 (33 US cents) on Thursday, 2.68 percent higher than the previous day.