A crane is a large machine used to move, lift and lower objects through a projected arm. Cranes are generally
equipped with chain hoists, wires, ropes, beams, etc., for material handling requirement. Industrial cranes, which

are used in general material handling and manufacturing, comprise overhead (including electric) and mobile
cranes.

Industrial cranes can be used for various purposes and provide cost economies in material handling. Some of the
typical uses include: heaping, loading-unloading, shifting, repositioning and erecting material. Other large cranes,
such as rough terrain, crawler, and tower cranes, are used in heavy duty work.

A hoist is a critical component of cranes, which enables handling of freely suspended objects. Typically, cranes
are installed with a hoist depending upon the load requirements. A few industrial cranes are also installed with
two hoists (less than 5%), to enable broader load ranges. Regular hoists that are fitted to industrial cranes are
classified into chain hoists, which have lower load range (up to ~3 tonne), and rope hoists, which can handle
heavier loads. These hoists comprise more than 80% share of the industrial cranes market.

Classification of cranes (and hoists) industry

Chain hoists
Hoists

 

Rope hoists
lorretyT

 

Ready crane kits

 

Source: Industry, CRISIL Research

Market size

Industrial cranes are sold by crane makers who buy crane parts such hoist, wheel blocks, LT panels, etc. separately,
assemble them to form a complete structure and sell. Hoists cost 30-40% of the overall crane pricing. They are
sold through dealers, which include crane makers, annual maintenance contract /replacement dealers. The life of
a hoist is 3-5 years, after which it is generally replaced by the end users. This is facilitated by hoist dealers. Some
30-35% of annual sales of hoists is on account of replacement demand, while the rest is for manufacturing of new
cranes.

According to CRISIL estimates, the hoist market in India was Rs 6-8 billion as of fiscal 2020. Among hoists,
chain hoists account for ~Rs 1-2 billion (one-fourth, in value terms), while rope hoists account for ~Rs 5-6 billion
(three-fourths). Unit-wise requirement of chain hoists is higher as they have a lower replacement cycle (3-5 years),
compared with rope hoists (and ready crane kits), which are usually replaced after 5-7 years.

Market for cranes (and hoists)

 

5-7% 24-26
——$§$<$<$<$_ >’
20 20
18-19
FY19E FY20E FY21E FY24P.

Hoists Other crane parts

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