Construction Equipment Sector Sees Top Gear Domestic Sales
<span style="font-weight: 400;">The pandemic year has turned out to be a top gear one for the construction equipment segment which is riding on the government infra spend to see a more than 15% year-on-year rise in domestic sales volumes in FY21 and a doubling of sales in Q1FY22 compared to last yea
Published -
Aug 16, 2021 4:34 AM
The pandemic year has turned out to be a top gear one for the construction equipment segment which is riding on the government infra spend to see a more than 15% year-on-year rise in domestic sales volumes in FY21 and a doubling of sales in Q1FY22 compared to last year. Global players like Heungkuk India and Daechang Forging Company, both from Korea, are setting up new plants in Pune and Chennai while local manufacturer Dozco India, as part of an Italian JV, has invested in Vizag. The combined investment is around $30 million between these three, said Dimitrov Krishnan, president ICEMA (Indian Construction Equipment Manufacturers Association). The new names apart, existing manufacturers including JCB and Schwing Stetter are also planning fresh investments. “We are putting up our new factory in Vadodara for Rs 650 crore and this project is going ahead and will be commissioned early next calendar year,” said Deepak Shetty, chief executive officer (CEO) & managing director (MD), JCB India. Schwing Stetter is setting up a new Rs 300 crore factory in Cheyyar in Tamil Nadu and also putting in place an R&D centre in the state with a focus on domestic as well as export business. Companies say the capex is part of the industry’s 10-year action plan to grow this segment even though current capacity utilisation is around 65%. The capacity build up is also for exports with companies like JCB, Schwing Stetter, Caterpillar, Volvo, Hitachi and others all exporting out of India though in small numbers.
Tags : ALLIED construction Sales Top domestic Equipment Sector