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Tata Hitachi to invest Rs 2 billion in manufacturing plants for FY25
Industry News- Jul 03,24
The company, a 40:60 joint venture between Tata and Hitachi of Japan, aims at ramping up localisation levels to 70% over the next 2-3 years
Tata Hitachi Construction Machinery announced that it would invest Rs 2 billion in its two manufacturing plants to stay ahead of the curve in quality, innovation and localisation. The company, a 40:60 joint venture between Tata and Hitachi of Japan, aims at ramping up localisation levels to 70% over the next 2-3 years, said Sandeep Singh, Managing Director.
The company plans to produce 60-tonne dump trucks in India, leveraging technology from Hitachi Canada, primarily used for the mining industry, he said.
Additionally, the company intends to introduce more models in India as part of the 'Atmanirbhar' (self-reliant) policy started long back, the official said.
"We will invest a total of Rs 2 billion in our two plants in West Bengal's Kharagpur and Dharwad in Karnataka. This will help us stay at the forefront of innovation and increase self-reliance (Atamnirbharta) to 70% in 2-3 years from the current 65% ," Singh said.
The company is celebrating its 40th anniversary of the partnership between the Tata Group and Japan-based Hitachi.
Singh emphasised that localisation is an on-going process and crucial for cost control.
He stated that the Kharagpur plant is the largest excavator plant in southeast Asia with an investment of Rs 11 billion.
The total cumulative capital expenditure, including Dharwad, will be Rs 20 billion, the company official said.
Singh expressed optimism about the upcoming Union budget, expecting a boost to infrastructure development, which will drive demand for equipment in the second half of the year.
"We hope the budget maintains its focus on infrastructure. The growth is expected to remain flat this fiscal," Singh said.
The first half of the fiscal was down due to elections and monsoon.
The market size of excavators is approximately 125,000 units, with Tata Hitachi commanding a 24% share, he said.
Despite pressure from Chinese imports, the company aims at 8% revenue growth.
In FY'24, the company achieved revenue of around Rs 50 billion, with both plants operating at 75-80% capacity.
(Source: ET)
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