Japanese construction equipment manufacturer Kobelco Construction Machinery today inaugurated its ninth global facility at Sri City Special Economic Zone, about 90 kms from here.
Kobelco Construction Equipment India (KCEI) is a joint venture between Kobelco Construction Machinery and the ITOCHU Group. Kobelco holds 95 per cent stake in the entity.
The company with a sales of Rs 112.6 billion (in 2009) currently has manufacturing facilities at eight locations worldwide, its officials said.
The Indian plant inaugurated today is spread across 68,000 square meters at Sri City
SEZ in Tada. It would help the company to meet the growing demand in the Indian market.
"We entered India in 2006 and have 16 offices here.. In 2009,
we decided to set up our factory in India," Kobelco Construction Equipment India Managing Director and CEO Vikram Sharma told reporters here.
According to him, the Indian market demand for excavators grew by 40 per cent from 7,650 units in 2009 to 10,742 units in 2010.
He said for the new facility the company had invested Rs 70 crore so far. "It is expected to cross Rs 100 crore."
"The plant will have a capacity to produce 1,200 units of excavators including 20 tonne hydraulic excavators..", he said and added they would also manufacture 14 tonne and 35 tonne excavators from the plant.
According to Kobelco Construction Equipment India Plant operations-Director Takeshi Akiyama the plant would initially produce 600 units which would be doubled by end of 2012 end.
The capacity of the plant can also be increased to 2,400 units which according to him was likely to happen after 2014.
The products from the plant would have 50 per cent localisation as majority of the components like engine, electronics would continue to be imported from Japan and Thailand, he said.
However, over the years the localisation level would increase to 65 per cent, he said.
Sharma later said they sold over 400 units last year and this year they were expecting to double it. The company also proposed to double the investments in the second phase.
On exports, he said they would initially look for the domestic market. However, he remained affirmative saying it would also be considered for exporting to "neighbouring countries" in future.
Kobelco Construction Equipment India currently has 52 outlets and 16 company offices across the country.
Source : indiaeveryday.in