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Caterpillar to increase sourcing from India

Our Bureau

New Delhi , Oct. 15

CONSTRUCTION equipment major Caterpillar Inc plans to increase sourcing of products from its Indian subsidiary as part of its strategy.

``We plan to sell our products produced at Indian units in global markets. Also, we have already commenced the supply of components and services to other Caterpillar subsidiaries elsewhere. The trend is expected to grow further in the future," Mr Graham J. Lythgoe, India Region Director, Caterpillar Commercial Private Ltd said at the launch of its `424 Series' Backhoe Loader here.

However, the major focus now for the company would be to strengthen its position further in the Indian market. "There is a tremendous opportunity for growth in India, particularly in the backdrop of the on-going highway development Golden Quadrilateral project. The Indian market is of strategic importance to us along with the markets of China, Russia and CIS countries," Mr Lythgoe said.

The Indian construction market is estimated at about 7,000 units and growing at about 6-8 per cent per annum.

Apart from backhoe loaders, the company produces products such as off highway trucks, wheel loaders and track-type tractors at its facility near Chennai, which it acquired from Hindustan Motors - Earthmoving Equipment Division.

Caterpillar also has a unit near Bangalore, acquired from Hindustan Powerplus, which makes engines and generators.

The company had earlier this year announced its intention to acquire outstanding shares in its diesel engine joint venture, Hindustan Powerplus Ltd. Domestic competitors for Caterpillar include Komatsu, Hitachi, Volvo and JCB.

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