The Hindu Business Line : Terex Vectra Equip. invests $12 m in Indian facility

Mr Ron DeFeo, Chairman, President and CEO, Terex Corporation (left), and Mr R.K. Rishi, Chairman, Vectra Group, at the launch of Terex Vectra's construction equipment in the Capital on Monday. — Kamal Narang

New Delhi , May 3

CONSTRUCTION equipment maker Terex Vectra Equipment today announced the launch of its Indian operations and said that it has made an initial investment of $12 million (around Rs 53.4 crore) for this.

Terex Vectra Equipment, a 50:50 joint venture between US-based Terex Corporation and Vectra of the UK has set up a greenfield facility in Greater Noida near Delhi to make a range of construction equipment, Mr Ronald M. DeFeo, Chairman and CEO of Terex Corporation said at a press conference today.

"We are targeting to have a 10 per cent market share in the first two years of operations in India. The Indian market holds tremendous potential with a fast growing economy and increased infrastructural development. In fact, we have pinpointed India along with China and Russia as countries which hold the biggest growth opportunities," he said.

To begin with the company would make vibratory loaders and skid steer while two more products - vibratory compactors and midi excavators - will be available by the year-end. The backhoe loader market is estimated at 5,000 units annually.

Meanwhile, Mr DeFeo did not rule out the possibility of making India an export hub for neighbouring countries. "In fact, the facility may even export finished goods to the US and Europe. This would however happen at a later stage," he said. For now, Terex is scouting for component suppliers in India to outsource components such as hydraulic cylinders for its overseas facilities.

A $4 billion (around Rs 17,808 crore) company, Terex is the world's third biggest construction equipment maker. Its joint venture partner in India, Vectra, is a $1 billion (around Rs 4,452 crore) British firm promoted by NRIs.

Vectra operates in India through Tatra Trucks, Vectra Azad, Vectra Advanced Engineering and Global Helicopters. Both Vectra and Terex are also joint owners in Czech truck maker Tatra with 11 per cent and 81 per cent equity respectively.

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