The Hindu Business Line : Japan's Kobelco makes its entry with excavators

While the offices in Noida and Chennai would serve as hubs, the latter would also initially serve as a sub-assembly line and a warehouse for spare supplies.

Hyderabad April 30 Japanese construction equipment major Kobelco, part of Kobe Steel, has announced its entry into India with the rollout of excavators used in construction work.

The company was in the process of evaluating option of locating a manufacturing base in India to be more competitive.

Kobelco Excavators started its marketing operations with the roll out of hydraulic excavators, through Kobelco Construction Equipment India, a joint venture between Itochu Corporation and Kobelco Machinery Corporation of Japan.

The Executive Director of Kobelco, Mr Kenji Sakamoto, said "The Indian infrastructure sector was witness to boom times and major investments in areas such as roads, airports, seaports and power sector driving the market for construction equipment.

"With the demand set to go up in a few years, Kobelco has ventured into India bolstering sales and service in the country."

Two centres

The company has set up two centres in India and appointed about 18 dealers within two months of forming the company.

While the offices in Noida and Chennai would serve as hubs, the latter would also initially serve as a sub-assembly line and a warehouse for spare supplies. Work on Chennai facility is advanced stage.

Market situation

Addressing a press conference here, the President and Chief Executive Officer of Kobelco, Mr Vikram Sharma, said "the Indian market accounted for about 7,000 units of equipment last fiscal and was growing at a rapid pace.

"Given the promise within the market, we plan to set up a manufacturing base. While the current focus is on CKD (completely knocked down) kits, we have commissioned a study for a new manufacturing plant."

"Apart from various aspects of manufacturing, the location is being evaluated from the point of view of either be a port town or where there is a large vendor base.

Given the potential in the market and our aggressive plans to expand base in India, the manufacturing plant will be crucial for Kobelco," Mr Sharma said.

Announcing a tie up, the Executive Director of the Rs 2,500-crore Automotive Pvt Ltd, Mr Rajiv Singhvi, said that Andhra Pradesh is one of the fastest growing markets in terms of construction related work and there is huge potential for excavators.

Automotive has been entrusted with a mandate to serve Andhra Pradesh and Orissa.

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