Targets roads, mining sector to boost volumes
Hyundai Construction Equipment India is set to expand its product portfolio as it seeks to become the second largest excavator business in the country in less than four years.
“We commissioned our plant in Chakan in November 2008 and began marketing products in 2009. In less than four years we have a market share of over 18.3 per cent and are seeking to become the No. 2 player in the segment by next year," Dheeraj Panda, Head Marketing, said.
Tata Hitachi is the market leader, followed by L&T Komatsu and Hyundai.
Hyundai Construction Equipment India is part of the $25-billion subsidiary of the Korean major Hyundai Heavy Industries. The construction business in India is part of its $2.5-billion equipment arm.
"The construction industry, roads in particular and the mining sector, both large consumers of excavators, are likely to boost volumes next year. Therefore, we are rolling out new products which will help grow numbers," he said.
The company invested Rs 400 crore in the Indian manufacturing facility and has managed to localise 45-50 per cent of its components in the 8-tonne to 34-tonne capacity. The larger 50- to 80-tonne excavators made in other manufacturing facilities are sold in India, he said.
He told Business Line, “The excavator business witnessed overall sales of 14,700 units in 2011 and Hyundai sold 2,034 units. We have crossed 2,086 in 10 months so far and expect to close at 2,500 with a growth rate of 23-24 per cent as against the industry which is likely to show marginal de-growth.”
The market is beginning to get crowded with more manufacturers, including one from Caterpillar. Hyundai is in the process of rolling out new 9 series of excavators, including long-range excavators.
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