Caterpillar is poised for a strong growth phase in India as it leverages the local supply chain and R&D capabilities along with a wider after-sales support base.
A senior company official said the evolving Indian mining and construction market and changing customer requirements augur well for Caterpillar, a strong player in this space, to achieve better growth.
“The Indian construction equipment industry is totally different from what it was 5-10 years ago. There are lots of activities at the ground level now. With 20 per cent-plus growth every year, industry is providing a lot of opportunities. The future is favourable and makes us to up the game,” John Fallows, Managing Director, Asia-Pacific, Global Construction and Infrastructure, Caterpillar Asia told
With a strong growth outlook, Caterpillar has a new strategy in place to address the market here.
“We have changed the game. In the last few years, we have decided to leverage Indian supplier base and local development capabilities. With this renewed focus and commitment, we can win in India,” said Giacomo Bottone, Worldwide Medium Excavator Product Manager, Caterpillar Inc.
Though it exports India-built heavy trucks to some Asian countries, the management has decided to focus more on growing the business in India in the near term. The company has so far invested around ₹ one billion in Indian operations which comprises six factories and two technology centres.
“The capacity we have in India will be adequate to support the growth for the next two years and we may take a call on further expansion during the next 18-months,” said Bottone. Caterpillar has a strong presence in product categories such as back hoe loaders, wheel loaders, dumpers and dozers in India, which is its second-biggest market in Asia.
To strengthen and grow its sales and share, Caterpillar introduced next-generation 320D3 and 323D3 excavators with 80 per cent localisation. These machines promise up to seven per cent more hydraulic power, 15 per cent increased productivity, 15 per cent lower fuel consumption and five per cent lower maintenance costs.
“The 20-tonne-plus excavator segment is a real sweet spot for the industry as it accounts for about 80 per cent of the category,” said Gurman Reen, Director - Sales & Marketing Caterpillar India. “We have been growing faster than the market in last two-three years. The intention is to grow faster than the market for these two products too,” he added.