Construction equipment manufacturer Tata Hitachi expects 15-20 per cent growth in revenues and expects to close the current financial year with a turnover of ₹4,500-5,000 crore backed by a steady demand from mining and infrastructure sectors. The company had clocked revenue of close to ₹4,000 crore during FY22.
According to Sandeep Singh, MD, Tata Hitachi Construction Machinery Company, the growth in volume terms is expected to be slightly lower at around 10-12 per cent, while value growth is likely to be close to 15-20 per cent during the current fiscal, as it comes more from the high value mining equipment. While the overall infrastructure sector is growing at around 12-15 per cent, the growth in the mining sector is close to 20-25 per cent.
“Mining currently accounts for around 8-10 per cent of our business in volume terms and in value terms it is close to 15-20 per cent. We expect the share of mining to go up to 15 per cent in volume terms over the next three years,” Singh told businessline on the sidelines of the Global Mining Summit (GMS) and International Mining Machinery Exhibition (IMME) organised by CII in partnership with Ministry of Mines and Coal here on Thursday.
Focus on mining
The mining industry has been witnessing a steady traction in demand over the last two years and the momentum is likely to sustain. The company is looking to enter into newer product segments such as dump trucks to cater to the demands of the mining industry.
“Mining will be an enhanced focus area for us,” he said.
Focus on exports
Tata Hitachi, Singh said, is working on growing exports in some of the existing markets as well as in newer geographies. Exports currently account for around seven per cent of its total business.
The company exports mainly to Sri Lanka, Nepal and Bangladesh and the exports have been coming down in recent times due to certain issues in some of these countries. There is a growing demand for construction equipment in the African countries and in the Middle East and it is looking to tap into the demand.
“The share of exports should increase to close to 10 per cent of our total business in the next three years,” he said.