Companies

With a local unit, Schwing Stetter hopes to dig deeper, wider the excavator market

G Balachandar Chennai | Updated on April 04, 2021

VG Sakthi Kumar, MD, Schwing Stetter India

Firm delivered 150 machines in Q1 of this calendar itself

Schwing Stetter India, a leading concreting and construction equipment manufacturer, aims at achieving prominent position in the Indian excavator market by setting up of local assembly operations and revival in infrastructure activities.

The company, a 100 per cent subsidiary of Schwing GmbH, a German concreting machinery manufacturer that is part of China’s XCMG group, sold 200 plus units in India despite the impact of Covid-19. The company has been importing and selling its XCMG range of excavators.

In February 2021, the company commenced its new ₹300-crore factory at Cheyyar, about 90 km from west of Chennai, which will become a production and export hub for concrete boom pumps, stationary pumps, self-loading mixers, excavators, wheel loaders, and motor graders, among others.

“Our excavator business has picked up good momentum. We are happy to report that we could deliver 150 machines in Q1 of this calendar itself. We hope to achieve healthy sales in 2021. We sold 200 plus units last year which was impacted by Covid-19,” VG Sakthikumar, Managing Director of Schwing Stetter India, told BusinessLine.

In March 2021 alone, the company assembled 100 excavators, imported as CKD units, at its new Cheyyar factory complex.

Ramping up dealerships

To support the growth in excavator business, the company has set up dealers in all northern states and also some eastern states. It has already established dealerships in southern states, Gujarat and Maharashtra. “We have covered about 17 States and by the end of this quarter we will have pan-India coverage,” he said.

The domestic excavator market is estimated at about 20,000 machines a year and Sakthikumar expects this market to grow by about 50 per cent going forward in view of the huge infra spending programmes.

“The major driver will be the road construction segment. Also, metro rail and bullet train projects, mining segments and new refineries, among others will also spur demand. Excavators will be one of the biggest beneficiaries of high GDP growth,” he said. To further strengthen its product portfolio, Schwing Stetter India will be adding mini excavators, which are extensively used in Kerala.

Sakthikumar said export markets were also reviving and expects to add more markets in its export basket with the commissioning of new plant recently.

Published on April 04, 2021

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