India may be export hub for Caterpillar equipment.

Caterpillar has said that its Indian operations have become a key part of its global production network now, as local operations have turned international. While the world’s leading construction and mining equipment maker has made over half a billion dollar investments including the recent one of $212 million, in the past four years in a bid to achieve leadership position in the Indian mining and construction equipment market, it is also charting plans to serve other markets from India.

“We are quite proud of the significant transformation we have seen in Indian production. Until 2006, everything made here was meant for the local market, but after that it graduated to ‘Build in India for export markets’ and majority of Indian production are being exported now,” Kevin R Thieneman, president, Caterpillar Asia told Financial Chronicle. The company’s engine plant (Hosur) and mining truck operations (Thiruvallur) in Tamil Nadu export over half their production. While locally-produced engines are being shipped to various markets such as the US, Europe and Asia, India-built heavy mining trucks are exported to Asian markets as also Africa.

The company has been making significant manufacturing investments in India since 2008 to grow its presence in the country as also serve the demand in other growth markets. With the latest investments of $212 million in new engine unit and off highway truck capacity expansion, the total investments made in India in the past four years touch $520 million. These large investments come on the back of strong growth potential in infrastructure and mining projects in India over the long term. “About 2/3rd of India’s energy is sourced from coal and we expect the number of coal-fired power plants to double by 2017. This will drive the equipment demand significantly,” he stated.

Of the latest $212 million investments, $150 million is being spent on establishing a manufacturing unit in Aurangabad in Maharashtra to produce Perkins brand of 4000 series engines for electric power applications. This will be the first facility outside the UK for such engine series and about half of the production will be exported.

Caterpillar has just launched a dedicated production unit for back hoe loader, a widely used construction equipment in India, with increased capacity at its Thiruvallur operations. “Our aim is to become a strong number 2 brand after JCB in back hoe segment,” Thieneman said.

Source : mydigitalfc.com