Caterpillar, the U.S.-based construction equipment giant, is set to strengthen its presence in Tamil Nadu with an investment of ₹500 crore. This expansion will focus on enhancing production capabilities at its facilities in Tiruvallur and Hosur. The investment was formalized through a Memorandum of Understanding (MoU) in the presence of Tamil Nadu Chief Minister M.K. Stalin during his Chicago visit.
Caterpillar, a key player in the backhoe loader segment, has seen substantial growth, with backhoes making up over 50% of the country’s construction equipment volumes. Industry estimates show that backhoes accounted for 51.4% of total volumes in FY24, a rise from 41.9% in FY23, driven by infrastructure development projects across India.
The Indian construction equipment industry experienced strong double-digit growth in FY23 and FY24, fueled by large-scale infrastructure development projects across the country. The government’s continued emphasis on infrastructure expansion, supported by significant financial investments, is expected to further drive the industry’s growth.
Caterpillar, with global revenue of $67 billion, has established a strong presence in India through its multiple manufacturing plants, R&D centers, and support organizations. The company operates five manufacturing facilities in India, located in Tiruvallur and Hosur in Tamil Nadu, and Aurangabad in Maharashtra.
Caterpillar Facilities in Tamil Nadu
Caterpillar’s Tiruvallur plant operates two key divisions: the Machines Division, which manufactures off-highway trucks, mining trucks, hydraulic excavators, and motor graders, and the Building Construction Products (BCP) Division, focused on backhoe loaders and skid steer loaders.
The Hosur facility houses the Industrial Power Systems Division (IPSD) and the Small Drivetrain-Building Construction Products (SDT-BCP) Division. These units produce engines under the renowned Cat and Perkins brands, as well as generator sets ranging from 400 to 2250 kVA. The facility also manufactures transmissions and drivetrains used in various heavy machinery, such as backhoe loaders and telehandlers.
Caterpillar’s plant in Aurangabad specializes in the production of the 4,000 and 5,000 series engines, which are critical components for a wide range of industrial applications. Across its Indian operations, Caterpillar employs over 7,300 people, with an additional 4,000 employed by its dealers.
