Tata Hitachi Construction Machinery announced plans to invest Rs 200 crore in its manufacturing plants. This investment aims to improve quality, innovation, and localisation. Tata Hitachi, a joint venture between Tata and Japan’s Hitachi, wants to increase localisation to 70% in the next 2-3 years, said Managing Director Sandeep Singh.
The company plans to produce 60-tonne dump trucks in India using technology from Hitachi Canada, mainly for the mining industry. They also plan to introduce more models in India under the ‘Atmanirbhar’ (self-reliant) policy.
“We will invest Rs 200 crore in our plants in Kharagpur, West Bengal, and Dharwad, Karnataka. This will help us innovate and increase self-reliance to 70% in 2-3 years from the current 65%,” Singh said.
Tata Hitachi is celebrating its 40th anniversary with Hitachi. Singh stressed that localisation is essential for controlling costs. The total capital expenditure, including Dharwad, will be Rs 2,000 crore.
Singh is hopeful about the upcoming Union budget, expecting it to boost infrastructure development, which will increase demand for equipment in the year’s second half. He noted that the first half of the fiscal was slow due to elections and the monsoon.
The market size for excavators is around 1.25 lakh units, with Tata Hitachi holding a 24% share. Despite competition from Chinese imports, the company aims for 8% revenue growth. In FY’24, Tata Hitachi achieved revenue of about Rs 5,000 crore, with both plants operating at 75-80% capacity.
