Caterpillar to expand Indian operation

Chennai: Global construction and mining equipment major, the $45-billion Caterpillar Inc announced $200 million investment at its Indian operations to increase capacity of its off-road vehicles, engines and also to set up a greenfield facility to make backhoe loaders.

Caterpillar India’s spokesperson, Mr Ramkrishna Subbaraman, said that the investment would be spread through a four-year period focussing on three elements. First, the investment on enhancing capacity of 3508 engine, which is manufactured at its Hosur facility, is to make it as part of Caterpillar Inc’s global sourcing network. Besides catering to its plant in Thiruvallur, the engines will be exported to Caterpillar’s facilities across the globe. Though he did not put a number, he said, “it will be substantial.”

Second, the company will invest at its Thiruvallur plant to increase capacity. At present, the plant makes two off-road vehicles, 773 (60 tonne) and 777 (100 tonne). The investment would go specifically to increase capacity of the 777-model, for Caterpillar to source for its global requirements. The immediate market for this model will be Southeast Asian countries.

Eventually it will also increase process capabilities of the plant to make higher tonnage vehicles of up to 200 tonnes. In the offing would be 783 with a capacity of 150 tonnes, he said.

Third, the investment will be for setting up a greenfield facility to make backhoe loaders, primarily for the domestic market. At present JCB is the market leader and companies such as like Komatsu, Telcon and, Terex Vectra are also manufacturing backhoe loaders.Caterpillar’s plan to set up another dedicated facility is to leverage huge potential in the domestic market and increase sizeable market share.