"Hycom Engineering Sets ₹115 Crore Revenue Target for FY29"

Hycom Engineering, a precision manufacturer and supplier for industry leaders like JCB, Bobcat, and John Deere, has set an ambitious revenue target of ₹115 crore by FY29, aiming to more than double its FY24 revenue of ₹50 crore.

To achieve this, the company is exploring the establishment of a third facility in Bidadi, with an estimated capital expenditure of ₹100 crore. Currently operating two plants in Peenya with an annual capacity of 40,000 units, Hycom plans to double production to 80,000 units by FY29. The proposed plant is expected to generate direct employment for 250 people, said M Seethapathy Rao, Chairman and Managing Director of Hycom Engineering.

Hycom holds a dominant position in the domestic market, with a 75% share in swivel joints and a 100% share in rotary actuators. Globally, it currently commands a 2-3% market share but aims to increase this to 15% over the next 3-4 years.

Rao attributed the growth to the expanding construction equipment market, valued at approximately ₹68,000 crore in 2023. He highlighted India’s growing prominence as a manufacturing hub, driven by the global shift towards a China-plus-one strategy and efforts to reduce reliance on a single country. This shift has spurred 10-15% year-on-year growth in India’s manufacturing sector, projected to reach ₹1.5-2 lakh crore by 2030.

To capitalize on these trends, Hycom is focusing on exports, alongside catering to domestic demand. Currently, exports contribute 15-18% of its revenue, and the company plans to raise this share to 35-40% by FY29.

Key export markets for Hycom include North America, Europe, Japan, and China, with a strategic focus on the USA and Europe due to strong demand. While Canada remains a smaller market, the company has initiated collaborations with Japanese OEMs, though these efforts are still in their early stages.

Founded in 2010, Hycom Engineering specializes in manufacturing swivel joints and rotary actuators for construction, material handling, and access equipment. Its clientele includes global giants like Hyundai Construction Equipment, CNH Industrial, Sany, XCMG, Volvo Construction Equipment, Doosan, and Wacker Neuson.

HBL