Schwing Stetter draws up ₹400 cr expansion, targets ₹5000 cr plus topline in 2023.

Schwing Stetter India is preparing to invest about ₹400 crore in a capacity expansion programme, which will also include setting up a greenfield unit, as the leading concreting and construction equipment manufacturer is bullish on future growth prospects due to massive infrastructure development projects in the pipeline.

The company, a 100 per cent subsidiary of Schwing GmbH, a German concreting machinery manufacturer that is part of China’s XCMG group, came out strongly after the impact of Covid and recorded an average growth of 55 per cent in the past couple of years.

“This year, we expect to grow by about 30 per cent and this a conservative estimate,” V G Sakthikumar, Managing Director of Schwing Stetter India (SSI) told businessline .

SSI, which will be completing 25 years in India this year, will be investing about ₹100 crore in its Cheyyar factory, the company’s fifth factory located about 90 km west of Chennai, and about ₹300 crore in a new greenfield factory to increase the capacity of some of the existing products as also to start manufacturing of new products such as XCMG loaders, motor graders (earlier imported and sold here), which are targetted at road and mining application areas. For export markets, it will also start making concrete pumps. “The company will be requiring 40 acres of land for the proposed new factory,” he said.

SSI’s revenue dropped from ₹2,050 crore in 2018 to ₹1,700 crore plus in 2019 and ₹1,500 crore plus in 2020 as a result of a halt in construction activities due to the pandemic. But it bounced back strongly in 2021 and revenue grew better than pre-Covid level to ₹2,552 crore.

HBL