Schwing Stetter India's R&D division has transformed from an internal support unit to a revenue-generating innovation center.
24 Feb 2025 | 3301 Views | By Shahkar Abidi
In the sprawling industrial outskirts of Chennai, the research and development (R&D) division of Schwing Stetter India, a wholly-owned subsidiary of Germany’s Schwing Group, is setting an example for similar divisions in other companies. Once perceived as a cost centre – a necessary but peripheral expense in the larger scheme ...
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In the sprawling industrial outskirts of Chennai, the research and development (R&D) division of Schwing Stetter India, a wholly-owned subsidiary of Germany’s Schwing Group, is setting an example for similar divisions in other companies. Once perceived as a cost centre – a necessary but peripheral expense in the larger scheme of things – the R&D unit has morphed into a profit centre over the past few years.
Through its Global Capability Centre (GCC), it now exports designs to affiliates in the United States and Germany, develops prototypes, and spearheads the launch of internationally market-ready products. This evolution is creating a competitive advantage for the company and contributing to a steady revenue stream. It did not share the finances of the R&D division.
“It is not a cost centre. It is a profit centre,” said Sakthikumar VG, the company’s managing director, in an interview with Autocar Professional. He added that the R&D department, formerly limited to serving as a design hub, is now officially recognised as a dedicated research entity under the central government.
The shift is more than administrative. Sakthikumar outlined a strategy to integrate the R&D division into Schwing Stetter’s global framework. The company is recruiting top talent already— including postgraduate engineers from institutions such as IIT Madras, VIT, and SRM Institute of Science and Technology.
The partnerships with the academic heavyweights, he noted, are the backbone of an ambitious effort to inject fresh ideas and cutting-edge technology into the construction equipment industry. At its heart, the division’s focus remains on sustainability. “We are working to make construction sites more energyefficient and environmentally responsible, with reduced carbon footprints,” Sakthikumar said.
While the buzzwords of green technology are ubiquitous in corporate speak, the initiatives here appear tangible—whether through research on advanced materials to extend components’ lifespans or experiments in artificial intelligence to streamline equipment operations.
Currently staffed by a team of 70, the R&D division plans to scale up to approximately 200 employees by 2025. According to Sakthikumar, the scope of research extends beyond electric vehicles (EVs) to encompass material science and other emerging domains. “We are doing a lot of research, not only on the EV side in terms of fuel but also on how to improve the life of components,” he said.
This push for innovation is underlined by a plan to complete at least ten design patent filings and registrations in 2024, as part of the division’s growing role as an incubator for intellectual property. These efforts, the company reveals, are closely tied to Schwing Stetter India’s expanding export operations, which serve the SAARC region, Europe, Africa and ASEAN countries, as well as intercompany transactions.
Machines That Speak
In the increasingly interconnected world of industrial machinery, Schwing Stetter India seems to be fast adopting advanced technologies. With its roots in the construction equipment sector, the company is now focused on integrating digital tools to streamline operations and improve efficiency. One of Schwing Stetter’s most significant strides lies in its adoption of cloud-based solutions.
By implementing APIs (Application Programming Interfaces), the company has created digital bridges between its systems and thirdparty ERP (Enterprise Resource Planning) platforms like Oracle and SAP B1, along with custom software tailored to specific clients. For industries reliant on precise coordination of resources, these APIs provide seamless communication between disparate systems, automating workflows for tasks such as inventory tracking and production scheduling.
This shift not only reduces manual intervention but also minimises errors—an essential advantage in large-scale operations. Beyond the cloud, Schwing Stetter has delved into the Industrial Internet of Things (IIoT)—a network of machines outfitted with sensors to transmit and analyse real-time data. In practical terms, this means that equipment once regarded as static tools now offers predictive insights to operators, allowing for smarter and safer use.
Take Reach Stackers, for example: these massive vehicles, designed for handling shipping containers, are now equipped with IIoT capabilities, enabling real-time performance monitoring. Similarly, Horizontal Directional Drilling (HDD) machines, essential for underground construction, leverage IIoT to optimise drilling efficiency, with embedded sensors providing detailed feedback on operational metrics.
Meanwhile, piling rigs, used to drive foundations into the ground, benefit from IIoT's predictive maintenance features, which reduce downtime by alerting operators to potential mechanical issues before they escalate. In the world of batching plants, which mix concrete for construction, Schwing Stetter has introduced several sophisticated upgrades.
One example is Wert100, a control system designed for smaller capacity batching plants, offering precision tailored to compact projects. For larger and more versatile needs, the company rolled out Schwing i-Soft, a SCADA (Supervisory Control and Data Acquisition) system that allows operators to oversee and manage machinery remotely, streamlining workflows and reducing manual supervision.
Adding to this digital ecosystem is Schwing Voice Assist, a voice-command feature that lets operators control batching parameters hands-free—a noteworthy step toward safer job sites. On the hardware side, Schwing Stetter upgraded traditional load cells with digital load cells powered by CANBUS technology. Commonly used in the automotive industry, CANBUS ensures faster and more reliable communication between machinery components, translating into more accurate weight measurements during concrete production.
Likewise, in the Self-loading mixers (SLMs), vehicles that independently load, mix, and discharge concrete, have also seen a wave of refinements. Schwing Stetter improved the reliability of load-cell-based weighing systems, which are crucial for precise material measurements.
Complementing this upgrade is the introduction of optimised flow metres, designed to accurately measure liquids like water and chemical admixtures, ensuring consistent concrete quality. For boom pumps—the machines that deliver concrete through long, adjustable arms—and articulated water towers (AWTs), Schwing Stetter has focused on enhancing usability and operator safety. New radio remote control systems, designed specifically for domestic markets, simplify operations by offering more intuitive controls. A one-touch boom close system, meanwhile, lets operators retract the arm with minimal effort, reducing the physical strain and time required.
The company also developed an alternate remote control with a colour display, giving operators clearer, more detailed feedback during use. The implementation of Smart RPM Control, which adjusts the engine speed based on operational demand, adds another layer of efficiency by optimising fuel consumption.
On the security front, Schwing Stetter introduced a biometric access control system, ensuring that only authorised personnel can operate critical machinery. Finally, a wireless camera system, integrated with a mobile app, allows operators to monitor the hopper—where concrete is fed into the pump—in real time, ensuring uninterrupted workflow and better quality control.
New Launches and Variants
Schwing Stetter launched 16 new products and 14 variants in 2024, as it sought to address gaps in its product portfolio and cater to specific customer needs. The new launches span all five segments in which the company operates, with a pronounced focus on concreting equipment—a segment that generates 56% of the firm’s total revenue.
In 2023, the company introduced 25 new products and variants. Sakthikumar VG noted that the company’s expansion aligns with the company’s strategy to identify and capitalise on market gaps in India’s construction equipment landscape. "We are playing a major role in identifying the gap in the Indian industry across all five areas where we can accelerate progress with specific imported machines in the short term," said Sakthikumar.
He added that the company’s longterm goal is to localise manufacturing as demand scales up, reinforcing Schwing Stetter’s commitment to being a leader in all the segments it serves. The planned product launches follow a period of robust financial performance for Schwing Stetter India.
The company posted a net profit of Rs 106.89 crore in 2023, a 30.5% increase from Rs 81.90 crore in 2022. Revenue surged by 37.7% to Rs 5,395.77 crore, compared to Rs 3,919.26 crore in the previous year. With a focus on cutting-edge technologies such as AI, electrification, and sustainable material science, combined with a strong pipeline of new products and variants, Schwing Stetter is now aiming to strengthen its technological edge and play a greater role in its global field of work.