CNH Industrial's subsidiary company officials expect India to contribute 70%-80% towards exports.
22 Jan 2024 | 6472 Views | By Shahkar Abidi
Case Construction Equipment is shifting gears in India and aiming to significantly ramp up exports from its local manufacturing plant. The company's top brass told Autocar Professional that they expect 70%–80% of production at the facility to be destined for overseas markets within the next three to five years. This ...
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Case Construction Equipment is shifting gears in India and aiming to significantly ramp up exports from its local manufacturing plant. The company's top brass told Autocar Professional that they expect 70%–80% of production at the facility to be destined for overseas markets within the next three to five years. This is a substantial jump from the current 50% share.
Underscoring the importance of India as a manufacturing footprint for the company's global exports, Alexander Markov, Vice President, Construction Segment, CNH Industrial, APAC, and AMEA said that currently around 50% of what CASE produces in the Pithampur plant, in Madhya Pradesh is exported. He expects this to increase to 60% in the next year. “So, within the next three to five years, I expect India to contribute 70–80% towards exports," Markov said, emphasising the importance of India in its overall business strategy.
Offering a glimpse into top management’s thinking regarding India, Markov highlighted that the company will look to further invest in India and increase its production capacity in the country, both for the domestic market and for markets outside.
Company officials said that manufacturing local and export items on the same production lines has allowed the company to boost productivity while maintaining quality requirements. The Pithampur production facility has been a prominent participant among the brand's eight manufacturing centres worldwide for over three decades. It is built on 40 acres of land and has been critical to exporting machinery internationally.
Talking about the Indian market, Shalabh Chaturvedi, Managing Director, CASE Construction Equipment, India and SAARC, emphasised that the Indian construction equipment market is expected to grow by 18–20% this year compared to last year. “And we are in sync with the industry,” noted Chaturvedi, who expects the growth momentum to continue next year with the tailwinds in infrastructure project momentum and some likely disturbances in the first quarter of the next fiscal year on account of the upcoming general elections.
The company added that the aftermarket segment is growing rapidly in India as the focus on time has increased for projects. This has made machine uptime more important. He continued that the customers now need AMCs, annual maintenance contracts, service assurance, and spare parts assurance to ensure higher machine uptime and deliver projects faster.
A subsidiary of CNH Industrial, Case has been present in India since 1989 and boasts of being a market leader in the vibratory compactor segment and a leading player in the backhoe loader segment. With its manufacturing facility in Pithampur the company also exports to over 105 export markets in addition to meeting the needs of its domestic market. The company offers a full line of construction equipment globally. The company recently entered into two new categories in the domestic construction equipment market with the launch of six new products at the Excon-2023, a trade fair that was held in Bengaluru in December.