The construction equipment maker expects its total revenue to grow by 20% in CY25.
17 Dec 2024 | 2571 Views | By Yukta Mudgal
Schwing Stetter India, the wholly-owned subsidiary of German construction equipment maker Schwing Group, is eyeing a robust double-digit growth in its export revenue next year, surpassing the Rs 200 crore mark, according to a senior company official.
“We are working on projects internally, engaging with customers, and onboarding new ...
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Schwing Stetter India, the wholly-owned subsidiary of German construction equipment maker Schwing Group, is eyeing a robust double-digit growth in its export revenue next year, surpassing the Rs 200 crore mark, according to a senior company official.
“We are working on projects internally, engaging with customers, and onboarding new dealers from various countries which will give us results by next year and we will be able to increase our export sales by 30-40% to over Rs 200 crores in CY25,” said Madhavan Padmanabhan, Assistant General Manager, Commercial at Schwing Stetter India Pvt Ltd.
Schwing Stetter India manufactures a range of concreting equipment, including batching plants, concrete pumps, truck mixers, recycling plants, plastering pumps, and self-loading mixers.
In 2024, the construction equipment company expects its total revenue to be around Rs 5,600 crore, representing a 5% year-on-year growth. Exports during the year is projected at Rs 150 crore.
Schwing Stetter has set a target of doubling the overall revenue to Rs 12,000 crore by the end of the decade, and expand it further to Rs 25,000 crore by 2037.
The company believes favourable macroeconomic conditions, along with increasing infrastructure investments globally. Large investments under the government’s National Infrastructure Pipeline is likely to spurt the growth.
The company's exports to over 30 countries accounts for around 3% of their total revenue growth currently.
Earlier, Schwing Stetter was expecting higher growth rate in exports this year. However, due to the global economic slowdown followed by geopolitical situations the management noted that the growth could be lower.
“Certain factors such as geopolitical turmoil and elections hampered the growth. Due to this, infrastructure contracts were not executed,” Madhavan said.
However, the company is optimistic for CY25. In an interaction with Autocar Professional, Madhavan said, “In the initial three months of CY25 (also the last quarter of FY25), the government will spend its allocated budget, leading to good growth in the sector with exports increasing.”
When asked about the number of units sold through exports, Madhavan said due to varying price ranges starting as low as Rs 10 lakh to as high as Rs 3.5 crore, it is not feasible to measure exports growth in unit terms.
It has localised 85% of the products. Only critical materials such as green steel are imported.
Out of the five segments–construction, concrete, material handling, mining, and foundation equipment–concrete contributes around 56% to the company’s overall growth.
The German subsidiary launched 16 new products and 14 variants in 2024, and is planning to launch 25-30 new products and variants in 2025.
As per the Indian Construction Equipment Manufacturers Association (ICEMA), the construction equipment industry grew by 26% year-on-year with 1.35 lakh unit sales in FY24, compared to 1.07 lakh units in the previous fiscal year.