With the utilization of the extra 8 acre land in the Tamil Nadu plant in Cheyyar, and small operations in the Jamshedpur plant, the annual domestic production is likely to increase to 19,000 units in 2025.
27 Jan 2025 | 3290 Views | By Yukta Mudgal
With prospects of the construction equipment sector's growth revival in 2025, Schwing Stetter India is planning to increase its annual production by close to 36% this year, supported by the ongoing expansion in its Tamil Nadu plant, and also output from its new plant in Jamshedpur, the company's ...
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With prospects of the construction equipment sector's growth revival in 2025, Schwing Stetter India is planning to increase its annual production by close to 36% this year, supported by the ongoing expansion in its Tamil Nadu plant, and also output from its new plant in Jamshedpur, the company's Chairman and Managing Director, VG Sakthikumar told Autocar Professional.
"Some of the equipment mounted on commercial vehicles faced issues due to the downturn in the commercial vehicle market. This was further affected by a slowdown in contracts during the election period and an extended monsoon in 2024," Sakthikumar said. With increased spending by the government and robust monsoon, the company expects stronger growth in 2025.
In 2024, the company manufactured 14,000 machines in its Tamil Nadu plant. The company sold 16,000 units in the year, of which 2,000 units were imported.
With further utilization of the extra 8 acre land in the Cheyyar, Tamil Nadu plant, and small operations in the Jamshedpur plant, the annual domestic production is likely to increase by 5,000 units to 19,000 units in 2025.
When asked about the total capacity, Sakthikumar said it varies across different product categories, making it complicated to calculate. He said the company is currently utilizing about 80-90% of its installed capacity. "If we want to grow, we need both more products and higher machine volumes, which we are already working on and we are expanding in both areas," he explained.
"So far, we have a plant in Tamil Nadu. In mid-2025, we will begin operations in Jamshedpur on a smaller scale which is under construction. It will primarily make products such as truck mixers for Tata Motors," Sakthikumar said. "The biggest strength for us is to run a factory, launch products and increase production capacity in a short period of time," he explained.
Founded in 1998, Schwing Stetter India is a 100% subsidiary of Schwing Group GmbH, headquartered in Germany. The company offers a wide range of equipment, including concrete pavers, aerial work platforms, all-terrain cranes, cold milling machines, crawler cranes, excavators, motor graders, rotary drilling rigs, tower cranes, truck cranes, and wheel loaders. It has manufacturing units in 12 countries, including Germany, Austria, US, Brazil, Russia, the UK, and India.
The concrete and construction equipment company inaugurated a 52-acre facility in Cheyyar, Tamil Nadu, in 2021, investing over Rs 300 crore. The facility includes 50,000 square meters of built-up area for manufacturing concrete boom pumps, stationary pumps, self-loading mixers, shotcrete pumps, excavators, wheel loaders, and motor graders.
Currently, Schwing Stetter India has 80% market share in India's truck mixture segment, followed by 21% in self-loading mixtures. In an earlier interaction with Autocar Professional, a senior official mentioned the company is targeting Rs 12,000-Rs 15,000 crore revenue by 2030.
The company launched 16 new products and 14 variants in 2024, and is planning to launch 25-30 new products and variants in 2025.
India’s construction equipment sector is likely to see a slower growth of 4-6% in the financial year 2025, to around Rs 83,000 crore, according to CRISIL. This is slower than the 27% growth seen in FY24, when sales volume reached 1.35 lakh units, supported by strong demand from roads, railways and mining segments.