 "Chinese co LiuGong to invest Rs 2.5 bn in India, make country sourcing hub")
LiuGong India, a wholly-owned subsidiary of China-based infrastructure heavy equipment maker Guangxi LiuGong, is planning to invest Rs 2.5 billion to strengthen operations and make India a global sourcing hub, an official has said.
"We are committed to make in India. Planning to make India as a second global sourcing hub after China for some products for certain international markets," Liugong India director (sales and marketing) Nischal Mehrotra told PTI.
LiuGong has 20 manufacturing plants, of which 17 are in China, one each in Poland, Brazil and India.
Mehrotra said the company believes in India's growth story in the long run despite recent crises like IL&FS default which led to an abrupt slowdown in project execution besides impacting demand for the last two months.
He said going by the vision of the Indian government, a lot of action waiting to happen in the infrastructure and mining space.
The Chinese outfit has invested about Rs 3 billion in its existing manufacturing base at Pitampura in Madhya Pradesh during the last 10 years but the company has proposed to pump Rs 2.50 billion in near future once the new emission norms are notified.
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Mehrotra said it has cumulatively sold over 4,000 machines in India and in the current fiscal the company hopes to sell 1,500 units.
The company has also started manufacturing 7-tonne payloaders to strengthen its product range.