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Construction firm to set up unit in Gujarat

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Vinay Umarji Mumbai/ Ahmedabad
Last Updated : Feb 14 2013 | 9:43 PM IST
To boost the demand of its import substitute construction equipment and to reduce it transportation cost to 1.5 per cent from 5 per cent of equipment value, Universal Construction Machinery and Equipments Pvt Ltd (UCME) plans to set up an assembly unit in the city by the end of next year.
 
The Pune-based manufacturer of construction equipments like concrete batching plant, passenger and material handling hoist, concrete mixers, mini dumpers and ba-bendingutting machines also plans to raise its turnover from Rs 125 crore to Rs 250 crore in the next one and half year, and to Rs 500 crore within the next four years.
 
Presently, the company has offices in 76 locations in the country and seven regional offices at Delhi, Kolkata, Bangalore, Mumbai, Nagpur, Nashik and Ahmedabad.
 
Started in 1974, UCME Pvt Ltd. was initially into job works and oil lubrication business too.
 
But for 10 years, it has solely focussed on strengthening its construction equipment business.
 
Speaking to Business Standard, Ranjeet More, Managing Director, said,"Having a market share of almost 60 per cent in concrete mixers' market and 75 per cent in mini dumpers, it was getting costlier to send the finished products from our Pune plant to across the country. These units will help cut transportation costs. We also plan to invest Rs 20 crore in the construction industry in Gujarat this year and another Rs 20 crore the next year."
 
Spread across 25 acres of land, the company, which produces at least 50 different construction equipment, has three plants.
 
More added that the company is the largest maker of all construction equipment, costing from Rs 10,000 to Rs 35 lakh, under one roof.
 
It exports 15 per cent of its production to countries in South America, Africa, West Asia and to Fiji, Indonesia and Australia. The company plans to raise exports to 25 per cent by next year.
 
Other than the plans to set up research and development facilities at its plants the company has also tied up with the Nicmal Institute for future programs on construction-related subjects.
 
The company's clients include DLF, L&T and M S Khurana Associates among others. It has also ventured into IT by starting a company under the name UND Square.
 
With only Scetter and Ahmedabad-based Maxomix as competitors for the material handling hoist, More is sure his company will be able to increase its market share from 60 per cent to atleast 80 per cent in near future.
 
"Since the construction industry is just picking up after the Government of India's decision to invest $320 billion in the industry over the next five years, we are sure to go a long way. Apart from one or two competitors in material handling hoist product line, we hardly have any competitors for our other products in the state. For instance, our mini dumpers do not have competition in Gujarat," said More.

 
 

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