Construction and mining equipment major Caterpillar Inc, has announced a $210 million (around Rs 1,096 crore) investment plan for India.
The plan includes setting up an engine manufacturing facility meant for electric power gensets and for expanding the off-highway truck manufacturing facility in Chennai. It may be noted the US major has already invested around $1 billion in India.
Speaking to reporters in Chennai, Richard P Lavin, group president, Caterpillar Inc said the company is planning to set up an engine manufacturing facility in India at an investment of $150 million, to produce Perkins brand 4000 Series engines, which will cater to 750-2500 kV electric power gensets.
“We are yet to decide on the location, though we have short-lised some of the states. The final announcement on the same will be shared in 2-3 months,” said Lavin. Kevin R Thieneman, India Country Manager, Caterpillar Asia Pte Ltd, and President Caterpillar Asia said, the plant will produce the 4000 series engines produced at the UK facility. “Indian facility will be the first facility outside the UK and 50 per cent of the machines produced will cater to parts of Asia and other markets,” he said.
He added, the plant will have an initial capacity for 3,000 units and it will be expanded to 5,000 units in 12-18 months from the start of the production.
Lavin said, the company is planning to begin production in 2-3 years. The facility will be set up as a new subsidiary, which will be incorporated in India, he added. Perkings is a wholly-owned diesel engine manufacturing subsidiary of Caterpillar.
The company would also infuse an additional investment of $62 million, part of $210 million.
The expansion would be in addition to the company’s investment of around $108 million on the truck manufacturing facility.
The earlier investments of the company in India are nearing completion and the new investment is in tandem to the market conditions in India, added Thieneman.
“This new investment will play a role in developing our technology further while benefiting our customers who are playing a vital role in the transformation of the Indian economy,” he added.
The investments come as part of the company’s 2015 corporate strategy to increase capacity for a wide range of products in key growth markets like India. The company would continue to invest on supporting customers in developed economies like North America, and Europe and Japan, they added.
Caterpillar currently has three manufacturing facilities, a logistics services base and, a research and development centre in India.
