Hyundai Construction Equipment India Private Limited (HCEIL), the wholly owned subsidiary of Korean construction equipment major Hyundai Heavy Industries (HHI), has ramped up their production capacity this year in pursuit of greater market share.
Speaking on the sidelines of the inauguration of their East Regional office at Kolkata, Suvendu Moitra, head of marketing of HCEIL, said, “The company's new manufacturing unit in Pune, which would be operational from August this year, would scale up the production capacity from its present 2500 units to 10000 units per annum within the next three to four years.”
The 50 acre Pune unit, built up at a cost of Rs300 crore would basically manufacture construction equipments of 20, 11 and eight tons capacity.
The higher tonnage capacity equipment will be imported from their Korean unit as of now, he added. With this unit, HCEIL expects to gain market share of 12-15 percent in the country, said Jongsik Kim, managing director of HCEIL.
The eastern region, covering West Bengal, North-East, Bihar, Chhattisgarh and Jharkhand, had high potential owing to the presence of five Coal India subsidiaries and heavy mining activities, along with rapid industrialisation and infrastructure boom, Kim pointed out.
Asked if the company would set up more such manufacturing units in India, Kim said, the focus of HCEIL would be more on capacity enhancement of the Pune unit and capacity utilisation to improve target market share.
The parent company of Hyundai recorded a turnover of around $16.883 billion last year of which HCEIL contributed around $2 billion. With the increased production capacity and present growth rate, HCEIL expects to achieve a turnover of $2.689 billion in 2008, said Moitra.
