Swedish crane maker Kronecranes has invested Rs 120 crore in its Jejury plant near Pune. The plant has a capacity to manufacture 1000 cranes. The company today launched a new overhead crane CXT UNO in Pune. It is primarily intended for companies operating in manufacturing, construction and logistics.
Speaking about India operations, Pekka Lundmark, CEO and President, Konecranes said, “We are very much optimistic about India market. We are focusing on sectors like manufacturing, steel, material handeling and paper. Currently, India market is weak as compared to US but we looking for the the next three years. it is a 100 per cent cost competitive market. We will be exporting cranes from India in due course of time. “
According to Lundmark, currently India is a weak market for the sector, but it will grow in the next three years while China is stable. The sector is witnessing better growth in African and American markets.
For Konecranes, the bigger markets are situated in US, Canada, Brazil and Mexico. It has eight manufacturing plants worldwide. Globally, it has a 30 per cent market share in industrial crane sector.The company plans to export products from its India plant.
The company is growing annually at 14 per cent. In Konecranes portfolio, 75 per cent contributes for induatrial sector while rest is being manufactured for port cranes.
The industrial cranes market in India is said to be in the region of Rs 2,200 - 2,500 crore per annum. Approximately 30 per cent of the demand comes from the government sector and PSUs while the remaining 70 per cent comes from the private sector. The total volume for industrial cranes is estimated to be approximately 10,000 cranes per year.
To put in perspective where the Indian crane market stands on the global scale, the demand for industrial cranes in Japan is 20,000 per annum, in Germany 40,000 and the demand in China stands at 200,000 cranes per year.
