Chinese construction equipment major XCMG proposed to set up its first manufacturing unit in India at an investment of USD 150 million through partnership with SCHWING Stetter India, a top company official said today.
SCHWING Stetter India, a subsidiary of SCHWING Group of companies, is part of XCMG Group, China.
XCMG China Group Chairman Wang Min, on his first visit to India, explained about the company's strategy to Indian market in the construction equipment market.
On setting up the facility in India, Min said, "We have our own strength and advantages and have the opportunities to beat our competitors here.It is right time for us to focus in Indian market. The market is booming. We are planning to invest USD 150 million (about Rs 1,000 crore) for Indian market to locally manufacture here."
XCMG China last year reported revenues of USD 13 billion with overseas revenues contributing about 34 per cent, he told reporters.
A technical team from China would visit India "shortly" to explore the products which can be locally made, he said.
The company, in association with SCHWING Stetter, already sells wheel loaders, motor graders, excavators in India, he said.
Responding to a query, SCHWING Stetter Sales and Services Chairman Anand Sundaresan said the company was yet to finalise the location on setting up the greenfield facility.
"We are yet to finalise the location.I am looking at a place near Chennai for connectivity and logistics issue.We are yet to decide," he said.
XCMG China would locally produce the products at the factory within a year's time frame, Sundaresan said, adding SCHWING Stetter India would handle the sales and service activities.
On the benefit of setting up local manufacturing unit, he said almost 27 per cent of cost was paid towards import duty of the products. "When we import, the cost is very high," About the domestic construction equipment industry, he said compared to April-September 30, 2015 period, the market grew by 35 per cent in April-September 30, 2016.
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