The 40:60 joint venture aims to increase localisation within 2-3 years under the Atmanirbhar Bharat Abhiyaan.
On Tuesday, Tata Hitachi Construction Machinery, a 40:60 joint venture between Tata and Hitachi of Japan, announced that it would increase localisation to 70 per cent over the next 2-3 years by leveraging its combined efforts. Tata Hitachi Construction Machinery also announced that it would invest Rs 200 crore in its two manufacturing plants—West Bengal’s Kharagpur and Dharwad in Karnataka.
Additionally, the company plans to leverage technology from Hitachi Canada, primarily used for the mining industry, to produce 60-tonne dump trucks in India and introduce more models under the ‘Atmanirbhar Bharat Abhiyan’ policy. This initiative ensures that localisation, enhancing India’s manufacturing capabilities, is crucial to cost control and generating employment opportunities for local people. Furthermore, Hitachi also expects a turnover of Rs 7,500 crore.
Under the leadership of Tata Hitachi’s managing director (MD) Mr. Sandeep Singh, the company’s main mission is to train and guide local people to maintain quality and localisation. This commitment to quality and localisation is a key aspect of the company’s operations.
The Kharagpur plant is the largest excavator plant in Southeast Asia, with an outlay of Rs 1,100 crore. The total cumulative capital expenditure, including Dharwad, will be Rs 2,000 crore. Expecting a boost in infrastructure development, demand for equipment is expected to rise in the second half of the year.
With an excavator market size of approximately 1.25 lakh units, Tata Hitachi Construction Machinery aims at a revenue growth of eight percent. In FY’24, the company achieved a revenue of around Rs 5,000 crore, with both plants operating at 75-80 percent capacity. This past performance and future target demonstrate the company’s financial stability and growth potential.
