India’s role expands in CASE Construction Equipment's global operations

Within the Asia-Pacific (APAC) region, India accounts for approximately 10% of CNH’s sales, with its domestic market contributing around 3,500 units out of the company’s global total of 40,000.

Shahkar AbidiBy Shahkar Abidi calendar 19 Jan 2025 Views icon6170 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
India’s role expands in CASE Construction Equipment's global operations

CASE Construction Equipment, a part  of New York Stock Exchange listed CNH, is looking to make India, a key export hub for its construction equipment machines and components, the company's top leadership told Autocar Professional on the sidelines of Bharat Construction Equipment Expo 2025. 

“Looking at the global picture, India’s importance is not only for the domestic Indian market,” said Emre Karazli, Vice-President of the Construction Segment for CNH APAC. “But with all the manufacturing capability we have here, sourcing and manufacturing capability, India [is] becoming much more important as a supply base.” Karazli noted that India-produced machinery, including backhoe loaders, skid-steer loaders, excavators, and compactors, is exported to over 100 countries—a testament to the country’s growing stature in CNH’s global supply chain.

The company’s strategy is multi-faceted. Some components are entirely fabricated in India and exported to other CNH facilities worldwide. Others are sourced as sub-components from Indian suppliers, then value-added through assembly or sub-assembly processes before being shipped abroad. This two-pronged approach not only maximizes cost efficiencies but also aligns with CNH’s global quality standards. The Pithampur plant, CASE’s second-largest production facility after its North American counterpart, has been instrumental in this growth.

The numbers underscore India’s significance. Within the Asia-Pacific (APAC) region, India accounts for approximately 10% of CNH’s sales, with its domestic market contributing around 3,500 units out of the company’s global total of 40,000.

According to Satendra Tiwari, Executive Director of Operations, CASE Construction Equipment, fabrication costs in India are now nearly at par with China’s, bolstered by the global “China Plus One” strategy. This strategy, widely adopted by Western companies, is aimed at diversifying supply chains away from overdependence on China.

“India has become a competitive hub for fabrication, with costs close to those in China,” Tiwari explained. He, however, acknowledged the limitations of the local ecosystem: advanced components like hydraulic pumps and proprietary technologies are still sourced from countries such as South Korea and Japan. However, these imports are being supplemented by localized manufacturing initiatives. “They (suppliers) are bringing those technologies and are setting up manufacturing,” Tiwari added. “So, that makes our cost of supply chain for the domestic market very competitive.”

India’s growing prominence within CASE Construction Equipment’s global strategy is supported by significant investments in local infrastructure. Over the past five to six years, the company has funneled more than ₹1,000 crore into its Indian operations, with the bulk directed toward its Pithampur plant, which the company described as a cornerstone of their operations.

“We will continue at the same moment,” said Shalabh Chaturvedi, Managing Director for India and SAARC at CASE Construction Equipment. He outlined plans for substantial brownfield expansions, aimed at increasing capacity for exports and diversifying the product portfolio. The roadmap includes adding new production lines, saturating existing facilities in Pithampur, Greater Noida, and Pune, and boosting supply chain localization to minimize imports.

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