CASE Construction Equipment to double its manufacturing capacity at Pithampur over next 3-4 years on back of robust demand
It will help the Italian-US-headquartered CE giant tap into the increasing domestic demand and also exports, which seem to be increasing since the adoption of new emission norms in India.
CASE New Holland Construction Equipment, a division of CNH Industrial Group, is planning to elevate its manufacturing capabilities to more than double over the next three to four years, in response to the Indian market's transition to tighter emission norms, as this has opened up new exporting opportunities for the company.
Currently, the capacity is around 9,000 units per year, and according to Satendra Tiwari, Head of Manufacturing at CASE's Pithampur facility in Madhya Pradesh, the company can maximise earnings by doubling its capacity and improving its efficiency across all product lines. He further noted that manufacturing local and export items on the same production lines has allowed the company to boost productivity while maintaining quality requirements. The Pithampur production facility has been a prominent participant among the brand's eight manufacturing centres worldwide for over three decades. It is built on 40 acres of land and has been critical to exporting machinery internationally. According to the management, approximately 75 percent of their products are local to the region.
According to Shalabh Chaturvedi, General Manager of CASE Construction Equipment India, India's boosted export potential due to the stricter emissions standards has elevated competition to a global level. "So, it opens up a lot of export opportunities for us as well, which were not there before," said Chaturvedi. Previously, India followed an export strategy focused only on countries with lower or equivalent emissions standards.
Though the company has not released the latest financial statistics for CY22, top management has informed Autocar Professional that the business has remained stable during the year. During CY21, Case New Holland Construction Equipment grossed Rs 1,690.509 crore in revenues with a net profit of Rs 107.315 crore, which is almost double that of the previous year. In CY2020, CASE's revenue totals were about Rs 1,117.852 crore, with a net profit of Rs 52.827 crore, according to the data collated by Tofler, a data analytics company.
Even though the continued shift in emission standards has increased the cost of ownership, Shalabh Chaturvedi expects this disruption to be temporary, as the previous generation of machines returns to fill the demand gap. Similar to the automobile industry, the use of stage III machines will be phased out in the coming years, resulting in higher rental prices, improved construction quality, and enhanced safety. Chaturvedi remarked that even though there may be some short-term drawbacks, the industry is moving in the right direction.
CASE offers a full line of construction equipment globally, including motor graders, wheel loaders, vibratory compaction rollers, crawler dozers, skid steers, compact track loaders, and rough-terrain forklifts. It recently displayed its Made-in-India product proficiency at the brand’s state-of-the-art manufacturing facility in Pithampur, where it showcased the 770 NXe Loader Backhoe along with the 770EX Tractor Backhoe Loader; 1107FX and 952 Vibratory Compactors, 1650 Dozer, and 865 Grader, along with the CX220LC Crawler Excavator.
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