Tata Hitachi eyes 20 per cent growth
Construction equipment major Tata Hitachi is looking at 20 per cent growth in FY23 as the construction equipment industry is expected to hit the pre-Covid number amid signs of revival in demand.
"We are not yet at the 2019-20 levels. But we believe that by the end of this financial year, we should be reaching that level. If the growth that we have seen in the last 2-3 months continues, then we should look at the same numbers," said Sandeep Singh, managing director of Tata Hitachi.
In absolute numbers, the industry has reached around 42,000 units and could touch the numbers of around 80,000 to 85,000 by the end of the year.
Singh said that the growth driver is the demand coming from road construction and infrastructure setup, real estate, housing and mining industries.
Tata Hitachi is a joint venture between Tata Motors and Hitachi Construction Machinery with a manufacturing presence in Dharwad, Karnataka and Kharagpur, Bengal.
The company is expanding its product lines and is also looking to step up the localisation levels from the current level of around 65 per cent to 70 per cent next year and around 75 per cent in 2-3 years time.
Tata Hitachi, which on Thursday showcased its high-end mining excavators and indigenous wheel loaders at International Mining and Machinery exhibition in Calcutta, is eyeing a topline of around Rs 4,500 to Rs 5,000 crore in FY24.
While the construction equipment industry stakeholders and the union government has held discussions on alternative fuel strategy for the industry with CNG as an option, Singh said that the use of the fuel in construction equipment would be expensive and technically difficult along with infrastructure challenges.
However, a key policy change that the industry is looking at is the implementation of the BS4 emission standard. While the same is available for wheel loaders, it is yet to be implemented for excavators.
"We are engaged with the government on this," Singh said.