Made in India for the World
Rising component localization might offer approximately Rs.25,000 crore annual opportunity to construction equipment vendors by FY2030, stated a report by ICRA. Overall, localization levels are expected to report a jump from 50 to over 70% in the next 5-7 years. These stats are a strong indication of the burgeoning ‘Make in India’ wave that the country has been experiencing since the past few years. While global construction equipment manufacturers have already taken the lead in this regard, the sky is the limit when it comes to localization for such a dynamic Indian market where customers’ preferences are driving greater innovations in the machines which are not only high on performance but are also getting eco-friendly every passing day… writes, PRERNA SHARMA.
The Indian mining and construction equipment (MCE) industry is the third largest in the world in terms of volumes sold. However, it imports nearly 50% of its component requirement (by value) from suppliers based out of China, Japan, and South Korea, among others. Components like hydraulics, undercarriages, and high-tech electronics like electronic control units (ECUs), sensors, telematics, etc., are generally imported. In addition, certain high tonnage fully built machinery, and some steel alloy grades are also imported. According to ICRA, the imported components are either technology-intensive parts or require large scale manufacturing to attain economic viability.
“Given its vision to become a US$7 trillion economy by 2030 and the multiplier effect of infrastructure development on economic growth, the Government is expected to keep prioritizing infrastructure investment over the coming years, within the constraints of fiscal consolidation. This will keep domestic demand prospects of the MCE industry favourable and the supply-side needs to keep pace to support it.
While the industry has a domestic manufacturing base with the indigenization levels varying across the equipment categories, it has high import dependence and provides significant scope for development. Improved localization will not only shield the supply chain from geopolitical risks and improve operational efficiency but also help create more job opportunities,” said Ritu Goswami, Sector Head – Corporate Ratings, ICRA.
According to ICRA, some of the key factors driving the high levels of imports include viability issues for the component vendors due to insufficient domestic demand and limited exports (due to cost disadvantage and lagging emission standards for a few equipment categories) and unavailability of certain raw materials (e.g. specialty steel).
However, factors supportive of increased industry localization include increasing domestic demand (CAGR of 12% over the last decade) and the PLI scheme for complementary sectors like specialty steel and auto components in addition to the shifting geo-political dynamics with the China+1 policy being adopted by the global OEMs to diversify their supply chains. “At a macro level, the GoI has been working towards improving the ease of doing business and creating a robust infrastructure to attract investment and improve the overall competitiveness of the domestic manufacturing industry,” the report stated.
The Ground is SET…
The ‘Make in India’ initiative by the Government has had a significant impact on the construction equipment sector. It has incentivized companies to manufacture their products locally, leading to job creation, initial independence on import, cost reduction and overall growth of the sector. It has played an important role in the construction equipment OEMs to invest in local manufacturing operations, thereby improving production processes, and elevating product quality. Consequently, construction machinery manufactured in India has gained global competitiveness by delivering high-quality products that meet global standards.
Looking at the latent opportunities, every CE company has been eyeing for a bigger share of pie and craft their own journey. CASE Construction Equipment completely embraces and supports the ‘Make in India’ program, having operated manufacturing facilities within India for over three decades. Moreover, as part of our business approach, the company collaborates with domestic suppliers to procure the majority of components locally, enabling them to consistently maintain a steady and reliable manufacturing presence in India for the global market.
According to Puneet Vidyarthi, Head – Marketing & Business Development, India & Saarc, Case Construction Equipment, “CASE Construction Equipment is dedicated to indigenization efforts that support the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives. This commitment is integral to our operational strategy, focusing on producing high-quality construction equipment in India for both domestic and international markets.”
“At our advanced manufacturing facility, we ensure that machinery made in India meets world-class standards. Guided by our ‘Make in India, for India and the World’ philosophy, we prioritize sourcing materials locally, benefiting Indian businesses and strengthening the economy. Additionally, we encourage our suppliers to operate within the Pithampur industrial zone, where our facility is located, with over 70% of them based within a range of 10-kilometer radius—supporting regional economic growth and enhancing our supply chain efficiency.”
He added, “We are excited to play an integral role in shaping the future of the industry and supporting India’s infrastructure development goals. To this end, we are expanding our product portfolio and preparing to introduce new offerings in the Indian market. Notably, we have established a dedicated assembly line for Skid Steer Loaders, operated entirely by a team of women. As part of our commitment to environmental sustainability, we are preparing to transition to BS (CEV/TREM) V emission norms across all our products from January 2025. This transition underscores our dedication to not only performance, efficiency, and safety but also to environmental responsibility, ensuring that our Compaction & Paving equipment remains the top choice for construction and road compaction applications while meeting the latest emission standards.”
JCB India recently marked a significant milestone with the production of its 500,000th Construction Equipment. Celebrating this achievement at its India Headquarters in Ballabgarh, the event was graced by JCB’s Group Chairman, Lord Bamford. Reflecting on India’s economic growth and infrastructure development, he stated the company’s pride in contributing to this progress since 1979. India has become a vital market and a key part of JCB’s global supply chain. The 500,000th machine, a Telehandler, is a versatile machine for material handling. It is a revolutionary new way to handle material at heights more safely and productively as compared to traditional options.
Deepak Shetty, CEO & MD, JCB India, emphasised, “JCB embodies the vision of an Atmanirbhar Bharat. The machines built at our Jaipur factory are of global quality. We are also extremely proud of the fact that our gender diverse factory has over 34% women on the shop floor. Promoting localization of components in our machines is a primary focus area for us. Presently, over 50% of the parts in our AWP are sourced locally, and we will increase their number.”
He added, “This strategic pursuit will not only expand the business prospects of numerous Indian parts manufacturers but also create additional employment opportunities. Aligned with this vision, JCB India proudly upholds the slogan ‘Make in India for the World’ for all our product offerings.”
JCB has been in India for over four decades and has worked towards developing innovative products for its customers. The company analyses India’s distinctive site conditions and specific requirements and develop products around the needs of the end-users. The ‘Made in India’ JCB Access Machines are exported all over the world. “Our customer-centric products allow us to tailor our products and offer optimal solutions to customers, and also provide them best-in-class product support to ensure a world-class ownership experience.”
JCB India has launched its first diesel-powered Telescopic Boom Platform, the T 65D. It is manufactured at JCB’s state-of-the-art facility in Jaipur. The T 65D boasts a platform height of 65 feet and 4 inches, with a reach of 56 feet and 6 inches, and can carry a maximum load of 450 kilogrammes. Deepak Shetty highlighted India’s growing economy and the increasing demand for such equipment, predicting significant growth in the domestic market over the next few years. The T 65D is not only intended for the Indian market but is also being exported to developed markets worldwide, reflecting JCB’s commitment to the ‘Make in India’ initiative. The machine is ideal for use in construction, cement, oil, and gas industries, and is also popular at airports, warehouses, and other sites where operating at heights is required. To support the new launch, JCB has established a dedicated distribution network with 11 dealers across India. These dealers are equipped with trained engineers and parts backup to ensure seamless operation of the T 65D throughout the country.
Volvo Construction Equipment (Volvo CE India) recently unveiled the new EC210, a ‘Built for Bharat’ 20-tonne class hydraulic excavator. The introduction of this excavator reinforces company’s strong commitment to the growing Indian CE market to provide innovative and technologically advanced solutions designed specifically to the needs of customers in the country. The EC210 excavator has a range of features to ensure superior performance, exceptional fuel efficiency and lower maintenance.
As part of the EC210 launch, Volvo CE has introduced a new brand campaign, ‘Karo Zyada Ki Umeed’. This campaign, via its soul film, reflects the human mindset of expecting more, striving for excellence and pushing boundaries. It highlights the key value proposition of EC210 under the 4 pillars of Zyada Performance, Zyada Value, Zyada Savings and Zyada Uptime.
The all new EC210, a 20-tonne class crawler excavator offers superior performance, versatility across applications, industry-leading safety and operator comfort, and ease of servicing. With best-in-class attachment configuration and next-generation positive control hydraulics system, it offers unmatched precision and faster response time. It also comes with Made in India, T3 electronic engine which is capable to deliver high torque even at low RPM and is yet exceptionally fuel-efficient due to 10 working modes for different applications. The do-it-all excavator offers high reliability and exceptional fuel efficiency at any of the light, medium or heavy-duty applications such as road building, rock breaking, general construction, waste management, quarries, sand mining, etc. Additionally, the users get to book a service at their fingertips through its user-friendly mobile app and get a service assurance within 48 hours to maximize machine uptime.
“As India embarks on its remarkable infrastructure growth journey driven by the government’s vision and commitment, we foresee exponential demand for construction and mining equipment across sectors such as rail, road, ports, airports, and power projects. At Volvo CE, we are committed to lead this transformation by offering India-centric solutions through our latest technological innovations,” said
Dimitrov Krishnan, MD, Volvo CE India. “The all-new EC210 exemplifies our commitment and approach to deliver products that deliver ‘Zyada’ performance and reduced cost of ownership to the value-conscious Indian customer. With this product launch, we have also built a supporting ecosystem by widening our sales network, investing in digital technologies to enable 48-hours service assurance and strategically partnering with Shriram Automall for easy exchange or disposal of used machines, thus enabling circularity,” he added.
Alongside the EC210 launch, Volvo Construction Equipment (Volvo CE) has also partnered with Shriram AutoMall (SAMIL), India’s largest ‘phygital’ marketplace for pre-owned vehicles and construction equipment. This collaboration aims to establish a robust ecosystem for machine exchange and disposal, serving customers interested in purchasing new Volvo machines by replacing their existing fleet. This initiative aligns with Volvo’s strategic ambition of promoting circularity in equipment lifecycle management, supporting sustainable practices for second-life and end-of-life disposal.
Mukul Dixit, Director – Sales & Marketing for Global Construction & Infrastructure (GCI), Caterpillar India, “Caterpillar has been manufacturing in India for over 50 years. At present, our footprint includes state-of-the art manufacturing facilities, high tech research and development, as well as numerous global support organizations. Off-highway trucks, large mining trucks, hydraulic excavators, motor graders, skid steer loaders, backhoe loaders, engines, and generator sets are among the products that we make in India. We don’t just build machines; we’re building India’s tomorrow, and our journey has been both transformative and aligned with our global vision. India is an important global manufacturing hub, and recognizing it as such, we’ve invested significantly in our local operations.
Seconding his inputs, Amit Bansal, Director Sales & Marketing, Building Construction Products (BCP), Caterpillar India Pvt Ltd., mentioned, “At present over 7,300 people work at Caterpillar and about 4,000 people work at Cat dealers. Our R&D facility in Chennai leads technology innovation across manufacture, design and engineering services to Caterpillar BUs across the globe. We have pioneered customer and product led innovations driving industry leadership in sustainability, safety, productivity, efficiency, producing world-class products for India and exporting Indian-made products across the globe. These indigenization efforts not only enhance Caterpillar’s competitiveness in the Indian market but also align with the government’s ‘Make in India’ initiative, promoting domestic manufacturing and economic growth. Through these endeavours, Caterpillar continues to meet the evolving market requirements while fostering a stronger presence in India’s construction and infrastructure development landscape.”
Tata Hitachi Construction Machinery – a joint venture between Tata Motors Limited (40%) and Hitachi Construction Machinery Limited (60%), has been an integral part of India’s growth story for more than six decades. The organization’s unwavering commitment to manufacturing high-quality construction equipment, has played a crucial role in numerous significant infrastructure and mining projects across the
country. “Our slogan ‘Aao Kartavya Nibhaye, Chalo Desh Banaye’ transcends boundaries and unites people under the common goal of nation-building, fostering a sense of pride, unity, integration, and responsibility towards our beloved country,” Sandeep Singh, MD, Tata Hitachi Construction Machinery said.
Actively partnering with the Government of India’s ‘Make in India’ initiative, Tata Hitachi manufactures a wide range of construction equipment in its plants at Dharwad and Kharagpur. The company recently announced that it would invest Rs.200 crore in its two manufacturing plants to stay ahead of the curve in quality, innovation and localization. The company aims at ramping up localization levels to 70% over the next 2-3 years.
The company plans to produce 60-tonne dump trucks in India, leveraging technology from Hitachi Canada, primarily used for the mining industry, he said. Additionally, the company intends to introduce more models in India as part of the ‘Atmanirbhar’ (self-reliant) policy started long back, the official said. Its Kharagpur plant is the largest excavator plant in southeast Asia with an investment of Rs 1,100 crore.
India’s manufacturing policies, such as PLI schemes and infrastructure investments, have significantly bolstered the CE industry. SCHWING Stetter benefits from these initiatives by scaling up production, integrating advanced technologies, and fostering innovation. The policy environment encourages localization, enabling us to source and develop components indigenously, thereby enhancing competitiveness and reducing dependency on imports. The company officials foresee robust growth in the Indian CE market, driven by sectors such as roads and highways, metro rail, real estate, and renewable energy.
SCHWING Stetter India operates as a global manufacturing hub, exporting to over 60+ countries. VG Sakthikumar, CMD, Schwing Stetter India, highlighted, “Our ‘Make in India’ ethos is evident in our world-class production facilities, which produce equipment that meets international quality standards. This strategy not only supports India’s vision of becoming a global manufacturing powerhouse but also strengthens SCHWING’s global footprint.”
“As part of our commitment to ‘Make in India,’ SCHWING-XCMG has localized production in line with Indian requirements, sourcing a significant portion of our components domestically. This approach not only supports local suppliers but also makes our equipment more cost-effective and adaptable to Indian operational conditions. By aligning with government initiatives, we ensure that our machines meet regional regulations and quality standards, while also driving local economic growth,” he added.
Ammann is fully committed to supporting the ‘Make in India’ initiative through strategic indigenization efforts aimed at meeting the specific needs of the Indian market. Dheeraj Panda, MD, Ammann India Pvt. Ltd., mentioned, “Our approach focuses on local manufacturing, sourcing, and innovation to deliver high-quality, tailored solutions that align with India’s infrastructure growth and sustainability goals. Our manufacturing facilities in India are equipped with state-of-the-art technology and adhere to global standards, allowing us to produce world-class RMC equipment locally. By leveraging local supply chains and sourcing components domestically, we not only reduce production costs but also contribute to the growth of local industries and job creation. This enables us to offer competitively priced products without compromising on quality, making our equipment more accessible to the Indian market.”
Ammann’s design and R&D teams work closely with Indian customers to understand their unique project requirements and environmental conditions. “This enables us to adapt our products to local needs, ensuring they perform optimally under diverse conditions. Our indigenization efforts extend to training local talent, providing skill development opportunities for operators, technicians, and engineers. By investing in local expertise, we ensure long-term service and support capabilities. Through our commitment to the ‘Make in India’ vision, Ammann is positioned as a trusted partner for India’s construction needs, delivering advanced and locally adapted solutions.”
By integrating cutting-edge technology into every machine, SANY India is not merely showcasing innovation; they are presenting a compelling vision for the future of construction. This vision promises to reshape the landscape of Indian infrastructure development and contribute to a more sustainable and efficient future.
SANY India is committed to making sustainable construction equipment more accessible to its customers. Through local manufacturing, they aim to reduce associated costs and optimize the supply chain, ultimately leading to affordable prices. Currently, the company has achieved a 40% localization rate and is actively working to increase this to 75% in the next 3-5 years. This strategic approach allows SANY to address cost challenges while upholding its commitment to sustainability.
The company recently marked a significant achievement by successfully exporting over 1,000 Telehandlers to the United States. This milestone underscores India’s role as a key manufacturing hub in SANY’s global strategy. In line with the government’s ‘Make in India’ initiative, this substantial export achievement reflects a strategic move to expand SANY’s footprint in global markets while leveraging the Indian manufacturing landscape. Embodying the principles of “one SANY Global Quality,” SANY India adheres to the company’s global standards of quality assurance. This standardised approach ensures that customers worldwide receive machinery of the same high standards, regardless of the manufacturing location.
In yet another update, the company has unveiled the SKT105E Electric Dump Truck, the first of its kind to be locally manufactured in the country. The SKT105E Electric Dump Truck is engineered to meet the rigorous demands of open-cast mining operations, combining local expertise with global innovation. With a payload capacity of 70 tonne, it stands as a powerhouse asset for mining enterprises, delivering energy efficiency and cost-effectiveness.
SANY India, inaugurated its stall at the Bauma Conexpo 2024 with the theme ‘Chariots of Development,’ SANY India emphasizes its commitment to contributing to India’s ambitious vision of Viksit Bharat at 2047 and further driving the infrastructure growth and development.
Speaking on the occasion, Sanjay Saxena, COO Sales, Marketing & Customer Support, Sany Heavy Industry India Pvt. Ltd, said, “Our theme, ‘Chariots of Development,’ underscores the pivotal role of construction equipment as modern-day enablers of India’s journey toward becoming a developed nation. At SANY India, we are committed to driving infrastructure growth with innovative and sustainable solutions, including advanced technologies, fuel-efficient machinery, and electric equipment. These initiatives reflect our dedication to enhancing operational efficiency while minimizing environmental impact. Bauma Conexpo 2024 offers a perfect platform to showcase our cutting-edge products and reaffirm our support for India’s ambitious Viksit Bharat by 2047 vision.”
As one of the most prominent players in the construction equipment sector, BKT recently showcased its extensive product portfolio under the banner of ‘Bharat Ka Tire’—a brand promise that reflects products ‘Built in Bharat; Built for Bharat and Building Bharat’. This collection features cutting-edge tire solutions tailored to meet the diverse demands of India’s industrial and construction sectors. From robust industrial tires like the EARTHMAX SR31, built for heavy-duty applications, to the AIROMAX AM27, ideal for high-speed mobile crane, each product reflects BKT’s commitment to producing tires that enhance operational efficiency and withstand India’s challenging terrains.
Rajiv Poddar, Joint Managing Director, BKT, commented, “We aim to strengthen our connection with Indian customers and reinforce our commitment to delivering innovative, reliable, and high-performance tires that drive productivity across industrial and construction sectors.”
Kobelco Construction Equipment India Pvt Ltd launched SK80, the Made-in-India 8-ton category mid-segment excavator. The SK80 Excavator boasts of several innovative features like superior technology, advanced hydraulic system, fuel efficiency, operator comfort, durability, maintenance and versatility which set it apart from its competitors and underlines its commitment to sustainability.
Sharing details about the new product, Takemichi Hirakawa, MD, Kobelco Construction Equipment India Pvt Ltd, said, “The launch of the SK80 Excavator is a significant milestone in the 17-year journey of our company in the Indian CE industry and is a testament to the company’s ongoing commitment to innovation, excellence and to the Make in India drive. We have a long-standing reputation of delivering high-quality excavators that meet the growing demand of the Indian customers. The SK80 Excavator will also address the need for advanced machinery that can handle diverse tasks with ease and efficiency. The cutting-edge technology and robust engineering of SK80 Excavator will be a game changer in the mid-category excavator market.”
The new CEV5 range of Construction Equipment by Mahindra Construction Equipment Division (MCE) are set to redefine the standards in their respective categories, offering advanced features and compliance with the latest industry norms. Dr. Venkat Srinivas, Business Head – Truck and Bus & Construction Equipment, Mahindra & Mahindra Ltd. said, “Our consistent efforts to introduce cutting-edge products and technologies, coupled with emphasis on local manufacturing, exemplifies the company’s strong support for the Make in India initiative. The introduction of the New CEV5 range of construction equipment reaffirms Mahindra’s commitment towards the sustainability goals set by the Government of India. The new CEV5 range is a testament to the agility of our engineers, who have developed these products with a clear focus on performance. The range is specially equipped with a larger, more comfortable cabin to enhance operator productivity”.
The MCE CEV5 Range debuted with two flagship offerings: The RoadMaster G100, the high-power Motor grader, is designed to meet the forthcoming CEV5 emission standards. Its 102 HP engine and 440 NM torque make it an excellent grader for road construction, especially on state and national highways. The new EarthMaster SX & SXe also complies with CEV5 emission regulations. It is a versatile backhoe loader with a 74 HP engine, a new larger and more comfortable cabin, and iMAXX telematics technology, ensuring improved performance and efficiency.
Action Construction Equipment Ltd (ACE) recently launched state-of-the-art BS-V (CE-V) AX124 Backhoe Loader, extending its commitment to innovation and the “Make in India” vision. Powered by a TATA 74 HP engine, this machine complies with Bharat Stage V (BS-V) emission norms, highlighting ACE’s commitment to sustainability. Its bold grille, sleek bonnet, and premium cabin design not only enhance its aesthetics but also ensure efficient performance with reduced emissions. This launch reflects the industry’s shift towards greener construction practices, catering to the demands of a sustainable future.
Manish Mathur, CEO-Cranes, ACE, stated, “Our recent innovations represent ACE’s unwavering dedication to supporting India’s infrastructure growth. With advanced, sustainable machinery, we aim to meet the evolving demands of the industry while staying aligned with the ‘Make in India’ initiative.”
The Making of a Behemoth…
According to ICRA, undercarriage components like track chains, rollers and idlers, etc. can be localized in the near term since these provide a good market opportunity, are not high on technology requirements, and are heavy and logistically expensive to transport. Hydraulic components (motors, control valves, etc.) could be the medium-term (3–5-year horizon) target for indigenization. Electronic components (highly R&D intensive) would need firm visibility on volumes and could be the last to become viable for local production.
“ICRA projects the Indian MCE industry’s localization levels to increase to over 70 per cent over the next 5-7 years. With the potential of becoming a Rs.2.1 lakh crore market in annual revenues by FY2030, this increased localisation share would translate into the incremental business opportunity of over Rs 25,000 crore for the domestic MCE vendors. Also, at present the domestic MCE vendors primarily rely on the original equipment manufacturers to support their revenue, as share of other business avenues like replacement demand and exports is relatively modest. Once the competitiveness of Indian MCE vendors improves, the export market is likely to provide significant growth opportunities to Indian component suppliers,” Ritu Goswami added.
Fast Facts
- India’s construction equipment industry is projected to achieve a market size of $25 billion by 2030, reflecting robust growth driven by substantial infrastructure development and increased government spending.
- This expansion is bolstered by significant investments in projects such as roads, highway, railways, and urban infrastructure, fuelling the demand for advanced construction machinery.
- The construction equipment manufacturing in India has come a long way from being largely imported in the early to late nineties to a large part being manufactured locally to cater to the evolving customer requirements and tough local operating conditions.
- The government has been working towards improving the ease of doing business and creating a robust infrastructure to attract investment and improve the overall competitiveness of the domestic manufacturing industry.
