Case Construction plans export ramp up from India, targets US and Europe

CHENNAI: With India’s construction equipment sector all set to migrate to BS5 (CEV/Trem-5) next year, global companies are ramping up their exports out of the country. Case Construction, a brand of CNH Industrial, for instance is ramping up its exports out of India as the new regulations make it possible to make both domestic and export products on the same assembly line.
Stefano Pampalone, president – construction segment, CNH Industrial, said: “India is now at BS4 and next year will move to BS5 so export markets which were not accessible before are now accessible to products made in India.” Case, for instance, is exporting loader backhoes to North America and excavators to Europe. “India used to be BS3 while Europe was in Stage 5 and North America Tier 4 but now India can take a more aggressive stance in exports,” he added. The company is also exporting vibratory compactors and excavators for which “there is excellent demand,” added Pampalone..
With export opportunities adding to the domestic growth spurt, the company is investing in both new products and capacity ramp up.
“We’re investing $40 million in a compact product line and in skid steer loaders and we are doubling capacity at our plant in Pithampur,” he said.
With the capacity addition, the plant will cross 10,000 units production capacity next year split evenly between domestic and export sales.
“Earlier we used to export sub groups and components but now we are ramping up machine exports,” said Pampalone. “Our excavators will be exported to Europe and they are already going to Latin America.” The company, he said, exports to 100 countries worldwide.
India, said Pampalone, is “aligning with the rest of the world so its cost advantage in manufacturing is paying off”. At 100,000 units a year India is the third largest construction equipment market in the world after the US and China. Analysts expect the market to double to 200,000 units by 2030 making India the second largest CE market in the world. For a global player like CNH it means growth opportunities. Last year CNH clocked Rs 7600 crore in revenue between CE and agriculture equipment and saw its volumes jump 22%. “We are looking at high single digit growth this year,” said Pampalone.
Case Construction offers five product categories in India including crawler excavators, loader backhoes, vibratory compactors, crawler dozers and motor graders at its factory at Pithampur. A new product – the skid steer loader -- is to be launched shortly. The current capacity of the Pithampur plant is 9,000 units per year with a utilization level of 73%, including exports.