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Hyundai Construction Equipment India (HCEI) is planning to produce higher capacity excavators in the country apart from introducing loaders to enhance its presence here.
The firm that currently manufactures excavators ranging from eight tonnes to 34 tonnes at its facility at Chakan near Pune plans to start assembling 50 tonnes excavator at the plant by the middle of next year.
“The idea is to enhance our range of excavators. We are looking to assemble 50 tonnes excavator at our Chakan plant by the middle of 2014. Besides, we are currently studying the feasibility of introducing loaders in India,” HCEI Head (Sales & Marketing) Dheeraj Panda told PTI.
Currently, the company’s plant has an annual capacity of 7,000 units and excavators above 38 tonnes are imported from Korea.
“We are looking a localisation level of 45-50 per cent in the 50 tonnes excavator,” he said.
For the loaders, he said the company is looking at both front loaders as well as backhoe loaders, which would help the company “nearly complete the range” of construction equipment in India.
“By the end of 2014 we may start to bring the loader in the Indian market,” Panda said, adding these products would be imported.
Commenting on the target for this year, he said HCEI is targeting around 2,800 units of excavators, which would be a slight increase from 2,383 units it had sold last year.
“We have sold around 600 units in the first quarter of this year. The challenge is that the overall market is down and it shrunk by 20 per cent last year,” he said.
The excavator market was at around 14,000 units in India last year, he said, adding this year it could be around 14,300-14,400 units.
Panda said the company has also started exporting excavators from India in a small away and it could increase it further.
“Our priority remains the Indian market, but we also export to Sri Lanka, Nepal and some countries in Africa like South Africa, Ghana and Mozambique. In due course of time our export volumes could increase,” he said.
HCEI is a wholly-owned arm of South Korea’s Hyundai Heavy Industries.
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