Caterpillar, the US-based construction equipment giant, is planning to expand its footprint in Tamil Nadu with an investment of ₹500 crore. The proposed investment will be focused on ramping up the company’s production capacities at its facilities in Tiruvallur and Hosur.

A Memorandum of Understanding (MoU) was signed to formalise this commitment in the presence of Tamil Nadu Chief Minister M.K. Stalin during his visit to Chicago, USA, on Thursday (IST), said an official statement.

Caterpillar is one of the leading players in the backhoe loader segment. Bakhoes make up a little over 50 per cent of the country’s construction equipment volumes. In FY24, backhoes accounted for 51.4 per cent of the total volume, up from 41.9 per cent in FY23, according to industry estimates.

Growth in infra sector

Overall, the Indian construction equipment industry reported a double-digit growth in FY23 and FY24. Nationwide infrastructure development projects drove the strong performance of the industry. The government’s continued focus on infrastructure development with a massive outlay is expected to act as an impetus for the industry.

Caterpillar, a company with a global revenue of $67 billion, operates in India through its various manufacturing units, research and development centres, and several global support organisations. Its presence in India includes five manufacturing facilities spread across Tiruvallur and Hosur in Tamil Nadu and Aurangabad in Maharashtra.

Facilities in TN

At its Tiruvallur plant, Caterpillar operates two key divisions: the Machines Division and the Building Construction Products (BCP) division. The Machines Division is responsible for manufacturing off-highway trucks, mining trucks, hydraulic excavators, and motor graders. The BCP division focuses on producing backhoe loaders and skid steer loaders.

The Hosur facility is home to the Industrial Power Systems Division (IPSD) and the Small Drivetrain-Building Construction Products (SDT-BCP) division. These divisions manufacture engines under the well-known Cat and Perkins brands, along with generator sets ranging from 400 to 2250 kVA. Additionally, the facility produces small drivetrain or transmissions used in backhoe loaders, wheeled loaders, telehandlers, and site dumpers, playing a crucial role in powering these heavy machines.

Caterpillar’s Aurangabad plant specialises in the production of the 4,000 and 5,000 series engines, which are vital components for various industrial applications.

The company’s Indian operations employ over 7,300 people, and its dealers employ about 4,000 more people.

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