Jaideep Shekhar, Managing Director of Terex India Private Limited, part of the global manufacturer of lifting and material processing products company Terex Corporation, says to enhance its production capacity in light of the demand momentum, the company intends to add 15 acres of land to its current factory over the next few quarters and expects to generate a turnover of ₹1100 crore in calendar year ’23.
Its manufacturing hub in Hosur, Tamil Nadu, which is spread over 30 acres of land, is currently undergoing a phase of expansion. Shekhar told BusinessLine, ‘”there is a sizeable demand in the currently booming construction market. Another 15 acres will be added to the existing facility over the next few quarters. The company will spend close to ₹30 crore on the new expansion.” The company has invested ₹300 crore in its Indian operations to date.
The Indian manufacturing unit is the company’s global manufacturing hub and produces nearly 80 different machine models in India. It also exports nearly 30 percent of the machinery to Asia, the Middle East, and Africa. Shekhar said, “This year we will be producing close to 850 large machines, which are large mining and construction equipment, and next year we want to manufacture 950 machines.”
Roadmap for upcoming years
In India, Terex India has three main businesses: mineral processing, lifting, and recycling. While momentum is building across the businesses, the company says there is a huge opportunity in recycling. According to the company, although they have been operating in the recycling business for the past four years, they will be formally launching Terex Recycling Systems this year, “we are going to go big on municipal solid waste and construction and demolition waste,” the MD added.
In the last two years, Terex India has generated about ₹70-80 crore from its recycling business, said Shekhar. “Recycling is a business that does not have competition in India, and we will be the first ones now to bring in the full solution. The market can be roughly estimated as ₹700-800 crore machinery market over the next three to four years because of the massive waste generated in the country,” he said.
The company intends to generate ₹1500 crore in revenue over the next two years. “Because we see the market potential, we intend to achieve the target through organic growth. Furthermore, the lifting and recycling industries have a large market for us to grow in,” said the MD. The company earned ₹850 crore in CY22 from its Indian operations and expects a turnover of ₹1100 crore in FY23. Terex Corporation, its parent company, reported $1.1 billion in net sales in the second quarter of 2022.