Tractors India Private Ltd (TIPL), a wholly-owned subsidiary of the Rs 1,400-crore TIL group, is aiming to double its turnover to nearly Rs 2,000 crore in three years. TIPL is the distributor of Caterpillar equipment in the Northern and Eastern part of India.
While the road and hydro-electric construction sector is a major contributor to TIPL's topline, the company is expecting its mining and diesel generator business to grow substantially in the days to come.
“We have received a major order including a seven-year servicing contract from Bhubneswari Coal Mining Ltd, controlled by a consortium of Essel Mining. With major mining projects of Adani, Coal India Ltd, Essar and NTPC on the anvil, we are hopeful of a substantial increase in sales of Caterpillar equipment,” TIL Vice-Chairman and Managing Director, Mr Sumit Mazumder told
The company is hopeful of a boost in its bottom line as equipment sales will be followed by sales of spares and services.
Considering power availability concerns, sales of generator sets should also witness a major growth in the years ahead.
Though highway construction has hit a slow patch in the recent past, due to a switchover from advancing method to BOOT (build-own-operate-transfer) vis-à-vis over exposure of major contractors (thereby leading to a cash crunch), Mr Mazumder maintains a bullish outlook on the sector.
“A number of new contractors with stronger finances have started emerging, leading to a steady increase in orders. We are confident that activities will gain further momentum in the near future,” he said.