Chennai–Chinese construction machinery maker XCMG Construction Machinery Company Ltd will invest $150 million in India, the company’s top official said.
“India is one of the fastest growing nation amongst the emerging economies. We are planning to invest $150 million to build a modern manufacturing facility,” Wang Min, Group Chairman, told reporters here on Thursday.
XCMG Construction Machinery is a listed company in China and is a subsidiary of Xuzhou Construction Machinery Group Co. Ltd. (XCMG).
Wang Min said by the end of this year, the factory would be built. The group is known for loaders, excavators.
“We will have to evaluate the Indian market,” he said.
Wang said the RMB 80 billion turnover XCMG will learn from its competitors in the Indian market.
“We will have our own strategy for the Indian market. We will also localise the components. The overall investment plan will be implemented in stages,” the official added.
According to Anand Sundaresan, Chairman, Schwing Stetter Sales and Service, the investment is part of ‘Make in India’ programme and the XCMG would produce construction equipment and material handling products.
German company Schwing Stetter making ready-mix concrete machinery is part of XCMG.
Sundaresan said the proposed XCMG plant will be under a separate company and the products would be sold by the existing sales network of Schwing Stetter.
“The proposed products could be sold under joint brands of XCMG and Schwing,” Sundaresan said.
He said the proposed plant may roll out wheel loaders, excavators, motor graders, cranes and other products.
Sundaresan said the proposed plant will be located in South India and various sites are being studied. (IANS)