Construction equipment major Tata Hitachi Construction Machinery Company Ltd is looking to utilise its Rs.575 crore Kharagpur plant as an export hub for shipping its low-end products to developing countries, especially Africa and Middle East, a top company official said Tuesday.
The Rs.3,000-crore company, a 60:40 joint venture between Japanese Hitachi Construction Machinery Co Ltd and Tata Motors, is also eyeing Rs.5,500 crore revenue within the next five years.
The company is looking to increase its export to 15 percent from the current 2-3 percent of its total business within the same period.
"We want the Kharagpur plant (in West Bengal's West Midnapore district) to be gradually tuned to low-end cost effective products to be supplied to global markets especially developing countries," said Mitsuhiro Tabei, vice president of Hitachi Construction Machinery.
Tabei was speaking to media persons here at an event to announce the rechristening of the firm, the erstwhile Telcon, to Tata Hitachi Construction Machinery Company Ltd.
"At present export to Bangladesh, Sri Lanka and Nepal constitutes 2-3 percent of the total domestic business. We are now looking to export to Africa and Middle East countries like Oman and increase the share of exports to 15 percent," said Ranaveer Sinha, managing director of Tata Hitachi Construction Machinery Company Ltd.
Hitachi, which has raised its stake to 60 per cent in the joint venture from 40 percent in 2010, however has no plan to increase the stake further, Tabei said.
Sinha said the construction equipment major which has 37-38 percent share in excavator segment is looking to increase it to 40 percent within the next two years.
The company has two other manufacturing plants at Jamshedpur in Jharkhand and Dharwad in Karnataka. The three plants which produce excavators, cranes and back-loaders have a total capacity of 15,000 units per annum.
Sinha also said that they are in discussion with the West Bengal government for getting land to set up a 225-250 acre township near its Kharagpur plant for its employees.