Tata Hitachi's Bold Rs 200-Crore Investment

Tata Hitachi Construction Machinery is set to invest Rs 200 crore in FY25, focusing on enhancing quality, innovation, and localisation at its two manufacturing plants. This 40:60 joint venture between Tata and Japan's Hitachi aims to achieve 70 percent localisation within two to three years. The investment targets the Kharagpur, West Bengal, and Dharwad, Karnataka plants. 

The Kharagpur plant, the largest excavator plant in South-east Asia, already has an outlay of Rs 1,100 crore. Cumulative capital expenditure, including Dharwad, reaches Rs 2,000 crore. The company plans to produce 60-tonne dump trucks in India using technology from Hitachi Canada and introduce more models under the 'Atmanirbhar' mission. With infrastructure development expected to boost demand in the latter half of the year, the market size for excavators stands at approximately 1.25 lakh units. 

Tata Hitachi aims for an eight percent revenue growth, having achieved around Rs 5,000 crore in FY24, with both plants operating at 75-80 percent capacity.

News by Rahul Yelligetti