Tractor India Ltd (TIL), India?s leading manufacturer of machinery equipments, is planning to set up a second plant at Kharagpur, near Kolkata at an investment of Rs 250 crore.
The plant, which will go operational in the middle of 2009, will have a total capacity of 1,000 units that would be achieved in four years.
The company has also earmarked an investment of Rs 50 crore in modernizing the existing plant at Kolkata.
“In an effort to achieve a majority market share in the heavy machinery industry, the company has entered into a joint venture with Hyster of the US whereby TIL would be the exclusive dealer of Hyster in India,?says Satish K Bhatnagar, president, TIL.
Bhatnagar added that this JV plus our plans to set up a new plant will help the company increase its revenues in the segment by 20% from Rs 250 crore now.
For the year ended 2007-08, TIL has a total turnover of Rs 1,000 crore.
Of this, Rs 250 crore is from the mobile cranes and the reach stackers that the company is currently manufacturing while the rest Rs 750 crore is from its selling and distribution business of US-based Caterpillar.
?We will be making machineries worth Rs 400 crore per annum, which will include port equipments, mobile cranes, container handling equipments ,? he added.