Sany Heavy Industry India will invest Rs 1,000 crore at its Pune plant over the next two to three years to expand capacity at its existing capacity. The company had invested Rs 750 crore in the country and set up its industrial park at Chakan in 2009. Early this year, the company rolled out the 25,000th machinery from the plant.
Deepak Garg, the managing director of Sany India, said, “This expansion aims to meet the increasing demand propelled by investments in infrastructure, mining, and renewable sectors. The company’s investment strategy focuses on expanding its product portfolio, incorporating more powerful machines, and aligning with the transition towards alternative fuels, better emission standards, electrification, and hydrogen-powered equipment. The goal is to significantly increase the localization, targeting a threefold growth.”
As a wholly-owned subsidiary of Sany Heavy Industry Co, Sany India stands as the largest overseas subsidiary of the Sany Group. With its establishment in India in 2002 through imported machines, the local manufacturing commenced in 2009. Sany India’s manufacturing array includes excavators, cranes, transit mixers, batching plants, boom pumps, trailer pumps, piling rigs, motor graders, pavers, milling machines, compactors, reach stackers, mining equipment, and wind turbine generators.
The product portfolio had expanded from around 10-15 products five years ago to 30-40 products at present. More specialised product and equipment was entering the Indian market. Sustainability and connectivity were the big changes for products in this segment that was taking place in the market, Garg said. The industry is following a similar trajectory as the automotive sector concerning emission norms and the transition to alternative energy, such as electrification and hydrogen fuel. The company is aiming to increase its capacity from 500 units to 1,000 units as it approaches full capacity utilization.
Garg said: “Not only Sany India but all the industry players were in the capacity ramp-up phase and were expanding operations in India. All major OEMs and auto component makers in this segment are investing around Rs 30,000 crore in capacity expansion over the next five years and take total industry capacity to half a million units. This expansion was also to meet the demand for sourcing components from India. Companies that were present in India have started exporting parts globally and even OEMS not having a presence in India have started sourcing from India.”
FY23 marked a record year for the construction and mining equipment industry, reaching annual volumes of over one lakh units, recording sales of 1,07,779 machines, a 26% year-on-year growth, according to data from the Indian Construction Equipment Manufacturers’ Association (ICEMA). The sector is expected to expand from $6.5 billion to $25 billion by 2030.
The industry will showcase its products and technologies at EXCON 2023, to be held in Bengaluru from December 12-16. Participating companies are from Austria, China, the Czech Republic, France, Germany, Italy, Romania, Russia, South Korea, Spain, Sri Lanka, Turkey, the United Arab Emirates, the UK, and the US.