Tata Hitachi to Invest Rs 200 Crore in Indian Plants for Innovation and Localization

Tata Hitachi Construction Machinery has announced a Rs 200 crore investment in its Kharagpur and Dharwad plants. The 40:60 JV with Japan's Hitachi aims to increase localization to 70% and produce 60-tonne dump trucks for the mining industry. The move aligns with India's 'Atmanirbhar' policy.

Tata Hitachi Construction Machinery revealed on Tuesday an ambitious plan to pump Rs 200 crore into its two manufacturing units.

The investment aims to bolster quality, innovation, and localization, said Managing Director Sandeep Singh. A 40:60 joint venture between Tata and Japan's Hitachi, the company is set to increase localization levels to 70% in the next 2-3 years.

Sandeep Singh announced that they would leverage technology from Hitachi Canada to produce 60-tonne dump trucks, primarily for mining. The official also articulated plans to introduce more models under India's 'Atmanirbhar' (self-reliant) initiative.

''Investing Rs 200 crore in our Kharagpur and Dharwad plants will help us stay at the forefront of innovation,'' added Singh. Celebrating a 40-year partnership between Tata Group and Hitachi, the company sees financial prudence in bolstering localization, essential for cost control.

The Kharagpur plant, the largest in Southeast Asia, benefits from an overall Rs 2,000 crore investment. Optimism about the Union budget fuels expectations for increased infrastructure spending, potentially driving equipment demand in the latter half of the year.

Despite flat growth forecasted this fiscal, the company aims for an 8% revenue boost, despite pressure from Chinese imports. Operating at 75-80% capacity, the FY'24 revenue hit around Rs 5,000 crore.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)