Hyundai Construction Equipment in expansion mode

Hyderabad:  Hyundai Construction Equipment India is considering manufacture of a wider range of construction industry equipment in the country by setting up additional lines, a media report said. 

Currently, the company manufactures excavators from its Rs 400-crore Chakan plant in Maharashtra. It has the capability to make 5,000 excavators a year from the plant after investing Rs 55 crore last year. 

Ki Young Kong, Managing Director, told Business Line that, “The construction sector in India may be passing through a tough phase now but it won’t be long before the sector gathers momentum. We believe that from next year on, the pace of growth will accelerate.” 

“To address the market, we will have to expand and set up another plant within two years. Sectors such as roads, mining, irrigation, quarrying are likely to drive the growth,” he said. 

The South Korean company currently lays focus on excavators but sells other equipment imported from other markets. “We are keen to play a larger role by manufacture of backhoe loaders, wheel loaders and compaction equipment,” he said. 

He was in the city to inaugurate a new 3S dealership and host a meeting of customers and local dealers. “Hyderabad is one of the biggest market for the construction segment and we have nearly 20 big construction company clients here,” he said. 

“In fact, the sales of construction equipment were down by 20 per cent in the first quarter. Yet, we believe after the monsoon, the sales volume will pick up. The overall construction equipment industry is estimated to be about $3 billion,” he said. 

The company closed last year with a turnover of Rs 1,000 crore and expects to see a growth of about 10 per cent closing with Rs 1,100 crore this year, the report further said. 

Dheeraj Panda, Head Marketing, said: “Last year, we sold over 2,400 excavators. Within five years we hold No. 3 position with 18 per cent market share in India. We are looking to achieve 2,800 units of excavators this year, of which we have sold around 600 units in the first quarter of this year.”