Tata Hitachi plans to launch 100 ton dumper in 2016

Construction equipment major Tata Hitachi Construction Machinery Company Ltd (Tata Hitachi) is hoping to get into off-the-highway vehicle segment by 2016 with its 100 ton dumper, said a top company official.

He said the company will also start shipping out its newly-launched excavators and reduce the content of imported components at the company level to 35 percent in two years time from the current 45 percent.

The Rs.2,300 crore turnover Bangalore-based Tata Hitachi is 40:60 joint venture between India's Tata Motors and Japanese Hitachi group.

"Our 100 ton prototype dumper is undergoing trials at a coal mine. It may take around two years to complete the trial studies. We will then get into commercial production," managing director Rana Sinha told reporters here Thursday.

According to him, the 100 ton dumper will be rolled out of the company's Kharagpur factory where it rolls out its 35 ton dumper.

Sinha said the prototype is fitted with imported Cummins engine and the transmission from Allison Transmission.

He said Hitachi is making dumpers upto 200 ton and there was no major challenge in making the 100 ton vehicle.

According to Sinha, there are positive signs for the construction equipment market to pick up in India and the company launched its premium 20 ton excavator to cash on the expected boom.

He said all the global construction equipment majors are present in India and Tata Hitachi offers the high-tech new model to be at par or ahead of the competition.

Sinha said around 150 units of the new excavator (domestic price around Rs.5.2 million) will be shipped out overseas markets like Middle East this year.

Citing a market research study general manager (marketing) Vijay Kumar M. said the industry is expected to grow to $20-25 billion by 2020 from $3.3 billion in 2010.

Agreeing that the market slid down in the last two years, Vijay Kumar told IANS: "The long term growth story in India remains intact despite the fall in the market size during last two years."

Last year, Tata Hitachi sold around 4,500 units of different construction equipments like excavators (backhoe and shovel), wheel loaders, transit concrete mixers and dumpers.

However for the current year Sinha expects the company to grow its turnover by three-four percent.

"Next year we are looking at 15 percent growth and then after 20 percent," he said.

Queried about increasing the local content in the machines, Sinha said plans are there to reduce the import content to 35 percent in two years time from the current 45 percent levels.

He said the company has a vendor park near its Kharagpur plant and a couple of vendors are coming there.