Heavy equipment market to double to $4 bn in 3 yrs:Caterpillar

US-based Caterpillar expects India's heavy equipment market to double to over USD 4 billion over the next three years given the pick-up in mining, but ruled out capital investment as it already has built enough capacity for the next decade.
"I see the resources and the infra sector related equipment, which is the largest market here, doubling to over USD 4 billion over the next three years. The current market is around USD 2 billion or around 80,000 units per annum," Caterpillar India Managing Director Vivekanand Vanmeeganathan told PTI here today.
The world's largest heavy equipment maker has been present here since the 1930s and sells massive cranes, earthmovers, off-roaders, gensets among others for the construction, resource, and energy and transportation segments.

When asked to comment on 'Make in India' Week, where the company had put up a large stall, he said this has changed the investment mood in the country, but was quick to add his company has already built enough capacity at its five plants for the next many years.
"The industry has already built enough capacity to meet the projected demand growth during the early part of this decade. What will happen is better capacity utilization," Vanmeeganathan said, adding the industry is yet to recover from the downturn that started three years ago.
"Moreover, we are about to commission our Aurangabad plant, wherein we have invested USD 150 million. The commissioning is expected sometime next month," he added.

While the mining and construction sector has many players such as JCB, the state-run BEML, Hitachi among others, the energy and transportation sector, that needs much larger and heavier equipment, is dominated by Caterpillar.

Caterpillar India has five plants and distributes products through 180 dealers via CK Birla-controlled General Motors Marketing and Tractors India.
The firm has plants in Thiruvallur and Hosur in Tamil Nadu and Aurangabad and Banda in Maharashtra. It employs around 6,000 people directly and 4,000 through the dealers. It has a wide product range for the sectors like mining, quarry, power generation, construction, road works, petroleum and rail.

It manufactures, sells and finances products like backhoe loaders, compact, small and medium wheel loaders, small and medium track-type tractors, skid steer loaders, multi-terrain loaders, compact track loaders, track excavators, motor graders, pipe-layers,and tele-handlers.
Caterpillar is also majorly into exports to the tune of 50 per cent of its output, shipping its equipments to China, Latin America, Africa, west Asia and Russia among others.