Japanese construction equipment manufacturers are poised to take advantage of India's growing infrastructure investment, planning to boost production capacity and putting new models on the market.
Kobelco Construction Machinery Co.'s Indian subsidiary is planning to double its annual production capacity as it expects demand for heavy construction machinery to increase in the country, which is likely to invest $1 trillion in the infrastructure sector alone in the next few years, according to Vikram Sharma, managing director and chief executive officer of Kobelco Construction Equipment India Pvt. Ltd.
"We are working on doubling the production capacity of our Sri City-based facility in Andhra Pradesh to around 2,500 units per year from the current annual capacity of 1,200 units as we expect the demand for heavy construction equipment to increase in the next three to four years with infrastructure activities in the country likely to get a boost with the proposed $1 trillion investment in the sector," Sharma said.