CHENNAI: German concrete machinery manufacturer SCHWING Stetter has drawn up plans to expand its capacity by setting up a new facility in Tamil Nadu and widen its product portfolio.
“We plan to have a greenfield project near our existing facility here at an initial outlay of Rs 100 crore that would serve our plan to realign the product portfolio. We will shift the production of a range of machinery there freeing up space at the existing facility to roll out newer equipment,” said Anand Sundaresan, vice-chairman and managing director, SCHWING Stetter India. He added that in three to five years time, the investment may go up to Rs 250 crore.
The new facility would be in addition to the existing five factories set up by the company across the country, he said.
The city-headquartered company has also introduced 16 new products that would focus on giving inorganic growth, targeting the government’s vision of upgrading rural infrastructure, Swachch Bharat mission, metro and high-speed rail, expressways and urban infrastructure.
According to Sundaresan, the construction equipment industry, currently valued at $4.2 billion, could reach $7 billion by 2020.
SCHWING Stetter group, a company with $1 billion turnover, is part of Chinese construction equipment machinery group XCMG. According to Sundaresan, the XCMG group would also set up a new facility to make non-concrete machinery.
SCHWING Stetter India grew 30 per cent in 2015-16 and is expected to grow at 33 per cent in 2016-17, he said.
V G Sakthikumar, managing director, SCHWING Stetter Sales and Services, said the company would launch a range of machinery at the ensuing Excon 2017 (an exhibition of construction equipment) to be held in Bengaluru.
Some of the new products that would be launched are stationary concrete pumps, Gomaco concrete pavers, plastering pumps, tower cranes, crawler cranes, milling machines and others.