Kobelco Cranes India Pvt Ltd, part of the Japanese major Kobelco Cranes Co, commenced commercial production of its hydraulic crawler cranes in India from Thursday.

Mr Isao Aida president and CEO of the parent company said the INR 100 crore facility that has come up at Sri City, Tada, in Chittoor District (Andhra Pradesh), would produce 90 units of 100 tonne, 150 tonne and 250 tonne class cranes during the current year.

This is the company's first manufacturing facility outside Japan. Mr Aida added that the company is planning to achieve 35% localisation in the first year and will gradually increase it to 50% in the years to come.

The facility, besides catering to the domestic market here, would soon cater to markets in the neighbouring countries and would help us sustain and increase our market share in the growing construction equipment market in India and its neighbouring countries.

According to Mr Shinsuke Izumi president and director of Kobelco Cranes India, the local manufacturing of cranes would reduce the cost of the cranes and will be made available in the price range of INR 2.5 crore to INR 10 crore. He added that “We expect to acquire a market share of 20% by 2015.”

The current market size for cranes of a similar class in India is pegged at 500 units a year. He added that betting big on the Indian market, the company will further enhance its production capacity with another round of investment next year.

(Sourced from BL)