Tata Hitachi eyes ₹5,500 crore in FY26 revenue

Time of India

a day ago

New Delhi:
Tata Hitachi
Construction Machinery is looking at about 5 per cent year-on-year revenue growth in FY26 amid muted industry growth expectations, said a top company official. The firm is a 40:60 joint venture between Tata Motors (40 per cent) and Hitachi Construction Machinery of Japan (60 per cent).
'Our revenue target is around ₹5,500 crore in the current fiscal,' Managing Director Sandeep Singh, told ETAuto.
In FY24, Tata Hitachi posted revenue of about ₹5,000 crore, which rose to roughly ₹5,300 crore in FY25.
The firm operates two manufacturing plants– in Dharwad, Karnataka, and Kharagpur, West Bengal. The Dharwad facility produces excavators ranging from 2 to 20 tonnes, along with backhoe loaders, while Kharagpur handles larger excavators from 20 to 120 tonnes and wheel loaders of 3 and 5 tonnes.
Even as the combined production capacity stands at about 11,000 units a year, roughly 7,000 units in Dharwad and 4,000 in Kharagpur, the value output of each plant is similar, with an average equipment price exceeding ₹60 lakh.
The company is also planning to expand its heavy equipment portfolio. 'We plan to invest about ₹150 crore this year, with a bulk of spending directed towards expanding
heavy mining equipment
,' he added. The rest will be deployed primarily to replace and upgrade older equipment.
The investment also includes setting up a spare parts warehouse on the 250-acre site in Kharagpur, at a cost of roughly ₹50 crore. The new facility will enable the company to shut its long-standing rented warehouse in Nagpur, which has been in operation for over two decades.
Tata Hitachi is placing increased emphasis on heavy mining equipment, with excavators from 47 to 120 tonnes and plans to produce dump trucks, starting with 60-tonne models and scaling up to 190 tonnes.
Also Read: New Bill to boost construction equipment industry on the cards: Gadkari
Demand estimates
In FY25, the Indian CE industry's total sales rose to just about 1.40 lakh units from 1.35 lakh units in FY24, owing to delayed infrastructure projects following elections. From January this year, India implemented Euro-V emission norms for the sector, triggering a price increase.
Owing to the impact of new regulatory norms and a broader market slowdown, Singh expects industry volumes to touch around 1.5 lakh units this year, with Tata Hitachi's addressable segment accounting for about 90,000 units. This aligns with ICRA's forecast of a muted 2-5 per cent YoY growth for the Indian mining and construction equipment industry in FY26, translating to volumes of 1.43-1.47 lakh units.
However, for the long term, Singh remains optimistic about the ongoing urban development projects and the rapid expansion of expressways as positive drivers for the industry.
In the near term, Tata Hitachi's priority is to maintain its leadership in the excavator segment while expanding its footprint in the mining sector.
The MD noted that the company has achieved a localisation level of around 60 per cent, with some products reaching up to 70 per cent. The remaining 30-40 per cent of components are sourced primarily from Japan and Korea, including hydraulics, controllers, control valves, undercarriage systems, and electronics.
On the exports front, the company currently serves the Middle East and Africa from its Indian operations, while several other global markets are supplied by plants in the Netherlands, China, Indonesia and Russia.
Read more: JCB India sees better H2, braces itself for US tariff challenge
India to rise up
Tata Hitachi expects India to become the world's second-largest construction equipment market by 2030, overtaking China and trailing only the US. The country is currently the third largest.
With demand in its home market slowing, Chinese manufacturers are increasingly dumping equipment into India. Import duties on such machinery range from 2.5 per cent to 7.5 per cent, depending on the type, with certain infrastructure-related equipment attracting up to 25 per cent.
Unlike the automobile sector, there are fewer restrictions on such imports. Singh noted that the industry is engaging with the government to address the issue, citing concerns over product quality.