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Time of India
2 days ago
- Business
- Time of India
Tata Hitachi eyes ₹5,500 crore in FY26 revenue
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.
Time of India
08-08-2025
- Business
- Time of India
JCB India sees better H2, braces itself for US tariff challenge
New Delhi: Construction equipment (CE) major JCB India expects flat growth for the industry in the first half of this fiscal thanks to a broader market slowdown coupled with the impact of new regulatory norms. 'We expect H2 to be better. A better monsoon should help the rural economy come back strongly. Overall, I see that it will either be flat or show a slight improvement over last year,' Deepak Shetty , CEO & MD, JCB India, told ETAuto. He projects a growth of about 3 per cent, in line with FY2024-25 levels. Shetty was speaking on the sidelines of the annual session of the Indian Construction Equipment Manufacturers' Association (ICEMA), where he formally assumed the role of President for the 2025–27 term. He takes over from V Vivekanand, MD of Caterpillar India, who led the association from 2023-25. The Indian CE industry's total sales rose to just about 1.40 lakh units in FY25 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. So far, JCB has sold around 20,000 units compliant with the new standards. Meanwhile, the company remains bullish on the long-term prospects of the industry, expecting India (now in third place) to overtake China and claim the number two global spot, behind the US, by the end of this decade. Shetty expects JCB to grow in line with the industry. For FY 2025-26, capex is projected at around ₹200 crore. US tariff impact The Ballabgarh-based firm exports to 135 countries translating to around 25 per cent of its total machine production last year. The US remains one of JCB's largest export markets, with nearly 10,000 machines shipped from India last year. With the ongoing geopolitical uncertainties, the company expects this share to remain flat in FY26. 'The ever-changing geopolitical situation is certainly a challenge, but at the same time, the opportunity lies in the Indian market,' he said. On the recent tariff hike, Shetty noted, 'Certainly, in the short term, there is an impact. A 50 per cent tariff is going to make it costly. But we need to see exactly at the HSN code level how it impacts, because sometimes these are at a gross level.' Additionally, the company is eyeing higher sales in Nepal, South Asia, Africa and Sri Lanka. Hydrogen over electric Shetty called hydrogen a 'huge opportunity' for the CE sector, particularly for larger machines. 'The torque requirement for big equipment makes electricity less practical. By the next decade, smaller machines, which today account for about 20-25 per cent of the market in India, will go electric since they operate mainly in urban areas. But larger, high-torque machines will go for hydrogen.' Citing the example of Leh-Ladakh, he said while diesel must be transported via tankers, hydrogen can be produced locally using an electrolyser, an approach already implemented by NTPC. Shetty said JCB is ready with the technology for alternative powertrains but highlighted the lack of ecosystem as the biggest barrier. At Excon 2025, the company will unveil new products in electric and hydrogen segments, while steering clear of CNG due to the narrowing price gap with diesel. China challenge China's product dumping remains a major challenge for India's CE industry, highlighted Shetty. On Thursday, Road Transport and Highway Minister Nitin Gadkari said the Centre was working on a new Bill aimed at supporting the industry and reducing imports, particularly from China. The goal was to enhance the sector's competitiveness through targeted policy measures. The CE industry has also been pressing the Centre to introduce the Construction, Earthmoving, Material Handling Machinery Act, which will set standards for both emissions and operator safety. The legislation is currently in the draft stage. On technology advancements, Shetty said while these were more prevalent in developed countries like the US for certain mining applications, JCB has also worked on certain autonomous driving applications in collaboration with the Defence Research and Development Organisation (DRDO). 'I can't talk much about it, but there are some autonomous technologies that we have developed with DRDO,' he said.
Business Recorder
21-05-2025
- Business
- Business Recorder
CEOs of refineries appreciate resolution of sales tax issue
ISLAMABAD: The Chief Executive Officers (CEOs) of Pakistan's leading oil refineries called on Federal Minister for Petroleum, Ali Pervaiz Malik, on Tuesday, to express their gratitude for the government's decisive action in resolving the long-standing sales tax issue affecting the refining and OMC sectors. The meeting underscored the government's firm commitment to ensuring energy security and facilitating refinery upgrade projects worth over USD 6 billion, which are critical to modernising Pakistan's refining infrastructure. The resolution of the sales tax issue marks a significant milestone in creating a conducive environment for investment and operational efficiency in the oil refining industry. The CEOs lauded the Petroleum minister's proactive approach and the PM's personal efforts/support in addressing key challenges faced by the sector. They reiterated their commitment to advancing refinery upgradation projects in line with the prime minister's vision for enhancing fuel quality, reducing emissions, and promoting clean energy solutions. Speaking on the occasion, Federal Minister Ali Pervaiz Malik emphasised that the government is fully dedicated to fostering a sustainable energy ecosystem. 'The steps to address the sales tax issue reflects our unwavering resolve to support the refining sector, which plays a pivotal role in Pakistan's energy security and economic growth. The refinery upgrades will not only enhance production efficiency but also align with our goal of transitioning toward cleaner and more sustainable energy sources,' he stated. Furthermore, he highlighted that policy consistency is the corner stone for viability of any sector, fostering investor confidence. The refinery upgradation projects, once completed, will significantly improve fuel standards, reduce reliance on imported petroleum products, and contribute to environmental sustainability by producing Euro-V compliant fuels. This initiative is at heart of the government's broader strategy to strengthen the energy sector and ensure long-term economic stability through foreign investments. The delegation included Zahid Mir-CEO Pakistan Refinery Limited, Irtiza Qureshi - MD PARCO, Adil Khattak - CEO Attock Refinery Limited, Amir Abbasi - CEO Cynergico, and Asad Hasan - CEO National Refinery Limited. Copyright Business Recorder, 2025
Business Recorder
21-05-2025
- Business
- Business Recorder
CEOs of refineries appreciate resolution of ST issue
ISLAMABAD: The Chief Executive Officers (CEOs) of Pakistan's leading oil refineries called on Federal Minister for Petroleum, Ali Pervaiz Malik, on Tuesday, to express their gratitude for the government's decisive action in resolving the long-standing sales tax issue affecting the refining and OMC sectors. The meeting underscored the government's firm commitment to ensuring energy security and facilitating refinery upgrade projects worth over USD 6 billion, which are critical to modernising Pakistan's refining infrastructure. The resolution of the sales tax issue marks a significant milestone in creating a conducive environment for investment and operational efficiency in the oil refining industry. The CEOs lauded the Petroleum minister's proactive approach and the PM's personal efforts/support in addressing key challenges faced by the sector. They reiterated their commitment to advancing refinery upgradation projects in line with the prime minister's vision for enhancing fuel quality, reducing emissions, and promoting clean energy solutions. Speaking on the occasion, Federal Minister Ali Pervaiz Malik emphasised that the government is fully dedicated to fostering a sustainable energy ecosystem. 'The steps to address the sales tax issue reflects our unwavering resolve to support the refining sector, which plays a pivotal role in Pakistan's energy security and economic growth. The refinery upgrades will not only enhance production efficiency but also align with our goal of transitioning toward cleaner and more sustainable energy sources,' he stated. Furthermore, he highlighted that policy consistency is the corner stone for viability of any sector, fostering investor confidence. The refinery upgradation projects, once completed, will significantly improve fuel standards, reduce reliance on imported petroleum products, and contribute to environmental sustainability by producing Euro-V compliant fuels. This initiative is at heart of the government's broader strategy to strengthen the energy sector and ensure long-term economic stability through foreign investments. The delegation included Zahid Mir-CEO Pakistan Refinery Limited, Irtiza Qureshi - MD PARCO, Adil Khattak - CEO Attock Refinery Limited, Amir Abbasi - CEO Cynergico, and Asad Hasan - CEO National Refinery Limited. Copyright Business Recorder, 2025
