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Tata’s Kharagpur Facility to Export Cars for Neighboring Markets

Tata Hitachi Construction Machinery Company is eyeing to turn its West Bengal based facility in an export center for its cost efficient building equipment for growing market regions all over the world.

Tata Hitachi Construction Machinery Company is a JV of Tata Motors and Hitachi Construction Machinery.

Mitsuhiro Tabei, vice-president and executive officer of Hitachi Construction Machinery Company of Japan, stated that presently they are exporting about 2% of their overall creation or approximately 300 units on an annual basis.

Tata's Kharagpur Facility to Export Cars for Neighboring Markets
The Kharagpur facility would be the export center for the adjoining nations such as Nepal, Bangladesh as well as Sri Lanka and other budding sections compriisng Africa and the Middle East.

The Kharagpur-based facility is working at just 35% capacity owing to slump in construction equipment market and is eyeing for enhanced capacity utilization if export of low-priced equipment perks up.

While unveiling of company’s new name, Tata Hitachi Managing Director Rana Sinha stated, “This facility will be the industrial unit to the globe.”

Previously, it was named as Telcon.

Tata Hitachi has an overall capacitance of fabricating 15,000 construction equipment units on an annual basis from its three facilities situated in Jamshedpur, Dharwad and Kharagpur.

The Kharagpur facility, covering up a region of around 250 acres, has the capability to fabricate 6000 units per annum including shovels, wheel loaders and dump trucks.

Hitachi Construction Machinery Company has raised its holding equity stake to 60% and Tata Motors Ltd possesses the staying 40% equity stake in Tata Hitachi.

Sinha added that Tata Hitachi Construction Machinery Company posted a revenue of approximately Rs 3000 crore during the last fiscal and is directing to grow to Rs 5500 crore by 2017 led by export development.

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