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With MCE industry volumes of around 40,000-45,000 units per
annum and an estimated turnover of $2.6-3.1 billion, the Indian
market is relatively small compared to the global market that is
estimated at over $75 billion, the ICRA report noted. Nevertheless,
many international OEMs have indicated plans of setting up manufacturing
facilities in India owing to its good growth prospects and
slack demand in the traditional developed markets.
Some of the
new entrants in
the past threefour
years were
Japan's excavator
major,
Kobelco, and
ME company
Komatsu; CE
and farming
e q u i p m e n t
major, John
Deere (USA) in
JV with Ashok
Leyland Ltd;
excavator and
CE companies,
Sany and Liugong (China); and MCE majors Hyundai and Doosan
(Korea).
Further, existing participants like Caterpillar and excavator
manufacturer Telco Construction Equipment Company Ltd are
either adding to their domestic capacities or increasing their
product portfolio.
With the incremental capacities and new entrants, the industry
is expected to become more competitive and fragmented. However,
growing mechanisation and large infrastructural projects proposed
in the country indicate the potential to absorb these new
capacities. The entry of global MCE manufacturers has also facilitated
product upgrades in the growing Indian market.
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