Kobelco contributes to India’s growth story
In 2011, KCEI set up its production facility in the Satyavedu Reserve Infracity Pvt. Ltd. (also known as Sri City), a special economic zone in Andhra Pradesh, just 75 kilometers north of Chennai. It was the very first Japanese company in Sri City and its success encouraged many other Japanese companies to locate there as well.
KCEI supplies construction machinery such as excavators and cranes that are known for their more efficient fuel consumption and durability. Owing to the synergy of engines and efficient hydraulic systems, Kobelco’s excavators could save about 10 to 15 percent of diesel per hour when compared to those of their competitors, making them more eco-friendly.
“In the beginning, our production capacity was four to six machines a day and in the first year we produced only 500 machines,” said KCEI adviser and former Managing Director Vikram Sharma.
KCEI produced more than 2,000 machines last year and its production continues to grow to meet the strong demand from India’s road and mining sectors.
The Indian market for excavators has been growing around 20 percent year on year for the last four years. This robust growth is expected to continue as India’s construction equipment market is projected to have a compound annual growth rate of 10 percent over the next five years.
Aligned with its vision of “delivering true value to society,” KCEI, together with the Indian Construction Equipment Manufacturers Association, have been driving initiatives to improve the safety and emission norms in India.
KCEI is also one of the Japanese companies collaborating with the Indian government to establish the Japan-India Institute for Manufacturing (JIM) in Sri City. The JIM program is a collaborative effort aimed at increasing the pool of skilled workers to support the growth of India’s manufacturing industry.
“India is one of the fastest-growing markets for Kobelco worldwide and we are committed to being a partner of choice in constructing India’s bright future,” said KCEI Managing Director and CEO Koji Nakagawa.