Caterpillar, one of the largest heavy equipment manufacturers in the world, now has five plants operating in India to provide a huge selection of mining, construction and other machinery to companies in the area. The current market is estimated at $2B annually, but is expected to grow to $4B within the next three years as companies continue to expand their resource mining and infrastructure investments in the country.
Fortunately, Caterpillar believes that they have plenty of production and resources already in place in India to handle the anticipated explosion in their market going forward. Caterpillar has been dealing both locally and in exports from India since the 1930’s and was already heavily invested in building plants there before the market went through a sudden downturn. These setbacks meant that Caterpillar was already prepared to handle growth that did not happen, leaving the door open for future expansion instead. Additionally, Caterpillar employs workers both directly through their production plants, and indirectly through dealers throughout the country, maintaining a workforce of roughly 10,000 in India right now. Their fifth plant is expected to be commissioned in the next month, adding additional jobs and gearing up for the next few years.
One thing that makes Caterpillar stand out among competitors in this market is their largest class of machinery such as backhoes, track excavators and more. While other manufacturers exist in the construction and heavy equipment industry in India, Caterpillar maintains their place as the first choice for companies that need equipment that other provides simply do not have the capacity to deliver. Due to the high demand for this type of heavy equipment, Caterpillar is able to export almost 50% of their total production to other nations in Europe and Asia, while also keeping up with order being placed locally.
Based on the market predictions for the next few years, Caterpillar expects to continue finding ways to improve their processes and technologies, but they do not feel the need to expand their operations any further at this time. Since their five existing plants have not fully recovered from the poor market conditions of recent years, they believe they have some time before there will be significant need for further capital investment.