Kawasaki Heavy doubling hydraulic equipment output in India construction boom

21, Feb. 2019

NEW DELHI, NNA – Kawasaki Heavy Industries Ltd. of Japan is doubling its capacity to produce hydraulic equipment in India for use in construction machinery in high demand for building expressways, railways and ports.

The company has opened a second plant in the southern city of Bengaluru to raise combined annual production of hydraulic pumps and motors to 40,000 units, starting in April.

It has invested 500 million rupees ($7 million) in the new factory, a Kawasaki spokesman in Tokyo told NNA Tuesday.

“The increased production capability will enable Kawasaki to respond more flexibly to customers’ varying production volumes,” the firm said this week. It said India, like China, is expected to see rapid growth in infrastructure investment.

Wipro Kawasaki Precision Machinery Pvt. Ltd. is a Kawasaki joint venture with Wipro Enterprises Ltd. in the technology service Wipro group. It expects the domestic hydraulic excavator market to reach 40,000 to 50,000 units by fiscal 2025, up from an estimated 25,000 units for the current fiscal year ending in March.

All of the products made in Bengaluru will be mounted to excavators.

Kawasaki holds 51 percent of the joint venture. It regards India as a key, global production center along with Britain, China, Japan, South Korea and the United States.

Kawasaki had been exporting hydraulic pumps to India from a plant in the western Japanese city of Kobe before starting local production in Bengaluru in 2012.