In its ambitious drive to become one of the top ten construction equipment makers in the world, LiuGong is expanding its manufacturing and support capabilities in an aggressive way. In India, its market performance has far exceeded the industry's average growth rate.
The world’s largest wheel loader manufacturer, LiuGong Machinery Corp, says it wants to become among the top ten construction equipment makers in the world and a globally recognised brand by 2015. “We have a vision to be a leading, global manufacturing company,” said Zeng Guang’an, Vice Chairman and President. “We are committed to becoming one of the top ten equipment manufacturing companies worldwide,” added Zeng.
The firm is uniquely positioned to make good on its aspirations. It has the breadth of products to compete on a global scale. LiuGong is the leader in its domestic market, having gained significant market share in its core product lines – wheel loaders and excavators. The company has nearly 18 per cent global market share in wheel loaders, and nearly 23 per cent share domestically. LiuGong expanded into the crane market in China only recently, but in 2009, gained the number three spot in total crane volume sold. In India, where they built a wheel loader plant last year, LiuGong is the number one seller of wheel loaders.
LiuGong has aggressively pursued global expansion: the company has set up a rapidly growing, worldwide network of 117 dealers across six continents in more than 77 countries. The LiuGong dealer network provides 883 outlets for LiuGong products around the world. Supporting the dealer network are eight regional offices with engineering, marketing and service support, coupled with eight parts depots located strategically throughout the world which ensure rapid replacement of parts and servicing of equipment.
“Our challenge has been how to deal with the growth,” Zeng said. “Nobody wants to lose in China. If you lose in China, you lose the whole world.” He noted that LiuGong is striving to be the number one construction equipment brand there, because the company’s success in China fuel the company’s ability to expand around the world. Zeng said there are three dimensions to the company’s strategy for the next five years. “We must grow our product lines, grow our market share, and grow our quality,” he stated.
LiuGong has 16 machine factories and in 2009, successfully opened its first overseas plant in central India, one of the few Chinese machinery companies to do so. LiuGong’s approach to growth is tied to a strategy of carefully expanding its global footprint. The company is expanding its manufacturing and support capabilities in an aggressive way. In early 2009, the company opened a bulldozer factory in northern China, and opened the wheel loader plant in India in July 2009 at Bengaluru.
LiuGong India not only offers the booming Indian construction machinery market machines that are easy to own and maintain but also machines that are built locally in its factory in Madhya Pradesh. “LiuGong’s mission is to support customer with a total solution with our products and services. We believe there is a great opportunity in India, especially in infrastructure as India is booming at least for the next 1520 years. With its full line of construction equipment and local dealer network, the company provides the right combination of products and services for the Indian market,” says Sunil Sapru, President, LiuGong India. The company offers wheel loaders (1.5 to 10 tonne), excavators (6 to 35 tonne), compactors, motor graders, cold planners and dozers, cranes, forklifts and multipurpose products like skid steer loaders, backhoe loaders, etc.
“LiuGong’s wheel loader segment is expected to push LiuGong India’s projected annual revenue to over $175 million by 2012,” Sapru sums up.