LiuGong, Chinese global leader in manufacturing of heavy duty equipment, announced its plans for investing further US$ 15 million in Indian subsidiary in the 2nd phase.
“Now, India has a new government in place and everybody is expecting favourable business environment. That’s why we decided to invest in the Indian market. We will extend our product lines by local suppliers, and local R&D team. We are committed to this market and to our success here,” said Li Dongchun, Managing Director, LiuGong India.
During the 1st phase of development, LiuGong invested, US$ 30m in 2008-09 for its state of art manufacturing facility at Indore. Currently, the Indian subsidiary employs over 200 people of which around 90 per cent are Indians and Liugong plans to hire additional 20-30 per cent local manpower for coming product line - wheel loaders, excavators, and road equipment. Luo Guobing, Vice President, Guangxi LiuGong, said:“India is significant to LiuGong and we take it as one of the most important markets for us as India is a faster growing market. This fact echoes in our decision to commence the first overseas plant in India in 2009. We are happy to receive the welcoming response from the Indian market and making us the first Chinese machinery company to successfully establish a manufacturing facility outside of China. The additional investment also proves our confidence and seriousness for the Indian construction equipment market.
Sanjay Wadnerkar, Vice President of LiuGong India Plant, said: “Additional investment of $15 million will strengthen the production capacity of road equipment and develop a new assembly line for hydraulic excavators to cater the growing Indian market demand. We are using reputed components from local suppliers like Cummins India, Mahindra & Mahindra, Parker India, BKT, JK Tyre and UIE etc. We are proud of our quality equipments and now we can put more resources to the productivity enhancement.”