Initially, the company will manufacture backhoe loaders completely designed and developed by the engineering team in Chennai
Doosan Bobcat India, the wholly-owned subsidiary of Doosan Bobcat Inc., announced officially the inauguration and commencement of operation from its first manufacturing facility in Gummudipoondi near Chennai in Tamil Nadu. With a total investment of Rs. 190 crores, approximately $26 million, for the next five years, the state-of-the-art factory is spread across an area of 21.6 acres and has an annual production capacity of 8,000 units. It is an integrated facility with fabrication, warehouse, assembly and paint shop, all under one roof, which will initially be manufacturing backhoe loaders completely designed and developed by the engineering team based in Chennai.
This is a new addition to the existing product portfolio of Doosan Bobcat in India that comprises various models in skid-steer loaders and mini excavators. The B900 backhoe loader is officially being launched in October 2019. B900 displays superior performance with finest digging depth, breakout forces, component durability, comfortable operator cabin, advanced hydraulic system, and best-in-class total cost of ownership. Serviceability and parts availability is critical and Doosan Bobcat India has developed a comprehensive plan to support its customers through a network of 25 channel partners.
“This new facility will cater to the increasing demand of backhoe loader to support the development of India’s infrastructure and construction segment. India is one of the key markets for Doosan Bobcat to maintain global leadership in the compact segment. By opening the new factory in India, we have taken the next step forward to expanding our global presence and growth strategy. This facility represents our long-term commitment to Indian customers, employees and business associates in the nation through development of vendors, promotion of local part procurement, technology transfer and export,” said Scott Park, CEO, Doosan Bobcat Inc.
Beside backhoe loaders, the company is also looking at localising its other compact products to suit Indian market requirements and potentially exporting that as well. Export from the Chennai hub is also included in the growth plan of Doosan Bobcat India. The factory is going to employ more than 300 personnel at full capacity. The new facility is equipped with modern manufacturing equipment, testing facilities, office space for research and development centre, vendor development, and a training centre. The company also plans to make this facility a global manufacturing hub and a regional centre of excellence.
Doosan Bobcat India hosts financiers meet
Sales of compact construction equipment is gaining momentum in the Indian context and therefore the easy availability of financing options for customers is inevitable. Doosan Bobcat India (DBIN), the Indian subsidiary of the global leader in compact equipment business Doosan Bobcat, organized a financier meet in Chennai. Top level executives from banks which dominate lending in the construction equipment industry like ICICI, HDFC, IndusInd, Kotak and Axis Bank participated in the event. Big names from the non-banking financial institutions like HDB, Cholamandalam, SREI, Sundaram Finance and Tata Capital were also present at the event.
The Indian compact construction equipment industry has been growing at a rapid pace over the last few years. Mechanization required in urban and rural infrastructure development, process industries, solid waste management, waterways, agriculture and plantation are recognized as major growth drivers. The need for compact equipment is set to accelerate in India as labour availability reduces and costs of hiring labour get higher.
The meet was organized by DBIN with the objective of enhancing the business partnership between Doosan Bobcat as a manufacturer of compact equipment and the various major financial institutions. With Doosan Bobcat’s new manufacturing plant in Chennai set to roll out the most awaited Bobcat backhoe loaders in just a few months, the timing of the event couldn’t have been more perfect. The synergy created through the collaboration of a manufacturer and finance providers will without a doubt benefit the end customers in terms of a superior product yielding the best return on investment with hassle-free availability of credit.
DBIN’s vision is to be the market leader in compact equipment and with the wide product portfolio to suit customers’ requirements.
HS Kim, Director, Commercial (DBIN), said: “Off-highway research showed sales of Indian construction equipment grew 35% last year. India has not matured as an equipment finance market yet, but it is likely that the captive finance model shall evolve very soon. This is the best time to reach and support people who want to grow but have low financial means and want to fulfill the aspiration of a better life. DBIN’s endeavor is to bring out financing packages which are easy to handle by customers, with less of complexity so that it becomes easy for customers to interact with us, the experienced partner.”
The executives from the various banks and NBFCs felt that through this strategic partnership, a superior quality product from a reputed brand can be made affordable to an end customer when it can be offered with a trusted and transparent financing experience.