In Short:
Caterpillar, a leading US construction equipment company, plans to invest ₹500 crore in Tamil Nadu to boost production at its Tiruvallur and Hosur facilities. This investment was formalized with a Memorandum of Understanding signed in Chicago. Caterpillar produces key construction equipment, including backhoes, which have seen significant demand due to India’s infrastructure growth. The company employs over 7,300 people in India.
Caterpillar’s Ambitious Plans for Tamil Nadu
The renowned American construction equipment giant, Caterpillar, is setting its sights on a significant expansion in Tamil Nadu, with a hefty investment of ₹500 crore. This strategic move aims to enhance the production capacities at its facilities located in Tiruvallur and Hosur.
Formalizing the Commitment
This exciting initiative was cemented with a Memorandum of Understanding (MoU), officially signed in the presence of Tamil Nadu Chief Minister M.K. Stalin during his recent visit to Chicago, USA, as highlighted in an official statement.
Caterpillar’s Dominance in the Market
Caterpillar stands tall as one of the key players in the backhoe loader segment, which comprises over 50% of India’s construction equipment market. In the financial year 2024 (FY24), backhoes accounted for an impressive 51.4% of the total volume, a notable increase from 41.9% in FY23, according to industry estimates.
Growth in Infra Sector
The broader landscape of the Indian construction equipment industry has also been flourishing, reporting robust double-digit growth in both FY23 and FY24. This success can largely be attributed to the government’s steadfast commitment to infrastructure development, which continues to drive the industry forward with ambitious funding initiatives.
Caterpillar’s Global Presence
Caterpillar, boasting a global revenue of $67 billion, has made a significant impact in India through its various manufacturing units, research and development centers, and numerous global support organizations. The company supports its Indian operations through five manufacturing facilities distributed across Tiruvallur and Hosur in Tamil Nadu, as well as Aurangabad in Maharashtra.
Facilities in Tamil Nadu
At the Tiruvallur plant, Caterpillar oversees two major divisions: the Machines Division and the Building Construction Products (BCP) division. The Machines Division is tasked with producing off-highway trucks, mining trucks, hydraulic excavators, and motor graders, while the BCP division produces backhoe loaders and skid steer loaders.
The Hosur facility hosts the Industrial Power Systems Division (IPSD) and the Small Drivetrain-Building Construction Products (SDT-BCP) division. Here, engines are manufactured under the iconic Cat and Perkins brands, alongside generator sets ranging from 400 to 2250 kVA. This facility also plays a crucial role in the production of small drivetrains or transmissions, essential for backhoe loaders, wheeled loaders, telehandlers, and site dumpers, powering these formidable machines.
Additionally, the Aurangabad plant is focused on the production of vital components, such as the 4,000 and 5,000 series engines that serve various industrial applications.
A Growing Workforce
Caterpillar is not just expanding its facilities but also its workforce, employing over 7,300 people directly through its Indian operations, with approximately 4,000 more individuals working through its dealer network.
