Terex aiming for US$ 500 million revenues from India by 2015
By Chris Sleight08 February 2011
Terex has set a target of generating revenues of US$ 500 million in India by 2015, according to president for developing markets, Steve Filipov. He added that the company's revenues from India had increased +150% in India in 2010.
Mr Filipov said," I think we can beat US$ 500 million, and we are profitable today in India. That's one of our key strategies in emerging markets - there is up-front investment, but we have to be profitable."
He continued, "I think we've made huge progress in India. It's an exciting market and it's an entrepreneurial market, which fits with the Terex culture. There is opportunity everywhere - what I ask my team to do is look under every stone, because there are so many opportunities. There is bureaucracy, which tends to slow things down, but there are pros and cons to every market - and that's one you have to take. There are still opportunities everywhere."
Terex's manufacturing footprint in China includes a factory in Noida for backhoe loaders and other light machines - initially set-up as a joint-venture with Vectra, but now wholly owned by Terex - and a Greenfield site in Hosur which started manufacturing mobile crushing and screening plants at the end of 2009. Jenhangir Ardeshir, president of Terex India said that the company's 45 acre site in Hosur means it could add two more factories the size of its current plant.
New for India
Terex used the bC India exhibition to launch three new products. The latest machine to be built at its plant in Hosur is the WC1000 mobile cone crusher. It is an electric-powered machine, and the first wheeled unit to be produced at the plant.
Second to be unveiled was the RL 4000 lighting tower, and imported product that the company thinks could have potential in India. According to Mr Filipov, the company may consider manufacturing these units at its backhoe loader plant in Noida. "Light towers are not a very big product here today, but we are bringing them in, and we're going to see if we can create the market, and whether there is enough substance to manufacture locally," he said.
Finally, Terex presented its LT 1070/1 truck crane, which is built by Changjiang, its truck-crane joint venture in China. "We've taken time to get the product to be export-able. In India we wanted to bring in a truck crane product to compete with some of the other manufacturers," said Mr Filipov.
With Terex building its footprint in India, over the last few years, the company is starting to think about surrounding countries that could also be attractive developing markets." One of the ideas we haven't developed yet is exporting from India. I have my own ideas about that, and it's something we're looking at, but the first step was to come up with a strategy for India itself," said Mr Filipov.