"The industry has already built enough capacity to meet the projected demand growth during the early part of this decade. What will happen is better capacity utilization," Vanmeeganathan said, adding the industry is yet to recover from the downturn that started three years ago.
"Moreover, we are about to commission our Aurangabad plant, wherein we have invested USD 150 million. The commissioning is expected sometime next month," he added.
While the mining and construction sector has many players such as JCB, the state-run BEML, Hitachi among others, the energy and transportation sector, that needs much larger and heavier equipment, is dominated by Caterpillar.
The firm has plants in Thiruvallur and Hosur in Tamil Nadu and Aurangabad and Banda in Maharashtra. It employs around 6,000 people directly and 4,000 through the dealers. It has a wide product range for the sectors like mining, quarry, power generation, construction, road works, petroleum and rail.
It manufactures, sells and finances products like backhoe loaders, compact, small and medium wheel loaders, small and medium track-type tractors, skid steer loaders, multi-terrain loaders, compact track loaders, track excavators, motor graders, pipe-layers,and tele-handlers.