“India represents a tremendous opportunity for Caterpillar, with increasing focus on infrastructure investment and a need for efficiency and higher productivity,” says Ramesh Tipirneni, Country Manager, Caterpillar India
Caterpillar, which has a stronger presence in India than ever before, is optimistic for itself in the Indian market. In an interview with ACE Update, Ramesh Tipirneni shares Caterpillar is building a favourable trade relationship among India and various countries.
Indian and construction and infrastructure industryThe growth in Indian construction and infrastructure industry will vary in terms of the industries, but the buildout of infrastructure must occur as the country and the Asia region urbanisation is going to provide a large platform for growth. According to the latest economic projections, India’s GDP is expected to touch 6.4 per cent in 2015. An increase in domestic demand created by an urbanising population and continued growth and development will benefit the entire industrial sector.
A growing global and Asia-Pacific population needs more energy, water, roads, schools, housing, power systems, airports and dams. These are all needs that customers will help meet for decades to come.
Adding value to CaterpillarPM NarendraModi has pointed out that urbanisation should be treated as an opportunity. India represents a tremendous opportunity for Caterpillar, with increasing focus on infrastructure investment and a need for efficiency and higher productivity. Caterpillar’s belief is that “the road to progress… must begin with a road.” Its global vision is to be a leader wherever it does business and the same holds true for India and Asia Pacific.
Caterpillar has been investing in its operations to support the ever-increasing customer base in India, which is already one of the primary sourcing hubs for the company. About 80-90 per cent of the off-highway trucks that are manufactured in India are exported. Caterpillar in IndiaIndia has proved to be lucrative as a global outsourcing hub and manufacturing base for Caterpillar. Its strategy is to support its global presence by establishing R&D centres in different regions. This allows Caterpillar to build a strong, globally diverse leadership team with explicit focus on Asia Pacific and also drive innovation. The company has a strong culture focused on its people and built on the foundation of its values in action. While Caterpillar has been expanding its footprint in India by catering to local demand, a significant percentage of machines produced are exported to other markets in Asia Pacific and around the world. Demand for Caterpillar products as well as favourable trade relationships among India and various countries are one of the many X-Factors that are considered to export products that are made here.
Standing strongThe primary drivers of long-term growth in India directly play to Caterpillar’s strengths, given the major industries directly served by Caterpillar: mining, marine, construction industries, quarry and aggregates, electric power, industrial and financial services.
Caterpillar has an optimistic view for itself in the Indian market. In fact, its presence in India is stronger than ever. The company is investing in its operations to support the ever-increasing consumer base here in India. Caterpillar values its supplier relationship and consider them an integral part of its business model. The company is focused on executing a growth plan to achieve a leading share of the market opportunity.
Caterpillar is continuously ramping up its services and distribution network across India which will improve its capability to supply high-quality service parts and highly skilled service engineers close to its customers. The company has eight territorial dealerships across India owned by GMMCO and TIPL. With more than 150 dealer outlets and still growing, these include branch offices, area offices, retail outlets, workshops and site support.