Kawasaki to Establish JV for Manufacture & Sale of Hydraulic Pumps

Source: www.gulfoilandgas.com 12/7/2011, Location: Asia

Kawasaki Heavy Industries, Ltd. announced that it has signed an agreement with Wipro Limited, based in Bangalore, India, to set up a joint venture in India for the manufacture, sale, and servicing of hydraulic pumps for construction machinery.

Spurred by a rapidly growing economy, India's hydraulic excavator market is booming, with the total demand in 2010 reaching 12,000 units, which is triple the figure in 2005. With the economy showing no signs of wanning and investment in infrastructure expected to grow, the market is projected to reach a scale on the order of 30,000 units a year in 2017, becoming the second largest market after China.

The joint venture agreement is aimed at catering to the growing demand for local production, stemming from the brisk demand for hydraulic excavators in India. Kawasaki will combine its considerable expertise in hydraulic machinery with Wipro's proven track record and powerful marketing resources to expand sales in India.

The new company will set up a manufacturing facility in Bangalore. This facility, scheduled to start operation in July 2012, will initially produce 4,000 units a year . It is aiming for an annual production rate of 15,000 units by 2015.

Until now, Kawasaki has been selling hydraulic pumps manufactured at its Nishi-Kobe Works directly to hydraulic excavator manufacturers in India. The shift of manufacturing base to India will shorten the lead time and enable responding more flexibly to changes in customer requirements.

Kawasaki will deliver high-quality, high-performance products and provide full after-sales services through the new joint venture company, thus ensuring customer satisfaction on all levels. By aggressively expanding business operations, Kawasaki aims to rapidly establish a presence in India's hydraulic machinery industry as a leading player.


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