CASE Construction Eyes 10% India Growth Fueled by Infra Spending

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AuthorAarav Shah|Published at:
CASE Construction Eyes 10% India Growth Fueled by Infra Spending
Overview

CASE Construction Equipment anticipates a significant rebound in India's construction sector, targeting 10% growth this year. This optimism is driven by expected infrastructure spending increases from the upcoming Union Budget. Following a 10-15% dip last year, the company views India as its second-most critical market, evidenced by its recent expansion with a new Brandstore in Tiruchirapalli.

CASE Construction Equipment is positioning itself for robust growth in India, projecting nearly 10% expansion this year. This positive outlook is strongly tied to anticipated increases in infrastructure spending, a key focus of the upcoming Union Budget.

Infrastructure Spending Outlook

The construction equipment industry experienced a downturn last year, with declines ranging from 10-15% across different product segments. However, CASE Construction Equipment – India & SAARC Managing Director Shalabh Chaturvedi expects a mid-single-digit rebound for the industry overall. Chaturvedi stated that CASE aims to exceed this general market recovery, targeting a growth rate close to 10%.

Market Position and Growth Targets

An elevated capital expenditure allocation in the budget is expected to invigorate infrastructure development and road construction projects, directly benefiting the construction equipment sector. While extended monsoons impacted the industry last year, positive farmer income sentiment this year adds to the optimism.

CNH, the parent company of CASE, generates nearly $1 billion in revenue from its Indian operations, a substantial figure within its global revenue of approximately $20 billion. CASE has been a prominent player in India since 1989, consistently leading the Vibratory Compactor segment and holding a strong position in the backhoe loader market.

Strategic Expansion in Southern India

Emre Karazli, Vice President – Construction Segment, APAC for CNH, highlighted India as the company's second most important market after the United States and one of its fastest-growing. The recent opening of a company-owned, company-operated (COCO) Brandstore in Tiruchirapalli, Tamil Nadu, exemplifies this strategic focus. This new facility aims to enhance customer proximity in southern India and reinforce the region's role in CASE's global operations.

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