By IANS
Chennai : Austrian crane manufacturer Palfinger AG has commenced Indian operations by partnering with Dubai-based Western Auto LLC, a vehicle dealership company and part of the ETA Star group.
Investing around euro 1.2 million (Rs.67.9 million), the duo has floated a joint venture company, Star Palfinger Equipments India Pvt Ltd, in which Western Auto controls 74 percent. The euro 585.2-million Palfinger holds the rest.
“The company would sell and service Palfinger’s knuckle boom crane and hook loaders in India,” A.J. Kamal, director, Western Auto, told the media here Tuesday.
Star Palfinger would import the cranes and hook loaders from Austria. Globally Palfinger has a 30 percent market share in the knuckle boom crane segment.
According to M. Jahufar Buhari, director and CEO, ETA Star Western Auto, the Indian joint venture would target the growing construction and infrastructure projects where articulated boom cranes have good market potential.
Star Palfinger will gradually expand its presence across the country on its own and also by appointing dealers.
In the first phase the company will set up its operations in Delhi, Mumbai and Kolkata. Star Palfinger will service the four metros directly.
In the second and third phases company would set up operations in Bangalore, Hyderabad and in other parts of India.
According to Buhari the company hopes to achieve a turnover of around Rs.100 million during by 2008 selling around 70-100 pieces.
Queried about the reason for not setting up a manufacturing facility in India, Wolfgang Pilz, chief marketing officer, Palfinger group, said, the current market volumes did not warrant a plant in the country.
According to him, the Indian market for articulated cranes is around 150 units per year and for Palfinger to set up production base, the volume should be between 500 and 700 units a year.