Caterpillar Inc., a leading maker of construction and mining equipment, is setting up a greenfield project to produce Perkins branded 4000 series engines in an yet-to-be identified location in India.
The project will involve an investment of $150 million. The proposed project will be the first Perkins engine plant for Caterpillar outside the U.K.
Addressing a press conference here on Wednesday, Rich Lavin, Group President and Executive Office Member of Caterpillar Inc., said the proposed Perkins engine plant would have an initial capacity of 3,000 numbers a year. This would be scaled up to 5,000 a year subsequently.
He said the engine project would be implemented through a new legal entity. To a question, he said Caterpillar would be hoping to export half the number produced at the proposed plant to serve the needs of countries in and around the region. Hitherto, the requirements of these nations were met through supply from the U.K. plant, he added.
Mr. Lavin said Caterpillar would primarily focus on industrial clients to hawk its Perkins engines. The plan was to produce a range of Perkins engines — from 750 kVA to 2500 kVA.
Caterpillar would also be pumping in an additional investment of $62 million into its existing off-highway truck manufacturing facility near here. The new investment was to expand the truck capacity. This investment was over and above the $108 million fund infusion announced by the comp any in 2010 to double the capacity, he added. Thus far, he said, Caterpillar had invested $1 billion into India (excluding the just-announced one).