Uniparts Group to invest Rs 100 crore for expansion

NEW DELHI: Uniparts Group, a global manufacturer of engineered systems and solutions for the off highway vehicle market, will invest Rs 100 crore to set up a facility in Ludhania and expand its Visakhapatnam plant, according to a top executive of the Noida-headquartered entity. Uniparts, which operates six manufacturing facilities -five in India and one in the US -plans to expand into the fast-growing agri business and focus on construction, forestry and mining sectors to benefit from expected higher government investment in infrastructure.

Paramjit Soni, vice-chairman of Uniparts, told ET that the company is working on new components and platforms under the 3-Point Linkage System, which forms the backbone of agricultural machinery globally, and will add new applications for tractors, harvest combines and other such vehicles.

“We are expanding our facilities and adding fresh investments to bring our global technology into new products for the Indian market. The 3PL products for tractors and allied agriculture sector, which are basically attachments, would considerably enhance productivity and will be our growth drivers for the future,“ Soni said, adding that global tractor production in 2015 is estimated to touch 1.96 million units, with India maintaining its lead with about 41 per cent share followed by China at about 24 per cent. According to the company, the global 3PL market is expected to grow to $374 million in 2015, buoyed by robust tractor production volumes in India and China, as well as steady growth in the North American market.

Meanwhile, the Indian infrastructure market is expected to grow at approximately 12 per cent CAGR over the next five years, led by higher investments in roads, urban infrastructure, and irrigation and power projects. India, the world's largest tractor market, is likely to witness a spurt in demand for agricultural machinery on the back of higher farm incomes and improving yields.