Kolkata, Aug 9 (IANS): TIL Limited, a leading provider of a wide range of construction, mining and power systems based here, will invest Rs.700 crore in its Kharagpur factory to make mining equipment and cranes with American and Japanese technology.
"The first phase of the plant, for which Rs.250 crore is being invested, will conclude by October-November. Alreadyn Rs.90 crore has been invested," Aloke Banerjee, president and chief financial officer of what was earlier called Tractors India, told IANS.
"Work on the second phase of the plant will be started some time in January next year. In this phase, Rs.200 crore will be invested. In the third phase, another Rs. 200-Rs.250 crore will be invested and the work would conclude by 2015-16." Banerjee told IANS.
The new factory will roll out crushing and screening equipment for mining applications under a licence from the Astec Aggregate and Mining Group, a part of Astec Inc. of the US, the senior official explained.
The factory will also manufacture double barrel hot mix asphalt plant under licence from Astec. This apart, it will make rubber tyred gantry granes with technology from Mitsui-Paceco of Japan, he added.
According to Banerjee, the company, which posted a turnover of Rs.14,000 crore in 2010-11, was expected to register a total income of Rs.17,000-18,000 crore this year. It expects 25-30 percent growth in its income over the next five years.
He said the growth will come mainly in its wholly-owned subsidiary - Tractors India.
The company operates through its material handling solutions division, the equipment and project solutions division and Tractors India to serve north and eastern parts of India, besides Bhutan, apart from an overseas arms in Nepal, Myanmar and Singapore.
The two divisons are engaged in design, manufacture and marketing of a range of material handling, lifting, port and road building solutions, apart from crushing and screening solutions, as well as eco-friendly asphalt mix technology for road construction.
On the overall growth of this industry, Banerjee said last fiscal saw a modest expansion of just 10-12 percent as government investment was low. Now, the industry is expected to grow at a rate of 15-20 percent. But government investment should be higher."