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COVER STORY

The same shift is visible across specialised equipment. Schwing can add greater value around every stage of the machine—from
Stetter’s new Concrete Mixer Factory in Jamshedpur, inaugurated how it is designed and engineered to how it is manufactured,
in 2026, adds manufacturing capacity in a category closely supported and improved through its working life. India has built
linked to India’s expanding construction activity. The rollout of the the scale. It is now building the capability to make that scale
first fully built truck mixer and the focus on developing a stronger count for more.
local vendor ecosystem underline how manufacturing expansion
can create wider capabilities around a product. THE LOCALISATION ADVANTAGE
Mahindra Construction Equipment, meanwhile, highlights A machine may carry a global badge, but its manufacturing
the value of designing around local applications. Its focus strength increasingly depends on how much of it is built close
on equipment suited to Indian jobsites demonstrates that to home. For India’s construction equipment industry, the focus
moving up the value chain does not always mean pursuing is now shifting beyond finished machines to the components,
greater complexity alone. It also means developing a deeper systems and technologies that determine performance, reliability
understanding of how customers work—and translating that and value creation.
understanding into products that improve operating economics, The progress is substantial. According to ICEMA, average
productivity and lifecycle value. localisation across the industry is around 60%, while mature
The L&T-Komatsu ecosystem brings another layer to this categories such as backhoe loaders and pick-and-carry cranes
progression. Global equipment technology is being combined have crossed 90% indigenisation. The industry’s objective is to
with domestic application expertise, distribution strength raise overall indigenisation to 70–80% by 2030.
and lifecycle support. L&T’s 2026 partnership with FAYAT Road The remaining gap lies in some of the most technology-intensive
Equipment to market and support BOMAG machinery further areas. Critical hydraulic systems, undercarriage assemblies,
expands its presence in specialised road construction, where electrical and electronic components and telematics continue
equipment capability must be backed by strong service and to have a significant import component. As equipment becomes
application knowledge. more efficient, connected and automated, building capability
Taken together, these developments reveal a more mature in these areas will become increasingly important.
growth story. India’s construction equipment industry is steadily That is also changing the nature of localisation. The objective
moving beyond the traditional measures of factory output and is no longer simply to manufacture more parts in India, but to
unit sales. The value chain is becoming wider—from product develop suppliers capable of participating in engineering,
development and engineering to specialised manufacturing, testing and technology development. A stronger component
supplier ecosystems, digital capabilities and lifecycle support. ecosystem can improve supply-chain responsiveness, reduce
This is where the next level of growth will be created. The ability to lead times and give OEMs greater flexibility to adapt products
manufacture at scale remains fundamental. But the companies for local applications.
that will shape the next chapter will increasingly be those that The market itself provides a powerful incentive. ICEMA estimates

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