BackABG Group explores tie-up options with US crane maker Terex Corp
ABG Group explores tie-up options with US crane maker Terex Corp
PremiumInfrastructure upgrade: A construction crane on the site of a condominium being built in Toronto. Demand for some of the world’s biggest construction cranes is coming from countries such as India that
Mumbai: US-based crane maker Terex Corp. is in talks with India’s ABG Group for a possible alliance to manufacture cranes, even as the demand for these hots up because of a construction boom that is riding on the back of an economy that expanded 9.4% last year and 9.3% in the first quarter of this year.
“Terex Corp. has shown interest in a tie-up to build cranes at our upcoming plant in India," said Saket Agarwal, director, ABG Group, which is setting up a crane manufacturing factory at Ransai near Navi Mumbai.
“We are in discussions," confirmed Steve Filipov, president, Terex-Cranes, during a visit to India on Monday.
ABG Cranes Pvt. Ltd will start making cranes meant for various uses at its Ransai factory early next year. “Our plan is to make 40 cranes a year, each having a lifting capacity of 80 metric tonnes. We will raise production gradually according to the needs of the market," said R.B. Pandey, an official at ABG Cranes.
Daljit Wallia, managing director of the US firm’s Indian unit, Terex India Pvt. Ltd, said the company was looking for a tie-up with the Mumbai-based firm for making cranes “as this would enable it to reach customers quickly".
The Indian construction market is expected to grow by nearly 10% a year through 2015, with spending on infrastructure expected to increase 40% this year, according to forecasting company Global Insight.
Demand for some of the world’s biggest construction cranes is coming from countries such as India that need these to build highways, power plants, oil refineries, office buildings, residential apartments and other infrastructure.
Some of the world’s top construction equipment makers are eyeing or have already entered the Indian market. In mid-July, the New York Stock Exchange-listed Manitowoc Co., Inc., one of the world’s top makers of lifting equipment for the global construction industry, acquired local firm Shirke Construction Equipments Pvt. Ltd, which manufactures cranes from its facility in Pune.
ABG Heavy Industries Ltd, the stock exchange-listed entity that is part of the ABG Group, is one of India’s biggest crane rental companies. It buys cranes and rents them to firms in the construction and engineering sectors.
On Tuesday, ABG Heavy Industries concluded the terms of purchase of the world’s largest crawler crane, having lifting capacity of 3,200 tonnes from Terex, the company said in a notice to the Bombay Stock Exchange (BSE).
Shares of the company ended at Rs482.30 each on BSE, 0.79% higher on a day when the exchange’s benchmark index fell 0.97% to close at 19,400.67 points.
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