11.05.2008

TIL to build new crane plant

TIL – the Indian based Grove crane licensee says that it is planning to build a new crane component production facility in West Bengal.

TIL (Tractors India Ltd) vice-chairman and managing director Sumit Mazumdar said: “We have not been able to get the land yet, but this plant would cater to both the export and domestic market. The first phase will cost around Rs 200 crore ($48 million).”

"We require about 200 acres of land and have short-listed a site, but will only divulge the location once it is finalised. The component plant would only be for the export market. We hope to commence commercial production in the new plant by first quarter of calendar year 2009," he added.

The company says that most of the initial production will be contracted to Grove’s European production facilitie.

TIL has appointed a merchant banker to help with finding suitable funding. "We have already raised Rs 100 crore through warrants issued to promoters and Enam. The balance, will be raised through private placement and debt," according to Mazumdar.

The company plans to produce coal handling plant for coal and steel companies and other infrastructure machinery at the plant as well.

TIL is also looking to expand production at its existing Kamarhati crane plant. It believes that innovation and introduction of new processes, will help it boost production capacity by as much as 60 percent. The company expects to double its current revenues once all the current facility expansions are completed.

TIL entered the crane business through a joint venture with Coles cranes in 1962, it built its 5,000th crane at the end of 2007.
See TIL produces its 5,000th crane