Kobelco targets 8–10% topline growth as it launches three excavators

Kobelco Construction Equipment India Pvt Ltd expects to grow its topline by 8–10% year-on-year in good years, as it launches three new excavator models in the 19.1–24-tonne category, Moses Eddy, director of the company, said on Friday (October 23, 2026).

The company expects its revenue, including exports, to reach around ₹2,500 crore this year, compared with about ₹2,000 crore currently, Mr. Eddy said. He also said India contributes around 9–11% of Kobelco Construction Machinery’s overall revenue.

The three new models feature Indian-made Cummins engines, replacing Japanese-made engines used in the earlier models. The shift is part of the company’s effort to increase localisation and lower the cost of operating its machines. Cummins is a US-based global power solutions company whose Indian operations manufacture engines locally, including the engines supplied for Kobelco’s new excavator models.

The company expects localisation in the new models to reach around 65–70%, compared with about 48–50% earlier, according to Mr. Eddy. However, it continues to import sensitive hydraulic and mechatronic components, which account for around 30–33% of the relevant components, he said.

The new models are designed to offer lower lifetime costs while retaining comparable selling prices. Mr. Eddy said the new models could reduce lifetime costs by around 30% while being sold at prices similar to those of the company’s earlier machines.

The launch is also intended to help the company reach a wider set of customers, including equipment-rental firms and smaller contractors. Mr. Eddy said some customers viewed Kobelco machines as expensive to operate, and the new engines could help address that perception by reducing operating costs.

Japanese firm Kobelco on expansion path

Kobelco has invested about ₹900 crore in India so far, Mr. Eddy said. Its manufacturing facility at Sri City in Andhra Pradesh has an annual production capacity of more than 3,000 units and has produced over 20,000 excavators since production began in 2011.

The company is capable of handling production of 3,500 units, though reaching that level would depend on the response to the new models. “I think with this model’s success, we may reach very early,” Mr. Eddy said.

Exports to expand

Kobelco exported around 600–700 machines from its Indian plant last year and expects to export about 800 this year, subject to shipping conditions, Mr. Eddy said. The company exports machines manufactured in India to more than 16 countries, including markets in Africa, the Middle East and Southeast Asia.

Exports account for more than 30% of the business, he said. The company sees scope to expand exports of the new models, with discussions planned with partners in markets including Bhutan, the Middle East and Africa. The pace of expansion will depend on customer acceptance, Mr. Eddy said.

Demand in overseas markets remains strong, but shipping costs and vessel availability are affecting the company’s ability to fulfil orders, particularly in some Middle Eastern markets. Higher costs are also putting pressure on profitability, he said.

“The Indian market has been very robust,” Mr. Eddy said, adding that demand in India remained resilient despite geopolitical disruptions.

On domestic demand, Mr. Eddy said State-level spending on roads, irrigation and urban infrastructure was driving it. Maharashtra and Gujarat were among the States performing well, while irrigation projects in Karnataka and tunnelling projects in the Northeast and Himalayan regions were also creating demand, he said.

The writer was in Sri City at the invitation of the company.