Construction and mining equipment major Caterpillar Inc is investing $210 million (around Rs1,096 crore) in its Indian operations as part of its global plans to invest up to $3 billion over the next 5 years.
The company will set up an engine manufacturing facility for electric power generation sets and expand its off-highway truck manufacturing facility in Chennai, according to Richard P Lavin, group president, Caterpillar Inc.
''We are yet to decide on the location, though we have short-listed some of the states. The final announcement on the same will be shared in 2-3 months,'' said Lavin.
The plant, he said, would have an initial capacity for 3,000 units, which will be expanded to 5,000 units in 12-18 months from the start of the production.
The facility, to be set up as a new subsidiary incorporated in India, will start production in two to three years, he added.
The engine manufacturing facility, to be set up with an investment of $150 million, will produce Perkins brand 4000 Series engines, which will cater to 750-2500 kV electric power gensets, said Kevin R Thieneman, India Country Manager, and President Caterpillar Asia.