Schwing Stetter India Private Limited is among the iconic names along the Sriperumbudur-Bengaluru National Highway. It was incorporated in 1998, an early entrant. As a wholly-owned subsidiary of Schwing GmbH, Germany, which is majority-owned by Xuzhou Construction Machinery Group (XCMG), China, the company supplies equipment and spare parts for handling ready-mix concrete – including mixers, pumps, batching and recycling plants. It was also engaged in trading XCMG products until recently. “While the global ownership has shifted, all decisions on technology, design and procurement are still routed through Germany. Our operations have no Chinese character,” explained Sakthikumar.
The company’s journey in India has been one of remarkable growth. Starting with a modest turnover of Rs 8 crore, sales had risen steadily to about Rs 800 crore by 2007. This momentum continued, breaking Rs 1000 crore in 2017 and rising close to Rs 2000 crore in 2018. The preceding year’s revenues touched Rs 5500 crore, but Rs 2,500 crore of this was from trading Chinese imports. After this, trading was separated and turned over to Chinese management in 2022. “We are back to square one in manufacturing, which has now grown from Rs 1700 crore in FY24 to about Rs 3000 crore this fiscal,” said Sakthikumar, signalling confidence in organic growth.
FROM 2% TO 90% LOCALISATION
A key strategic shift has been intense localisation. Initially, less than 2 per cent of product parts were locally sourced. Now, this figure has surged to about 90 per cent, supported by the company’s evolution from a basic design office to a certified R&D centre. “In the last year alone, we registered 11 patents, a stark contrast to no patents in the previous 25 years,” highlighted Sakthikumar. Product diversification includes stepping into crushing and precast machinery to meet broader infrastructure needs.
WOMEN AT FORE…
The Cheyyar manufacturing unit exemplifies the company’s inclusive and progressive workforce philosophy. With 67 per cent of assembly line workers being women, average age just 22, it is a unique ecosystem. “These young women perform demanding tasks; some have gone on to win national-level welding competitions three times consecutively,” according to Sakthikumar. Further, collaboration with Vellore Institute of Technology allows top performers to pursue degrees while working, a reflection of the company’s commitment to worker advancement. “We sponsor their degrees through VIT, with classes held onsite,” he said. Capacity expansion has been methodically pursued – additional land purchase at Cheyyar. The objective is to double the capacity Beyond the initial 50 acres acquired in 2019. The new greenfield project is expected to be completed this December. This location has been a strategic choice with multiple reasons like competitive land cost, proximity to supplier ecosystems, workforce availability and connectivity to Chennai port.
PART OF ALL LANDMARKS…
Its core customer base encompasses various infrastructure sectors like highways, metro and high-speed rail, ports, airports, energy projects, including hydro and nuclear, and the rapidly growing solar segment. Additionally, service to ready-mix concrete plants, cement companies and numerous smaller contractors diversified the customer mix. The flagship truck mixer product enjoys strong demand due to its durability and versatility. “One of our machines installed in a Mumbai nuclear project is still running smoothly after many years. That is the durability advantage our customers appreciate,” said Sakthikumar. While such quality justifies premium pricing, he acknowledged challenges. “Although some customers instantly see the value in saving cement and fuel costs, new entrants often prioritise upfront prices, posing negotiation challenges. Our machines save enough cement in their lifetime to pay for themselves – this is the message we strive to convey,” he said.
NATION-BUILDING USING TECHNOLOGY
The company has embraced innovation. “Our R&D now spans hydraulics, materials science, control and structural engineering,” explained Sakthikumar, “We’ve shifted from product-driven to technology-driven designing. It incorporated AI elements on the production floor and pioneering electric and CNG-powered equipment, aligning with sustainability trends. “Innovation and patents have become a hallmark of our growth strategy,” he added.
Despite expected election-year slowdowns like in 2024, the company anticipates a robust resurgence from 2026 onwards, coinciding with India’s ambitious infrastructure expansion towards 2047. “The next decade is India’s growth decade, and we aim to power that growth,” stressed Sakthikkumar. It has contributed to marquee projects including the Statue of Unity and the Chadab bridge. “If you name a landmark infrastructure project in India, we have been a part of it. Anything else would be news,” said Sakthikumar.
