MUMBAI: With infrastructure and construction sectors expected to see a revival over the next two-three years, equipment manufacturer Action Construction Equipment BSE -2.58 % (ACE) is eyeing nearly Rs 2,000 crore revenue by FY16, a top company official has said.
"We are bullish about revival in the construction industry over the next few years. Therefore, we have set a target of Rs 2,000 crore revenue by FY16," ACE Executive Director Sorab Agarwal told PTI.
ACE manufactures mobile cranes, tower cranes, loaders, vibratory rollers, truck-mounted cranes, crawler cranes, forklifts, tractors and other construction equipment and caters to infrastructure, construction, heavy engineering BSE -2.30 % and industrial projects.
The BSE-listed company currently has two factories at Faridabad in Haryana and Kashipur in Uttarakhand with a manufacturing capacity of 9,000 construction equipment and 6,000 tractors.
"Currently we are not utilising our entire capacity. If the government's initiatives take shape, we expect demand for these products to increase and we are capable to cater to the increased demand," he said.
The company, which is currently enjoying over 50 per cent share in the mobile cranes market is also looking at increasing the contribution of tractors in its revenues.
"Currently, tractors form a very small portion of our revenues. But we see huge potential in this segment and in the next three years we expect nearly 50 per cent revenue coming in from tractor sales," Agarwal said, adding it will enter new regions for expansion.
ACE tractors are currently sold in Punjab, Haryana and Uttar Pradesh and plans are afoot to enter Jharkhand, Orissa, Bengal and Maharashtra.
"We are currently operating at 80 per cent capacity and producing about 350 tractors per month. We are planning to increase monthly production to 1,000 units next fiscal," he said. Meanwhile, we will continue to augment production of other products as well," he said.
"We will introduce wider-range and different generation mobile cranes with latest technology as well as double the present capacity of road construction equipments in the next two years," Agarwal added.