TVS Mobility Group has entered into a long-term partnership with Austria-based lifting solutions manufacturer Palfinger AG to establish a new manufacturing plant in Pune. The facility will focus on producing truck-mounted cranes and related steel components.
As part of the first phase, Palfinger will invest approximately €30 million (around ₹350 crore). The plant is targeted to commence operations by the end of 2027.
Palfinger has been present in India since 2007, primarily supplying equipment through imports combined with limited local assembly. The upcoming plant marks a significant shift toward deeper localisation.
Production Capacity and Job Creation
The Pune facility is being designed with an initial production capacity of over 1,000 units annually. Manufacturing will centre on truck-mounted cranes along with select fabricated steel components.
The output will cater to both the Indian market and export destinations across the Asia-Pacific region and other international markets. The project is expected to generate around 200 jobs in its initial phase.
The site has been developed with scope for future expansion depending on demand trends. Currently, a substantial portion of such specialised equipment sold in India is imported. By localising production, the companies estimate cost efficiencies of up to 30%, potentially improving price competitiveness.
Responsibilities of TVS Mobility Group
Under the collaboration framework, TVS Mobility Group will handle supply chain management, warehousing, logistics, installation support, and spare parts distribution for products manufactured in India. It will also oversee aftermarket services and sales support.
The agreement does not involve any cross-shareholding between the companies and does not specify a fixed tenure. Both parties have described the partnership as a long-term arrangement covering the entire product lifecycle—from manufacturing to service support.
Industry Context and Growth Outlook
The investment aligns with ongoing infrastructure expansion across sectors such as railways, metro rail networks, highways, real estate development, waste management systems, and defence projects. As infrastructure projects extend into tier-2 and tier-3 cities, the availability of reliable equipment servicing and spare parts has become increasingly critical.
Palfinger reported global revenues of approximately €2.5 billion. Under its “Strategy 2030 plus” roadmap, the company aims for India to contribute a double-digit percentage share to its overall global revenues over the long term.
In a related development, Palfinger has also established a global engineering centre in Pune in collaboration with L&T Technology Services, which will support product design and engineering for international markets.
The new manufacturing unit represents a deeper commitment to the Indian market while positioning the partnership to serve both domestic and export demand more efficiently.
Summary
TVS Mobility Group and Palfinger AG will set up a ₹350 crore crane manufacturing facility in Pune, expected to be operational by 2027. The plant will initially produce over 1,000 truck-mounted cranes annually for domestic and export markets, creating around 200 jobs. TVS Mobility will manage supply chain and aftermarket operations, while Palfinger strengthens its localisation strategy as part of its long-term global growth plans.
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