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Caterpillar arm to make engines at Aurangabad

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Perkins India Pvt Ltd, a group company of US-based Caterpillar Inc, has plans to set up a greenfield facility to manufacture diesel and gas engines at Aurangabad. According to sources, the company has finalised the location of the new facility, expected to go on stream in the second half of next year, at the upcoming second phase of the Shendra industrial estate. The proposed investment in the plant, for which Caterpillar has sought Mega Project Status, is around Rs 500 crore in the first phase, with a provision for expansion.

At Aurangabad, Perkins plans to make its 4000 series engines, currently made only in the UK, that are used in generator sets. The engines will be for sale in both the domestic as well as the export market, the source added. Headquartered in Peterborough, UK, Perkins Engines Company Ltd is a wholly-owned subsidiary of Caterpillar Inc. The parent company is present in India through two facilities located in Tamil Nadu where construction machinery and engines are manufactured. With six manufacturing sites worldwide, including two in China, Perkins is a leading manufacturer of industrial diesel and gas engines. These are used for a host of applications, including power generation and construction machinery. The company also sources components from India for use globally, and the setting up of a manufacturing facility for engines in India is expected to give a fillip to this business.

Demand for industrial land has prompted the Maharashtra Industrial Development Corporation to establish a second phase to the existing 800 hectare Shendra industrial estate in Aurangabad, home to Czech auto maker Skoda, Siemens, and Hindalco. Acquisition of 250 hectares for this purpose has been completed and Perkins is likely to be the first occupant of the new industrial estate. 

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