Palfinger and TVS Mobility Group partner to set up a ₹350 crore Pune plant, boosting localisation, exports and service reach.
Austrian lifting solutions major Palfinger has entered into a strategic partnership with TVS Mobility Group to significantly expand its footprint in India, committing an initial investment of €30 million (around ₹350 crore) to establish a manufacturing facility and engineering hub in Pune.
The facility, expected to be operational by the end of 2027, represents Palfinger’s most substantial localisation initiative in India since its market entry in 2007. The Pune plant will have an initial annual capacity of over 1,000 units, primarily truck-mounted cranes and key steel components, catering to domestic demand as well as export markets across Asia-Pacific and other regions.
Under the agreement, TVS Mobility Group will act as Palfinger’s end-to-end mobility partner in India, providing integrated support across supply chain, logistics, sales, service, spare parts distribution and aftermarket operations. The collaboration goes beyond a traditional distributor model, with a strong emphasis on uptime, service responsiveness and operational support for customers in infrastructure-intensive and remote locations.
“This partnership is about coming closer to the customer,” said Andreas Klauser, Chief Executive Officer of Palfinger, noting that India has emerged as the company’s single-largest growth opportunity under its ‘Strategy 2030 Plus’. Palfinger, which reported global revenues of about €2.5 billion, expects India to eventually contribute a double-digit share of its global revenues.
India’s accelerating infrastructure push, covering railways, metros, highways, housing, solid waste management and defence, was a key driver behind the investment. As projects expand into Tier-II and Tier-III cities, uptime and service availability are becoming critical differentiators, the company said.
R Dinesh, Director at TVS Mobility Group, said the group would support Palfinger products across their entire lifecycle in India, including installation, warehousing, time-critical spare parts delivery, and operating or rental solutions where required.
Currently, most Palfinger equipment sold in India is imported and assembled locally. With increased localisation, the company expects cost savings of up to 30 per cent, significantly widening adoption across sectors, according to Santhosh Rao, Senior Vice-President – Asia-Pacific (Sales & Service).
Alongside manufacturing, Palfinger has also established a global engineering centre in Pune in partnership with L&T Technology Services, supporting product development for global markets. The first phase of the project is expected to generate employment for around 200 people, with provisions for future capacity expansion.
While there is no equity participation, both partners described the alliance as exclusive for India-manufactured products and central to Palfinger’s long-term India growth strategy, positioning the country as both a major domestic market and an export hub.
Source: BS
