Austrian lifting solutions major Palfinger has entered into a strategic partnership with TVS Mobility Group to strengthen its presence in India, committing an initial investment of €30 million (around ?350 crore) to establish a manufacturing facility in Pune.

The plant, expected to be operational by end-2027, represents Palfinger’s most significant localisation move in India since its entry in 2007.

Under the agreement, TVS Mobility Group will serve 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 extends beyond a conventional distributor model, with a focus on uptime, service responsiveness and operating solutions for customers in remote and infrastructure-intensive locations.

Palfinger, which reported global revenues of about €2.5 billion, expects India to contribute a double-digit share of its global revenues over time.

The Pune facility will have an initial annual capacity of over 1,000 units, primarily truck-mounted cranes, along with key steel components. Production will serve both domestic demand and export markets across Asia-Pacific and other regions. The first phase is expected to generate around 200 jobs, with provision for future capacity expansion at the site.

India’s infrastructure push, spanning railways, metros, highways, housing, solid waste management and defence, has been a key driver behind the investment. The group will also support equipment installation, warehousing, time-critical spare parts delivery and, where required, operating and rental solutions.

Currently, most Palfinger equipment sold in India is imported and assembled locally. With localisation, the company anticipates cost savings of up to 30 per cent, potentially expanding adoption across sectors.

Alongside manufacturing, Palfinger has established a global engineering centre in Pune in partnership with L&T Technology Services. The centre will support product development and engineering for global markets.

The partnership with TVS Mobility Group is exclusive for products manufactured in India and has no fixed end date, underscoring its long-term nature. While there is no equity participation, both parties have described the alliance as strategic and central to Palfinger’s growth plans in India.

With localisation, engineering capability and a nationwide service network, Palfinger is positioning India as both a significant domestic market and a manufacturing and export hub.