Epiroc's Strategic Expansion: New Manufacturing and R&D Facility in India
Epiroc AB has begun construction on a significant new manufacturing and research facility in Nashik, India, marking a strategic move to strengthen its position in one of the world's fastest-growing markets. This major investment represents not only a commitment to the Indian market but also enhances Epiroc's global production capabilities, positioning the company for long-term growth in the mining and construction equipment sector. The Epiroc new facility in India demonstrates the company's confidence in the region's economic potential.
Project Overview and Timeline
The ambitious facility under development spans an impressive 175,000 square meters in Nashik, with operations expected to commence in the third quarter of 2026. Epiroc has planned a phased development approach over the coming years, allowing for strategic scaling of operations.
The groundbreaking ceremony recently took place, marking the official start of this significant project that will substantially expand Epiroc's manufacturing footprint in India.
Facility Capabilities and Infrastructure
The comprehensive facility design includes dedicated production buildings specifically engineered for mining and construction equipment manufacturing. Beyond production spaces, the facility will feature specialized prototyping facilities to support innovation and product development.
An advanced R&D laboratory will form the technological heart of the operation, complemented by administrative offices to house management and support functions. One unique feature setting this facility apart is the inclusion of an outdoor equipment testing track, allowing for real-world validation of equipment performance.
What Will Epiroc's New Facility Produce?
The Nashik facility represents a significant expansion of Epiroc's manufacturing capabilities in India, with a focus on equipment essential to mining and construction operations globally.
Production Focus
The facility will primarily manufacture underground mining equipment, addressing the growing mechanization needs in India's expanding mining sector. Surface mining machinery will also be a key production focus, complementing Epiroc's existing product lines.
Construction equipment tailored to India's booming infrastructure development will form another crucial production category. Additionally, the facility's prototyping capabilities will support AI in mining innovation across Epiroc's product range, allowing for the development of specialized solutions.
Strategic Manufacturing Objectives
A primary objective of the facility is establishing local production capabilities to better serve Indian market demands with reduced lead times and enhanced responsiveness. The facility is also designed with export capabilities to support Epiroc's global customers, making it an integral part of the company's worldwide supply network.
This investment aligns perfectly with India's "Make in India" initiatives, which encourage domestic manufacturing and technological development. The facility will be fully integrated with Epiroc's global supply chain, enhancing the company's production flexibility and resilience.
How Does This Expansion Fit Into Epiroc's Global Strategy?
This investment represents a calculated move to strengthen Epiroc's position in one of the world's fastest-growing mining and construction markets while enhancing its global production network.
Market Positioning Benefits
The new facility will provide enhanced responsiveness to Indian market needs through local presence and production capabilities. Customers in the region will benefit from reduced delivery times, a critical advantage in time-sensitive mining and construction projects.
Service capabilities will be improved through proximity to customers and better parts availability. The investment also strengthens Epiroc's competitive position against local manufacturers who currently benefit from shorter supply chains.
Global Supply Chain Integration
The Nashik facility will provide complementary production capabilities to Epiroc's existing global facilities, creating manufacturing redundancy for critical equipment. Its strategic geographic positioning makes it ideal for serving Asian markets with reduced logistics complexity.
Reduced shipping costs and carbon footprint align with both economic and mining sustainability trends. Perhaps most importantly in today's uncertain global environment, the facility enhances Epiroc's supply chain resilience against regional disruptions.
What Economic Impact Will the Facility Have?
The Epiroc new facility in India represents a significant economic investment in the Nashik region, with substantial employment and economic benefits extending throughout the local economy.
Employment Generation
The facility will create approximately 200 new direct positions, adding to Epiroc's existing 280-person workforce in Nashik. This expansion will grow Epiroc's total Indian workforce beyond its current 1,750 employees, making it an increasingly important employer in the country's industrial sector.
The development will specifically focus on creating skilled manufacturing and engineering jobs, contributing to India's technical workforce development and knowledge economy.
Regional Economic Benefits
Beyond direct employment, the facility will stimulate local supply chain development as vendors establish operations to support production. Knowledge transfer and skills development will occur through training programs and technological diffusion.
Infrastructure improvements supporting the facility will benefit the broader community. The export potential of the facility will boost the local economy through increased economic activity and foreign exchange earnings.
How Is Epiroc Expanding Its Indian Operations Beyond Nashik?
The Nashik facility represents just one component of Epiroc's broader expansion strategy across India, with multiple facilities being developed or upgraded to serve both local and global markets.
Recent Indian Investments
In April 2025, Epiroc opened an expanded manufacturing facility for rock drilling tools in Hyderabad, enhancing its production capabilities for critical mining components. The company also launched a new innovation and technology center in Hyderabad in 2024, creating a hub for research and development.
These investments complement ongoing enhancements to Epiroc's existing Indian operations across multiple locations, demonstrating a comprehensive national strategy.
R&D Capabilities Growth
Epiroc has been systematically expanding its research and development organization in India, recognizing the country's growing pool of engineering talent. This expansion focuses on innovation tailored to regional mining conditions, which often differ significantly from those in other parts of the world.
The company's approach integrates its Indian R&D operations with its global R&D network, allowing for knowledge sharing and collaborative innovation. A key priority is the development of market-specific solutions addressing the unique challenges of Indian mining and construction environments.
What Makes India a Strategic Market for Mining Equipment?
India represents one of the world's most promising growth markets for mining equipment manufacturers, driven by several key factors that create a favorable environment for companies like Epiroc.
Market Growth Drivers
The country's expanding domestic mining sector is being fueled by increasing demand for resources to support industrial growth. Massive infrastructure development projects require both construction equipment and the raw materials that mining provides.
Government policies emphasizing resource self-sufficiency are encouraging expanded domestic mining operations. Simultaneously, India's growing construction industry creates substantial demand for equipment and materials.
Regulatory and Policy Environment
The "Make in India" initiative has created strong incentives for local manufacturing, making in-country production facilities increasingly attractive. Recent mining sector reforms have improved the investment climate, reducing regulatory barriers and streamlining approvals.
Infrastructure development programs at the national and state levels are driving sustained demand for construction and mining equipment. Throughout the sector, there's an increasing emphasis on modern mining technology and mechanization, replacing manual methods with advanced equipment.
How Will This Facility Enhance Epiroc's Product Development?
The integrated R&D capabilities at the new Nashik facility will play a crucial role in Epiroc's global product development strategy, providing unique capabilities and insights.
Innovation Focus Areas
The facility will concentrate on equipment adaptation for regional mining conditions, which can vary significantly from those found in other global markets. Safety enhancements for underground operations will be a priority, addressing the unique challenges of Indian mining environments.
Research will also target productivity improvements for surface mining operations, making equipment more efficient and cost-effective. Underlying all development work will be sustainability-focused technologies that reduce environmental impact while maintaining performance.
Testing and Validation Capabilities
The purpose-built equipment test track will allow for real-world validation under controlled conditions. Prototyping facilities will enable rapid development cycles, accelerating innovation and time-to-market.
Laboratory testing capabilities will permit simulation of various operational conditions before field deployment. The facility will also coordinate field testing with local mining operations, ensuring equipment performs as expected in actual working environments.
What Leadership Perspectives Support This Investment?
Epiroc's leadership has emphasized the strategic importance of this expansion within their global operations, providing insight into the company's long-term vision.
Executive Vision
Helena Hedblom, Epiroc's President and CEO, views the facility as "a key step in further expanding our presence in the growing and very important Indian market" that will "also support our customers globally." This dual focus on local and global benefits highlights the strategic thinking behind the investment.
Arunkumar Govindarajan, President of Epiroc India, emphasizes the "significant growth potential" in India and how the facility supports "Make in India" initiatives. His perspective highlights the alignment between corporate strategy and national development goals.
Strategic Priorities
The investment reflects Epiroc's commitment to customer proximity and responsiveness, placing manufacturing capabilities closer to end users. It reinforces the company's positioning as a productivity and sustainability partner for mining and construction operations.
Local manufacturing with global standards ensures consistency of quality while adapting to regional needs. The facility will enable innovation tailored to regional requirements, recognizing that equipment must often be adapted to local conditions for optimal performance.
How Does This Facility Support Epiroc's Sustainability Goals?
The new facility aligns with Epiroc's commitment to sustainability through several design and operational features that reduce environmental impact while enhancing business performance.
Sustainable Facility Design
The facility incorporates modern energy-efficient manufacturing processes that reduce consumption while maintaining productivity. Local production reduces transportation emissions compared to importing equipment from distant manufacturing centers.
The design includes potential for renewable energy integration, particularly solar power, which is abundant in the Nashik region. Water conservation measures recognize the importance of responsible resource management in facility operations.
Sustainable Product Development
Research efforts will focus on mining electrification trends, reducing dependence on fossil fuels in mining operations. Battery technology adaptation for mining applications will be a priority, addressing the unique challenges of underground environments.
Automation technologies will improve both safety and efficiency, reducing both human risk and resource consumption. Throughout product development, reducing environmental impact will be a core consideration, aligning with global sustainability trends.
FAQ: Epiroc's New Indian Manufacturing Facility
When will Epiroc's new Nashik facility begin operations?
The facility is scheduled to commence operations in the third quarter of 2026, with phased development continuing in subsequent years.
How many jobs will the new facility create?
The expansion will add approximately 200 new direct positions to Epiroc's current workforce of around 280 in Nashik.
What types of equipment will be manufactured at the facility?
The facility will produce underground and surface equipment for both mining and construction applications.
How large will the completed facility be?
The total facility will encompass approximately 175,000 square meters of production, R&D, and administrative space.
How does this facility support India's manufacturing initiatives?
The facility aligns with "Make in India" initiatives by establishing local production capabilities for advanced mining and construction equipment, supporting India's mining investments both domestically and internationally.
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