Caterpillar, US-based plans to expand its presence in Tamil Nadu with an investment of Rs 500 crore, focused on ramping up the company’s production capacities at its facilities in Tiruvallur and Hosur. A memorandum of understanding (MoU) was signed to this effect, the presence of Tamil Nadu Chief Minister MK Stalin during his visit to Chicago, USA, on 12 September, 2024.

The company's presence in India includes five manufacturing facilities spread across Tiruvallur and Hosur in Tamil Nadu and Aurangabad in Maharashtra. At its Tiruvallur plant, Caterpillar operates two key divisions - the Machines Division and the Building Construction Products (BCP) division. The Machines Division is responsible for manufacturing off-highway trucks, mining trucks, hydraulic excavators, and motor graders. The BCP division focuses on producing backhoe loaders and skid steer loaders.

The Hosur facility houses the Industrial Power Systems Division (IPSD) and the Small Drivetrain-Building Construction Products (SDT-BCP) division which manufacture engines, along with generator sets as well as small drivetrain or transmissions used in backhoe loaders and site dumpers. 

Bakhoes make up a little over 50 percent of the construction equipment volumes in India.