LiuGong India, a wholly-owned subsidiary of Chinese infrastructure heavy equipment maker Guangxi LiuGong, is planning to invest 2.5 billion rupees ($34 million) to strengthen operations and make India a sourcing hub.

Liugong India is planning to make India as a second sourcing hub after China for some products for certain markets.

Hydraulic excavators and compactors will be sourced from India for exports to the Middle East, Africa and South Asian Association for Regional Cooperation countries.

Liugong India has also started manufacturing 7-tonne payloaders to strengthen its product range.