Financial Daily from THE HINDU group of publications
Saturday, Dec 11, 2004
Schwing Stetter set to open second plant near Chennai
Mr Anand Sundaresan, Managing Director, Schwing Stetter (India), and Mr Jochen Goerlich, Chairman, at a press conference in Chennai on Friday. - Bijoy Ghosh
Chennai , Dec. 10
SCHWING Stetter (India) is to open its second manufacturing facility near Chennai to make transit mixers for ready-mix concrete following an average growth of 50 per cent in the last five years.
The Indian subsidiary of Germany's Schwing Stetter Gmbh, which makes ready-mix concrete equipment, is the fastest growing and most profitable unit of the group.
It expects to register a turnover of about Rs 170 crore in 2004.
Speaking to newspersons on Friday, Mr Jochen Goerlich, Chairman of Schwing Stetter (India), forecast that the growth rate over the next five years would match that of the preceding five-year period.
The new Rs 18-crore manufacturing facility is located at Irungattukottai, near Chennai, and is to be inaugurated next Monday.
While the new unit will focus on transit mixers, largely for the Indian market, the company is simultaneously working towards becoming the entire group's sourcing point for some products.
Mr Anand Sundaresan, Managing Director of the Indian unit, said that the Indian operations could become the global sourcing point for smaller capacity boom pumps.
For the domestic market, Schwing has tried to localise content. Mr Sundaresan said that the local content varies between 40 per cent and 80 per cent for Schwing's product basket.
Consequently, the price of the machinery has dropped over the last five years.
The German parent has invested about 10 million euros in the Indian subsidiary, according to Mr A.R. Subramanian, Chief Financial Officer & Company Secretary.
He added that the new manufacturing facility had been financed by a domestic term loan and internal accruals of the Indian unit.
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