The Hindu Business Line : Italy co Bonfiglioli aims at Rs 240-cr sales

Growth drivers The improved performance this year is to come from increased market penetration and greater acceptability of the company's products in the Indian market.

Chennai , Feb. 26

BONFIGLIOLI Transmissions (Pvt) Ltd, the Indian subsidiary of the Bonfiglioli group of Italy, hopes to end 2006 with sales of Rs 240 crore, a nearly 40 per cent jump over the previous year's Rs 170 crore.

The company produces gearboxes for industrial applications and its plant is located at Tirumudivakkam, on the southern outskirts of Chennai.

Bonfiglioli Transmissions has increased its capacity from about 2,000 units a month to 9,000 units at an investment of Rs 20 crore. It plans to invest another Rs 20 crore to take its production capacity to about 18,000 units by 2008.

According to Mr Clementino Bonfiglioli, Founder-President of the Bologna, Italy-based Bonfiglioli group, the improved performance this year will come from increased market penetration and greater acceptability of the company's products in the Indian market.

The company exports 50 per cent of its production, mainly to its parent. The Indian plant is the only manufacturing unit of the group outside of Italy. It has assembling operations in a dozen other countries, including China.

Mr Bonfiglioli and Mr Marino Battini, Executive Vice-President, Bonfiglioli group, told Business Line here that the group had set for the Indian operations a target of 80 million (about Rs 425 crore) by 2008.

Group sales aim: Rs 2,650 cr

The Indian subsidiary will start manufacturing medium and large size gearboxes by then, according to them. The Bonfiglioli group hopes to end 2006 with sales of Euro 500 million (Rs 2,650 crore) against Euro 390 million (Rs 2,070 crore) in 2005.

Bonfiglioli Transmissions makes helical geared motors, shaft mounted gearboxes, electric motors, sub-assemblies of planetary gearboxes and also imports and sells some products from its parent, according to its CEO, Mr M. Ganesh.

Mr Bonfiglioli and others from the parent company were in Chennai to inaugurate the expanded capacity.

According to Mr Ganesh, the Indian market for gearboxes — used in cement, textile machinery, steel and sugar industries — should be about Rs 800-1,000 crore in size. Bonfiglioli Transmissions competes with a couple of European manufacturers such as Sew Euro Drive, Nord and Flender, all of Germany, and Elecon and Greaves, both Indian companies.