The Hindu Business Line : Russian co EBC to enter thru 100 pc FDI route

Project details
The high precision bearings plant on the outskirts of Hyderabad would manufacture large size bearings of outer diameter between 400-700 mm.
The company would initially manufacture import substitutes catering to heavy industries such as power plants, steel plants, mining and windmills.

Hyderabad , July 3

European Bearing Corporation (EBC), Russia's largest manufacturer of bearings, is entering India with its manufacturing facility at Hyderabad. It would be the first Russian private enterprise to foray into the country through 100 per cent foreign direct investment route.

According to the EBC Bearings (India) Managing Director, Mr Martin Kunzmann, this is the first international project of EBC and also the first large size bearings manufacturing project in India.

Addressing the media here on Monday, Mr Kunzmann said the project is estimated to involve an investment of $30 million (about Rs 124 crore) in phases till 2008-end. The first phase of production is expected to commence during the second quarter of next year.

He said the high precision bearings plant on the outskirts of Hyderabad would manufacture large size bearings of outer diameter between 400-700 mm.

"We are going to lay special emphasis on core sector industries such as railways, steel, mining, cement, power and transmission. The unique feature of the Hyderabad facility will be a dedicated area for vendors to set up their facilities under strict supervision and compliance norms of the main plant," he said.

Market size

Stating that the Indian bearings market is estimated at around Rs 3,500 crore with an annual growth of 8-10 per cent, Mr Kunzmann said the company expects to beat the industry growth rate and capture a 13 per cent market share by 2009-end.

According to him, the company would initially manufacture import substitutes catering to heavy industries such as power plants, steel plants, mining and windmills. At present, European Bearing Corporation's sales in India were around $3 million through imports route.

Stating that the Indian facility offers several advantages to EBC, Mr Kunzmann said the company would be in a comfortable position to price its domestically manufactured products at 10-15 per cent below the premium segment products available in the market.

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