Business Daily from THE HINDU group of publications
Wednesday, Apr 11, 2007
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Business Daily from THE HINDU group of publications Wednesday, Apr 11, 2007 ePaper |
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Info-Tech
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Outsourcing Flowserve to move engg services work from Europe to India Our Bureau
Chennai April 10 Flowserve Corp plans to move 30-40 per cent of its Europe-based engineering services work to India this fiscal. This would mean cost savings of about 40 per cent, according to Mr S. Gopinath, President, India Operations, Flowserve. The move is part of an ongoing lean manufacturing effort. But cost alone is not the reason for outsourcing, say officials. At a press conference on Tuesday, Mr Lewis Kling, President and Chief Executive Officer, Flowserve, said outsourcing to India was driven by value addition, not just cost reduction. "Our centres in Chennai and Bangalore have been designing and developing products which are sold across the globe," he said. The Bangalore centre, which focuses on valves, had recently got a patent for its three-way control valve design, he said. The company makes valves, seals and pumps besides integrated systems catering to industries such as oil and gas, chemicals, power and water. According to Mr Kling, the global market valued at over $60 billion is growing at 20-25 per cent a year. Its Indian market is growing at 15 per cent led by sectors like oil and gas, pharmaceuticals and chemical processing.
Coimbatore unit
To meet this demand, Flowserve is investing close to $1 million to expand its product development range in Bangalore and Chennai. The company also plans to hire more engineers, including fresh graduates, to support these development activities. It employs about 500 people in India. The company has invested about $8.5 million in a one-lakh sq ft facility at Coimbatore, to be inaugurated on April 12, to manufacture single stage, multi stage, barrel and vertical engineered and industrial pumps. About 30 per cent of production would be exported with total sales of about $30 million expected this fiscal. The company is also inaugurating a pump, valve and seals plant in Suzhou, China, next week. It has commenced work on building its largest `Quick Response Centre' in Saudi Arabia to be operational early next year.
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