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Bijoy Ghosh

(From right) Mr Hans Sondermann, Managing Director (Global Sales and Marketing), SEW-Eurodrive; Mr Rainer Blickle, President and Managing Partner, SEW Group; and Mr M.J. Abraham, CEO, SEW-Eurodrive India, at a press conference in Chennai on Tuesday. —

Our Bureau

Chennai, Feb. 10 SEW-Eurodrive India Pvt Ltd, the wholly owned subsidiary of SEW-Eurodrive GmbH, today inaugurated its manufacturing facility in Sriperumbudur, about 45 km west of Chennai.

Mr M.J. Abraham, CEO, SEW Eurodrive India, said the facility, created at an investment of Rs 35 crore, will initially assemble geared motors and industrial gearbox from CKD kits imported from Germany. Based on the market conditions it will get into manufacturing components and look at localisation, beginning with four-pole motors.

The company has an assembling facility in Vadodara, which it has modernised at a cost of Rs 17 crore. The facility assembles drive engineering and automation products for automotive, construction, food and beverage, rubber and pharmaceuticals industries.

SEW-Eurodrive has set up the Chennai facility to cater to the southern markets, which account for 40 per cent of its sales. Schwing Stetter and LMW are among the few big clients for the company in this region. The new plant will double the company’s production capacity to 56,000 units annually. However, due to the slowdown in the market the company expects to take at least three years to reach full capacity.Over the last four years, SEW-Eurodrive witnessed a growth of about 50 per cent CAGR and hopes to grow by about 10 per cent this fiscal. The products manufactured by the company are sub-assemblies and modules that go into large machines. Capital goods are the first to be hit by the recession and the last to recover.

Last year, the company recorded a turnover of Rs 108 crore. The market size for the geared motors and industrial gearbox is estimated at Rs 1,200 crore and the company holds about 10 per cent market share.

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