The Hindu Business Line : Atlas Copco rejigs manufacturing set-up

Snapshot
The entire production of the construction and mining technique division is being shifted to Nashik.
Modernisation and capacity expansion at Pune and Nashik involved investments of Rs 52.5 crore.
Logistics centre to be opened in Pune in October.

Our Bureau

Pune, Sept. 17

Atlas Copco India Ltd (ACIL) has revamped its manufacturing set-up and is rationalising the production centres for its two main businesses in the country, namely compressors and construction and mining tools, to create local centres of competence.

Following the rejig, the compressor technique (CT) division will manufacture its entire range of reciprocating, rotary and turbo compressors at Dapodi, near Pune. Five new lines have been added to the existing six lines, and another bay is in the offing for manufacturing large compressors. The entire production of the construction and mining technique (CMT) division is being shifted to Nashik. Earlier, the company was manufacturing some compressors and tools at both its factories.

Speaking on the sidelines of the inauguration of the new compressor facility, Mr Ronnie Leten, President, Business Area, CT, Atlas Copco Airpower n.v., said that worldwide the company’s focus was on new businesses such as road construction, hospital and marine segments. “India’s road and hospital infrastructure is growing and we believe there is a lot of scope in these sectors here,” he said.

The Indian business, which has doubled in the last three years, was growing at a faster pace than in the West, and currently accounted for around four per cent of Atlas Copco’s revenue worldwide, he added.

Investment costs

Mr Mike Mustapha, Managing Director, ACIL, revealed that modernisation and capacity enhancement at Pune and Nashik had involved investments of Rs 52.5 crore. A new world-class logistics centre is being inaugurated at Pune in October while a training centre is also being established.

ACIL, a part of Sweden-based Atlas Copco AB, is a public limited company, around 84 per cent of which is owned by the principals. Sales revenue for the year ended December 2006 was Rs 747 crore, around 50 per cent of which is from the compressor business, while nearly 40 per cent is generated by CMT.

More Stories on : Restructuring | Engineering

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page