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In October, Sandvik announced a plan to set up its sixth manufacturing base in India at $ 45 million (approximately 280 crore at current exchange). But that may not be the end of the investment proposals to the country.
According to Kobus Malan, President emerging markets, Sandvik Mining, the company is also relocating number of its global mining equipment facilities from USA and Europe to India and China as part of a two year business reorganisation plan that will be completed in the next fiscal.
“A number of factories in Europe and USA are to be closed down. They were acquired during the 10-year long mining super cycle when chasing orders were a priority,” Kobus Malan, President emerging markets, Sandvik Mining told Business Line on Wednesday.
Malan could not offer details of the factories to be relocated to India and China. He was in the city in connection with International Mining and Machinery Exhibition (IMME).
With commodity prices plummeting Sandvik is focussing on cost efficiencies and shifting its operations to the growth markets of India and China.
“We have formed a focussed group for the emerging markets of India and China,” he said adding that as the business process is on course to be streamlined further India (along with China) may get more investments.
Coal mining gear
Meanwhile, the company is expecting underground coal mining gear business to be a growth churner of Indian operations, beginning next fiscal.
Sandvik produces peripheral equipment (excluding the core mining equipment like continuous miner or longwall) for underground sector.
Though dominates the hard-rock mining sectors, like zinc and copper, in India; the company has little presence in the coal sector which depends on the opencast or surface mining activities to fuel the energy needs of the country.
Announcement of some big budget underground project by Coal India and Singareni Collieries (SCCL) during 2009-10, changed the scene.
According to Subhasis Das, vice president Sandvik Mining, the company will start supplying equipment to three large underground projects beginning next fiscal. “We are expecting coal sector to contribute half of our mining business in India in next five years,” he said.
‘Make-in-India’
Parag Satpute, managing director of Sandvik Asia said apart from mining, the company is focussing on infrastructure (like roads, ports) and machining sectors for future growth in India.
He is particularly bullish that the ‘Make-in-India’ campaign will open wide opportunities for Sandvik.
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