European bearings maker URB Group today said it will set up a manufacturing facility at Mount Abu in Rajasthan, with an installed capacity of 1,000 tonnes a year at an investment of $65 million.
“The Indian bearing market is estimated at $3.4 billion and has immense growth potential. After establishing our presence in retail market over the past several years, now we are going to set up an assembly unit URB India Ltd, at an investment of $65 million,” Harun Adiguzel, President, URB India said here.
The company, which has been present in India since 1982, will set up the facility at Mount Abu in Rajasthan on a plot of land allotted by the state government and formal agreements are expected to be signed in January, Adiguzel said.
“The initial production capacity of the plant will be 1,000 tonnes of bearings every year that will be doubled in future. The plant is expected to start operations by end of 2013,” he said.
The raw material for the Indian unit to be sourced from Romania will be assembled and super finished in the local factory.
Talking about the sales plan, he said initially 70 per cent of the production will be for the domestic market and 30 per cent will be exported. The company plans to exports the products to Europe and the US.
The Indian facility will be its fourth factory in the world after Romania, Turkey and Hungary.