Ingersoll Rand India plans to invest Rs 100 crore in upgrading its manufacturing facility at Naroda, Gujarat, which would aid in the production of complete range of reciprocating, rotary and centrifugal compressors.

The announcement led to a flare up in the share price of Ingersoll Rand (India) by over 10 per cent.

New product lines

In a statement to the stock exchanges, the company said its investment would transform the Naroda plant, one of its oldest globally, into a "world class manufacturing facility'' and improve the overall efficiency of the manufacturing and operating systems. The facility would also add new product lines with high level of innovation.

Venkatesh Valluri, Chairman and President, Ingersoll Rand India, said the Naroda plant of the company was one of the oldest plants in the world. Established in 1965, it was aimed at catering to both Indian and global markets. He said the company has been focussing on innovation from emerging economies and "India has been at the forefront of this initiative''.

New era of economic realignment

He said as the country moved into a "new era of economic realignment'' that would focus on manufacturing, Ingersoll Rand India was upgrading its facility by launching new "flexible production techniques, enhanced process efficiency methods and new technologies''.

He said this would, apart from enhancing the safety practices, would also help the company to deliver very cost competitive products to Indian and global markets. He felt this change was a step ahead to improve its customers’ "energy efficiency, productivity and operational efficiency''.

Valluri, emphasising the importance of the Indian markets to Ingersoll Rand, said the investment in Naroda plant was being done to further cement its position in the growing Indian market.

He said the company was committed to offering sustainable and energy-efficient solutions and the new improved Naroda facility would aid it "to drive technology innovation and product development'' to serve the needs of both domestic and overseas markets from here.

The Naroda facility served the requirements of markets like industrial efficiency, transportation, food security, logistics, pharma, cement, mining, defence etc. Apart from Naroda, Ingersoll Rand India has production facilities at Chennai and Sahibabad near Delhi and two engineering and technology centres at Bangalore and Chennai. It employs nearly 2,000 people in India.

The announcement led to a flare up in the share price of Ingersoll Rand (India). The stock gained Rs 70.85 or 10.21 per cent, to trade at Rs 765 on the BSE. The company’s revenue was Rs 578.72 crore during 2013-14 and net profit was Rs 66.95 crore. The EPS was Rs 21.21, according to data available on the BSE Web site.

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