Chennai, Feb. 13
JC Middle East FZC (JCME), a subsidiary of leading industrial valves manufacturer, JC Fabrica de valvulas s.a based in Spain, plans to invest Rs 500 crore in India in the next three years.
Announcing the launch of its Indian operations, the Founder President & CEO of Emirates Techno Casting FZE (ETC) — promoter company of JCME — Mr Faizal Kottikollon, said the company would be investing Rs 100 crore in JC Valves India (JCVI) during the first phase to set up a manufacturing facility at the Mahindra World City in Maraimalainagar.
The plant would be operational before end of 2009 and making valves ranging from 0.5 to 48 inches diameter, he said, initially importing castings from its base in Sharjah.
JCME was formed in partnership with JC Spain and ETC. The company has already been catering to the few customers in power and oil and gas sectors in India, by exporting out of its West Asian operations, Mr Kottikollon said. With the demand skyrocketing for high capacity and temperature/pressure sensitive valves used in power generation plants, it was logical for the company to have its local manufacturing presence, he said.
During the second phase, the company would be investing Rs 250 crore to set up a foundry in India to support JCVI. The foundry would come up either in Chennai or Visakapatnam.
“We will be able to manufacture quality valves in India as the overall process from raw material sourcing to assembly will be under single entity. With the entire supply chain process in place, we would be better placed in terms of pricing and delivery,” Mr Kottikollon added.
The market size for high temperature and pressure resistant vales was about Rs 2,500 crore, at present, and JCVI would be aiming at sales of around Rs 500 crore in two years from commencing manufacturing operations.