Pune, Jan. 5
PUNE-based Electronica Machines Tools Ltd, a manufacturer of indigenous electric discharge machines (EDMs), is setting up manufacturing facilities in China to tap the huge market.
The Rs 3-crore China plant will cater to the Chinese market, which is five times the size of the Indian market, for wire cut EDMs, Mr R.K. Ratnaparkhi, Founder-Director, told newspersons here. The China plant will target sales of 60 machines in the first year which will translate into $2 million turnover, he said. He added that this will increase exponentially in the next three years; the Chinese market for the product is estimated at 1,500 machines annually.
"By the third year we want to make 200 units and also eventually plan to launch product lines such as carbide in which we have core competence," Mr S.R. Pophale, Founder-Director, said.
The company will cater to the entry-level segment of the market in China, which is not catered to by the European and Japanese manufacturers present there.
The company, which registered a turnover of Rs 205 crore in March 2005, is also simultaneously upgrading its Saswad facility near Pune at Rs 15 crore to prepare for anticipated growth.
With an average growth rate of around 50 per cent in the last two years, the company is expecting to end fiscal `06 with turnover touching Rs 280 crore. "Our vision is to be a Rs 700-crore company by 2010," Mr Pophale said.
European foray:The company is also in the process of making a foray into the European market where it has set up showrooms and sales offices in Switzerland. A new company, Electronica Europe Sarl, with an equity base of 3,00,000 euros has been set up to tap markets across Europe and is expected to get business worth euro 2 million in the first year.