"Infrastructure development is happening in a big way here and this could possibly see us bringing in our construction equipment components at some point."
Pune, Dec. 6
THE Carraro group, which manufactures among other things driveline systems for off-highway and on-road vehicles, drives, power trains and components for global OEM majors, on Tuesday announced it will start commercial production this week at Turbo Gears India - its second manufacturing plant in India at Ranjangaon near here.
Turbo Gears, owned 80 per cent by Carraro International S.A. and 20 per cent by Carraro India (which manufactures transmission systems for tractors in joint venture with the Escorts group), will supply gears to Carraro's assembly lines globally and to Carraro India, Mr Mario Carraro, Chairman, Carraro group, told reporters. Turbo Gears is also currently in talks with OEMs in the domestic market, Mr Tomaso Carraro, member of the board, added.
The new plant, set up at an estimated cost of Rs 90 crore is a strategic move for Carraro, according to Mr Mario Carraro, who said the move is focused on strengthening its business unit components and its Asia-Pacific presence. "India is a very important market," he said.
"We plan to export 50-60 per cent of the production and service the domestic market with the remaining 40 per cent," Mr Sashank Jauhri, Chief Operating Officer, said.
Turnover from the new company, which will manufacture gears and components, is expected to touch Rs 150-160 crore in the next 3-4 years with the company planning to tap new OEMs for developing products based on their specific needs.
The group, meanwhile, is betting big on the business potential in India, according to Mr Tomaso Carraro, who said that it will take a call on bringing in its other businesses into India depending on the country's economic and industrial development.
"Infrastructure development is happening in a big way here and this could possibly see us bringing in our construction equipment components at some point," Mr Tomaso Carraro said. Carraro has production units in Italy, India, Poland, Argentina, Germany, the US and China and has among its clients John Deere, New Holland, Mahindra, Hyundai, Daewoo, Fiat Caterpillar and Piaggio.