Machine tools company Bharat Fritz Werner (BFW), will invest Rs 350 crore over a period of five years to expand its operations which includes setting up a new plant and restructuring its aerospace business.

The company also plans to grow inorganically and is in talks with a few companies in Europe in the aerospace and medical equipment sector for acquisition.

BFW Vice-Chairman, Mr S.N. Mishra, told newspersons here on Tuesday that the company wants to expand capacities to cash in on the emerging opportunities in the automobile as well as aerospace sectors. He said the Rs 3,000 crore domestic machine tool industry is expected to grow to Rs 55,000 crore by 2020.

He said through these measures, the company expects to post a turnover of Rs 850 crore in two years and Rs 1,300 crore by 2016. For the current fiscal, it expects to grow 65 per cent over the previous year to Rs 330 crore.

BFW, which counts Maruti Suzuki and Honda Motorcycle and Scooters as its customers, has earmarked Rs 33 crore for setting up a new plant in Hosur for manufacturing machine tool spindles, Rs 45 crore for restructuring the aerospace business, which will involve hiving off the business as an independent entity.

Another Rs 115 crore will be invested in acquiring new machinery and for adding shop floors.

The machine tool spindle factory will help in indigenising critical components, which are now extremely costly as most of them are imported, Mr Mishra said.

Mr Shailesh Sheth, a director with BFW, said the company wants to increase its geographical reach through an acquisition in Europe.

BFW is considered to be the largest producer of conventional milling machines in the country and its products cater to aerospace, automobile, defence, forging and pharmaceutical segments.

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