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Italy-based Bonfiglioli will invest about ₹100 crore to expand capacity over the next three years as the global power transmission gear-maker prepares to serve growing demand in its existing and new business segments, and also grow its exports.
The company also intends to convert its Indian operations into the production hub for the Asia-Pacific.
“We have chalked out a strategy to design, develop, and manufacture some products in India for the world,” said Fausto Carboni, CEO, Bonfiglioli Group.
The company has just completed an investment of ₹50 crore in adding capacity at its Thirumudivakkam unit near Chennai. The plant that currently has a annual capacity of 50,000 gearboxes will now churn out 75,000 units. Bonfiglioli’s Sriperumbudur factory can manufacture 1.5 lakh gear boxes a year.
“The new capacity will enable Bonfiglioli to serve existing and new markets and customers in off-highway, construction, mining and material handling applications. We see an inherent demand for the next 2-3 years with the government’s focus on road construction projects,” said Kennady V Kaippally, Country Manager, Bonfiglioli India.
Over the next three years, it will invest another ₹100 crore at the two Chennai units to boost capacity.
Bonfiglioli recently opened an assembly plant in Pune with a capacity of 90,000 units a year to focus on customers in food, packaging, cement, steel, pharma and textile sectors.
Sonia Bonfiglioli, Chairman of the €808-million Bonfiglioli Group, said India was key a pillar of future growth and the country was the second-largest in terms of number of employment after Italy.
“The country offers a great opportunity for our group to develop the next wave of digital technologies using Indian engineering capabilities,” she said adding that group was investing in the areas of IoT and machine learning and in the process of doing some proto-types and pilot projects.
The company, which has been operating in India for the past 20 years, will soon commence export of India-built gear drives for electromobility segment.
Bonfiglioli India targets a total revenue of about €117 million in this calendar year, up from €92 million in 2017. Exports account for about 30 per cent of the revenues.
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