Germany’s LEMKEN to set up manufacturing unit in India

LEMKEN India Agro Equipment, a wholly-owned subsidiary of LEMKEN Gmbh, is setting up a manufacturing unit in Nagpur district of Maharashtra.

“It is our first production location outside Germany. We will manufacture pre-harvesting equipment with a total investment of Rs 120 crore funded through 100 per cent equity from Germany,” LEMKEN India Managing Director and CEO Arvind Kumar told PTI here.

The unit, which will be operational from October 13, is being built in two phases and in the first phase the manufacturing capacity will be 3,000 units annually, he said, adding that the overall capacity would be 20,000 units annually.

“We are hoping the phase two unit will be operational by FY’15,” he added.

LEMKEN India will manufacture pre-harvesting equipment such as primary tillage, seed bed preparation implements, reversible plough, seed drills and sprayers which are used along with the tractors.

“In phase one, we will manufacture only reversible ploughs and the rest will be added in phase two,” he said.

The company is targeting Rs 100-crore revenue in five years and will focus initially on areas growing cotton, soyabean, maize especially in Maharashtra, Punjab, Madhya Pradesh and the entire southern region, he said.

The company is also planning to tie-up with tractor manufacturers to jointly market the equipment, he said.

The agro equipment market in the country is unorganised with a total size of about Rs 2,500-3,000 crore and LEMKEN will be the first European player to set up an implement production facility in India, he said.

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