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German engineering technology major Siemens AG plans to make India s its global hub for manufacturing key steel plant equipment.
The Kolkata-headquartered, Rs 1,700-crore Siemens VAI Metal Technologies — the steel technology arm of the multinational — has been designated to manufacture five products — ladle furnace, vacuum degasser, billet caster, small and medium capacity sinter plant and blast furnace — for global clientele. Three more products —electric arc furnace, converter car and wet de-duster — are also in the pipeline for manufacture in India.
Siemens VAI plans to set up its second unit in the country to suit the new strategy. The existing facility of earlier acquired Morgan Construction Company at Thane in Maharashtra is being relocated to Turbey near Mumbai in tune with the new focus.
The company is scouting for land in Bhilai, Visakhapatnam, Nashik and Kharagpur to locate the second plant.
Mr Wrener Auer, CEO of Siemens VAI Metals Technologies GmbH, Austria-based nerve centre for the metal plants builder, told Business Line that Siemens has allocated five of its steel-making products for development, engineering, redesigning, modification, manufacturing, integration of new technologies and export. Siemens VAI along with turnkey engineering capability also provides full-fledged electric and automation services for steel makers.
Mr Ashoke Pan, Managing Director of Siemens VAI in India, said: “We have obtained product ownership and global sales rights for the five items. Development and designing activity for all five are in operation. The relocation of the Maharashtra plant and the proposed plant near the steel-making region would scale up the manufacturing activity of Siemens VAI here.”
Development and re-designing work for three other items is expected to start next year. The products, which are mandated to be manufactured here, will have full local sourcing. “We source our components from some 200 vendors, of which 45 are big,” Mr Pan explained.
Siemens VAI has made an investment of around €40 million and another €40 million is on the cards, Mr Auer indicated.
He said Siemens VAI has around 20 per cent market share in steel plant building/modernisation market in India. “We hope to take it up to 25 per cent in the next couple of years on an enlarged market size.”
For steel plant business generation internationally, Siemens opted for a long-term strategic refocus last year. “At the heart of it is India, particularly in the greenfield space, and in China, mostly for brownfield project and modernisation.”
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