ETA Engineering, a part of the Dubai-based $4.5-billion ETA-Ascon Group, is investing Rs 40 crore in setting up a manufacturing unit at Sriperumbudur near Chennai for the manufacture of air-conditioning units.
The facility will come up on a 5-acre site and will manufacture a wide range of air-conditioning products with a total production capacity of about 5,000 units a year.
The construction is underway and the plant, which will employ 250-300 people, is expected to be ready by March 2008.
The Chennai-based company at present has two manufacturing units in Ambattur near Chennai and Pondicherry for manufacturing ductable split units, floor-mounted packaged units, self-contained packaged air-conditioners, air-handling units, fan coil units and chillers, among others.
This expansion move is in response to the expected demand for large air-conditioning systems in the domestic market as well as to cater to export markets, Abdul Cader, director, ETA Engineering, said.
ETA Engineering has focused on segments like hospitals, office premises, shopping complexes, convention centres and hotels, among others, which require large centralised air-conditioning
While the company has been catering to medium-sized air-conditioning projects in the range of 1,000-1,500 tonne, ETA expects demand for mega air-conditioning systems in future in India on the back of large projects such as SEZs, integrated townships and airports.
The company is also set to expand its exports, which account for a very small portion in the total turnover of about Rs 500 crore.
It is looking at West Asia to expand its export revenues and is in advanced stages of obtaining a certification from a European lab for meeting customer acceptance levels.
ETA will also set up a testing lab inside the factory, which will come up at Sipcot Industrial Park near Sriperumbudur. The lab will be set up by a Singapore-based company.
