India: Schwing has big plans

Schwing Stetter, the German concrete machinery manufacturer, is poised to make its wholly owned Indian subsidiary Schwing Stetter India Private Ltd a manufacturing hub for some of its product ranges.

"Currently, the prototype for a boom pump is being developed in Germany. Once it is ready by March 2005, we will start manufacturing the product in India within two-three months," said Anand Sundaresan, managing director of SSIPL.

The company will not export the products directly but will sell them to Schwing at a pre-determined inter-company price. Later, it will be marketed by Schwing globally.

The other products that SSIPL is mulling to manufacture domestically for exports are trailer pumps and batching plants.

"At present, exports as percentage of our turnover is only about 10 per cent. This figure could possibly go up to 40-50 per cent in the next three to five years," Sundaresan added.

Besides supplying a significant number of ready mix concrete equipment to the domestic market, the company also exports to countries like Afghanistan, Bangladesh, Burma, Sri Lanka and to the Middle-East.

SSIPL was established in 1999 with an investment of Rs 18 crore (Rs 180 million). It manufactures a wide range of batching plants, transit mixers and concrete pumps.

It expects to close this calendar year with a turnover of Rs 170 crore (Rs 1.7 billion).

SSIPL has completed its capacity expansion project in six months since announcing its plans to double its capacity with an additional investment of Rs 18 crore (Rs 180 million) in May 2004.

The facility, set-up in a 15 acre area, consists of a 100,000-square feet manufacturing facility for transit mixers only and has sheet bending, automatic welding, shot blasting and painting bays under the same roof.

"Now that our capacity has doubled, we shall be able to manufacture 160 transit mixers per month. We have a market share of over 70 per cent in RMC market and we have witnessed a growth of 35 per cent in unit sales of mixers, batching plants and pumps," remarked Sundaresan.

"Of the 11 units we have in North and South America, India China, Russia, Germany and Austria respectively, the Indian unit has achieved the fastest growth and has become most profitable too. The potential in India is quite large and this unit will very soon notch up a turnover of $100 million and go on to become a major player among the group companies in five years," said Jochen Goerlich, chairman, Schwing.

The facility is adjacent to its present manufacturing facility at the SIPCOT Industrial Park in Irungattukotai, 40 kms from Chennai will be inaugurated on December 13, 2004.