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| GE to invest $200 mn to build pune unit |
| BS Reporter / Bangalore Sep 27, 2011, 00:47 IST |
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US conglomerate General Electric (GE) will invest $200 million (Rs 980 crore) to build an integrated multi-product manufacturing facility in Pune.
“Our new integrated manufacturing facility is coming up near Pune on a 68-acre plot for making a wide portfolio of products for the Indian market,” GE chairman, Jeffrey R Immelt, said here on Monday.
The facility will create 2,000 jobs and help to drive localisation of GE’s products. It will initially have 450,000 sq ft of space, which can go up to 1 million sq ft.
Immelt said GE saw robust demand for its products worldwide and he did not expect any big impact of the double-dip recession on the firm’s business.
“At a time of global volatility, we still see robust demand for our infrastructure products and still feel quite good about the prospects on a global basis for the industry we are in, like infrastructure and financial services. The growth of infrastructure sector would continue to be robust. Aviation, energy and transportation are quite healthy in the US market,” he said.
In India, GE expects to grow its business by 20-30 per cent this year. It aims to increase its energy business in the renewable energy segment to $250 million in 2012-13, from $100 million this year.
“We have got a business model that really allows us to stay focussed on local demand and customers. The move of investment in a manufacturing facility in Pune is just another step that allows us to localise from a manufacturing standpoint more in India. In Bangalore, we have a great technical footprint that will allow us to penetrate deeper into the Indian market,” Immelt said.
On double-dip recession fears affecting the global businesses, Immelt said, “I travel a lot around the world and people are concerned about the economy slowing from eight per cent to 7.4 per cent. I don’t have to feel that bad about it, honestly. Underlying business is better than the mood on Monday. When I come to India, I feel that businesses are still robust here, compared to my last trip in March last fiscal.”
He said growth in emerging markets was critical to GE, just like it was to Siemens, United Technologies, Rolls Royce or any other industrial company. GE expects emerging markets to contribute $35 billion to its revenues this year.
“When I joined GE in 1982, the entire business of GE was about $24 billion. So, the emerging market footprint is 50 per cent more than the overall revenues then. The US is a very big market for GE and others. We have a lot of jobs in the US. We are the second-largest exporter behind Boeing. We need to service the market and we are dedicated to creating good jobs in the US, just like in India, and we don’t see those two in conflict,” he said.
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