Carraro sets up Rs 110 cr unit at Ranjangaon

The Carraro group, in order to consolidate its presence in the country, has opened its second manufacturing plant called Turbo Gears at Ranjangaon near Pune.

The plant is a 80:20 joint venture between Carraro International SA and Carraro India. Also, the company has lined up expansion plans in China.

"The project will be completed at a cost of Rs 110 crore," said Shashank Jauhri, chief operating officer, Turbo Gears. The plant is spread across 80,000 sq mt with a covered area of 12,000 sq mt. "The company has completed 60 per cent of the investment and the remaining will be made over two years for capacity enhancement," said Jauhri.

On revenue expectations from the new plant, he said, "In the first year we expect revenues of 6 million and by the fourth year of operations it will be Rs 165 crore." Jauhri said the headcount would also increase from 100 to 350 over the next four years.

"We will export over 60-70 per cent of our products to our parent company in Italy and they will supply to all the major original equipment manufacturers (OEM) in Europe and US. The remaining will be for supply to the Indian parent company and OEMs in India. Besides, the new plant will also give us a stronger foothold in the Asia-Pacific region," said Jauhri.

The group is bullish about the huge opportunities in the Asia-Pacific region. "In the next two months we will launch our China operations and expect initial revenues of 10-20 million euros (about Rs 100 crore)," said Jauhri.