Esab's new plant to start operations by April '06

Esab India has begun to build a plant at Irungatukottai near Chennai, to assemble equipment for the welding industry.

The company will invest Rs 20 crore in the plant (including the investment to procure technology from the parent company), said M G Foster, its chairman.

The new plant would be spread over 50,000 square feet, and will start operations by April 2006. However, some assembly work at the plant would start as early as October or November this year, said company officials.

The plant would make equipment which is new to Esab India. Company officials said the equipment would bring down the power consumption, while simultaneously improving the quality of welding.

Foster said that the plant is being built to serve the Indian market. The company's business improved last year in the wake of the upturn in the steel and automotive industry.

The new plant is Esab India's first greenfield venture in India. The company began operations here in 1988 after it acquired the welding division of Philips India. Subsequently, the company's manufacturing footprint increased on the heels of more acquisitions.

Esab India has moved its registered office to Chennai from Mumbai because a lot of its manufacturing activity is carried on around Chennai. Esab India currently has a plant in Ambattur.