Laying the foundation stone at Sanand on Saturday, the company said that it would start production from the plant that would make drive systems, transmission components and complete transmissions by March 2015. The Indian operations of the segment drive systems is expected to contribute nearly 20 per cent of its global turnover once the Sanand plant is fully operational. The plant coming up over 30 acres would employ around 1,000 people. The company plans to export around 50 per cent of the production from the Sanand plant.
Vivek Prakash, managing director, segment drive systems, India business-unit said, "During the first phase we plan to invest around Rs 50 crore, and subsequent investments would follow every year. By 2018, we plan to invest around Rs 400 crore on the Sanand plant and expect our turnover from the Gujarat plant to be around Rs 1,000 crore when it is fully operational in 2018. By that time, the overall turnover of the Oerlikon Drive Systems in India would be around Rs 2,100 crore."
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At present the company has two plants, at Greater Noida in Haryana and Belgaum Maharashtra which makes drive systems of both its brands, Oerlikon Graziano and Oerlikon Fairfield. Prakash said that factors like proximity to the port, availability of power and support from the government have been the main drivers behind choosing Sanand as the location for the third plant. The Sanand plant would manufacture drive systems of both the brands but focussing more on the Oerlikon Graziano brand.
Heriberto Diarte, chief executive officer, segment drive systems, global, Oerlikon said, "We are very bullish on India in the longterm. We have even shifted the global headquarters of the drive systems segment to New Delhi earlier this year. India offers the advantage of cost competitiveness, and hence gives an edge when we export. Our major export markets include the European Union, North America and Brazil."
He added that Oerlikon's exports have been growing at around 25 per cent in the last few years.