The company is likely to generate Rs 100 crore business for Gujarat's casting industry.
ITT Corporation, a US-based multinational pumps and valves maker is now looking at suppliers from Gujarat for its casting material requirements.
The company is likely to select at least 40 suppliers from Gujarat generating about Rs 100 crore worth of business for the state industry over the next one year, senior company officials informed. ITT will source investment casting and sand casting products from Gujarat-based foundries. The Fortune-500 group company, ITT, is also looking for suppliers of fabrication items including forge parts and steel parts. The sourced castings would be partly consumed by ITT's India facility based in Vadodara, while a large volume will be exported to its value centers located across the globe.
"Better quality compliance and cost effectiveness has brought us to India to source casting materials for our global requirement. We are fortunate that in spite of economic struggle across sectors, we expect a double digit growth in the current year," said John Bonacci, director - global strategic sourcing at ITT. Bonacci was on Gujarat visit to appoint suppliers.
Going forward, the company looks to increase its supplies from Indian foundries thereby generating a business in excess to Rs 2,000 crore.
For the first time, the company would source such large volumes of castings from India. So far, the company sourced most of the casting materials from China.
"ITT used to source most of the castings from China but Indian companies provided better compliance to the quality norms over China. However, cost-wise China seemed beneficial but for better and consistent quality of products, we decided to choose suppliers from Gujarat," said Kalpesh Patel, manager - quality and testing at ITT Corporation India Pvt Ltd.
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Meanwhile, for some products, the company would sub-assemble them at its Vadodara facility and then export to overseas markets.
The company would also encourage its suppliers to directly export to ITT's value centers in different countries.
"In past two years, we have achieved 100 per cent growth (CAGR). Since we are engaged into special application of pumps and valves for industries like crude oil, natural gas, chemicals, power and pharmaceuticals, we are less prone to witness demand slowdown due to economic uncertainty in global markets," said Patel.
At its Indian facility, which is about two years old, ITT manufactures pumps and valves to cater to the domestic as well as international markets.