Electrical switchmaker GreatWhite Global (GWG) Friday said it has entered into a strategic partnership with Italy-based electrical accessories and automation maker Vimar to manufacture part of their product portfolio in India.
Under the partnership agreement, GWG will manufacture two premium product lines in electrical accessories in its plants in Maharashtra and Uttar Pradesh as well as manage the marketing and sales of the Italian firm in India. The foreign company will also have access to Indian customers and dealer network of its Indian partner.
"The partnership doesn't involve transfer of equity or holdings. While Vimar will give us technology and train our staff to global technology manufacturing and standards, we will manufacture products for them," GWG president Kailash Didwania told media persons here.
The company is expecting Rs.700 crore in the next fiscal as a direct result of the partnership. It will close the current fiscal year at Rs.400 crore.
Also, the products made in India will be shipped to Africa, Mexico and Italy in the near future.
"The premium segment in India is on a rise and we will target the premium customer segment which is roughly estimated between Euro 5 to 10 million. So, there is an immense opportunity for us," said Vimar's regional manager for middle-east and India Ivano Roman.
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Roman said the company has been supplying products to India in accordance to order placed and so far didn't have any presence.
The Indian company which pioneered the 'piano switches' in 1963 is also looking for other partnerships in non-competition category.
"The demand for home appliances is coming up well. We are open to diversification in this segment," Didwania said.
The company is estimated to be earning Rs.340 crore from retail and home-segment sales with the rest comprising institutional sales.