Anupam Industries Ltd (AIL), India’s largest overhead crane builders has entered into series of agreements with Mitsubishi Heavy Industries Ltd, (MHI) of Japan to avail MHI’s technology by way of a license agreement for a wide range of products such as port & container cranes and a wide range of material handling equipments & systems.
AIL has also signed an understanding with MHI for an eventual Joint Venture to cater to domestic demand in India as well as to address global demand for the products covered in the MoU.
The agreements were signed between Yoichi Kujirai, Senior VP, Mitsubishi Heavy Industries and Mehul Patel, MD, Anupam Industries on Monday evening in Mumbai in front of delegates and dignitaries from both the companies.
The license agreement covers Ship to Shore cranes, Rubber Tyred Gantry cranes and Rail Mounted Gantry cranes, Bulk Handling Equipment such as Continuous Unloaders, Grab Bucket Unloaders, Stackers, Reclaimers, Stacker/Reclaimers and Ship Loaders and Forging cranes and Ladle cranes, all of which are in high demand in India.
“MHI has accumulated technologies and gained customers’ trust and Anupam excels in the sales strategy utilizing local network and the design and production capability. Through this cooperation we will soon be able to become a dominant player outbidding our competitors in the Indian market. Subsequently, we will cater to the world market out of India as a joint venture company, aiming to become the No. 1 manufacturer of material handling equipment,” said Yoichi Kujirai, senior vice president, Mitsubishi Heavy Industries.
“We are sure that the signing the License Agreement and Joint Venture Term Sheet is a beginning of an era in which we will be putting in place a world class manufacturing facility that would cater to the demanding quality standards of developed countries.
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We shall endeavor our best and contribute our mite in making India a serious contender in global port equipment business. This would be our contribution to make India a global manufacturing hub,” said Mehul Patel, Managing director, Anupam Industries.
“We are extremely optimistic about the Indian infrastructure and our investment with Anupam is an extension of this belief. We are pleased to having played a role in the Anupam-MHI partnership and believe it is a step in the right direction for Anupam and MHI to cater to the immense potential of Indian infrastructure. This paves the way for Anupam towards its domestic dominance and aspiration for global footprint,” said Bharat Banka, Bharat Banka, MD & CEO of Aditya Birla Capital Advisors which has a stake in AIL.
As a beginning, the Anupam-MHI combine has already bagged their first order of over Rs 340 million for supply of forging and ladle cranes to a leading Indian engineering firm.
AIL, founded in 1973 and led by second-generation entrepreneur Mehul Patel, has emerged as a leading player in the material handling equipments segment since 1990s.
The focus on quality, customization of products and extremely stringent safety standards besides well planned strategies have resulted in AIL gaining leadership in each of the segment it now operates in-- Power, Construction, Infrastructure and General Manufacturing.
AIL has witnessed over 70 per cent year-on-year growth in the last five years, during which period its turnover has multiplied 15 times from less than Rs 200 million to over Rs 3 billion in FY 10. The main driver for growth in last 2 years was the exponential demand from fast-paced growing steel industry.
AIL estimates enormous potential in port and container cranes besides material handling requirements of industry and continuing robust demand for cranes from power, construction and manufacturing.
AIL has ambitious plans for lateral and vertical growth and is aiming to quadruple its topline to over Rs 12 billion within next three years.
In mid-February 2010, Aditya Birla Private Equity – Fund I picked up a stake in Anupam and Bharat Banka, MD & CEO of Aditya Birla Capital Advisors joined the board.
Banka and Aditya Birla Private Equity will steer the company in its growth phase. The commitment of Rs 500 million by Aditya Birla Private Equity will fund the 1st phase of capital expansion of over Rs 850 million at Anupam and the company is ready with its funding plans for the 2nd round of expansion.
About the Industry and Market Potential
The global demand for port cranes is estimated over Euro 5 Billion per annum with very few reckonable players. The partnership between Anupam-MHI is aimed to achieving goal of emerging as a dominant player catering to global demand, with focus on training Indian engineers, creation of world class manufacturing facility and a fine tuned marketing strategy taking support of the existing global sales network of MHI.
In India, a huge business potential of over Rs 100 billion over the period of next 5 to 6 years is imminent with 55 numbers of port berths in final stages of planning, financial closure or opening up for bidding. This will be a relevant market for Anupam as it has the capabilities to cater to this unique market.
Similarly, addition of over 100 million tons of steel making in the next 7 to 8 years means additional demand creation of over Rs 200 billion for the “Lifting” industry and even higher for the material handling sector.
Power generation from present installed capacity of around 160 GW is slated for double in the next 5 to 7 years which is again a big driver of demand for cranes, where Anupam is already present.
For further information:
- For more details on Anupam Industries Limited, please visit the website www.anupamgroup.com
- For more details on Mitsubishi Heavy Industries, please visit the website www.mhi.co.jp