Electronica Machine plans unit in China

Electronica Machine Tools is setting up a plant at Suzhou in China to manufacture CNC wirecut electric discharge machines (EDM). The company is investing Rs 3 crore apart from the land cost for setting up the plant.

"We are already exporting more than 40 CNC EDMs to China per year but we felt the best way to expand rapidly and to tap the large market was to produce machines in China and distribute there. We are targeting a sale of 60 machines in the first year which will translate into a turnover of $2 million," said R K Ratnaparakhi, founder director, Electronica Group.

The company expects exponential growth in China as the market size there is about 1,500 machines per year.

"We expect to become a significant player in China in three years during which we will also scale up investment," added Ratnaparakhi.

Further, the group also plans to set up a unit in Switzerland, christened Electronica Europe Sarl, with an initial investment of ¤3 million.

"In the first year we expect the firm to handle a business of ¤2 million. With a vantage point in Europe, we can also cover north Africa," said Ratnaparakhi.

The group has grown 50 per cent in the last two years. It has invested Rs 5 crore in the last two years and plans to invest an additional Rs 10 crore in the near future. Simultaneously, it has upgraded its plant at Saswad with an investment of Rs 15 crore.