MGM Mottori Elettrici SpA and Varvel SpA, the Italian power transmission equipment firm, today announced the start of operations of their joint venture, MGM-Varvel Power Transmission in Chennai. The factory is located at The Indus Valley Logistics Park in Mel Ayanambakkam.
Both the partners will invest around ¤1 mn (around Rs 6 crore) and set a target of Rs 35 crore turnover in the three years, with exports contributing 30 per cent to it.
Entities are expecting to double their respective revenues by the year 2013 catering consistent growth in India in multiple sectors like construction, material handling, wind energy, food, packaging, textile, chemical, pharma and ceramics.
Edaordo Ghieri, president, MGM Motori Elettrici SpA said, “We chose India as the location for MGM-Varvel recognising the excellent technically-trained resources here.”
India also has quality infrastructure and allows us to develop a business with growth rates higher than those of western countries.”
Francesco Berselli, president, Varvel SpA said, “We believe that the only way to develop new markets is by creating a network. We joined forces with MGM, to exploit the new impulse to the production catering to the demand existing in India. India represents an opportunity for us. Prominent growth of this dynamic emerging country promises a lot. We are looking forward to growing exponentially here.”
Krishnamurthy Ravi, general manager, MGM-Varvel Power Transmission Pvt Ltd, said the land occupied in October 2010 is strategically located to cater our customers in India and outside. With easy access to ports, the facility will be a strategic logistical pole in India for our global operations. We look forward to starting our exports from 2012.
