Industrial and cutting tools maker Sandvik Asia, Indian subsidiary of Swedish giant Sandvik group has targeted sales turn over of Rs 7000 crore in the next three years by end of December 2015. Also, the company is investing over Rs 1000 crore for this expansion.
Sandvik Asia, an Indian subsidiary of Swedish giant Sandvik group, a market leader in metal cutting equipment maker, is investing Rs 1,000 crore over the next three years and targeted sales turnover of Rs 7,000 crore by end of December 2015.
The Pune-headquartered company has five equipment manufacturing facilities in Pune, and Chiplun in Maharashtra, Hosur in Tamil Nadu, Hyderabad and Ahmadabad. As expansion plan, Sandvik may start another facility for manufacturing in a suitable location.
Commenting on this, Ajay Sambrani, managing director at Sandvik Asia, said, "Sandvik in India is a fast-growing and developing market. We are investing heavily in expanding and strengthening all five of our business verticals such as mining equipments, construction equipments, machining carbide tools for automobile and energy, material technology and ventures: material handling equipment for oil refineries. The company is targeting sales turnover of Rs 7,000 crore by end of 2015."
He added, "Sandvik in India is a fast-growing and developing market. We need to strengthen this position further and also improve in some areas to be world class in all our businesses. Sandvik will always have ambitious targets but there also has to be strong commitment to reaching these targets. Our aim is to act suitably and make sure that we allocate resources and capital in the right places where we get the best return."
The company was expecting turnover of Rs 2,800 crore by the end of December 2012 up from Rs 2,000 crore achieved in the year 2011. The company is experiencing a slow down due licences clearance being delayed in some sectors. The halt in mining in Karnataka and Goa has impacted its business.
According to Sambrani, the company's focus is on increasing profitability, and strengthening position in attractive markets and segments. The company plans to go forth with a concrete growth path for India, leverage India as a premium R&D and Innovation center and explore a possibility of expanding the manufacturing base in India.
"Sandvik is stepping up its level of ambition in India. There are a lot of opportunities here and we want to grow faster than we have in the past. I firmly believe that India will be among the top five markets globally,” says Andy Taylor, acting President, Sandvik Construction.
