Sandvik Asia to integrate better with parent

Swedish precision tools and mining equipment major Sandvik AB is looking at its India subsidiary Sandvik Asia Ltd as an integrated partner with an increasing role in its global business.

The Indian subsidiary is poised to benefit from the latest technology of its $10 billion Swedish parent as the latter is preparing to introduce newer product in the India market.

It has been confronted with significant opportunities thrown up by the Indian infrastructure sector - notably mining and petroleum - in addition to the boom in the manufacturing sector. It is also considering to make India its global sourcing base.

Sandvik AB president and chief executive officer Lars Pattersson told reporters today that the Indian operation which contributes to about 3 per cent of the company's global turnover (a significant contribution, considering that Sandvik operates in 138 countries) will always be in the top five priority markets for the company.

Pattersson said the company has been steadily investing in India to expand capacities to serve newer sectors.

He said the company will use acquisitions to address the increasing demand for its products and services though organic growth will be the mainstay of its strategy in India.

Commenting on the high capabilities demonstrated by the Indian operation in terms of engineering and technology absorption, Patterson said engineering design and training can soon become important revenue generation sources for Sandvik Asia.

"We are in the early stages of considering to make India a base for manufacturing some of our products for global sourcing," he indicated.