Sandvik to up India presence

Embarks on Rs 250 cr expansion.

Sandvik AB, the $10 billion Swedish mining and construction equipment major, is in the process of increasing its presence in the Indian market by expanding capacities in all the five manufacturing facilities.

In addition to this, the company intends to increase the sourcing of components from India for its global requirements.

According to Thomas Schulz, President, Sandvik Mining and Construction, the company is planning to invest around Rs 250 crore to expand capacities over the next two years in India. This includes the setting up of its sixth unit in the country.

Sandvik's India subsidiary Sandvik Asia Ltd has manufacturing units in Pune, Mehsana, Hosur, Hyderabad and Chiplun. The company has its research and development centre in Bangalore. Its businesses in India include materials technology, tooling, mining and construction equipment.

The company is in the process of commissioning a new plant for recycling of cemented carbide at Chiplun in Maharashtra. It is also expanding mining tools plant in Hyderabad, heating elements plant in Hosur during the present year, he said.

Said Schulz: "The Asia Pacific region is a supply and logistics centre for Sandvik Mining and Construction. We will continue to design and produce certain construction equipment and tools in India and export to our markets in other parts of the world."

Sandvik's R&D unit is presently engaged in developing a product for the construction sector at its Pune facility which will be ready for launch next year, he said. In Pune, Sandvik is setting up a plant for manufacturing high-speed taps under the Sandvik tooling division at a cost of Rs 45 crore and Sandvik Material Technology R&D Modelling Centre, he said.

With the expansion, Sandvik Asia aims to increase its contribution to the company's global sales significantly over the next few years. In 2006, turnover from its Indian operations stood at Rs 1,153 crore or 2.64 per cent of the company's global turnover.

Sandvik is also planning to open a new manufacturing facility, its sixth in the country. "We are presently looking for a suitable location near a port for the new plant. The plant will mainly target the rapid pace of growth in the mining and construction segment and will not only add capacity but new products to its portfolio, Schulz said.

Apart from these, Sandvik is also focussing on engineering design and training that will soon become an important part of the company's global operations. The R&D division has 150 engineers and is set to add more next year, he added.