Schwing Stetter plans to make India global hub

Schwing Stetter, ready-mix concrete engineering major, will make India a global hub for manufacturing 17-metre boom pumps, used for construction of low-rise buildings.

Schwing Stetter India will also be made a base for making truck mixture components for the US.

As a base, India will be more significant to Schwing Stetter compared with China. The Chinese subsidiary has reported lower sales compared with the Indian arm, despite being set up earlier, and also has to grapple with product piracy.

Schwing Stetter India makes about 50 17-metre boom pumps per annum, which would be increased to 200 boom pumps in another couple of years.

"Apart from India, 17-m boom pumps are also manufactured in the US, Brazil and Germany. Depending on the demand, there is a likelihood for the parent to shift manufacturing of the pumps from these markets to India," said V G Sakthi Kumar, vice-president, marketing, Schwing Stetter India.

However, Schwing's subsidiaries in Brazil and China will be hub for 32-metre boom pump (for mid-rise buildings) and Schwing Germany and US will make 61-metre boom pumps (used in high rise buildings) for the company.

To meet the order requirement of its parent, Schwing Stetter India is setting up its third plant at an area of 10 acres, which will be completed by the year-end.

Schwing Stetter India manufactures 50 batching plants, 200 mixtures and 50 pumps per month at its two plants. It also makes equipment for tunnel and dam construction.

The subsidiary reported net sales of Rs 300 crore for the last year ended. It is expecting to post net sales of Rs 450-500 crore by this year-end and Rs 1,000 crore by 2008.

"Value-wise Indian subsidiary is the fourth largest for Schwing Stetter after the US and Germany. We would like to be number one by 2010," said Sakthi Kumar.