Stetter to invest Rs 200 crore on expansion

Schwing Stetter (India), the Indian arm of the euro 850 million German firm Schwing Stetter, a manufacturer of ready mix concrete (RMC) machinery, plans to embark on an expansion programme. The company would pump about Rs 200 crore over the next two years to double its manufacturing capacity.

Schwing Stetter India manufactures concrete batching plants, transit mixers for transporting readymade concrete to construction sites, pumps and concrete placing booms and recycling plants. It caters to infrastructure developers and also acts as a OEM supplier to various cement companies that offer RMC.

The company intends to double its capacity from around 1,500 units, currently, to cater to the rising demand, on the back of the construction boom in the country. It will initially invest Rs 60 crore to Rs 100 crore in expanding its manufacturing capacities and scale up investments to the tune of about Rs 200 crore within two years. It is likely to take up expansion from a new location, owing to space constraints at its existing manufacturing location in Irrungattukottai, near Chennai. The company is looking for over 50 acres of land for expansion and exploring various options for the same.

Schwing Stetter India is keen to take up expansion activity near Chennai as proximity to ports is vital to its manufacturing operations. "Logistics become critical for our business as our products feature imported content in the range of between 30 and 35 per cent," Anand Sundaresan, MD, Schwing Stetter India, said.