VAG-Valves India Private Limited, a subsidiary of Germany-based VAG Armaturen GmbH, is targeting a turnover of Rs 100 crore in the next two years, along with aiming to double its production capacity to 100,000 units of valves during the same period.
“We had achieved Rs 50 crore turnover by March this year, and aim to double it in the next two years,” V Seshaiah, managing director, told mediapersons.
The company, which started operation in 2003 in India, has production capacity of 50,000 valves per annum at its manufacturing unit at Pattancheru here. “So far we have invested Rs 18.5 crore in the unit, and will be investing Rs 18-20 crore more to double the capacity by 2014,” he said.
It is also planning to enter the valves market for the power sector, and is in talks with infrastructure major L&T for the Godavari power project in Andhra Pradesh.
For the first year, VAG-Valves expects a turnover of Rs 5 crore from this segment, and sees this at Rs 30-32 crore in the next three years.
Currently, the Indian market size of valves for water, waste water, power sectors and industrial applications is estimated at Rs 4,500 crore, which is growing at 10-15 per cent year-on-year. Only 60 per cent of the manufacturers are in the organised sector, according to him.
