Pune-based valve manufacturing firm Virgo Engineers Group has set up its new manufacturing facility near Chennai with an investment of around Rs 30 crore. The company is planning to set up a foundry in Coimbatore to address its internal requirements with another around Rs 30 crore.
The new facility on around 120,000 sft in Marg Swarnabhoomi near here, is expected to generate a revenue of Rs 20 crore in the first six months of operations, by the end of current fiscal.
“We expect the revenue from the facility to grow to Rs 50 crore next year and to Rs 100 crore in the fiscal after that,” said V R Jayaraman, director, projects, Virgo Engineers. The company manufactures flow control valves and allied products with focus on the oil and gas sector.
The facility, which would employ around 50 people in the initial stage, has facilities including a machine shop for machining of valve components and a valve assembly and test set up apart from storing and warehousing facility.
The proposed foundry in Coimbatore would partly cater to the raw material needs of the company. It would be ready by end of the fiscal year and have a capacity of 300 tonne. “Considering the demand we expect by the time, this would cater to 30 per cent of our valve casting needs at that time,” he said.
The company at present has three manufacturing facilities in India, including two facilities in Pune and one in Coimbatore. Besides, it also has two production facilities in the US and one each in Italy and Germany.
Apart from Virgo, Danish pump manufacturer Grundfos, Vanspall, facility for manufacturing cooling tower equipment and an auto component manufacturing facility by Polyhose operate in Marg Swarnabhoomi, according to GRK Reddy, chairman and managing director, Marg Group.
The Rs 700-crore Virgo Engineers Group is targeting a turnover of Rs 1,000 crore by the end of current fiscal, said Jayaraman.
