Mitsubishi India inaugurates new Ranipet unit

9th August 2007: Mitsubishi Heavy Industries India Precision Tools Ltd (MHI-IPT), a subsidiary of Mitsubishi Heavy Industries Ltd.Japan, will inaugurate their new manufacturing facility at Ranipet, near Chennai, on August 10, 2007. Built with an investment of around Rs.500 million, the plant effectively doubles MHI-IPT's production capacity in gear cutting tools.

MHI-IPT's capacity expansion is in response to the rapid growth of India's automotives industry, whose output in India reached one million units for the first time in 2003, exceeded two million units in 2006, and is expected to touch four million units in 2010. This has resulted in rising demand for high-quality gear-cutting tools, and reduced delivery lead-times, both of which MHI-IPT seeks to fulfill.

MHI-IPT's clientele includes Tata Motors Ltd., Ashok Leyland Ltd., Mahindra & Mahindra Ltd. (both Automotive & Farm Equipment Sectors), Hyundai Motor India Ltd., Hero Honda Motors Ltd., TVS Motor Company Ltd., Bajaj Auto Ltd., Honda Motorcycles & Scooters India Ltd., Yamaha Motors India Ltd., Hindustan Motors Ltd., Toyota Kirloskar Auto Parts India Ltd., Force Motors Ltd., International Tractors Ltd., Punjab Tractors Ltd., Escorts Tractors Ltd., TAFE and all their Tier-1 & Tier-2 Auto Ancillaries, among others.

The new manufacturing facility occupies 4000 sq.m. of floor space, with about 80 new machines, including around 30 state-of-the-art CNC machines from renowned manufacturers including Mitsubishi (Japan), Klingelnberg, Toyo and others.

With the new plant initiative, MHI-IPT looks to double its sales by 2009, from the level of 2006. Marketing and distribution will be carried out exclusively by Voltas Limited, a Tata company, who will leverage their India-wide network of offices and branches, their long-standing status as suppliers of high-quality machine tools, and their well-established links with automotives companies.

MHI-IPT also plans a substantial increase in its exports business, hitherto limited due to capacity constraints. The overseas thrust will fully capitalize on parent company Mitsubishi Heavy Industries' world-wide brand equity and reputation in high-precision machine tool engineering.

Background

Mitsubishi Heavy Industries Ltd. (Japan) is one of the world's leading manufacturers of gear cutting machines, large machining centers and gear cutting tools, and the pioneer in introducing the latest 'SuperDry' technology in gear cutting.

Mitsubishi Heavy Industries Ltd. (Japan) acquired S.R.P. Tools Ltd., a 42 year old company and the leader in manufacture of gear cutting tools and broaches in the country, in May 2005 and thus MHI-IPT was formed. This unit is now functioning as a subsidiary of Mitsubishi Heavy Industries Limited, Japan.

MHI-IPT is now India's largest manufacturer of Gear Cutting Tools and Broaches, featuring the most advanced precision technologies, and commanding the largest market share. MHI-IPT is India's first unit to obtain ISO 9000 certification for gear cutting tools. Their product range includes Hobs, Gear Shaping Cutters, Gear Shaving Cutters, Master Gears, Rotary Cutters and Spline Broach and various other types of Broaches, used in manufacturing of various automotive and engineering components.

MHI-IPT draws upon MHI Japan's strengths in the use of advanced materials, and its knowledge base as the only manufacturer of gear cutting tools, who also manufactures machines to produce these cutting tools, as well as the gear cutting machines on which they are consumed, to produce gears for the automotive industry.