Swedish firm Sandvik AB will set up a manufacturing plant at Chakan in Maharashtra with an initial investment of USD 45 million (Rs 276 crore).
Among the first few Swedish firms to set up shop in India way back in 1960, Sandvik offers solutions and products in various areas including mining and construction. It already has six plants in the country which contributed around 2 per cent of its USD 13 billion global revenue last year.
The company's President and CEO Olof Faxander said Sandvik will make "strategic investments" in a phased manner over the next five years primarily to produce equipment used in the mining, metal cutting and construction sectors. The 53-acre unit also house a research and development facility.
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"In the first tranche, we will invest USD 45 million to commence development of the site by mid-2015 and the plant will become operational by 2016," he said.
Faxander, however, did not divulge total investment that the company might make, but said it would entirely depend upon the market.
"This is the next phase of our evolution in India. We have a strong foundation in India already and this commitment to set up a new world-class manufacturing facility will help us further innovate and create solutions for India's emerging needs under the visionary "Make in India" initiative," he said.
Sandvik India head Parag Satpute said the investment in Chakan is a reiteration of the company's belief in building India as a key manufacturing hub for the Sandvik Group.
"The Chakan facility will drive synergies and economies of scale both for our domestic operations as well as exports," Satpute added.
Sandvik is also looking for some acquisitions in India, one of the potential markets for the company globally.
