Swedish industrial group Sandvik is planning to set up a world-class manufacturing facility at Chakan near Pune. The company is expected to make phased investment, spread over five years, in the proposed plant. In the first tranche, the company will invest $45 million (Rs.270 crore) to start development of the site by mid-2015. The facility is expected to become operational by 2016. Sandvik has strong presence in India since 1960. It was one of the first Swedish companies to set up a subsidiary with a manufacturing footprint. The upcoming manufacturing facility at Chakan will have the capability to deliver multiple products catering to Sandvik’s diverse businesses.
The facility will also house Sandvik’s group R&D centre. The new R&D centre will strengthen Sandvik’s R&D presence in the region to support customers and lead strategic research projects on a global level.
Strategic investmentPTI reports from New Delhi:
Addressing a press conference here on Wednesday, company President and CEO Olof Faxander said Sandvik would make ‘strategic investments’ in a phased manner over the next five years primarily to produce equipment used in mining, metal cutting and construction sectors. The 53-acre unit would also house a research and development facility.
Mr. Faxander, however, did not divulge the total investment that the company might make, but said it would entirely depend on 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 at the Chakan facility was 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 for our domestic operations as well as exports,” Mr. Satpute added.
