Kemppi Oy of Finland, a leading global name in the field of arc welding equipment, has set up a manufacturing facility here. This is the first production unit of Kemppi outside Finland.
The fast coming up facility here is expected to go stream by April this year. In the initial phase, the facility will have capacity to make 3,000 units a year. This will double in two years.
Addressing a press conference here on Wednesday, Arvind Vasu, Managing Director of Kemppi India Pvt. Ltd., said the parent company would invest around $ 10 million over the next two years in the Indian subsidiary.
Initially, the Indian subsidiary would commence with the launch a single product for India i.e. HiArc M400i. Over a period of time, Kemppi India would add more products to its portfolio, he added
Mr. Vasu estimated the market for arc welding equipment in India to be in the vicinity of $150 million. Kemppi had a five per cent share in the market, he pointed out. Asserting that India offered huge potential for Kemppi, Mr. Vasu said the Indian facility with headquarters in Chennai would make products of local market with domestically sourced inputs.
Depending on the local market and export plans, Kemppi India, he said, would also look for a larger manufacturing facility as it went forward. He would not like to hazard any guess at the moment either on the size or the methodology of doing it. The India subsidiary also planned to set up customer training centres, he said.
Chennai was chosen for locating the manufacturing facility as it provided necessary infrastructure. “Also, the place is well connected,’’ he pointed out. More, many of its clients were located in and around the place, he said.
Anssi Rantasalo, Chief Executive Officer, Kemmpi Oy, said though “It is an unexciting business,’’ its impact was there every where. With 530 people and with global sales of around $ 125 million, Kemmpi, a privately-owned company, was among the top five makers of industrial inverter welding machines. “Our vision is to provide the joy of welding at every level,’’ he said.
