Shibaura Machine India Pvt. Ltd. (SMI) aims to double exports and increase revenue by almost four-fold in the next five years with the expansion of its existing facility in Chennai, said Managing Director M. Kumar.
“Today, we inaugurated the unit 2 factory at Chembarambakkam. It is built at an investment of ₹225 crore, plus another ₹50 crore for land acquisition,” Mr. Kumar said during a press interaction.
According to him, the company’s manufacturing capacity is set to rise in phases – from 1,200 to 4,000 machines in three-five years. About 90% of production is consumed by domestic firms, while the rest are imported to more than 45 countries. Plans are on to increase the export contribution from 10% to 25% by restarting exports to the U.S. and EU countries and to take the revenue to ₹2,000 crore in five years.
“In the next 3-4 years, the company is expected to create new jobs, increase the team size. In addition, 50 MSME vendors will be developed to support the capacity expansion. Currently, we have a vendor base of 150,” he said.
Asserting that SMI has a 20% market share in India, he said that with the expanded capacity they would try to maintain the 20% market share or increase it by 2-3%.
Shibaura Machine Group President Shigetomo Sakamoto said that India has been a strategic investment destination for the company. “The Indian market is set to grow bigger and we would like to use the opportunity by leveraging SMI expertise.”
SMI is a fully owned subsidiary of Japan-based Shibaura Machine, the leading manufacturer of hi-precision injection moulding machines in the world and it reported a turnover of ₹500 crore last fiscal.
Shibaura Machine entered India in 2012 by acquiring 100% stake in L&T Plastics Machinery Ltd. It was incorporated as Toshiba Machine Chennai Pvt. Ltd and in 2020 it was renamed as SMIPL.
Published - July 11, 2024 07:33 pm IST
