• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Our Bureau

CHENNAI, Oct. 4

SEW Eurodrive India Pvt Ltd, the fully-owned subsidiary of SEW Eurodrive GmbH & Co of Germany, has postponed its plans for setting up its second assembling plant for gear motors and gear boxes.

According to Mr P.K.C. Bose, Managing Director, SEW Eurodrive India, the plan for the second plant was postponed due to the disturbances in Gujarat and the economic situation in the country. The plan was to set up the second assembling plant near Chennai. The first assembling plant is located at vadodara, where the company is headquartered.

However, now the siting of the plant could also be in Sri Lanka, he said. And, eastern India is also being explored for setting up the plant.

While the original plan was to establish the plant in 2002, it has been postponed to 2003. "Though it is still early to decide the investment, it could be in the range of five million euros," he added.

According to Mr Bose, the parent company specialises in manufacturing gear motors and gear boxes and has 10 manufacturing facilities, besides assembling facilities in different countries. The plant at Vadodara is one of 55 assembling plants.

Though the company had put on hold expansion plans for its assembling facility, it was going through with the expansion of its marketing network, he added. In the recent past seven business offices had been added across the country.

During 2001-02, the Indian company recorded a turnover of Rs 18 crore, he said. The projection for 2002-03 is a turnover of Rs 25 crore, of which half has been registered in the first half of the financial year.

The company has managed to get 70 per cent of the market share in the gear motors required for the food and beverage sector. These motors, according to Mr Bose, are designed with a special oil seal and food grade motor oil in them. This is required since these motors are positioned above the centrifugal vats with food mixes.

In the gear motor market too, the company has managed to capture a good share due to its single module design combining the motor and the gear box, he added. "This helps conserve energy."

Further energy conservation was possible due to the helical and bevel gear box design and variable speed drives, Mr Bose said.

The company, which sold 4,200 gear motor units in 2001-02, hopes to sell 8,000 units this financial year, according to him.

The units assembled at Vadodara were also being exported to Sri Lanka, Bangladesh, Myanmar, Nepal and Bhutan. While exports constituted 20 per cent of the sales during 2001-02, the company expects to raise it to 30 per cent this year.

Send this article to Friends by E-Mail
Comment on this article to BLFeedback@thehindu.co.in

Stories in this Section
SPIC ammonia unit shut due to leakage problem

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line