L&T Coimbatore unit eyes global market
The $4 billion engineering and construction company, Larsen & Toubro Ltd (L&T), is all set to transform its recently set up 300 acre-Coimbatore unit into a global manufacturing facility for high-end industrial valves and switchboards to cater to the Southeast Asian and Middle-Eastern markets. L&T’s valves facility is the fourth manufacturing unit of Audco India Ltd, a JV in which it has an equal stake with Flowserve Corporation, USA.The JV has invested Rs 35 crore each for high-end industrial valves and switchboards.Over the next 3 years, Audco India is planning to invest an additional Rs 60 crore each in both, valves and switchgears, at the facility in Coimbatore. RN Mukhija, president, operations, electrical & electronics division (EED), L&T, said, “By 2010, the Coimbatore facility will produce Rs 1,600-crore worth of industrial valves and switchgear products. Of this, industrial valves will be worth Rs 300 crore. Of the total production at the Coimbatore facility, 50% of the produced valves and switchgears will be exported to international markets. By 2011, we expect the EED to contribute $1 billion to L&T’s overall sales turnover. Our switchboards business will grow from Rs 2,000 crore by 2009. This fiscal, we hope L&T’s overall sales turnover to cross Rs 18,000 crore.”
Makhija further added that with India’s advantage of cheap manpower and L&T leveraging its engineering expertise, the Coimbatore facility will help the company consolidate its leadership position in the hi-tech manufacturing space.Hence Audco India is looking at recruting 1,000 employees at the Coimbatore facility. The switchboards manufacturing centre will comprise 23 acre. L&T is also planning to set up a manufacturing facility for industrial valves and tyre manufacturing machinery unit in China in the second quarter of 2007.It will have a manufacturing capability of making 7,000 panels per day which will be increased to 13,000 panels by 2009 and to 17,000 panels by 2010.”
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