India to be our 2nd biggest mkt in Asia by 2018: Mann+Hummel
The company's wholly-owned subsidiary Ė Mann and Hummel Filter, which today inaugurated its second plant in India here, is looking to contribute three per cent to the parent's global revenue annually in the next six years, up from about one per cent at present.
To achieve the target, the firm may set up more manufacturing units in India in future.
"India is going to be one of the most important markets for us in future. We expect this market to grow and contribute about 3 per cent, which will be around 100 million euro, of our global revenue by 2018," Mann+Hummel Group Vice President Josef Parzhuber said.
The company's Indian operations is expecting to have a total revenue of Rs 150 crore in 2012 that will about one per cent of its global turnover, he added.
"Currently, China is our largest market in Asia that contributes half of 400 million euro sales from the region. While India is right now very small, it will be the second largest in the region in the next six years," Parzhuber said.
The Asian region's contribution will also grow to 25 per cent by 2018 from about 17 per cent, he added.
"Our global revenue at present stands at 2.5 billion euro and we are targetting it to increase it to 3.4 billion euro in the next six years," he said.
The company, which is a leading manufacturer of filter systems, may consider to set up more production units here to meet its target depending upon demand from customers and growth in the Indian market.
"Going by the size of the market and our target, I would expect more facilities in future, may be one in the West (India). However, it will also depend on taxation structures like GST, because we do not know whether it will make sense to have plants at different locations at that point of time," Mann+Hummel Group President and CEO Alfred Weber said.
He, however, declined to share details saying nothing has been decided yet.
When asked about investment that the company is likely to make in India in future, Mann and Hummel Filter Managing Director Pradeep Randhawa said: "We will invest Rs 40-60 crore annually for the next two years to increase our capacities at this new plant. Beyond that, nothing is planned yet."
The company, which entered India in 2003, currently has another facility at Tumkur near Bangalore with an installed capacity of 10 lakh units annually. It has so far invested Rs 300 crore in India.
"The Bawal plant has been set up at an investment of Rs 120 crore. It has an installed capacity to roll out 20 lakh units every year that can be expanded to 40 lakh units depending on demand," Randhawa said, adding the new plant will mainly be supplying components to car market leader Maruti Suzuki and Suzuki Motorcycle.
Talking about sales expectations, he said it is expecting Rs 150 crore turnover this year as against Rs 120 crore in 2011.
"We are hoping for good growth and get more businesses from companies like Mahindra & Mahindra, VE Commercial Vehicles and Daimler. We are expecting 40-45 per cent jump in our sales in 2013," Randhawa said.
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