Wipro Infrastructure Engineering, the global hydraulics business of Wipro, has earmarked an investment of $150 million over the next three years for expanding manufacturing capacity globally. The firm said it is looking to triple its capacity over the next 3-4 years with an upturn in infrastructure projects across the emerging world and defence offset programmes kicking off in India.
The infrastructure engineering business currently constitutes less than 10% of the conglomerate?s revenues of $6.98 billion but Pratik Kumar, the president of the division, believes it can generate a billion dollars for the company in five years. The division, which primarily sells hydraulic cylinders and truck hydraulic solutions, has recently entered the aerospace and defence market bagging its first order for the manufacture of hydraulic actuators from Spanish firm Compania Espanola De Sistemas Aeronauticos (Cesa), an arm of aerospace giant EADS.
Globally, the hydraulic cylinders market, where Wipro is a global leader with 6% market share, totals about $7 billion. Driven by China, India, Brazil and other growth markets, the firm expects to increase its market share up to 15% in about half a decade.
The $150 million investment includes expansion in both India and China. The firm?s first manufacturing facility near Shanghai in China, which has a registered capital of $25 million, will be commissioned in six weeks, Kumar said.
Today, the division?s global capacity is a million hydraulic cylinders a year of which 600,000 come from India and the rest from Europe and Brazil.
?India will grow to a capacity of 800,000-850,000 in four-five years. If China continues to grow the way we expect, it should be able to grow to a size similar to India in the same timeframe,? he added.