Germany’s ZF Group plans to invest 2 billion euros (approximately Rs 18,756 crore) over the next six years to expand its operations in India across various sectors, including auto components, wind gearboxes, construction and agricultural machinery.
ZF aims to increase its sales by 2.8 times to 3 billion euros (around Rs 28,000 crore) by 2030, up from Rs 10,000 crore last year.
“The ZF Group’s investment in expanding production facilities is a testament to our long-term goals and growth potential in the region. We remain committed to sustainability objectives, and with the expanded facilities, we will be well-positioned to contribute significantly to India’s ambition of doubling its wind power capacity by 2030,” said Peter Laier, member of the board of management at ZF Group.
One of the key focus areas for ZF is its wind energy gearbox facility in Coimbatore. The company plans to increase the plant’s manufacturing capacity from 9GW to 12GW to meet the growing demand in the wind energy market. As part of this expansion, ZF has also installed a 13 MW test rig at the facility, investing 50 million euros (approximately Rs 470 crore) in the upgrade.
ZF Wind Power Coimbatore holds the distinction of being the first plant in India to roll out 50 gigawatts (GW) of wind gearboxes and is the largest wind gearbox facility in the world, excluding China.
The company now aims to produce the next 50 GW within five years, a significant acceleration compared to the 16 years it took to achieve the first 50 GW, according to Felix Henseler, CEO of ZF Wind Power.
“Next year onwards, we will supply 12 GW into the market. Then may be we manage 100 GW supply by 2029,” Henseler said.
“Demand is increasing heavily. India wants to install a lot of capacity. This plant (Coimbatore) is mainly for export, and we supply a lot into the US So the growth in the US market is supporting this plant here as well. This is also the reason why we are investing now in increasing the capacity,” he said.
The government’s plans to further invest in wind energy align with ZF’s expansion strategy. Henseler added that they are encouraging their suppliers to localise production in India. “We want the majority of components we assemble at this plant, which we do not produce ourselves, to be sourced from India,” he said.
Akash Passey, president of ZF Group-India, said, “We aim to grow from a Rs 10,000 crore company to Rs 25,000 crore. Because India is happening, the economy is doing well. And with all the challenges in the world at this stage, we see with the good policies and initiatives, and good governments at the centre and the state, we see high growth coming in.”
ZF currently operates 10 engineering centres and 18 manufacturing units in India. The company counts wind energy majors such as Suzlon, GE Renewable Energy, Senvion and Nordex among its clients.
(The writer was in Coimbatore at the invitation of ZF group)
