Fuji Electric India, part of Japan’s Fuji Electric Group, is planning to pump in `300 crore-`400 crore to build an integrated large factory in the country as part of its capacity expansion initiative.
Currently, the company has multiple manufacturing facilities located in Chennai and Pune with R&D centres connected to these units.
As part of its growth plan, it is targeting to clock a revenue of `1,500 crore by FY25.
Fuji Electric on Wednesday inaugurated its new Chennai factory for world-class automation products for various applications at an investment of `150 crore. The factory is expected to produce 3,500 drives per month in a single shift. There are plans to make 200,000 PCBs (printed circuit boards) annually at the new facility.
The state-of-the-art manufacturing facility, with a built-up area of over 65,000 square feet, is fully automated and has the capacity to produce a range of products on a scale of 0.4 kW to 75KW, as of now. There are plans to scale it up to 710 KW. The factory will cater to requirements from cranes, lift, cement, boilers, HVAC, oil and gas, and heavy industries.
Shivaji Waghmare, CEO, Fuji Electric India, told visiting journalists on the factory premises on Wednesday that the new factory will be sufficient till 2025 to cater to the demand from various industries. After that, the company will be required to look for a large integrated plant which will make both automation products and energy management solutions. “So, we are planning for that and we will be investing `300 crore to `400 crore to set up the factory. The location is not yet finalised,” he said.
The company is eyeing a revenue of `1,500 crore by FY25. It expects to close the current fiscal at around `1,050 crore and for FY24 the company is targeting close to `1,250 crore. On the exports front, Waghmare said the company will be reaching `100 crore revenue by FY25. Currently, its exports are around 8% to 15% of the total production.
Yosuke Ishizaka, MD, Fuji Electric India, said: “The investment put into setting up this modern manufacturing plant in India will fulfil our vision to manufacture automation products, help us meet customers’ demands and also propel to becoming a 1,500 crore company by FY25. Initially, we would be recruiting more than 250 employees for the new factory. With all the factors working to our advantage, we are expected to grow over 25% in coming years.”
Fuji Electric has a workforce strength of 1, 200 across its facilities in Chennai and Pune. It is investing heavily in R&D facilities.