Bharat Fritz to invest Rs.350 cr for expansion plansJanuary 25th, 2011 - 11:49 pm ICT by IANS
Bangalore, Jan 25 (IANS) India’s leading machine tools manufacturer Bharat Fritz Werner Ltd (BFW) plans to invest Rs.350 crore over the next five years in capacity expansion, diversification and acquisition to scale its operations, a top official said late Tuesday.”As part of our expansion plans, we will invest Rs.115 crore to purchase machinery for new lines of products in our Bangalore facility, Rs.33 crore to set up a new plant at Hosur in Tamil Nadu to manufacture machine tool spindles and Rs.45 crore to restructure our aerospace business,” BFW president S.N. Mishra told reporters here.
The 50-year-old company is also scouting for acquisitions in Europe to expand its geographical footprint, widen its product offering and foray into new segments for organic and inorganic growth.
“We are in discussions with a dozen players in the sector, including distributors of machine tools for strategic acquisition. Germany, Spain and Italy are major players in Europe in the global machine tools industry,” Mishra said on the margins of a trade fair here.
The company has a subsidiary at Kornwestheim, 40 km from Stuttgart in Germany, by virtue of being originally a German firm when it was set up here in 1961.
Of the total fund set for expansion, the company plans to earmark about Rs.150 crore for mergers and acquisitions within in India and overseas.
“The Rs.3,000-crore machine tool industry in India is poised for an exponential growth this decade, with demand projected to reach Rs.55,000 crore by 2020. In sync with the trend, we plan to log turnover of Rs.850 crore by 2013 and Rs.1,300 crore by 2016,” Mishra said.
The company is expected post a turnover of Rs.330 crore this fiscal (2010-11), which will be an increase of 65 percent over the previous fiscal (2009-10).
The company caters to diverse industry segments such as automobile, aerospace, defence, die and mould, forging, general engineering, machine tool, medical implants, power generation, printing, railways and textiles.
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