Sandvik decides to build new mining equipment mfg unit

Pune: Sandvik Asia Ltd, a wholly owned subsidiary of Sweden-based Sandvik AB, intends to set up a new plant in India for the manufacture of mining and construction equipment, and may in the future also look at manufacturing medical implants in the country.

Disclosing that the company is currently scouting for a suitable location for its sixth plant in the country, and has looked at a few potential sites, Mr Lars Pettersson, President and CEO, Sandvik AB, said, “We will put up at least one more facility in India to manufacture construction and mining equipment.”

The company’s expansion plans stem from the fact that the construction and mining business is its biggest and the fastest growing segment, generating nearly 35 per cent of its global revenues. In India, with one plant at Patancheru, the percentage is slightly lower.

Amongst the selection criteria for the location of the new plant are proximity to a port and ease of logistics, Mr Hakan Kingstedt, Managing Director and President, Sandvik Asia, said.

The proposed plant will assemble both existing and new products, including large crushers, drilling and loading equipment, Mr Pettersson said. The company was investing in bringing world class technology to India, and would not shift old and outdated plants from Europe and the US, he added, emphasising, “We expect to manufacture the same products with the same lead time as any other country.”

Orthopaedic implants

Amongst the other sectors identified as potential businesses, Mr Pettersson said that manufacture of orthopaedic implants could come to India in the future. In July, the Materials Technology division of Sandvik AB acquired the medical technology division of Doncasters Group Ltd with manufacturing in the UK, US and Mexico.

“Sandvik’s expertise in materials such as ceramics, high alloy stainless steel, titanium and cobalt chrome bring synergy to the orthopaedic implants business. I don’t know when and how, but we’ll be doing this (in India),” Mr Pettersson said.

India is amongst the company's five most important markets of the future for both, domestic growth as well as global sourcing, and attracted investment comparable to that in China.

'On an average we have invested Rs 170 crore per year for the last five years,' Mr Kingstedt said, revealing that the exports, which accounted for Rs 450 crore of its total revenue of Rs 1,153 crore last year were up 185 per cent this year.