Mr.N K Dhand, Chairman and Managing Director, MGT said, “We are expanding our capacities to meet the growing demands of customers. The purpose of setting up a plant near Bangalore is to reach our customers in the south. Moreover we have established a better supply chain network in south India and we want to make use of it completely.”

The company has acquired 4.5 acres from Karnataka Industrial Area Development Board at Dobbaspet for setting up the plant which will be ready by June 2008. In the first phase, the investment will be Rs 25 crore and will have a capacity to produce around 200 machines. The second phase will also involve another Rs 25 crore investment.

The Bangalore unit will manufacture high-end grinding machines and some of the special purpose machines for some of its customers in the south. Its present customers in the south include Bosch, TVS, Toyota Kirloskar motors and Toyota Kirloskar Auto Parts. It also supplies machines to Hindustan Aeronautics Ltd. The setting up of a manufacturing unit in south India will help the company reduce costs as it will benefit from a faster and cheaper access to raw materials and parts available in the south and easy access to customers.

The company will also use a part of the capacity being added in Bangalore to meet its export requirements. To being with it plans to tap markets in the Asian region.

Mr.Dhand said “We will tap export markets next year through our technology partner Japan’s JTEKT Corp (formerly Toyoda Machine Works). We are presently manufacturing high-end cam shaft grinders in a technical collaboration with them and these machines will be exported”.

MGT, which reported revenue of Rs 60 crore in 2006-07, is expecting a 10 percent growth this fiscal. It aims to touch the Rs 100 crore mark by March 2010.