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Home arrow News arrow Business News arrow GE to invest $50 mn to set up multi-business manufacturing facility in India
GE to invest $50 mn to set up multi-business manufacturing facility in India Print E-mail
Written by Anand   
Tuesday, 15 March 2011
New Delhi: General Electric (GE) plans to invest an initial $50 million (Rs 225 crore) to set up a multi-business manufacturing facility in India. The company's energy business would be the principle user of the facility, which is expected to create more than 3,000 jobs.

"The total investment will be $200 million (Rs 900 crore), including expansion, and the company will take a call in the next 3-6 months," said GE Chairman and CEO Jeffery R. Immelt.

John Flannery, President and CEO, GE India, said that the location of the facility would be announced in the next quarter (April-June). "It will be multi-modal, multi-business facility. So, several GE businesses will share it," he added. The construction work is expected start in the following quarter (July-September).

The facility is expected to be initially established over 400,000 sq.ft. This can be expanded to 700,000 sq.ft later with additional investments.

Speaking about the energy business, Immelt said that rapid growth in India is expected from wind, solar and gas. He said that GE has some new designs for bigger steam turbines."we are quite hopeful that we will get some work here and also do some production joint venture," he said.  GE already has an agreement with BHEL for providing gas turbines. To manufacture steam turbines in the 30-100 megawatt range, the company has also tied-up with Triveni Engineering and Industries Ltd.  GE is now open to manufacturing bigger steam turbines in India.

The expansion of the facility also depends on the company's ability to expand it's locomotive business in India.

Jeffery R. Immelt said that GE is very interested in setting up a deep-rooted manufacturing base in India for the locomotive business. However, he expressed frustration over the fact that the company had been trying to enter locomotive manufacturing in India over the past ten years, without much success. The company has been trying to get a chance to bid on a competitive basis to modernise the railways in India. Immelt feels that the slow pace of decision making is to blame for this.

"Expansion of the facility is contingent on a couple of things we are studying right now. One is the ability to make components and engine parts for the rail tender. So that decision is concurrent with what happens in the facility," said Immelt.

The facility would also be used for GE's health-care and aviation businesses. GE is also considering the option of manufacturing some of the products from its global product lines in the manufacturing facility in India.

Jeffery R. Immelt was in the capital to attend a meeting of GE's corporate executive council, which comprises leaders from across the company. It is the first time in GE's history that the executive council meeting is being held outside the US.

This year, GE plans to generate 60% of it's revenue from outside of the US. For this, the company will focus on emerging markets like India, China, Russia and Brazil. The company's investments in India is in line with this strategy.

GE currently employs around 12,000 people in India and it's revenue from its India operations totals around $3 billion / year. The company expects its business in India to grow by over 30% this year.

In India, GE is present in sectors such as aviation, transportation, energy, health-care and financial services. It has technology centres in Hyderabad and Bangalore.

Last Updated ( Wednesday, 16 March 2011 )
 
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