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Home arrow News arrow Business News arrow Lapp Group to invest over Rs.150 cr to set up manufacturing facility in Bhopal
Lapp Group to invest over Rs.150 cr to set up manufacturing facility in Bhopal Print E-mail
Written by Vivek, George   
Monday, 28 March 2011
Lapp Group (Germany), a manufacturer of cables, cable accessories and industrial connectors, will invest over Rs.150 crores to set up a manufacturing unit in Pilukedi (Rajgrah District), Bhopal.

The Bhopal facility will be the first manufacturing plant of LAPP INDIA Pvt. Ltd. outside Bangalore and will be the largest manufacturing unit of Lapp Group in the next 5 years.

Spread over 30 acres, the facility will accommodate three building units with an individual manufacturing apparatus in each. The first building is expected to  be complete by December 2011 and will start production of single core wires for low voltage applications. The second and third buildings, expected to be completed by 2013 and 2014, will be used for production of multi-core aluminum cables for high voltage applications.

In the first phase, this facility will employ around 100 people and when the facility will be fully functional it will have approximately 400 number of people. In sync with the core philosophy, the organization will be hiring talent locally from diploma holders in electrical and mechanical engineering to unskilled labourers for manning the machinery and equipments. A requirement of managerial profiles will also arise as and when the facility gets operational.

Rs. 1000 crore turnover by 2014.

By 2014, LAPP India is targeting a sales turnover of Rs. 1000 crores, from it's current level of Rs. 200 crores. Nearly 70 percent of the company's turnover is contributed by local production while the remaining is contributed by import and sale of special products and connectors from the parent company.

"We have witnessed 30% year-on-year growth in India and it is one of our focused markets. The investment that we are making in the new facility will help us cater to the growing customer demands and our revenue is expected to rise 4 fold in the next four years," said Frank Imkamp, CEO & President Asia-Pacific at Lapp Group. He further added that we will be developing 6 warehouses and distribution centres, 16 service points for customising the products for customer needs as value-additions.

Around 40 percent of the company's turnover is from the machine tool sector. Automation, wind-power and solar sectors contribute 10%, 5% and 5% respectively.

Control cables for Projects, such as metro rail in Delhi, Bangalore, Chennai, have contributed approximately 20 percent to the turnover.

"Geographically 70% of our business comes from West and South India, and Bhopal being located in the heart of India is well equipped to meet the logistical requirements of the regions while servicing potential demand from other parts of the nation as well," said Srinivas P Kamisetty, Managing Director of LAPP INDIA Pvt. Ltd. Further detailing other strategic advantages that the region presents, he added that, "Bhopal is powerhouse of resources including talent and the uninterrupted power supply. The MP Government has been very supportive making it one of the attractive destinations for a company like ours."

LAPP INDIA Pvt. Ltd. started operations at Bangalore in 1996, with a manufacturing unit and today it is the third largest manufacturing facility of the Lapp Group. Each year about 100,000 km of ÖLFLEX® connecting and control cables and insulated single cores are produced.

"India's thriving economy is showing a promising outlook and I believe, it is the 'Future Market' of the connectivity solutions industry. With the estimated market size of approximately 3 billion Euros, we have a lot to do for the market," said Siegbert E. Lapp, Director of LAPP HOLDING AG.

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