Sweden's Atlas Copco to invest Rs 100 crore on new unit in India

MUMBAI: Sweden-headquartered Atlas Copco plans to invest Rs 100 crore in India to set up a compressor manufacturing unit near Pune.

The unit, which is scheduled to be commissioned by in the second half of 2012, will manufacture stationary and portable compressors for industrial use.

“The outlook for India’s economic development remains good and we now have an excellent opportunity to significantly increase production capacity in the country, with a modern facility and efficient logistics,” says Stephan Kuhn, Business Area President, Atlas Copco Compressor Technique.

Atlas Copco, which delisted its Indian subsidiary from Indian bourses earlier this year, will fund the capital expenditure from its cash flows. Company’s businesses in India clocked revenue of Rs 1,700 crore in 2010, accounting for around 5-6% of its global revenue.

“Our strategy is to drive our market position around the world. India’s share would increase with projects in power, oil and gas, and mining driving growth,” said Filip Vandenberghe, managing director, Atlas Copco India.

Atlas Copco India has staff strength of about 2,300 people in India. It currently manufactures compressed air equipment at a plant near Pune, while construction and mining equipment are manufactured in Nasik and Hyderabad. The group also has engineering centers located in Pune and in Bangalore, supporting the development of products in India and globally.