Cryolor to set up global manufacturing unit near Chennai at a cost of Rs 45 crore
French industrial gas tanks manufacturer Cryolor, a part of the international industrial gases conglomerate Air Liquade group of France will break ground near Chennai on Thursday, for setting up the company's first manufacturing unit outside France.
By ET Bureau |
CHENNAI: French industrial gas tanks manufacturer Cryolor, a part of the international industrial gases conglomerate Air Liquade group of France will break ground near Chennai on Thursday, for setting up the company's first manufacturing unit outside France. It is to supply to its markets in South and South-East Asia, Asia Pacific, West Asia, and eventually foraying into USA.
The Rs.45 crore investment on the plant will be made by Cryolor���s fully owned subsidiary Cryolor Asia Pacific. "This plant is strategic to us, and we expect to double our global turnover from this," said Cryolor India MD Ravin Mirchandani. The company���s annual revenues stand at 55 million Euro, of which Asia Pacific contributes to 7 million Euro, growing at 10% per annum.
The plant is expected to be built by end of this year, covering a built up area of 15,000 sq. m on 13 acres, at Melmaruvattur near the city. It is expected to start operations by February next year.
The company, presently, sells 100 industrial gas tanks per year in Asia, 50-60 of which are sold in India. The Indian market for tanks is estimated to be 450 units per year, for usage in hospitals, bottling and packaging units, car manufacturing plants etc. Cryolor���s distribution is through industrial gas companies, who interface directly with the end user.
The plant will be built to manufacture 25-300 units of industrial gas tanks per year, of which 50% would be exported. The manufacturing process involves sophisticated welding of stainless steel using automated high technology machines. The process being non-manpower intensive, the factory will employ 60 workers in the first year, to be upgraded to 100, subsequently.
"Chennai was geographically best suited to supply to our markets outside Europe. It was a logistics based choice, especially considering the port facilities here and the upcoming port at Nagapattinam," Mr.Mirchandani said.
"Manufacturing for users in USA, according to the special set of ASMI standards set by the country, will begin at the Chennai plant in 15-18 months, from the date of commencing operations here."
The Rs.45 crore investment on the plant will be made by Cryolor���s fully owned subsidiary Cryolor Asia Pacific. "This plant is strategic to us, and we expect to double our global turnover from this," said Cryolor India MD Ravin Mirchandani. The company���s annual revenues stand at 55 million Euro, of which Asia Pacific contributes to 7 million Euro, growing at 10% per annum.
The plant is expected to be built by end of this year, covering a built up area of 15,000 sq. m on 13 acres, at Melmaruvattur near the city. It is expected to start operations by February next year.
The company, presently, sells 100 industrial gas tanks per year in Asia, 50-60 of which are sold in India. The Indian market for tanks is estimated to be 450 units per year, for usage in hospitals, bottling and packaging units, car manufacturing plants etc. Cryolor���s distribution is through industrial gas companies, who interface directly with the end user.
The plant will be built to manufacture 25-300 units of industrial gas tanks per year, of which 50% would be exported. The manufacturing process involves sophisticated welding of stainless steel using automated high technology machines. The process being non-manpower intensive, the factory will employ 60 workers in the first year, to be upgraded to 100, subsequently.
"Chennai was geographically best suited to supply to our markets outside Europe. It was a logistics based choice, especially considering the port facilities here and the upcoming port at Nagapattinam," Mr.Mirchandani said.
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"Manufacturing for users in USA, according to the special set of ASMI standards set by the country, will begin at the Chennai plant in 15-18 months, from the date of commencing operations here."
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