The Hindu Business Line : Timken to invest $5 m in Indian arm

GLOBAL bearings and steel major, Timken Company, plans to double its Jamshedpur plant's output to $50 million in two-three years, the President and Chief Operating Officer, Mr James W. Griffith, has said.

The parent company has committed an investment of $5 million in the Indian arm to enhance production. Such an initiative was in line with Timken's global strategy to outsource $1.2 billion from emerging economies, Mr Griffith added.

The doubling of Timken India's revenue would be triggered by increased focus on exports.

"We look at India as a low-cost base to outsource products to various markets,'' Mr Griffith said. Timken has invested $35.30 million in Timken India whose major plant is located at Jamshedpur. Timken India reported revenue of $39 million in the fiscal 2000-01, Mr Bukhard Stumpf, Country Manager (India), said. However, he did not detail expected earnings in the current financial year. The manufacturing industry here is likely to expand at 3-5 per cent in fiscal 2002-03 and Timken's growth is likely to top that rate, he said. However, he did not detail specifics. Even as the automobiles industry has softened over the last year, cramping Timken's growth in that segment, steady revenue flow is expected from the Indian Railway, which accounted for close to 20 per cent of Timken India's revenue last fiscal.

Meanwhile, Timken, which has a research and development centre, Timken Engineering and Research India, plans to double its manpower by the end of 2002.

The firm currently has 90 professionals working on the parent's software and engineering initiatives.

The firm has recently launched its remote processing back-end shared services division, in a bid to reduce almost 30 per cent cost for the parent. The remote services division in the US handles accounts payable, receivables and payroll of North America and Canada.

These functions are currently being moved to Bangalore as a pilot initiative.

Send this article to Friends by E-Mail

Stories in this Section
HC upholds MERC authority in DPC row

No tax on dividend flow from subsidiaries

`Foreign cos will pay less tax than domestic firms'

TVS Motor open offer for 50.30% Harita Fin stake

CPCL to invest Rs 200 cr for eco management

Pechiney may set up alumina refinery in Orissa

Timken to invest $5 m in Indian arm

Praxair opens cylinder testing facility

Apollo to set up vascular research institute

SEBI returns cheque to RIL