![]() Financial Daily from THE HINDU group of publications Tuesday, Oct 18, 2005 |
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Corporate
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New Projects Nadi group to go for capacity expansion Our Bureau
(From left) Mr Thomas Borst, Chairman, ebm-papst Mulfingen GmbH and Co, Germany; Mr J.B. Kamdar, Managing Director, ebm-nadi International Pvt Ltd; and Mr Zika Srejovic, Vice-Chairman, Twin City Fan Companies Ltd, US, at a press conference in Chennai on Monday. Bijoy Ghosh
Chennai , Oct. 17 With demand for industrial and instrument-cooling fans on a roll in India, the Nadi group, which produces both kinds of fans through two separate joint ventures, is planning capacity expansion. Nadi Airtechnics Pvt Ltd an equal joint venture between Twin City Fan Companies of US and the Kamdar family of India proposes to double its capacity to 600 units per day. These industrial fans are used in every area of air movement in diverse industries such as the automobile paint shops, nuclear, hydro and thermal power station, steel industry, marine ventilation, textile machinery, railways, foundries and defence as well as pneumatic conveying systems. ebm-nadi International Pvt Ltd, which manufactures small fans that go into electronic equipment, also proposes to raise its processing capacity from 500 tonnes a year to 1,000 tonnes. ebm-papst of Germany holds 51 per cent in the company and the Kamdar family the rest. Both the companies will invest around Rs 4 crore on expansion. Mr J.B. Kamdar, Managing Director, ebm-nadi International, said today that sales of both joint ventures were growing at 100 per cent a year. The turnover of the company has grown from Rs 8 crore in 2003-04 to Rs 13.7 crore in 2004-05 and will touch Rs 18 crore by the end of the current financial year. Both the joint ventures are looking at using India as their production base for exports. ebm-papst has plants all over the world, including China. The founding President and CEO of the company, Mr Gerhard Sturm, and the Managing Director, Mr Thomas Borst, told Business Line that labour costs in China were the same as in India, but Indian labour was better skilled. Overall, China may offer some small cost advantage, but ebm-papst was more comfortable with India than with China. The China production is for the Chinese market, but production from India is for global supplies, Mr Sturm said. Mr Kamdar said the market for (ebm NADI's) instrument-fans was about Rs 70 crore and was growing very fast. Ebm Nadi has a third of the market. The market for industrial fans was about Rs 150 crore. Nadi Airtechnics had about 15 per cent share of the market, he said.
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