Atlas Copco has decided to set up a new compressor manufacturing facility near Pune to meet an anticipated strong growth in demand in the coming years. The investment of about Rs. 100 crores will also serve to broaden the product offering to customers in India.
Atlas Copco (India) Ltd. has already acquired land at Chakan near Pune where work on the new factory has started. Construction will be completed in the second half of 2012.
The new facility will produce stationary industrial and portable compressors, while Atlas Copco’s existing plant in Dapodi, Pune, will focus on the production of oil-free compressors.
“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 employs about 2,300 people in India, currently manufactures compressed air equipment at its plant in Pune-Dapodi, while construction and mining equipment are manufactured in Nasik and Hyderabad. The group also has engineering centers located in Pune and in Bangalore, supporting development of products in India and elsewhere.
In 2010, Atlas Copco India posted revenue of Rs. 1,690 crores as against the previous year’s Rs. 1,280 crores, showing an overall growth of 32 per cent.
The industrial segment develops, manufactures and markets a wide range of air and gas compressors, of both rotary and reciprocating technology, oil injected and oil free, in various powers, pressure ranges and capacities to serve the diverse needs of consumers of compressed air and gas. Included in this segment are also a wide range of pneumatic and electric tools such as grinders, drills, impact wrenches, screw drivers, nut runners, etc.
The key markets for air and gas compressors are engineering, automotive, textiles, cement, pharmaceuticals, PET blowing, power generation, etc. Pneumatic and electric tools are primarily used in automation of assembly processes and controlled tightening systems. The key markets for these tools are the automotive industry and aftermarkets as well as general industry.
This segment has achieved revenue of Rs. 1,080 crores during 2010 as compared to the previous year’s Rs. 775 crores, a growth of 40 per cent.
The industrial segment has witnessed growth in volumes and profitability due to surge in demand in power and water well sectors and quick recovery in automobile and general industry. Introduction of custom-designed engineered products for oil and gas markets also supplemented the growth.
The contribution from aftermarket parts and service continued at the same pace. Introduction of new products and services, better price realization, coupled with reduction in costs, and favorable exchange rates in most part of the year helped the segment to improve the bottomline.
Atlas Copco foresees strong growth in compressors in all industries where it is present, including oil and gas, power generation, heavy industries (such as cement and steel), infrastructure, chemical and pharmaceutical industry, along with broad general manufacturing industrial sector.
Atlas Copco has its leading positions in compressors, expanders and air treatment systems, construction and mining equipment, power tools and assembly systems. With innovative products and services, it delivers solutions for sustainable productivity.
The company, founded in 1873 in Stockholm, has a global reach spanning more than 170 countries. In 2010, it had about 33,000 employees.
Atlas Copco’s Compressor Technique business area provides industrial compressors, gas and process compressors and expanders, air and gas treatment equipment and air management systems. It has a global service network and offers specialty rental services.
Compressor Technique innovates for sustainable productivity in the manufacturing, oil and gas, and process industries. Principal product development and manufacturing units are located in Belgium, Germany, the US, China and India.
Atlas Copco (India) Ltd. started operations in 1960. It has 22 offices across the country, with its registered office in Pune. In 2010, it had about 1,800 employees and revenues of Rs. 1,700 crores.