Auto component maker Ingersoll Rand (IR), plans to invest $100 million over the next three years to set up a factory in southern India to manufacture parts for air conditioning systems, head of India operation Venkatesh Valluri said. Local manufacturing, innovation and market-centric product development are the key focus areas for Ingersoll Rand in India.
Ingersoll-Rand expects to treble its revenues from India, which include sales from Mumbai-listed Ingersoll-Rand (India) Ltd (INGR) and another trading arm, to $600 million in three years, Valluri said.
“India is a strategic market for us and is fast emerging as a hub for innovation and product localisation. With the new facility, we will be in a better position to achieve our growth goals for emerging market,” Ingersoll Chairman Vice President and CEO Michael Lamach told reporters here.
He said the company will invest about USD 20 million for setting up the facility, which is likely to be ready within the next 18 months.
Ingersoll Rand, which is registered in Ireland, already has two factories in India, one in the western city of Ahmedabad and another in the northern town of Sahibabad.
Speaking on the occasion, Mr. Michael Lamach, chairman, president and chief executive officer of Ingersoll Rand said, “India is a strategic market for Ingersoll Rand and is fast emerging as a hub for innovation and product localization for emerging economies. With the new manufacturing facility, Ingersoll Rand India will be better positioned to achieve our growth goals for emerging markets and better able to serve our customers with localized products and services.”
The company is currently evaluating two strategic locations in Southern India for the new manufacturing facility. The facility will primarily cater to manufacturing products for the Heating, Ventilation and Air Conditioning (HVAC) industry. It will also focus on products for Transport Air Conditioning and Food Security.