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BW Businessworld

Milacron Will Double Capacity In India, Invest Rs 180 Cr

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Ohio-based Milacron LLC, the global leader in high precision plastic processing technologies and control systems, plans to invest Rs 180 crore over the next three years in India for doubling its capacity at its Ahmedabad plant.
 
Thomas J Goeke, chief executive officer and president of Milacron LLC, tells BW Businessworld that the Indian subsidiary, Ferromatik Milacron India (FMI), has been growing at over 15 per cent annually and that inspired the management to invest further in the country.
 
Excerpts from the interview:
 
While nearing 20 years of operations in India, where does FMI stand now?
\We have invested Rs 130 crore in India so far and achieved phenomenal growth. So we will further invest $30 million in the next three years in India. The firm plans to invest $20 million at the Ahmedabad facility to double its manufacturing capacity of injection moulding machines and blow moulding machines as well as commence the production of extrusion line. We will invest another $10 million in mold masters, manufacturers of hot runners and controls, for expansion at the Coimbatore facility.
 
What is the size of your business globally and in India?
Global revenues for the Milacron group stood at $1.25 billion at the end of the last financial year while the India revenue stood at Rs 525 crore. The group plans to invest $60 million every year over the next three to five years and is targeting revenues of $2 billion.
 
Why the Indian market turned significant at this point of time for FMI?
Going by the current growth rate, India will be second only to China in the global polymer processing market by 2020. We are very positive about our growth in India and plan to continue to make substantial investments in India and rest of markets in the coming years. We are also planning to double the workforce from the current 1,200 employees in various Indian locations to 2,400 in line with the expansion.
 
What kind of growth do you expect in the country?
Milacron is pumping fresh investment into India because our India business has been growing at more than 15 per cent annually over the last three years, even at a time when the Indian economy was slowing down due to several issues such as depreciating rupee and high inflation.
 
How do you plan to compete with the local players in the industry?
Despite quoting a premium, customers prefer us because of the value addition, technology and the after-sales service we provide. Besides, our machines deliver precision and are durable, thus saving cost in the long run.
 
What are the expected challenges and how do you plan to handle them?
The availability of skilled manpower is a major challenge for the industry. We have been trying to overcome this challenge by providing vocational training for our employees to make up for the gap of skilled professionals.