Milacron of US plans $30 million capex in India
MUMBAI, AUGUST 20: The US-based Milacron LLC, one of the largest moulding machine manufacturers, plans to invest $30 million (about ₹182 crore) in India and double its head count in the country to 2,000 in the next three years.
The Indian subsidiary has manufacturing units in Ahmedabad and Coimbatore. Ferromatik Milacron India proposes to double capacity at its unit in Ahmedabad with an investment of $20 million.
The company currently has an annual production capacity of 2,000 plastic injection moulding machines ranging from 50 tonnes to 3,200 tonnes. Milacron will invest another $10 million to enhance capacity in Coimbatore.
Speaking to BusinessLine, Thomas J Goeke, President and CEO, said the company would be adding new product lines and bring in new technology to grow its market share in India.
“We are also looking at options to expand our fluid technology business through our joint venture Cimcool in Chennai. The innovative metal forming fluids finds application in various sectors such as automotive, aerospace, medical and pipe industries,” he said.
Ferromatik Milacron has an order book for 500 machines to be delivered in four months. The company exports 30 per cent of its production to 40 countries including the US, Africa, West Asia and SAARC countries.
Shirish Divgi, Managing Director, Ferromatic Milacron India, said the demand for moulding machines is fast growing from automotive, food and beverage and package sectors. It is estimated that India would become the second largest plastic converter behind China by 2020, he said. The company caters to small and medium enterprises with the large customers accounting for only 10 per cent of its sales. Its prominent competitors in India include Toshiba Machine Company and Windsor Machines, apart from imports from Asian countries.
“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,” said Divgi. Though the cost of production is rising with the increase in steel prices, the company manages to control cost by buying steel from different sources, including imports.