Kochi, Nov 14 (UNI) Italian power equipment major Borri and its Indian partner Unitek are to set up a manufacturing plant at Pazhanganad in Kerala, at an investment of Rs 30 crore spread over two years, the companies announced today.
Addressing a press conference here, Borri Managing Director Fausto Beoni and Unitek Power Solutions (I) Ltd. MD John Zachariah said the foundation stone for the factory would be laid tomorrow by Union Parliamentary Affairs and Overseas Indian Affairs Minister Vayalar Ravi, at a function presided over by Kerala Local Administration Minister Paloli Muhammed Kutty.
The companies, which had joined hands in a marketing tie up last year, are to take their collaboration further with Borri slated to pick up a ten per cent stake in Unitek, the modalities for which were being worked out, Mr Zachariah said.
Mr Beoni said while the plant was expected to be completed in one year's time, the initial production would commence within six months. Borri, which had recently won a major contract from the Rajasthan Oil Field for its UPS systems, did not apprehend recession affecting its operations in India, Mr Beoni said.
''The Indian market will grow very fast. Also, I do not see a recession in the oil and gas sector. Energy will not be affected much,'' he added.
Echoing this optimism, Mr Zachariah said that there were a lot of opportunities in the energy sector, especially in the northern states of Haryana, Punjab and Gujarat. There was good demand in the Gulf countries also and the Pazhanganad plant could be developed as a hub to cater to the Middle East market also, he said.
The Pazhanganad plant, the first investment by Borri in India, will concentrate on mechanical and fabrication work while modules and PCBs would be imported from Italy.
''Almost 50 per cent of the work would be done here,'' Mr Zachariah added.
Besides standard UPS systems in the 10 to 40 KV range, the plant would also manufacture customised systems for industrial applications.
Unitek was expecting a turnover of Rs 75 crore this year, Mr Zachariah added.
Presently, the Unitket Borri products were installed in various industrial and marine establishments, textile units, hospitals and oil fields.
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