US firm Milacron is to invest US$30 mln in Indian arm – about US$20 mln in its Ahmedabad facility and US$10 mlm in Coimbatore facility. The global plastic processing equipment manufacturer plans to invest Rs.180 crore in the next three years in its India operations, Ferromatik Milacron India Pvt. Ltd (FMI). FMI supplies plastic moulding machines to various industries such as packaging, construction, automotive components and furniture. The funds will be used for capacity expansion of existing lines and for setting up a new product line.
As per livemint.com, with these investments the firm is looking to double its India revenues to US$300 million (Rs.1,800 crore) in the next three to five years. The firm said that it grew at a compound annual growth rate of 15% over the last three years, at a time when the Indian economy was slowing down due to several issues such as policy paralysis, a depreciating rupee and high inflation.
Even during the slowdown the plastic industry was able to manage growth of 10-11%, according to Shirish Divgi, managing director, FMI. “The drivers for growth in the Indian market are the packaging, which is the largest segment for us today, followed by construction and automotive industries,” Divgi said. However, availability of skilled manpower and availability and high price of land are a few challenges that the company foresees to its growth in the country.
21-Aug-14 
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