India to be our 2nd biggest mkt in Asia by 2018: Mann+Hummel
Bawal (Haryana): German auto component maker Mann+Hummel on Monday said it expects Indian operations to become its second biggest after China in Asia with a revenue of 100 million euro by 2018.
The company's wholly-owned subsidiary -- Mann and Hummel Filter, which on Monday inaugurated its second plant in India here, is looking to contribute three percent to the parent's global revenue annually in the next six years, up from about one percent at present.
To achieve the target, the firm may set up more manufacturing units in India in future.
"India is going to be one of the most important markets for us in future. We expect this market to grow and contribute about 3 percent, which will be around 100 million euro, of our global revenue by 2018," Mann+Hummel Group Vice President Josef Parzhuber told PTI here.
The company's Indian operations is expecting to have a total revenue of Rs 150 crore in 2012 that will about one percent of its global turnover, he added.
"Currently, China is our largest market in Asia that contributes half of 400 million euro sales from the region. While India is right now very small, it will be the second largest in the region in the next six years," Parzhuber said.
The Asian region's contribution will also grow to 25 percent by 2018 from about 17 percent, he added.
"Our global revenue at present stands at 2.5 billion euro and we are targetting it to increase it to 3.4 billion euro in the next six years," he said.
The company, which is a leading manufacturer of filter systems, may consider to set up more production units here to meet its target depending upon demand from customers and growth in the Indian market.
"Going by the size of the market and our target, I would expect more facilities in future, may be one in the West (India). However, it will also depend on taxation structures like GST, because we do not know whether it will make sense to have plants at different locations at that point of time," Mann+Hummel Group President and CEO Alfred Weber said.
He, however, declined to share details saying nothing has been decided yet.
When asked about investment that the company is likely to make in India in future, Mann and Hummel Filter Managing Director Pradeep Randhawa said: "We will invest Rs 40-60 crore annually for the next two years to increase our capacities at this new plant. Beyond that, nothing is planned yet."
The company, which entered India in 2003, currently has another facility at Tumkur near Bangalore with an installed capacity of 10 lakh units annually. It has so far invested Rs 300 crore in India.