Alstom India's Make In India Initiative to double business
DSIJ Intelligence / 15 Jun 2015
Alstom India is going to expand its manufacturing facility at Chennai and opening new factory in Coimbatore for traction systems in current financial year. The company has recently received orders from Kochi Metro project, which will help company to grow its business double amounting to Rs 5700 crore in coming three to four years.
Make in India initiative started by government of India to encourage companies to manufacture their products in India. The idea behind the concept is to increase GDP growth,tax revenue, employment, high end quality products and technological investment.
Alstom India is going to expand its manufacturing facility at Chennai and opening new factory in Coimbatore for traction systems in current financial year. The company has recently received orders from Kochi Metro project, which will help company to grow its business double amounting to Rs 5700 crore in coming three to four years. It bagged contracts for signalling, electrification and telecom solutions for the metro. Alstom India is also looking for increase in order book for the company. Alstom India now has 800 engineers and plan to hire around 200-250 engineers per year for the next three to four years. This shows increase in employment through this initiative.
The government's Make in India and Smart Cities initiative give company a big business opportunity. Alstom India has planned for 80 per cent of local sourcing from its Chennai plant. The company is also involved in metro projects in Delhi, Jaipur, Chennai, Bengaluru. It has complete supply chain from design to manufacturing only in India. Alstom will also supply its product to German market from India.
Alstom India placed bid for the electrification and signalling package of the Khurja-Bhaupur about 343 km section of the Eastern Corridor. The company has required resources to built up new modern light rail systems like an elevated tramway, as another mode of public transport, specifically for smaller towns and cities where roads are narrower. Alstom India reported Rs 2124 crore revenue for FY15, which is 18.46 per cent lower than previous year. However, company has rigours expansion plan and will benefit in future. This investment will help company to increase its asset base and to make strong balance sheet. Alstom India is focusing on organic growth through the Make in India initiative.
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