Linnhoff, a Germany-based maker of asphalt batching and concrete mixing plants, has built a Greenfield manufacturing facility at Khed City near Pune, and plans to set up a Research and Development Centre at the same location.

Set up with an investment of Rs 50 crore, this is Linnhoff’s fifth manufacturing facility worldwide, and will cater both to domestic and export needs. The German company has been supplying machines to the Indian market since 1984, and local manufacture will cut costs by nearly 30%, while cutting lead time, it said.

Linnhoff India is a 51:49 JV company between Linnhoff and S&T Group Mumbai. The plant has installed capacity to make 100 machines a year, and also has features like using recycled asphalt to extract bitumen, usage of coal instead of oil for fuel, and can make smaller batch mixing machines for smaller contractors.

The Indian market is growing rapidly and with the government enforcing standards like plants that record data, Linnhoff is targeting higher market share – 42% at present – Klaus Thesenfitz, Chairman, Linnhoff said. The company is also working on building plants that can be transported by containers, he added.

Ashok Tanna, Managing Director, Linnhoff India said that the company was targeting Rs 150 crore in turnover in one year of operations and Rs 300 crore in five years’ time, with the asphalt business contributing approximately 80% to the top line.

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