VAG Valves India, the Indian subsidiary of the German valve maker VAG Valves, is doubling production capacity at its Hyderabad facility in the next two years.
With the domestic valves market growing due to the push on infrastructure projects, the company plans to launch products for use by the power and industrial sectors this fiscal.
The current size of the Indian valve market is estimated at Rs 4,500 crore, with more than 600 players mostly in the SME sector. The major players in the sector include Kirloskars and L&T.
Mr V. Seshaiah, Managing Director of the company said, production at VAG's Hyderabad unit was being ramped up from the present 25,000 units to 50,000 units annually to reach full capacity utilisation this year. “In addition, we are planning to add a capacity of another 50,000 units annually at the existing facility within the next two years,” he told media persons here on Friday. With the capacity addition, the company expects to double its turnover to Rs 100 crore. Although the facility manufactures three products (gate valves, butterfly valves and sluice gates valves), the company sells 20 other products from its parent company.
The German firm intends to develop the Hyderabad facility for global supplies of a particular product, air release valves.
Mr Seshaiah said the company was also launching products for the power and industrial, especially steel, sectors from this year. “We will be importing these products from our parent company for assembly and marketing in India,” he said.