Mitsubishi Heavy Industries (MHI) and Anupam Industries have formed a joint venture, Anupam-MHI Industries, to manufacture port cranes and material handling equipment for domestic and global markets.
Mr Mehul Patel, Managing Director, Anupam Industries, said, “The joint venture partners will invest equity capital of Rs 188 crore in Anupam-MHI Industries with Anupam holding 51 per cent and MHI 49 per cent.”
The partners will set up two facilities at Anand and Mundra, Gujarat. Anupam Industries has already has a licence agreement with MHI.
Anupam Industries is one of largest overhead crane makers in the country and its capacity will go up to about 40,000 tonnes a year after the current expansion.
In 2010, Aditya Birla Private Equity picked up stake in Anupam Industries by investing Rs 50 crore and has a representative on its board.
Mr Kanji Obata, General Manager, Mitsubishi Heavy Industries, and Chairman of the joint venture, said, The global port cranes market is around 900 units per annum and the Indian market of around $300 million is the same as West Asia.
Capex for Phase 1
In the first phase, the capital expenditure will be about Rs 280 crore for setting up a facility for fabrication and manufacture. It will be an inland manufacturing facility of three lakh square metres at Tarapur, near Anand, in Gujarat.
Products such as port cranes (ship to shore, rail mounted gantry, rubber tyred gantry) require a seafront facility for final assembly and roll off of products in to barges. For this the venture has 1.2 lakh sq.m land at the Mundra Port and Special Economic Zone (MPSEZ) along with a jetty for roll-on / roll-off for the assembled equipment on to barge / vessel for dispatch to customers.
The venture is expected to commence operations in the first half of 2012 and will target an annual production of 60 units. The first phase will have capacity to generate sales of Rs 800 crore.
It has already bagged two orders – Rs 100 crore for 3 units of container handling cranes from JNPT and Rs 200 crore for six units of ship unloaders from Krishnapatnam Port, which has an option to order four more unloaders of about Rs 135 crore.