Machine tool major Bharat Fritz Werner Limited (BFW) on Wednesday announced its expansion plans which include setting up of a new facility in Hosur, restructuring of its aerospace business and intentions of international mergers and acquisitions.
BFW plans to pump in Rs. 350 crores in the next five years towards vertical and horizontal growth.
The company is eying a turnover of Rs. 330 crores in the financial year ending March 31, 2011, a 65% jump over the previous year.
According to BFW, the Rs. 3,000 crores machine tool industry in India is slated for rapid growth, with demand expected to reach Rs. 55,000 crores by the year 2020.
In sync with the trend, BFW plans to log turnovers of Rs. 850 crores and Rs. 1,300 crores in the years 2013 and 2016 respectively. The company is considering several options for merger and acquisition of international players as well.
BFW has earmarked Rs. 33 crores towards setting up a new plant in Hosur for manufacturing machine tool spindles. The unit is expected to come on stream in a year’s time.
The plant will cater to the needs of machine tool builders and users worldwide. The spindles will be in the range of 2,500 rpm to 24,000 rpm to match typical requirements.
?The machine tool industry in India is poised for exponential growth and BFW will be one of the key players leading this growth,? said S. N. Mishra, Vice Chairman and President, Bharat Fritz Werner Limited.
BFW is also setting aside Rs. 45 crores for restructuring the aerospace business. The company diversified into the vertical two years ago, and has acquired AS9100B certification and the DOFA (Defence Offset Facilitation Agency) license.
The company has reserved Rs. 115 crores to acquire new machinery and add shop floors to accommodate new lines of products to be churned out from the manufacturing facility in Bangalore.