Lapp India, a 100% subsidiary of the Lapp Group, has announced the expansion of its Bangalore manufacturing facility. The project will increase the Company's production area from the existing 5,227 sq m to 10,803 sq m.
The facility has the capacity to manufacture 60,000 km of Multi Core cables and 78,000 km of Single Core Wires per annum. The company has invested approximately Rs165 million (2.1 Million Euro) for this project. With this new expansion Lapp India aims at tapping into the increased demand for quality control cables in the market.
This expansion with state of the art safety and environmental features will enhance the facility layout, ensure better flow for effective lean management and also help generating more space for the new machines to sustain company's long term growth plans and establish leadership in the control cable market.
Speaking on this occasion, Andreas Lapp, Chairman of the Board Lapp Holding AG and Honorary Consul of the Republic of India for Baden-Württemberg and Rhineland- Pfalz, said "The Indian cabling industry offers a vast potential owing to the growing urbanization and increased focus on infrastructure development. With our range of products we are looking at addressable market potential of Rs55 billion (0.7 Billion Euros) growing at an average of 10% year on year until 2020 and beyond. This calls for regular investments in technology, infrastructure and of course people. The expansions of Jigani Plant and Bhopal Plant are a step in this direction."
In 2012, Lapp India set-up its second Indian manufacturing facility in Pilukhedi, Bhopal which has strengthened the base in the Single Core wires segment as well as catered efficiently the growing demands in the building sector.
Lapp India is currently commissioning a new leading edge multi core line in Bhopal which can produce 36,000 km of Multi Core cables resulting in overall capacity increase of 60% in Multicore cables in addition to the existing 216,000 km capacity in Single Core wires. Expanding operations in India has been a key focus for Lapp Group owing to the promising growth opportunities of the country.
Lapp India is the second largest company of the Lapp Group; the milestone set here in terms of business and the success garnered in retaining the position in the market has proved to be an example for other Lapp companies located worldwide.
The industry friendly measures announced in the Union Budget 2014 along with a strong emphasis on the need to revive manufacturing industry came as a new lease of life to the Indian electrical equipment industry.
PM Narendra Modi's strong emphasis on turning India into a manufacturing hub implementing the ‘Make in India' campaign has been a great initiative to attract foreign investment in India. Lapp India expects a significant rise in demand for quality cables with the increased thrust by the new government to develop infrastructure with creation of new roads, ports, airports, rails and so on.
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