The Hindu : Business : Siemens' turbine unit in Gujarat

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Saturday, Feb 04, 2006

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Business

Siemens' turbine unit in Gujarat

Staff Correspondent

The first phase will be on stream in December; opportunity in captive power market

TURBINE POWER: J. Schubert (left), Managing Director, Siemens, and E. J. Ferdinand, Vice-President-Power Generation, Industrial Applications, at a press conference in Mumbai on Friday. — Photo: Shashi Ashiwal

MUMBAI: Siemens has announced that it is setting up a greenfield steam turbine factory at Vadodara in Gujarat. The factory, Siemens' 15th in India, will make single stage and multi-stage steam turbines for industrial applications and will employ 220 people.

The first phase of the unit will be on stream by December and this announcement coincides with Siemens celebrating its 50th year of manufacturing in India. While catering to the domestic market below 150 MW, the factory will supply turbine components to Siemens manufacturing facilities in Europe. Siemens intends to establish this facility as a `Centre for Competence' for smaller turbine engines.

Another manufacturing bay belonging to Demag Delaval Industrial Turbomachinery (DDIT) will be integrated into the new facility. DDIT was acquired by Siemens and was integrated in Siemens' Power Generation business during fiscal 2004-05 and it has a workforce of 70.

Small turbine business

Addressing the media on Friday, J. Schubert, Managing Director, Siemens, said, "This factory will give us a better competitive position in the small turbine market. With a high growth rate in the industrial sector coupled with deficit in the power supply, we see a huge potential for the small turbine business. We are targeting the captive power market and would also be able to supply to utilities.''

"We plan to dispatch 30-40 machines annually on an average. In the second phase, on which we will decide at a later stage, the capacity would be doubled. We will try to make the second phase as cost effective as possible and in two to three years, we see the business volume from the Vadodara factory to be around Rs. 500 crore annually.'' The company's greenfield power transformer factory at Kalwa at an investment of Rs. 150 crore is to come on stream by the end of 2006. The factory will produce transformers for domestic and the export market up to 800 kV and 600 MVA ratings for AC and DC technology and special application transformers.

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