Atlas Copco to invest Rs 100 cr in 2 yrs on capacity expansion

Construction equipment maker Atlas Copco today said it plans to invest Rs 100 crore in the next two years on enhancing the production capacity of its existing plants.

"We will invest around Rs 100 crore in the next two years on increasing capacities of our existing plants. Most of the fund will go in the process of acquiring land," Atlas Copco India Managing Director Filip Vandenberghe told reporters.

The Stockholm-based company, which is engaged in the making of compressors, mining equipment and other industrial products, currently has three facilities in Pune, Nashik and Hyderabad.

The firm is particularly looking at expanding the capacity of its Pune plant, which makes compressors, he said, adding the company is in the process of acquiring land there.

"We are actually extending our capacity in Hyderabad. Our strategy is to extend our capacity in relation to the development activities taking place in the country," Atlas Copco Group President and Chief Executive Officer Ronnie Leten said.

The company, however, did not disclose the production capacities of its plants.

Leten said around 50 per cent of its overall turnover comes from its compressor business. Atlas Copco had a revenue of Rs 1,281 crore in India last year.

"In the last six months, we have had a growth of 40 per cent. Going forward, we hope maintain a strong growth," he said.

Besides, the company, which employs around 1,700 people, said it is looking at increasing its work force by another 10 per cent this year as part of its capacity expansion.

"We normally add 10 per cent of our workforce annually. We hope to do the same," Vandenberghe said.

Atlas Copco started its operation in 1920 and sells over 30 brand, including Chicago Pnuematic and Dynapac. Its customers include the Tata Group, Unilever and General Motors among others.