Micromatic to set up plant in B'lore

Micromatic Grinding Technologies Ltd (MGT), part of the Bangalore-based Rs 730 crore Ace Micromatic Group, is setting up a new manufacturing plant in Bangalore, its third in the country. The company is setting up the unit at Dobbaspet at an initial investment of Rs 25 crore.

The unit is being set up with the intention of catering to its customers in the south as well as export markets in the Asian region. The company will manufacture high-end grinding machines at the new plant.

MGT has two manufacturing units at Ghaziabad with an installed capacity to produce 325 machines per annum and last year completed its first expansion involving an investment of Rs 25 crore.

Said NK Dhand, chairman and managing director, MGT, "We are expanding our capacities to meet the growing demands of our customers. The purpose of setting up a plant near Bangalore is to cut the time in supplying machines to our customers in the south. Moreover, we have established a better supply chain network in south India and want to make use of it completely."

He said the company had acquired 4.5 acres from the Karnataka Industrial Area Development Board at Dobbaspet for setting up the plant, which will be ready by June 2008. In the first phase, the investment will be Rs 25 crore and will have a capacity to produce around 200 machines. The second phase will also involve another Rs 25 crore investment, Dhand told Business Standard.

The Bangalore unit will also manufacture special purpose machines for some of its customers in the south.