Kennametal Widia lines up Rs 50 crore expansion

Kennametal Widia, one of the major players in metal cutting tools and machine tools, will be investing around Rs 50 crore over the next 12-18 months for increasing the processes of its manufacturing capacities, upgrade the existing manufacturing facilities and to step up the scope of its research and development capabilities.

The Rs 250 crore company is also looking to double its sales turnover in the next 3-5 years.

Kennametal chairman, president and chief executive officer Markos I Tambekaras on his visit to Kennametal Widia Bangalore headquarters said that Indian operations is all set to be back on its track of profitability and the company will be investing Rs 50 crore to strengthen the operations.

Kennametal, which acquired majority shareholding in Widia 16 months ago, has already invested Rs 50 crore so far.

Detailing plans on how the company will ramp up the operations, Tambekaras said: "The Indian manufacturing sector is seeing great growth pattern and we will participate aggressively in this growth. We are also looking at making the Indian operations a major sourcing hub for Kennametal's global operations and also look at increasing the company's exports in the automobile and auto components sector."

Currently, the company exports share is around 15 per cent.

The Indian operations for the third quarter ended December 31, 2003, has managed to trim its losses to Rs 4.85 crore from Rs 25.5 crore for the corresponding period of the previous year.