MGM-Varvel Power Transmission Pvt Ltd, a joint venture of Italian power transmission equipment companies MGM Mottori Elettrici SpA and Varvel SpA, today started its operations. The factory is located at Indus Valley Logistics Park in Mel Ayanambakkam here.
Both the partners will invest around 1 million Euros (Rs 6 crore) in the venture and have set a target of Rs 35 crore turnover in three years, with exports contributing 30 per cent to it.
Edaordo Ghieri, president, MGM Mottori Elettrici SpA, said, “We chose India as the location for MGM-Varvel recognising the excellent technically trained resources here. India also has quality infrastructure and allows us to develop a business with growth rates higher than those of western countries.”
Krishnamurthy Ravi, general manager, MGM-Varvel, said the land occupied in October 2010, was strategically located to cater to its customers in India and outside. "With easy access to ports, the facility will be a strategic logistical pole in India for our global operations. We look forward to start exporting from 2012," he said.
