US-based global leader in signal transmission and security solutions Belden is eyeing up to Rs 600 crore in the next 3-4 years from India operations riding high on the manufacturing facility it launched in Pune.
The company on Thursday launched its first facility in Pune, set up across 24,000 sq mt with a total investment of Rs 250 crore, to manufacture low voltage cables for high-end applications, connectivity and assemblies for data transmission, and ethernet switches, routers and firewalls for industrial and building automation.
"Setting up a facility in India is part of our strategy to expand our presence in the market and capture nearly 10 per cent of the market. Considering the amount of projects awarded by both the central and state agencies in infrastructure, transport and energy, we see a huge demand for our products," company's managing director of Asia Pacific Ashish Chand told PTI here.
Currently, the high-end data transmission and cyber security market is estimated at Rs 6,500 crore, which is expected to grow to over Rs 7,500 crore in the next 3-4 years.
"Right now we have a 3 per cent share in this market. With the manufacturing facility now in place, we expect our share to increase to nearly 10 per cent and we are eyeing around Rs 600 crore of revenues from India operations," he added.
Chand further said the facility will not only meet the demand in India but is well equipped with state-of-the-art technology that will also allow it to serve other export geographies including the US, middle east, south east Asia and China.
"Initially, we will be manufacturing products and exporting to other markets. But going forward we intend to even export technology and designs," he added.
Elaborating on the facility, he said the investment would be made in two phases. The first investment Rs 140 crore was completed in September 2018, while work on the second phase entailing an investment of Rs 110 crore, will commence soon.
The project, when at its full capacity in 2019, will provide direct and indirect employment opportunities to more than 300 people, he added.
When asked if the company was looking at brownfield expansion, Chand said, "We have considered a few opportunities but the valuations that are being offered are too high and it will be difficult to manage cost and benefit if we buy any asset."
He, however, noted that the company will not stop at this plant, but will continue to look for opportunities to expand it manufacturing base.
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