Premium Transmission, a part of the Thapar Group, has decided to realign the manufacturing strategy in the backdrop of higher costs and use its facilities in India to implement global contracts, a top company official said on Monday.
The Karan Thapar-controlled company would halt production at its unit in Germany within a year, owing to high costs, and instead, use German technology to produce its mainstay industrial tools locally.
Premium Transmission has a manufacturing unit in Germany under the name Premium Stephan.
In order to create capability, a new development centre in Kolkata has also been set up, after Pune, as part of a Rs 100-crore capex plan over the next two-three years.
"We have a manufacturing facility in Germany, but due to increasing costs, we have resolved to stop production there, which is primarily meant for the international markets.
"The new Kolkata development centre will be utilised in adopting the technology for the domestic Falta and Pune plants. A total of Rs 100 crore capex has been earmarked for this," Premium Transmission MD & CEO Neeraj Bisaria told PTI.
The company is a leading player in industrial gearboxes, geared motors and the fluid coupling market in India.
Bisaria said German operations of Premium Transmission will cease when all its products are successfully developed in India.
Elaborating on the reasons behind setting up the Kolkata centre, he said West Bengal offers advantages such as skilled manpower and lower attrition rate that make it an ideal location for such facilities.
The company is also making efforts to introduce energy-efficient products, Bisaria said.
The Kolkata development centre, located at Salt Lake, will help in strengthening Premium Transmission's footprint in the eastern part of the country, besides catering to Bangladesh, Nepal, Bhutan and the south east Asian markets, he said.
The company generates about 20 per cent of its total revenue of Rs 423 crore from domestic operations, and the topline is expected to touch Rs 500 crore in the 2019-20 fiscal if the "growth momentum" sustains in the core sectors, Bisaria added.
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