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Lapp India completes first phase of Bhopal plant

Em News Bureau ,  Saturday, December 15, 2012, 11:43 Hrs  [IST]

Lapp India, a wholly-owned subsidiary of Germany-based Lapp Group, has announced the completion of the first phase of its second manufacturing plant in India. A total of Rs.150 crore will be invested to set-up this cable manufacturing plant in Pilukedi, Rajgrah district, in four phases. With an initial investment of Rs.50 crore, Phase 1 of the plant will produce 1,000 kms of single core cables daily, catering mainly to the building cable segment.

The Bhopal plant is the second facility of Lapp India after one in Bangalore and is spread over an area of 1,17,000 sqm. When construction on the Bhopal plant is fully complete, it would be Lapp Group's largest manufacturing facility globally.

According to Andreas Lapp, Chairman of The Board Lapp Holding AG, "Expanding our operations in India has been a key focus for us at Lapp Group, mainly due to promising growth opportunities presented by the country. This year Lapp India’s growth has increased to 23 per cent compared to last year and the set-up of this new facility in Bhopal will help us cater efficiently to growing customer demands. The market size for single core wires (in the building segment) today stands at approximately Rs.6,000 crore which indicates a large market opportunity in this sector. With respect to LAPP range of products, the addressable cable market in India is currently being valued at Rs.1,000 crore. We, at LAPP, have identified this opportunity in India for single core cables and are strengthening our base accordingly."

Being centrally located in the heart of India, the facility in Bhopal will be well-equipped to meet the logistical requirements of the northern and eastern parts of India and cater to increased demand across India, a statement by Lapp India said.

The construction of the entire factory in Bhopal has been divided into four phases with the currently operational first phase focusing on production of single core cable. The latter phases will focus on producing multi-core cables, aluminium cables and HT/LT aluminium cables respectively.
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