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. |