MTS group to invest Rs 30 cr in Chakan plant

PUNE, April 21: Merloni Termosanitari (India) Ltd has become a wholly-owned subsidiary of Merloni Termosanitari SpA (SPA) of Italy follow...

PUNE, April 21: Merloni Termosanitari (India) Ltd has become a wholly-owned subsidiary of Merloni Termosanitari SpA (SPA) of Italy following the acquisition of the remaining 26 per cent in the company. The company announced its new status following an FIPB clearance received earlier this month.

V Fedeli, managing director of the MTS group said that the Indian operations remained strategic for expansion in the Far East market which had become very important considering the huge demand in terms of population. He explained that low cost labour was not the chief reason for the take-over but because India was strategic from the point of view of exports.

The MTS group is investing Rs. 30 crore in the Pune manufacturing facility at Chakan where they had transferred old machinery and replaced it with new ones. This amount includes the initial investment for the plant as well as the take-over operations. According to Fedeli, the expenditure for the new machinery had come upto Rs. 12 crore.

Story continues below this ad

Apart from marketing a range of water heaters, the company now plans to get into the manufacture of gas and solar water heaters. The gas water heaters will be manufactured from August this year while the solar water heaters are planned for the year 2000 AD. Managing Director of Merloni Termosanitari (India) Ltd A K Rathi said that it was very clear that the company had every intention to continue with the Racold brand name.

The company presently has a market share of 28 per cent which is likely to be increased to 50 per cent in the near future. Moreover, the exports which presently stand at Rs. 28 crore are also expected to receive a major push with over 600,000 pieces planned this year.