Suguna group in joint venture with Israeli company

Suguna group has tied up with Israel-based Shatal Engineering, with manufacturing base in the city, for marketing light construction machinery in the domestic market, top company officials have said.

Shatal Engineering, which manufactures light machinery like tiles cutting and levelling machines, was exporting its entire production of four types of machinery, so far.

It would now earmark 25 per cent of its production for Indian market, initially for the Southern markets, V Lakshminarayanasamy, Chairman, Suguna Group and Josef Levy Chairman, Shatal Engineering told a joint press conference here.

The joint venture, Suguna Shatal, would be officially launched tomorrow and Suguna would manufacture motors for the entire machinery, Lakshminarayanasamy said.

Stating that the company would be targeting a conservative share of the huge Indian light construction machinery market estimated at about Rs 9,800 crore, he said that it was expected that it would sell 4,000 machineries in the first year, with markets expanded to Northern and Western parts of the country.

The products would be distributed through a wide network of dealers and an extensive service network was also being put in place, Josef said.

Josef said the company, which started 18 months ago, has so far invested $1.5 million and considering the new venture, would pump in more investment.

The machinery would have advantage over manual machines, as it would have two to three times more productivity, he said.

With Indian construction equipment market at $4 billion, the company would also enter into larger machinery manufacture in near future, L Anishkumar, Director, Suguna Shatal said, adding that Suguna would produce an additional 10,000 motors to meet the machinery requirement.

 

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