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Schwing Stetter sets up fabrication unit, solar plant

PMV

SchwingStetter India (SSI) has set up a fabrication unit and a solar power plant at its manufacturing complex near Chennai. While the fabrication unit is aimed at achieving two key benefits as part of its localisation strategy, the new 100kwp (kilowatt peak) solar plant has been installed to save on power costs as also meet the energy needs of production units. The fabrication unit has been established at an investment of `65 crore for customising different variants of the boom pump.
“This has been set up to cut huge costs involved in import of some equipment. Fabrication unit will help us to be cost-competitive and ramp up our overall manufacturing capacity by 30-40%,” AnandSundaresan, vice-chairman & MD,
SSI, said.
With the new fabrication unit, cost of its boom bump would come down to about `1 crore from `1.4-1.5 crore. Though the localisation levels vary from machine to machine, it has local content to the extent of about 80% in some construction equipment.
Citing an example of cost reduction, VG Sakthi Kumar, MD, SSI, pointed out that its truck mixer used to cost `10 lakh a decade ago, but now costs `8.5 lakh with value addition benefits. The company has also embraced solar power to achieve some savings. it has been depending on diesel gensets for meeting about 40% of its consumption. With the new `65 lakh solar plant, the `850 crore company hopes to meet about 12% of its consumption at a lower cost. It is contemplating ramping up the solar capacity to about 600kwp to save further on power costs.

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