The commissioning of the new plant and the resultant freeing of capacity in the old one will double the company's production of truck mixers, portable pumps, concrete mixing plants and others.

The company is a wholly-owned subsidiary of the German company Schwing Stetter Gmbh. The German company has invested around Rs16 crore in India since the latter was set up in 1999.

The new facility will also come handy for the company once the German parent decides in 2005 to source some machinery for its global market.

Speaking about the performance of the Indian subsidiary, Jochen Goerlich, chairman, Schwing Stetter said, "Of the eleven units we have in the world, the Indian unit has achieved the fastest growth and has become profitable. The Indian company has the potential to notch up a turnover of $100 million soon."

The German company is in the process of finalising the couple of new prototypes of boom pumps. Once that is done, the company would decide as to what it would source from India for its global market. Presently the Indian company exports to neighbouring countries and is bound by market access restrictions placed by the parent company.

Last fiscal the Indian company logged a turnover of Rs120 crore and is now targeting a revenue of Rs170 crore. "The pending orders at the end of this fiscal are expected to be around Rs30 crore," said Schwing Stetter India's managing director, Anand Sundaresan.

Though the company had good orders last fiscal, it was not able to cash on the
opportunity as the steel availability became scarce and the prices too went up drastically. Schwing Stetter India imports some high grade steel.