The company has built a 1,000 pallets capacity warehouse in Chennai. The pallets have radio frequency identification technology so that the inventory levels are managed efficiently.

On the production front, the company has increased its per day output capacity by 200 units to 800 units. Both the expansions have cost the company €1 million.

Addressing the media here on Tuesday, J B Kamdar, managing director said, the company is mulling further expansions as the demand for industrial and instrument cooling fans are expected to boom from retail, refrigeration and cold storage industries.

According to Hans Jochen Beilke, CEO, ebm-papst Group, the Indian joint venture has chalked out plans to invest Euro 5 million for further expansion of production and warehousing facilities in Chennai by the year 2010.

Adding to that Kamdar said, the company''s turnover after that would be around Rs2000 million. "The next demand boom for industrial fans is expected from refrigeration, cold storage and retail sectors."

He expects the company to close this fiscal with a turnover of Rs85 crore.