15 December 2019

REPORT

Lapp of honour

 

The India subsidiary of the Stuttgart headquartered cable manufacturer is planning to expand its production unit at Bengaluru as part of its commitment to the ‘Make in India’ campaign

 

A 100 per cent subsidiary of the Lapp Group and the leading manufacturer of cables, connectors, cable glands, conduits and accessories in the country, Lapp India has outlined plans to expand its manufacturing facility in Bengaluru. It is reported the project will increase the company’s production area from the existing 5227 sq m to 10,803 sq m. The facility at Jigani has the capacity to manufacture 60,000 km of multi core cables and 78,000 km of single core wires per annum. The company has invested approximately `165 million for this project.  With this new expansion Lapp India aims at tapping into the increased demand for quality control cables in the market   This expansion with state of the art safety and environmental features will enhance the facility layout, ensure better flow for effective lean management and also help generating more space for the new machines to sustain company’s long term growth plans and establish leadership in the control cable market.
In 2012, Lapp India set-up its second Indian manufacturing facility in Pilukhedi, Bhopal which has strengthened the base in the single core wires segment as well as catered efficiently to the growing demands in the building sector. Lapp India is currently commissioning a new leading edge multi core line in Bhopal which can produce 36,000 km of multi core cables resulting in overall capacity increase of 60 per cent in Multicore cables in addition to the existing 216,000 kms capacity in Single Core wires. Expanding operations in India has been a key focus for the company owing to the promising growth opportunities of the country.
Lapp India is the second largest company of the LappGroup. The milestone set here in terms of business and the success garnered in retaining the position in the market has proved to be an example for other Lapp companies located worldwide.
The industry friendly measures announced in the Union Budget 2014 along with a strong emphasis on the need to revive manufacturing industry have come as a new lease of life to the Indian electrical equipment industry. Prime Minister Narendra Modi’s strong emphasis on turning India into a manufacturing hub by implementing the ‘Make in India’ campaign has been a great initiative to attract foreign investment in India. Lapp India expects a significant rise in demand for quality cables with the increased thrust by the new government to develop infrastructure with creation of new roads, ports, airports, rails.
Lapp India also looks forward to promising business opportunities from the smart city initiative. With the government allocating `71 billion for 100 smart cities there will be an increased demand for quality smart cabling solutions for urban infrastructure.  The potential for cabling solutions in India is enormous. As a company which is into manufacturing of low voltage cables, Lapp India is extremely bullish. The low voltage cable market in India is currently valued at `195 billion and is expected to grow to `360 billion by 2020.
Andreas Lapp, Chairman of the Board, Lapp Holding AG, said “ The Indian cabling industry offers a vast potential owing to the growing urbanisation and increased focus on infrastructure development. With our range of products we are looking at addressable market potential of Rs.`55 billion growing at an average of 10 per cent year on year until 2020 and beyond. This calls for regular investments in technology, infrastructure and of course people. The expansions of Jigani Plant and Bhopal Plant are a step in this direction.”

 




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