Atlas Copco has decided to expand its capacity in India with the construction of a third manufacturing facility in Talegaon.
Atlas manufactures compressors, vacuum solutions, generators, pumps, power tools and assembly systems, products used by EV battery assembly lines, semiconductor makers and alternative fuel systems, including CNG, hydrogen, methane and the solar industry.
It is stepping up production to meet growing demand from the EV mobility, hydrogen and semiconductor industry.
The company is also planning two acquisitions to further expand its business in the country.
Philippe Ernens, president, Oil-free Air division, Atlas Copco, said they are already supplying to all major semiconductor makers across the world and are engaging with these for the Indian market foray. “The company is a leading supplier of CNG pumps in the country and this technology base would be the same for adopting the hydrogen and methane segment,” Ernens said.
Compressors account for around 70% of Atlas’s business in India.
The new facility in Talegaon, expected to be completed by the second quarter of 2024, would increase Atlas’ capacity by 170% and grow its R&D test facility capacity by 700%.
The Rs 140 crore plant will make high-end air and gas compressor systems for both the Indian market and for export purposes. The Chakan plant will be focused on high-volume products. This expansion would take care of the company till 2030 and they would then focus on the next phase of expansion.
The company is also planning to grow inorganically. Frans Van Neikerk, managing director, Atlas Copco India said last year, they acquired HHV Pumps, a Bengaluru-based company that designed and manufactured vacuum pumps and systems in India. Neikerk said they have two more acquisitions lined up in the vacuum pumps space.
These vacuum pumps are used for chemical and pharmaceutical industries, electrical power equipment, general industry, and rotary-vane pumps are used for manufacturing, refrigeration and air-conditioning. The acquired business has been integrated into the Industrial Vacuum Division within the Vacuum Technique Business Area.
Atlas Copco had a turnover of Rs 4,000 crore in India FY23 and 20% of the invoicing was exports.
The company said it was reporting double-digit growth in the last three years and would be continuing this growth momentum for the next three years.