BANGALORE: Rittal India Pvt. Ltd. a fully owned subsidiary of Rittal GmbH & Co. KG, Germany and the flagship organization of the Friedhelm Loh Group of Companies with over 10,000 employees worldwide, is undertaking a major capacity expansion in India. Rittal expects to invest over $5 million to augment its production capacity to cater to the increased demand expected from the Indian market.

The first step, which is currently underway, foresees an investment of approximately $1 million (Rs 5 crores). This expansion in the paint plant and addition of a nine folded profile roll forming line as well as new machines is expected to be completed by January 2005. This will yield an increase in capacity of over 30% and improve the flexibility of the Indian subsidiary, states a company press release.

Work on the implementation of the next stage of the expansion involving an additional investment of approximately $4 million (Rs 20 crores) is expected to be started early 2005 and completed by the end of 3rd calendar quarter. This expansion envisages a 4500 sq. m. extension of the existing building as well as the addition of 2 fully automated power and free paint cabins and an oven along with further expansion and streamlining of the assembly and raw production facilities. This will result in at least doubling the available capacity.

Apart from investments in production Rittal is also investing in development of its sales and marketing network as well as in engineering facilities. Rittal has already started to use the pool of engineering talent available with its Indian subsidiary for development work of the parent organization. Rittal is keenly observing the development of the Indian economy and the rapid growth of the industrial and IT sectors.

Should these trends continue and demand for Rittal products grow further fresh investments will be made in the areas of production, marketing and engineering.

As per the blue print prepared by the company the total area at the Doddaballapur plant is to be increased eventually to 23,000 sq.m from the existing 10,000 sq.m. The introduction of a new fully automated painting plant as well as addition of several new machines and assembly lines are foreseen in near future . With these facilities the production capacity is expected to be eventually increased at least 5 fold.

Rittal India plans to introduce dedicated lines for MCCs, control desks, stainless steel enclosures, IT networking and Server racks including the latest TE 7000 range of networking and server racks besides cooling units along with several new products.

Rittal India also plans to develop and supply new low cost design versions of products required for markets in Asia Pacific, Middle East and South Africa.