Prime Minister Narendra Modi “Make in India” campaign is bearing fruit as companies are are going for local sourcing of products wholeheartedly and latetest entrant is Chinese appliance maker Midea, which announced on Thursday its plan to invest Rs800 crore to set up a manufacturing facility with R&D in place in Pune .
“India is a key market in our global growth strategy and will be an important manufacturing hub in the future. Our investment is an example of Midea’s belief in the Indian market and reiterates our commitment to ‘Make in India’. The new home appliances manufacturing plant in India will enable us to offer designed in India product solutions to our valued customers,” said Midea Group Vice-President Andy Gu while talking to The Pioneer.
Spread over 43 acres in Pune, the facility will employ 500 people. The plant will have a capacity to manufacture five lakh refrigerators, six lakh washing machines and ten lakh water appliances products. In addition, Midea Group’s Midea group’s part and component divisions GMCC and Welling will be setting up a manufacturing unit for compressors and motors for appliances.
When asked about when the plan be ready to manufacture and will they export, Gu said: “The manufacturing facility would be operational by end of 2018 and as regards export first we want to satisfy Indian customers as there is much growth opportunity and will evaluate the situation ,”added Gu.
There is lot of resentment against Chinese products in the country and how does he intend to fight that, Gu said: “We are a company which has product across the globe as our quality is the best and we invest a lot on R&D and that is why Thomson Reuters in a report last year said we filed for maximum patents in the electronic appliances.”
The company which is operational since 2013, is also appreciative of the new GST regime: “GST is good for businesses as there will be single unified tax structure which is helpful and whenever this kind of big reform takes place there is some problem but things stabilize quickly and people benefit. We are here for long term and by when our plant will be operational things will be totally smooth.”
