Carraro Group completes 20 years in India, commits additional 20m euro investment

Italian component maker Carraro Group, which supplies the tractor industry and supplies gears, axles and transmission system to the automotive industry, has completed 20 years in India. The company held a celebratory event at its Pune facility, the Group's first greenfield facility outside Italy. Marking the occasion, the first stone was laid for a new production area that will complement the existing ones in the Ranjangaon, Pune facility, which the company says will significantly expand its operation capacity.

Commenting on the milestone, Enrico Carraro, chairman, Carraro Group said: "Today we celebrate 20 years since the start of production of this industrial complex, which counts over 1,400 employees. A truly remarkable number, if we think that the sum of the Carraro people working in all Italian plants is exactly the same. This means a very clear thing, India is, and will remain, an essential point of reference for the future of the entire Group. Already today, with a share of over 17 percent, India is the Group's first destination market. Here, thanks to our ability to work at excellent levels, the Carraro brand is recognised and respected by all the major players in our reference sectors.”

"The expansion of this production site will allow us to expand our capabilities towards new product ranges, such as portal axles, specifically designed for the Indian market. This is a fundamental element for the future growth of our activities at the service of both local and export markets," added Carraro.

He further said, "We must be aware that the global economic context in which we operate today is not at all easy. The growth index is continuously revised downwards. And India, a market that until recently gave us great satisfaction, is now experiencing a particularly difficult situation both in the agriculture and in the construction equipment sector. But history has taught us that it is precisely in these moments that the foundations for future growth are laid ”.

Portal axles for compact tractors
Within the new production area that will occupy 5,000 square metres is expected to be fully operational in 2021, a line of advanced conception will be installed, primarily dedicated to portal axles for compact tractors with engines up to 75hp. This, according to the company, is a product that is already gathering demand from all the Indian agricultural machinery manufacturers. In addition, the expansion will allow the company to further optimise internal logistics thanks to dedicated new areas for modern structured warehouses. This, the company says, will lead to improvement in the level of customer service and timely management of stock levels.

This will only be a piece of a process of further expansion of production areas that will enrich today's portfolio with new products resulting in a 50 percent increase in local activities in three years.

In the last two decades, Carraro Group has invested more than 101 million euros (Rs 781 crore) in India. By 2023 the company will further invest around 20 million euros (Rs 155 crore) for upgrading operations and plant expansion.