Pune-based Electromech Material Handling Systems India, a niche player in the crane business, is setting up a new facility in Sriperumbudur, near Chennai with an annual capacity of 200 cranes. The company manufactures discreet industrial cranes, ranging from two-tonnes to 150 tonnes capacity and caters to several industrial segments including automotive components, heavy engineering and power plant manufacturing. According to managing director Tushar Mehendale, the objective of setting up the Rs 10-crore Chennai facility is to bring down costs in the South. The new unit is slated to go on stream in February 2009. Subsequently, the company will invest Rs 8 crore to grow capacity to 500 cranes a year. During the first year of operation (2009-10) the Chennai plant will contribute Rs 40 crore. Doubling of the annual capacity of the Pune plant to 2,000 cranes, at an investment of Rs 30 crore, is also underway and it is also expected to be completed by December.