URB Bearings to set up factory in Rajasthan; to invest $ 65 million in 5 years

December 5, 2012: Romanian bearings manufacturer URB Bearings is gearing up to establish its manufacturing footprint in India after marketing its products through distributors since 1982. These were initially distributed through Dubai and in the last 10 years marketed directly in India. The parts maker currently has 22 distributors in India that supply bearings to a gamut of industries including mining, oil, energy, railways and automotive among others.

Among the direct customers is the Bhilai Steel Plant, according to Harun Adiguzel, president, URB India (pictured). With fake bearings from China triggering URB’s decision to establish its base in India, a manufacturing facility was envisaged at Abu Road in the Sirohi district of Rajasthan.

One of the reasons cited by the company for the choice of the locale was its proximity to the harbour and the National Highway that would facilitate import of raw materials for production of bearings from its Romanian plant. Additionally, the price of land, logistics costs and proximity to industries also contributed to the site selection.

The company plans to export 30 percent of its total production to Europe and the US once production goes on stream stream months after construction commences early next year, says Adiguzel.

The URB facility, which will come up on 1,000 square metres, is expected to generate a turnover of $ 200 million in five years. Automotives currently contributes about 20 percent of the company’s sales in India and the company expects to continue with this equation as it taps the growing bearings industry in the country which is pegged at $3.5 billion and growing at a CAGR of 10 percent.

URB originally started operations as a government company in 1953 in Romania and under the privatisation drive in the country which ended in 1999, changed hands with major shareholding held by the Kobassan Group of Turkey.

Besides Romania, URB Bearings has production units in Turkey and Hungary and supplies to Volkswagen, Renault, Hyundai, Volvo and Mercedes-Benz.

SHOBHA MATHUR