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U.S. tools maker in India venture
By agencies
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Friday, 15 July 2005, 19:30 IST
NEW DELHI: THE U.S. tools manufacturer Snap-on Tools has announced its entry into the Indian market. The company, which has set up a wholly owned subsidiary here, plans to invest $130 million. It will also consider setting up a full-fledged manufacturing facility after it develops a better understanding of the local market.
"Our business model is based on India's robust economic growth, which promises sustained expansion of Snap-on in the country. We will start by actively serving our customers with a strong, in-country team and then develop plans for manufacturing which will meet the unique needs of the Indian market," said President Worldwide, Commercial/Industrial Tools Group of Snap-on Inc, Nicholas Pinchuk.
He said the company estimated the Indian market potential at $400 million. "With India's booming aviation, automobiles, oil and gas and power sectors, Snap-on sees a surge in demand for its products and aims at achieving a turnover of $20 million over the next five years," he added.
Snap-on products are used for installation, maintenance and servicing in the aviation industry (commercial and military), military bases, oil exploration, hydro, thermal and power plants, mining, automotive sector and general industries.
The company has begun by setting up four divisions in India hand tools, power tools, equipment division and cutting tools. In each category, the company is in the process of establishing dealer networks across the country.