Sweden-based Alleima sees India revenues doubling in less than 5 years, ET Infra - infrabuddy.com

Sweden-based Alleima sees India revenues doubling in less than 5 years, ET Infra


<p>Representative image.</p>
Representative image.

Sweden-based Alleima, manufacturer of stainless steel and special alloys, sees the revenues from its India operations doubling in less than five years, making the region one of the top five for the company.

The company recently completed a ₹200-crore capital expenditure at its manufacturing facility at Mehsana in Gujarat, where it will produce products which find application in the chemicals and petrochemicals space.

“If we did not invest in India, it would have restricted growth,” Goran Bjorkman, the president and chief executive officer of the company told ET in an interaction. “We have moved from China to India with this investment,” he said.

The company has seen its sales in the country double over the last five-year period, and expects it to double from the current levels in less than five years, as companies in the petrochemicals and renewable energy space invest in their manufacturing capacities.

The company also sees opportunities from the usage of hydrogen as renewable energy, and is already working on a few pilot projects, including supplying to a large oil and gas company, which is setting up a crude-to-chemicals plant in Jamnagar in Gujarat.

Given that India is currently in the formative phase for hydrogen infrastructure, Alleima sees demand from this space picking up in a big way over the next three-five years.

Refineries investing in downstream capacities and electrification at a broader level will also be key demand drivers, the management said.

While the company does not have a specific budget earmarked for expansion at its India operations going ahead, it would prefer expanding at its current location, the management said.

Market attractiveness, volatility in the business, capital efficiency and profitability would be a few of the factors based on which the company will decide its capital allocation, the company said.

  • Published On Nov 28, 2023 at 08:12 AM IST

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