'Chakan unit will create 350 direct jobs in Pune'

PUNE: ThyssenKrupp recently announced that it will invest Rs 300 crore to set up a multi-purpose manufacturing facility in Chakan near Pune. In an email interview with TOI, the managing director of ThyssenKrupp Elevator (India) Pvt Ltd, Bharat Vishnani, shares his views on what prompted the company to choose Chakan for its investment and the employment opportunities that it will create in the coming years.Excerpts:
What drove the company to invest in Chakan?
Pune was a natural choice to set up the facility considering the city is already an established hub for a variety of industries, including auto, electronics and electrical component among others. There are obvious benefits associated with setting up the multi-purpose facility (MPF) in an area that already has the proven infrastructure to support similar facilities. Proximity to Mumbai, the country's economic capital, is another factor which works for Pune's advantage. Besides, the city will be easily accessible from the proposed international airport coming up in Navi Mumbai.
How will the investment be rolled out?
The company plans to invest 44 million euros (Rs 300 crore) which would be carried out largely in two stages. We have earmarked an investment of 39 million euro (about Rs 266 crore) for the first phase which shall have a capacity of 6,000 units and will be completed by 2017. Once this is done, we shall scale up the production capacity to 10,000 units as part of the second phase, which will be completed by 2019/20.
Will this unit be used for export purposes?
Currently, we are looking to tap the domestic demand. The products which would be manufactured at the Chakan facility will be robust and most suited to the Indian market conditions. We plan to meet the local requirements first and explore other opportunities later that too after looking into factors like feasibility.
What prompted the company to announce moving some contract engineering/ manufacturing job from Mumbai to Pune?
The company will move some key departments from Mumbai to Pune with the intention of localizing the workforce and building on local talent. This is also a step towards consolidating the company's resources on a regional level at one centre. The initial transition will be made in 2015 and is expected to be completed by 2017. However, we will continue to operate (services) from Mumbai and only a part of our workforce will be moved to Pune. Meanwhile, every effort will be made to accommodate our current employees during the transition process.
What are the employment opportunities that will be generated during the course of the investment?
We expect to generate 350 direct jobs at the facility in a phased manner. Apart from these, there will be a large number of indirect job opportunities that will be created at our vendor's location, outsourced services and other agencies. Besides, the firm will also establish a SEED Campus (ThyssenKrupp Elevator's global training academy) on-site to improve service efficiency in the field. This academy will impart training of all types with a special focus on technical training to all our field technicians. This will be our contribution to the 'Skill India' programme.