WAGO’s Vadodara plant to be operational in Q3 of 2020

Alok Kishore, Chief Executive Officer, Wago India
Alok Kishore, Chief Executive Officer, WAGO India

Tell us more about WAGO India’s current business and the future roadmap.
Overall the business was similar as last year. While we did not significantly increase our revenue, we did see certain improvement in key strategic segments which is very encouraging for us. We also saw an increase in our exports by 4 per cent. We are nicely placed with our strategies that we planned for further investments in India.

Can you update us on your upcoming facility in Vadodara?
Yes, as updated lately, we are coming up with a large factory in Vadodara and the construction is still on. Approximately one-third construction is already over. The factory should be operational in third quarter of 2020. We will manufacture products to cater to domestic demand as well as exports.

Is there any cut in your investment plan?
Investment in the manufacturing capacity expansion is a strategic decision. This factory will serve the Indian as well as the global market and we do not see the temporary slump as a roadblock that will affect our future growth plans.

What are the products which will be manufactured in this new factory? Tell us about the capacity volume…
Currently the plan which is discussed between Germany and India is that the entire Noida operation will be shifted to Vadodara. We have to first stabilise the operation and based on the planned gestation period; the product lines will be shifted from Germany. Exports from India to Germany and China have already picked up and we are looking at 100 per cent growth. That will also be taken to Vadodara depending upon the final decision.

How does it feel when you supply ‘Made in India’ products to Germany?
We as a company policy follow same standards of production across global manufacturing units to maintain standardisation of quality irrespective of location of production. Certain products are earmarked to a certain factory. The products manufactured in India will go to all location whether in China, Germany or any other country. This enables us to achieve high standards of quality.

How do you see the acceptance of your products in India?
We have grown approximately double in the last five years. This proves that acceptance of our product is definitely there in the market.

What is the total CAPEX for the Vadodara facility?
In the phase one, we expect an investment of Rs 250 crore. With the machines put together, it may exceed. Further, investments will take shape during phase 2 and 3 that will of course be dependent on market outlook.

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