DECEMBER 2010 - MGM SpA and Varvel SpA: joint venture in India to support Italian manufacturing
Posted in News - 02/17/2011
Two important realities of the Italian mechanical sector, MGM Motori Elettrici SpA and Varvel SpA, present in exclusive to the press, their new joint venture MGM-VARVEL Power Transmission Pvt. Ltd.
The new business will be headquartered in India, with a plant in the city of Chennai, in south-east of the country, which is scheduled to officially open by February 2011.
MGM-VARVEL Power Transmission will be a strategic logistical pole for the assembly and sorting of the products of Crespellano and Serravalle Pistoiese companies, and will occupy all local staff, among managers, account, technicians and sales responsabile.
The total investment for the two companies will be 1,000,000 euros.
"Although the market recovery, especially those abroad, - says Francesco Berselli, CEO of Varvel SpA - we firmly believe that the only way to develop new foreign markets is creating a network. That's why we joined forces with MGM, with the desire to give a new impulse to the production, but not surrendering to the false illusion of relocation."
"India represents a new opportunity for us - says Francesco Ghieri, Managing Director of MGM Motori Eletrici Spa - despite significant signs of recovery in the mechanical trade, both in the domestic and foreign market, we decided to proceed with this new investment to further expand our sales network. We are looking for new solutions and markets that have been able to remain virtuous even in last years. "
"The production, however, will not be moved from Italy - said the Managing Director of Varvel, Mauro Cominoli - while the Indian office will be dedicated to the last stage of assembly between the engine and transmission components. President Berselli is right"- continues Cominoli -" when he says that to Italy there will be only beneficits. We expected a sales performance in India that, from the initial figures, will lead us to an increase of 67% in 2012 and 100% in 2013. Whether these goals will be met, prospectives to new job opportunities and prosperity for all could be opened."
The choice of India as the location of the new MGM-VARVEL establishment was dictated by the recognition of the excellent features of this country from the point of view of the technical training level. India also has a quality infrastructure and allows us to develop a business with growth rates higher than those of western countries.