AS Kolmeks, a manufacturer of components for electric motors and industrial robots based in the Southern Estonian city of Viljandi, is set to establish a plant in India for an investment of €3-4 million.
Kolmeks managing director Leho Haldna told regional newspaper Sakala that the plan is to perform the initial stages of manufacturing operations in India and then complete the job in Estonia.
"We wil take the simpler part of what we are doing in Estonia to India," Haldna said. "As a a matter of fact, we are buying material from India now; our idea is to process that material there first and then bring it here."
The director said that compared to five years ago, the company is making more products tailored specifically to the needs of individual clients and less mass production. "That's why we are going to India," he said, adding that it is the mass production part that will be taken to India.
According to Haldna, Kolmeks has seen a stable annual revenue in the range of €21-22 million in recent years, with a profit of approximately €1.5 million.
"Our plan is to open the plant in August or September," he said. "The building is ready, the equipment is ready, so to speak; it's being installed now." Kolmeks is to employ an initial workforce of 15, and the Indian plant is estimated to operate with an annual revenue of €3-4 million in its first years of operation.
The Indian operation will start out on rented space; the construction of a plant of its own is to start in 2018. Following the completion of the new plant, in approximately two years, workforce numbers are to gradually increase to 80-100.
"We simply aren't in a position to train all these people quickly enough," Haldna explained. "There's an abundance of workforce in India, but they lack training. Basic training alone takes four months, actually training takes about a year. Our aim is to reach revenues of €10 million in 3-4 years."
Kolmeks is a holding of the Finnish company Brandt Group OY, which has plants in Estonia, Finland and China. The company has been having a stable annual revenue in the area of 21-22 million euros in recent years and a profit of approximately 1.5 million euros, according to Haldna.
Editor: Aili Vahtla