US power firm kicks off operations in Bengaluru's SEZ

Ten months after breaking ground within the city’s Special Economic Zone (SEZ) to set up a new factory, the US power company, Eaton Industrial Products Private Limited launched operations at the unit on Tuesday.

Eaton, which is a $20 billion global enterprise specializing in energy solutions, said it will manufacture hydraulic tube conveyance equipment for commercial aircraft across all international markets. The factory was set up on a parcel of land measuring 2.85 acres and involved an investment of Rs 50.50 cr.

“The factory currently employs 55 people but will expand to 110 under phase one of the factory plan,” explained Nanda Kumar, president of the company’s India operations, a former Bangalore University graduate. He clarified that the company will aim to generate an annual revenue of $60 to 70 million in a few years’ time.

The global market for the conveyance equipment is $1.6 billion annually, added Scott Thompson, a Senior Vice President and General Manager in the company’s Aerospace Division.

This is not the first international entrant to the 2,000-acre Aerospace Park at the SEZ, set within throwing distance of the international airport. The German company Thyssenkrupp Aerospace, coupled with Shell Technologies, already has offices there, with a third, Boeing, having announced that it will invest Rs 11.52 billion to set up an avionics and electronics manufacturing plant.

Dr Kota Harinarayana, former president of the aeronautical society of India, said the influx of such companies in the SEZ, reveals that the weight of international aerospace manufacturing was tilting towards China and India.

“However, considering that China has already experienced large-scale growth, any further gains by them will be small. India, on the other hand, can expect double-digit growth,” Dr Harinarayana said.

The Minister of Large and Medium Scale Industries Jagadish Shettar was scheduled to attend the opening of the factory but left for Delhi to attend a curtain-raiser for a global exhibition on services.

Kumar said that the factory will be conducting trials with artificial intelligence while conforming to the industry 4.0 standard.