Leoni, a leading provider of cables and cable systems to the automotive sector and other industries, persists with its globalisation strategy by expanding its business in India. On May 8, 2013, the company officially opened its new plant at Chakan near Pune, from where it will deliver customers from different industries with cables and cable systems. "India promises attractive medium and long-term growth prospects for several of our targeted industrial markets," said Dr. Klaus Probst, President and CEO, Leoni AG.

"Opening this new plant at Chakan is an essential move to better serve local customers and to drive our globalisation in India and close-by countries," he added. The establishment of a plant brings advantages such as better logistics conditions, the usage of local cost structures and the avoidance of import duties. Until the end of the year, Leoni plans to make an investment of around Euro 11 million for the facilities and the equipment and to have about 140 employees," he further said.

The new plant has a production area of around 15,000 square metres and has already started the manufacturing of standard cables for the fast growing automotive industry at the beginning of the year. At a later date, the new plant shall also produce automotive special cables. Experts estimate the annual growth rate of the Indian automotive market amounting to about 12 per cent until 2016 then reaching 5.8 million locally produced units per year.

Now, Leoni has also commenced the local production of cables and cable systems for the renewable energy market in order to serve the rising demand in this field. The company offers a wide range of power and control cables for photovoltaic and solar power plants as well as wind turbines. Furthermore, the company will locally produce standard cables, application-specific special cables, ready-to-connect assembled cables, sub-systems as well as complete system solutions for rail vehicles such as high-speed trains, locomotives, trams, metros and cargo railcars. Leoni also plans to install electron beam equipment at the latest by 2015 to manufacture the latest generation of very robust and durable cables for solar and railway applications.

The new facility will also make cables for critical applications in oil & gas, petrochemicals, power plants, water treatment and other process industries. Leoni plans to export a major portion of such products to other countries. The new plant in Pune is Leoni's second production site in India. In 2010, the company had opened an engineering office and a manufacturing facility for automotive wiring systems, which is located in Pune as well. "The choice of Pune is for the fact that it is a significant industrial center within India and also a hub for the local and international automobile industry," Probst said.