Italy's agricultural machinery manufacturer Maschio Gaspardo has set up a Rs 200 crore facility at Ranjangaon near Pune to make a range of equipment for India's farm sector. The company plans to manufacture rotary tillers, mulchers and seeders at the 25,000 sq.mt plant in the initial stage and extend the line of products to include power harrows, precision planters, cereal seed drills, combination cultivator drills, sprayers and minimum tillage equipment. "The company has been supplying these equipment to Indian tractor manufacturers Mahindra & Mahindra and New Holland India and has been serving the needs of Maschio Gaspardo Group's other global customers by providing local supply to their India and Asia Pacific facilities," said Alessio Riulini, Managing Director, Maschio Gaspardo India.

"We have been importing the equipment into India from our China plant and have now set up our own facility to benefit from the cost advantage possible in local production and offer better post-sales service to our customers," Riulini said at a press conference, adding that the company is in the process of developing local vendors for the different components necessary for its precision products and has achieved 60 per cent localisation so far. The plant has a capacity to produce 20,000 units per year though initially the company will make about 6,000 units annually and ramp up the production later.

The Pune plant currently employs 120 people and the number will increase to 250 over the next five years. "The company will add another Rs 100 crore investment in the plant over these years," Riulini said. The Ranjangaon factory will target sales revenue of USD 20 million (about Rs 110 crore) by 2013 which is its first full year of operation. "The plant will play a vital role in achieving the company's aim of exceeding USD 280 million revenue mark in 2012," Riuline said. The company has also set up a research and development centre at the Ranjangaon plant where it has employed 12 engineers. This will develop India-specific products and will also help modify the company's global products to suit Indian farming practices.