US firm to set up new mfg facility in Bangalore

New Delhi: US-based water heating appliance company A O Smith will be setting up a manufacturing facility in Bangalore to step up its presence in India.

Besides scaling up its distribution network, the company is also upping its investment in product development.

“The water heating devices segment has so far been consigned to the small scale industry. Hence, there has been no significant investment into the sector. We hope to garner consumer attention with aesthetic design and latest technology,” Mr David R. Warren, Vice-President (International), A O Smith, said.

The company is targeting a 30 per cent market share in the Rs 700-crore water heating segment in India. Mr Warren said the company’s manufacturing facility will also cater to the export market once it is operational.

“The 20-acre facility will be operational by the third quarter of 2010. However, till such time, we will be sourcing water heaters from our existing plant at Nanjing (China) which has an exclusive assembly line for production to cater to the Indian market”.

Mr Warren, however, declined to divulge the investment into its capex plans.

On the distribution, Mr Tamal Chaudhuri, National Sales and Marketing Manager for India said, the company has a partnership with sanitaryware major Jaguar for distribution of its new range.

The company will be currently retailing water heating devices in the residential category. It is also mulling entry into newer categories like commercial water heaters and water purifying devices as well.