Tiruchirapalli-based mid-sized company GB Engineering Enterprises Private Limited has signed a joint venture worth Rs 100 crore with Italian major Ansaldo Caldaie to manufacture and supply boiler parts to the local as well as international market. This move is expected to encourage the many SMEs in the Indian boiler industry to follow suit and look for expansion opportunities overseas.

This development comes close on the heels of the recent prediction by G Pattabhiraman, managing director of GB Engineering Enterprises Private Limited that the Indian boiler industry has the capacity to serve the world. The issue of depegging Chinese currency yuan also gains importance here. Incidentally, Indian boiler manufacturers, which are mostly SMEs, are suffering a 15% loss because of cheap pricing of Chinese equipment and the weak pegging of yuan.

Notably, the boiler industry in India is a fast emerging sector which registered a growth of 23.36% during 2008-09 to touch Rs 10,15,393 lakh as against Rs 8,13,134 lakh in the previous financial year. Also, over 11,000 MW capacity of fresh boiler manufacturing capacity and 12,000 MW of turbine generator production capacity are likely to be added to this sector, which is further expected to boost the productivity of SMEs in this segment. This will therefore help them to cater more to overseas markets.

With GB Engineering Enterprises Private Limited showing the way, more SMEs in the Indian boiler industry can look to join hands with their foreign conterparts and tap those markets.

Sreemita Bhattacharya