ebm-papst invests Rs 340 crore in new manufacturing unit at Chennai

CHENNAI: ebm-papst, a leading global manufacturer of fans and motors, is expanding its manufacturing footprint in India, by strategically investing Rs 340 crore in its new plant.

The groundbreaking ceremony of the plant at S Sunguvarchatram, in the city, will take place today.

ebm-papst India Pvt Ltd, the wholly-owned subsidiary of the euro 2.4 bn German MNC, has been operating in India for over 25 years now. It already has two plants, both in Chennai apart from housing 130 staff in its GCC, also in the city.

Reporting a sales of Rs 430 cr (euro 48 mn, CAGR 29%) for 2024-25, Atul Tripathi, MD, ebm-papst India, said this comes on the back of 32 per cent growth over the last year. The target is to go past euro 100 million mark by FY 27/28.

Key markets that the company caters to include data centres, commercial buildings, renewable energy, clean rooms, retrofit, digital solutions and service concept.

Due to its dynamic growth, India plays an important role in ebm-papst’s strategy for the Asia-Pacific, Middle East and Africa (APAC & MEA) region.

As part of the planned production expansion, ebm-papst has acquired a 57,600 m² (14.2-acre) plot of land in Chennai. The first phase of the upcoming construction project comprises an area of 23,000 m² and an investment of 36 million euros (Rs 340 crore). The production plant, which is expected to be completed by end-2026, will enable the company to serve local customers in the APAC & MEA. Tripathi said “once fully operational, the plant will employ around 700 people.” Besides strengthening the resilience of ebm-papst’s supply chain, the new plant, its third in India, will boost its ‘local for local’ strategy apart from enhancing production capacity by four times. Currently, localisation is 35 to 40 per cent but efforts are on to take it past 80 per cent in three years, he added. “As a technology leader, we are leveraging our glocalisation strategy to serve the APAC & MEA region with tailored solutions,” said Klaus Geissdoerfer, CEO, ebm-papst Group.

Thomas Nuernberger, CSO, ebm-papst Group and CEO Air Technology APAC & MEA, added: “By localising production and strengthening supply chains, we are ensuring that we can respond quickly and effectively to the needs of our Indian customers.”

ebm-papst established a Global Capability Centre (GCC) in Chennai in 2023. Spanning 2,800 m², this facility will house 300 specialists dedicated to developing digital solutions for both ebm-papst’s intelligent fan technologies and global processes, supporting its digital transformation in the coming years.