Business Today

Scomi to make India a major global manufacturing hub

Scomi and three to five of its key vendor associates will invest over Rs 1,000 crore in BAPL to make rakes and logistics infrastructure for various mass rapid transport systems like monorail, buses, metro and tram services.

P.B. Jayakumar        Last Updated: January 9, 2015  | 19:25 IST
Scomi to make India a major global manufacturing hub
Mumbai monorail

Monorail specialist Scomi Engineering of Malaysia, which constructed India's first monorail system in Mumbai, plans to make India one of its major manufacturing bases for global operations.

The company will set up its first local manufacturing unit at the Bengal Aerotropolis Projects (BAPL) planned at Durgapur in West Bengal, Kanesan Veluppillai, chief executive officer of Scomi Engineering told Business Today.

Scomi and three to five of its key vendor associates will invest over Rs 1,000 crore in BAPL to make rakes and logistics infrastructure for various mass rapid transport systems like monorail, buses, metro and tram services.

Scomi will act as the seed technology partner and will invest about Rs 200 crore for setting up its factory. The factory is likely to come up within a year. A Memorandum of Understanding (MoU) was signed between BAPL and Scomi on Thursday as part of the Bengal Global Business Summit.

"We have factories in Malaysia and Brazil and this will be third one. The factory will cater to the projects in India, besides Nepal, Sri Lanka and other neighbouring countries. We also want to be part of the Make in India and infrastructure story", said Kanesan.

The monorail market alone is estimated to be $2 billion and is expected to become $15-20 billon within the next 10 years. Scomi, Bombardier and Hitachi are the main monorail system specialists in the world. Bombardier has already opened a metro rake making unit in India, at Savli near Vadodara in Gujarat.

In India, Scomi is constructing the second phase of Mumbai Monorail and new lines are being planned in Delhi, Chennai, Uttar Pradesh, Rajasthan, West Bengal and Kerala. In February, the Mumbai Monorail was launched and Scomi Engineering together with its Consortium partner Larsen & Toubro Limited (L&T) now runs the operations and maintenance for the complete system. For the Mumbai Monorail, Scomi Engineering provided the complete value chain for a monorail system from design, build, integrate to operations and maintenance.

Kanesan said the $600-million Scomi is executing major projects in Brazil, where it got a PPP contract for its third monorail line. Now Malaysia has launched the expansion of its Kuala Lumpur Monorail (KL Monorail) from a 2-car train system to a 4-car train system.

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