ZF Group to Invest Over Rs 18,700 Crore in India to Expand Business
Germany's ZF Group is set to invest 2 billion euros (approximately Rs 18,750 crore) over the next six years to significantly expand its operations in India. The investment will span various sectors, including auto components, wind gearboxes, construction, and agricultural machinery.The ZF Group’s ambitious investment plan aims to boost its sales in India to 3 billion euros (approximately Rs 28,000 crore) by 2030, a substantial increase from the Rs 10,000 crore recorded last year. Additionally, the company expects its sourcing of parts from India to meet both global and local demand, reaching 2 billion euros annually by 2030.
Peter Laier, a member of ZF Group's management board, emphasized the importance of India in the company’s long-term strategy. "India's transportation needs are increasing, and we anticipate more vehicles on the roads in the future. Our investment is a long-term commitment, reflecting the growth potential we see in the region", Laier stated.
In line with this commitment, ZF Group plans to expand its wind energy gearbox manufacturing capacity at its Coimbatore plant from 9 GW to 12 GW. The company also remains committed to sustainability and intends to play a significant role in India's goal of doubling its wind power capacity by 2030.
While monitoring emerging technologies such as ethanol, biofuels, and hydrogen, ZF Group's primary focus continues to be on internal combustion engines (ICE) and electromobility.
Akash Passey, President of ZF Group India, highlighted the favorable conditions in the Indian market. "Our goal is to grow from Rs 10,000 crore to Rs 25,000 crore, driven by the strong performance of the Indian economy. Despite global challenges, the policies of the Union and state governments here are supportive, offering significant potential for development", Passey said.
Currently, ZF Group employs 16,000 people across 18 manufacturing units and 10 engineering centers in India.