Posted inSectors

#Investment: Shibaura Machine to invest in India to double its manufacturing capacity

With the new investment plan, the manufacturing capacity of SMI will be increased to 3200 machines a year in a phased manner.

The top leadership team of Shibaura Machine Group is posing with the new factory picture at Chennai
The top leadership team of Shibaura Machine Group is posing with the new factory picture at Chennai

Shibaura Machine India began its operations with the takeover of the plastics machinery business of Larsen & Toubro in 2012. Celebrating its tenth anniversary this year, the company has recently laid the foundation stone for constructing a new manufacturing facility at a sprawling 11+ acres adjacent to its existing plant. The new factory is expected to begin its trial production by November 2023. In the next 3-4 years, SMI is expected to create new jobs, increasing the team size. In addition, about 50 MSME vendors will be developed to cater to the need of increased capacity.

Announcing its investment plan, Shigetomo Sakamoto, President, Shibaura Machine Group, Japan, said, “India has been a strategic investment destination for us, and it represents a growing market for our products. However, the country’s skilled and dedicated people make it even more attractive. Over the years, the teams in Japan and India have nurtured a strong and fruitful partnership – as a result, SMI is able to carry out improvements in manufacturing processes, increase production, and bring to market the latest Japanese technology, all quite effectively and quickly. SMI is the very first unit outside Japan to have been recognised with the prestigious Shibaura Machine’s President Award for its performance and technology innovation. The Indian unit has won this coveted prize twice in three years. We are confident of what our Indian team can achieve in design, manufacturing, and customer service, in the years to come.”

Shibaura Machine entered into manufacturing in India in 2012, acquiring 100% stake in L&T Plastics Machinery Limited, then the market leader in hydraulic injection moulding machines in India. It was incorporated as Toshiba Machine Chennai Private Limited, and in 2020, it was renamed Shibaura Machine India Private Limited. In his comments, M. Kumar, Managing Director, SMI, said, “Since takeover in 2012, SMI carried out improvements in manufacturing processes and increased its production capacity from 600 to 1200 machines per year and sales revenue tripled. We have made steady progress year after year and have crossed the milestone of selling our 10,000th machine in 2019 and 13,000th machine in Oct 2022. With the new investment, we will continue to grow our capacity and team.”