Daifuku Co., Ltd, the world’s leading automated material handling technology provider, and solutions plan to construct a new manufacturing facility in Telangana.
The new state-of-the-art factory with a footprint of more than 200,000 square feet will augment its current facility of 60,000 square feet and is slated to produce world-class intralogistics equipment such as automated storage and retrieval systems, sorting transfer vehicles, conveyors, and sorters.
Speaking on the occasion KT Rama Rao, Minister for IT, Industries, MA & UD, Govt of Telangana; said, this is indeed an excellent occasion to celebrate and that is the reason we wanted to make it happen. The world at large and especially post-pandemic needs more infusion of positive news. Daifuku coming to Telangana and setting up a brand-new factory with Rs 450 crores of investment, providing employment to eight hundred plus people, was indeed something we wanted to celebrate, my compliments to the entire team of Daifuku. You made the right choice I can tell, by choosing Telangana and Hyderabad.
The first phase of expansion envisages a planned investment of INR 2 billion and Daifuku expects to operationalize its new factory within the next 18 months.
“This expansion, which will include technology transfer from Japan will not only help us in expecting our localization plans but will also accelerate our product development pipeline in India so that we can serve the needs of our Indian customers with greater efficiency,” says Srinivas Garimella, Managing Director of Daifuku’s Indian Subsidiary, Vega Conveyors & Automation Pvt Ltd.
With the Indian economy anticipated to remain one of the fastest growing economies in the world, Daifuku expects that the intralogistics automation market will continue to multiply and plans to employ 250 people and products that on full plant capacity utilization, the number of which may move up to more than 800 as it continues to stay vested in India.
Hiroshi Nobuta, Daifuku Board Member and Responsible officer for its Indian operations while thanking the government of Telangana for being pro-active in fast-tracking its expansion plans, states that India will continue to be a focus market for Daifuku and remains committed to the company’s Indian operations.
Founded in 1937, Daifuku Co., Ltd. is the world’s leading provider of material handling systems to the manufacturing and distribution, cleanroom, automotive, and airport industry markets. Daifuku has established a total support system ranging from consulting to after-sales services. The company is headquartered in Osaka, Japan, with production and sales bases in 26 countries and regions.
Vega, headquartered in Hyderabad, is a pioneer in industrial automation. Established in 1999, Vega achieved substantial scale over the years with more than 350 customers spread across India and the globe. Daifuku Co., Ltd acquired Vega. Japan in April 2019.