With an eye to further expanding its presence in India, global giant General Electric (GE), with diversified interests in infrastructure, finance and technology, is scouting for a place to set up new manufacturing facility in the country. The company hopes to finalise the location by the end of fiscal 2011-12.
“We are growing in India and need to have a new production facility,” said John L. Flannery, president and chief executive officer, GE India. “The new manufacturing facility will entail an investment of $10-25 million.”
He was speaking on the occasion of the tenth anniversary of GE India Technology Centre —the R&D arm of GE. Flannery added that the new facility planned by the company would serve only the Indian market.
There has been concerns in India after US President Barack Obama said that his government would discontinue tax breaks to companies that create jobs overseas in direct reference to offshoring of businesses, especially to India. This raised concerns among Indians that companies would now be tempted to expand businesses in US.
“We are growing both in the US and in India and all our business plans are made accordingly. So we are expanding both in US and in India,” said Flannery.
GE India is further planning to ramp up its R&D operations and expects to double the headcount at its GE India Technology Centre over the next three years. “We have around 4,000 people working in different research projects and over the next three years we expect this number to be around 8,000,” said Sanjay M. Correa, MD, GE India Technology Centre.