General Electric (GE) announced on Monday that they plan to build a $200 million multi-product plant in Pune, India, part of the company’s strategy to localize production while expanding in the Indian market space by 20-30 percent over the next year.
GE chairman Jeffrey R. Immelt announced on Monday:
“Our new integrated manufacturing facility is coming up near Pune on a 68-acre plot for making a wide portfolio of products for the Indian market.”
The company says 2,000 jobs will be created and the facility will begin with 450,000 square feet that can be expanded up to 1 million square feet if needed.
Speaking about economic worries in the region and globally Immelt told the Business-Standard :
“At a time of global volatility, we still see robust demand for our infrastructure products and still feel quite good about the prospects on a global basis for the industry we are in, like infrastructure and financial services. The growth of infrastructure sector would continue to be robust. Aviation, energy and transportation are quite healthy in the US market.”
GE believes that the emerging markets of the world are their key to success and continued expansion, according to company reports they expect to bring in $35 billion in 2011 from emerging countries. The same approach has worked for the likes of Siemens and United Technologies so perhaps they are onto something.
Do you think GE’s increased expansion into emerging markets will help them grow their core businesses during talk of a double dip recession?
