Germany’s ebm-papst to invest ₹340 cr in new Chennai factory, targets doubling India revenue by FY28

Germany’s ebm-papst to invest ₹340 cr in new Chennai factory, targets doubling India revenue by FY28

Klaus Geissdoerfer, CEO, ebm-papst Group flanked by Thomas Nuernberger (left) , CSO, ebm-papst Group and CEO, Air Technology, APAC & MEA and Atul Tripathi, MD, ebm-papst India, at a press conference, in Chennai on Thursday
| Photo Credit:
BIJOY GHOSH

ebm-papst India Pvt Ltd, a subsidiary of the Germany-based €2.4 billion ebm-papst Group and a leading global manufacturer of fans, blowers, and motors, is expanding its manufacturing footprint in India with an investment of ₹340 crore.

This investment will be used to establish the company’s third factory in India, located near Chennai, increasing production capacity by at least four times. The expansion is aimed at catering to the rising domestic demand across various applications in India while also serving global markets.

The company will break ground for the new facility on Friday at Sunguvarchatram, about 50 km west of Chennai. The 14-acre factory is expected to be operational by next year and will generate 700 jobs once fully functional, with 500 positions in the initial phase, said Klaus Geissdoerfer, CEO of the ebm-papst Group.

Strengthening Local Manufacturing and Supply Chain

ebm-papst India already operates two manufacturing units in Chennai and last year launched a global capability center employing about 130 people. The company follows a “local for local” strategy—developing, producing, and serving customers within each region.

Encouraged by India’s growing supplier ecosystem, ebm-papst is working to increase local sourcing from 35-40 per cent to over 80 per cent within the next 3-4 years. “India excels in sheet metal fabrication, aluminium die-casting, and plastic injection moulding. With our new plant, many of our customers and suppliers are also establishing operations here, further enhancing localisation advantages,” said Atul Tripathi, Managing Director of ebm-papst India.

India’s Strategic Role in Global Expansion

India’s rapid economic growth and evolving market dynamics make it a crucial hub for ebm-papst’s regional expansion, said Thomas Nürnberger, Chief Sales Officer (CSO) of ebm‑papst Group & CEO of Air Technology, APAC & MEA. “By establishing a new manufacturing facility, we not only strengthen our India-for-India strategy but also position ourselves to support other Asian markets, including the Middle East, Africa, and Southeast Asia.”

The company’s revenue in India has grown from €27 million in FY23 to €48 million in FY25, with an ambitious goal of reaching €100 million by FY28, targeting a compound annual growth rate (CAGR) of 29 per cent.

Focus on Energy Efficiency and Sustainability

ebm-papst specialises in air and heating technology, serving industries such as air conditioning, air handling units, and chillers. The company sees significant growth opportunities in data centres, renewable energy, and commercial building modernisation.

“Data centres are expanding rapidly, increasing demand for energy-efficient cooling solutions. The government’s push for sustainability is driving growth in renewable energy. Additionally, as commercial buildings modernise, advanced air handling units and retrofitting solutions are becoming priorities,” said Tripathi.

He highlighted that the company’s EC (electronically commutated) motors significantly improve energy efficiency, reducing power consumption by 30-50 per cent compared to traditional AC systems.

Published on April 3, 2025

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