A. O. Smith to Locate India Headquarters, Manufacturing in Bangalore
18 September 2008 - 1:29AM
PR Newswire (US)
MILWAUKEE, Sept. 17 /PRNewswire-FirstCall/ -- A. O. Smith today
announced plans to locate the headquarters of its A. O. Smith India
Water Heating Private Limited venture in Bangalore and begin
construction of a residential water heater manufacturing plant.
Design work on the 76,000 square foot facility will begin in the
fourth quarter; construction is scheduled for completion in the
second quarter of 2010. The plant will initially employ
approximately 100 employees, according to Ajita G. Rajendra,
president of A. O. Smith Water Products Company. "We selected
Bangalore for a number of strategic reasons," he pointed out. "The
city is centrally located in one of our key target markets in India
with a growing consumer class interested in premium water heating
solutions. The local infrastructure will be able to support our
distribution needs." "Bangalore also has extensive engineering and
technical resources which will be essential to the success of our
new venture. As the business expands, we envision adding
engineering and procurement resources to the operation." The plant
and India corporate offices will be located on 20 acres in the
Harohalli Karnataka Industrial Area just outside of Bangalore. The
site provides A. O. Smith with the ability to expand its
manufacturing operations as volumes grow. The manufacturing
operation will be designed to assemble glass-lined residential
water heaters in sizes ranging from six liters up to 100 liters. In
addition to water heater assembly, the company will be installing
processes to apply its exclusive Blue Diamond(R) glass lining to
the tanks. The Blue Diamond glass offers superior corrosion
resistance when compared with conventional glass-lined products,
stainless steel, or copper lined tanks. A. O. Smith also coats the
electric element in addition to the interior of the tank for
additional corrosion protection. In the initial phase, the plant
will purchase pre-painted steel components for water heater
jackets. Plans call for plant expansions as the business grows to
including jacket and tank fabrication and painting. Once the
facility is fully built out, it will be a fully integrated
residential water heater operation, Rajendra said. Products
manufactured under the A. O. Smith brand name and will be marketed
to selected dealers in the electrical channel and in the retail
channel. The plant also will manufacture co-branded products for
Jaquar Company, PLC, one of the leading suppliers to the sanitary
channels in India. A. O. Smith and Jaguar reached a marketing
agreement in July. A. O. Smith currently has sales offices and
stocking warehouses strategically located throughout the country as
well as a sales and customer service organization in place. A. O.
Smith is the first U. S. water heater business to enter the India
market and is supplying premium quality residential and commercial
water heaters to the market. The company conducted extensive
research before entering the market including consumer focus groups
and qualitative studies. The sleek designs and colors of the new A.
O. Smith water heating product line are the result of this research
and acknowledge the growing importance Indian consumers place on
the attractiveness of their bathrooms and fixtures. A. O. Smith
Water Products Company is the largest operating unit of A. O. Smith
Corporation, a $2.3 billion (U. S.) manufacturer headquartered in
Milwaukee, Wis. Water Products Company markets an extensive line of
residential and commercial water heaters and boilers and has
manufacturing operations in the United States, Mexico, China,
Canada, and the Netherlands. DATASOURCE: A. O. Smith Corporation
CONTACT: Media Inquiries, Mark A. Petrarca, +1-414-359-4100, or
Analyst-Investor Inquiries, Craig Watson, +1-414-359-4009, both of
A. O. Smith Corporation Web site: http://www.aosmith.com/
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