Chennai: Sanmar Group is positioning its Rs 2,000-crore engineering division for the next phase of growth by expanding capacities across its long-standing joint ventures, targeting opportunities in emerging sectors and evaluating new areas such as warehousing and semiconductors.The Chennai-headquartered diversified group, which is celebrating 50 years of its engineering business this year, believes India’s long-term industrialisation story remains intact despite a slowdown in private capital expenditure over the past two to three years.“We expect a significant revival in India’s capex cycle over the next few years,” said Vijay Sankar, chairman of the Sanmar Group. “India’s long-term growth story remains extremely strong. The question is not whether GDP grows at 6.5% or 7.5% in a particular year, but how the country moves from a $4 trillion economy to a $20 trillion economy over the coming decades.”That optimism is driving investments across all four of Sanmar Engineering’s US joint ventures. While the group did not disclose investment figures, it said the focus is on technology-led capacity expansion rather than large capital expenditure.Among the key projects is a new Flowserve Sanmar facility near Tiruporur to manufacture gas systems and gas panels. XOMOX Sanmar, which makes industrial valves, has nearly doubled its production capacity. Anderson Greenwood Crosby Sanmar has strengthened cryogenic testing capabilities, established an oxygen clean room and introduced digital valve-testing technologies, while BS&B India is increasingly developing customised products for the nuclear, defence and space sectors.Sanmar sees growth from both conventional process industries and emerging sectors. “I would broadly divide the opportunities into two categories: the traditional sectors driven by energy security and industrial growth, and the newer sectors that are now opening up. Both present meaningful opportunities for us,” said Ishwar Vishweshwar, managing director of Sanmar Engineering.Exports are also becoming a key growth driver. “Our growth comes from two engines—India’s industrial demand and our role as a manufacturing hub for global markets,” Sankar said.Including exports from India and production at its overseas manufacturing facilities, the group’s international business contributes around Rs 700 crore to Rs 800 crore, or about 35% of overall revenue.Sankar said Sanmar’s role in the semiconductor ecosystem through Cabot is limited and that the group is not directly involved in chip manufacturing. He added that warehousing is among the new businesses being evaluated under a broader strategic plan.
