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Lapp India is a 100 percent subsidiary of the Lapp group. Indian operations started in 1996 as a trading company based out of Delhi. Manufacturing plant was then set up in Bangalore in 1998. In India, the company manufactures and markets cables, and Imports and markets cables, connectors, cable glands, conduits and accessories. It is the pioneer in the concept of ”Total solutions in electrical connectivity” in India. Services and products are offered to customers through regional marketing offices set up at Delhi, Calcutta, Mumbai, Bangalore, Baroda, Chennai, Coimbatore, Pune, Ludhiana and other major cities and work through extensive dealer network.
Background
Lapp group started in 1959 and is a family-run multinational enterprise founded by Oskar Lapp.
Today it is among the leading manufacturers worldwide for wires and cables, cable accessories, industrial connectors and communication
technology. Headquartered in Stuttgart-Germany, the group has more than 50 companies, around 60 agencies, operates in all five continents and has approximately 2,600 employees. It has 18 production sites worldwide in America, Europe and Asia. In the financial year 2004/2005, the company expected to achieve a turnover of US$ 744 million (Euro 600 million).
LAPP INDIA
PRIVATE LIMITED
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India is considered to be among the biggest growth markets of the future
Lapp India is planning to gear up to meet India’s growing domestic need.The Bangalore plant is nearing full capacity so the plan is to invest in expanding capacity in the Bangalore plant.
Specialty Products for Airport
Lapp India plans to sell its products for the
proposed Bangalore International Airport. It hopes to supply the cable system for the project.
India as a hub for SAARC market In future India is seen as a hub for marketing the company’s products in the SAARC region.
As part of its expansion plan, the company would also be setting up a logistics centre on its existing premises at Jigani. LAPP is also looking at the power, industrial and automotive sectors for its speciality cables.
Market potential prompted the company to start Indian operation
Market potential and growth prospects were the main consideration to start operations in India.
The group’s first manufacturing plant in Asia was in India. India is considered as a key growth market and is given a lot of strategic importance by the parent firm. So far the growth of the company has exceeded the expectations of the parent.
The company has been able to achieve a steady growth in sales and market share without loosing margins.The top line has been growing at 30 per cent CAGR over the last three years.
The company is completely focused on the Indian domestic market. Exports from India are not considered at this point in time.
Keys to success
The company has been successful in developing strong partnerships with its customers through its branded products, tailored solutions and excellent service.The company is committed to continuous innovation. It is the company’s endeavour to innovate, produce & implement the latest and technically best suited products for
its customers. Global manufacturing know-how (technology and imported machinery) and very high quality standards (almost 100 per cent automation in plants) gives the group real advantages. Due to this the company has been able to get some price premium over local competitors.
The company has over 100 employees and they have contributed significantly to the company’s success. All the employees are highly qualified (some of them have received training in Germany) and at least 60 per cent of them have served more than 5 years in the company, which is a good retention rate.The quality of output of Indian manpower is better than most other countries.
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Lapp India Pvt Ltd: At a glance
• Started India operations in 1996 and started manufacturing in Bangalore in 1998.This was the group’s first manufacturing plant in Asia.
• For Lapp, India is: A key growth market and Indian operations have exceeded the parent’s
expectations.
• Factors for success: Employee capability, Global know how and customer orientation
• Future plans, India: Expanding capacity in
Bangalore plant, Make India the hub for marketing the company’s products in the SAARC region.
