MUMBAI: The process equipment manufacturing unit of Godrej Enterprises is planning to shut down its Vikhroli, Mumbai plant within the next two to three years.
The primary reasons for this decision are the high costs and increasing infrastructure challenges in Mumbai, such as metro and road developments, which make it difficult to transport large equipment, Hussain Shariyar, Business Head, Process Equipment, told TNIE.
Manufacturing operations are being shifted to the company’s Dahej, Gujarat facility, which has been significantly expanded. The company recently announced an investment of Rs 200 crore to expand its manufacturing facility in Dahej, Gujarat. The new investment follows a previous Rs 300 crore infusion, further demonstrating the company’s commitment to strengthening domestic manufacturing and advancing India’s clean energy goals.
The Phase-III expansion of the Dahej facility will increase annual manufacturing capacity to approximately 30,000 MT with an increase in the production space including the development of new Dust-free Enclosure for manufacturing exotic materials, dedicated bays for Internals manufacturing, and the development of extended manufacturing yards.
This expansion aims at developing capability and capacity in manufacturing high-end and critical process equipment including for sectors like hydrogen, nuclear, and geothermal energy along with conventional energy projects like refinery and petrochemicals.
Hussain Shariyar further said that some of the Mumbai plant employees have already relocated, while others will be absorbed into different divisions of the company. The Vikhroli plant of the Process equipment business of the company is spread in 27,000 sq metre area and has 400 employees. The company emphasized that it does not lay off employees and ensures smooth transitions by relocating staff within its operations.
The process equipment division of Godrej Enterprises manufactures reactors, pressure vessels, columns, and heat exchangers for the oil & gas and chemical industries, as well as feedwater heaters and surface condensers for the power sector. The company serves the oil & gas, chemical, and power sectors, including petrochemical plants, refineries, fertilizer plants, thermal power plants, and nuclear power plants worldwide.