Bopp & Reuther's resident regional director MR Chakraborty said the company was also looking to buy back ductile cast iron castings, estimated at 20,000 tonnes per annum, to meet its group's needs, and has shortlisted three foundries across the country to source this requirement. While it has a captive supply of 12,000 tonnes from its plant in the Czech Republic, India appears to be the best option for the balance at today's demand levels.

Though keen on sourcing from India, Chakraborty said domestic manufacturers would have to maintain timelydelivery schedules and quality to meet global standards. India is an attractive destination since the cost of production is significantly lower than Europe, but competition from China, the other low-cost production centre, is fierce.

Among the products Bopp & Reuther could source from India are steel plates from a SAIL unit, paints from Berger, actuators from Auma India--the domestic operations of a German company--and it is in the process of talking to quality rubber suppliers.

Investments in India would be done "progressively," Chakraborty said, pointing to the huge investments made by the German company in the Czech Republic as an indicator.

Bopp & Reuther recently entered into a 10-year licence agreement with the Dubai-based Jumbo International's unit Mather+Platt Ltd for the supply of butterfly and non-return valves, Chakraborty said. He estimated the domestic demand for these valves, used in municipal water supply or power stations, at Rs 10,000 crore over the next 10 years. Mather+Platt hasbooked orders for the supply of 33 valves for two projects, one from the Karnataka government's irrigation department and the other from the Calcutta sewerage authorities. While Bopp & Reuther will source seven of these from its Saudi Arabian plant, the rest of the orders will be supplied from here. Each valve is priced at Rs 10 lakh, but Chakraborty said they had matched domestic prices, which could result in a 20 per cent lower realisation.

Chakraborty did not rule out Bopp & Reuther setting up separate manufacturing operations here. He said they were surveying possible locations. Although no site is yet fixed, it is unlikely to be located outside Maharashtra.

Bopp & Reuther has set a target of selling Rs 20 crore worth of valves by 2000 and the thrust is on indigenisation, to reduce dependence on imports. These are expected to eventually be brought down to 5 per cent, with only critical components being imported.

Once operations stabilise, Bopp & Reuther will introduce the smaller gate valves, whichare required in large numbers in projects, and plunger valves, for which there is big requirement worldwide and there is no domestic manufacturer. It also plans to introduce rubber-seated, or soft-seated, gate valves.