Could local sourcing make Indian manufacturing more competitive? Following LAPP’s expansion in Bhopal, Updhar Srivastava of LAPP India tells EFY’s Nitisha Dubey how local manufacturing and Indian suppliers can reduce logistics costs and strengthen supply chains.
Q. LAPP recently expanded its manufacturing facility in Bhopal. What prompted the expansion, and what does the facility add to your manufacturing footprint in India?
A. LAPP commissioned its first manufacturing unit in Bhopal in 2012 to produce cables and wires. Completed in August 2026, the expansion has increased the facility’s capabilities, particularly in low-voltage power cables rated up to 3.3 kV. The expanded facility is now LAPP’s largest manufacturing plant globally and is designed to support the company’s planned growth through 2028.
Q. What products are currently being manufactured at the expanded Bhopal facility?
A. The facility produces instrumentation, control and power cables, along with specialised cables for solar and e-mobility applications, including EV charging infrastructure.
Q. What manufacturing technologies and infrastructure have been deployed at the expanded facility?
A. The Bhopal facility uses cable-manufacturing technologies and a high degree of automation. An in-house compounding plant produces compounds for cable insulation and outer sheathing. The facility also uses electron-beam (e-beam) technology to strengthen cable sheathing for use in harsh environments.
Q. How localised is the Bhopal manufacturing ecosystem in terms of raw materials and components?
A. Nearly 90% of the raw materials we use are sourced within India. Around 90% of the products we sell in India are manufactured locally, with the remainder imported from other LAPP group companies. Our approach is essentially ‘made in India for India’.
Q. Does the Bhopal facility use new or second-hand machinery, and why?
A. We purchase new machinery rather than second-hand equipment. At Bhopal, we use machines imported from Europe alongside those manufactured by Indian suppliers. Our priority is to select equipment that meets our manufacturing quality and reliability requirements.
Q. What roles do automation and digitalisation play at the Bhopal facility?
A. Automation is used throughout the manufacturing process, including in the compounding plant. Distributed control systems support the digitalisation of operations, while automated equipment allows production to be adjusted to different customer specifications. Digitalisation is also used in raw-material compounding and cable manufacturing. Automated wire-drawing machines help improve production efficiency.
Q. How does LAPP maintain quality consistency across high-volume production?
A. We follow strict quality-control processes across our manufacturing operations in India, aligning them with those used in Germany and other European locations.
Q. How does local manufacturing help LAPP compete on cost and delivery timelines?
A. Localising manufacturing and building an Indian supplier base help reduce logistics costs and improve our competitiveness. We have localised raw materials, components and other inputs used in cable, connector and harness manufacturing. This has strengthened our position in India while supporting exports to neighbouring countries.
Q. What role will the Bhopal facility play in LAPP’s global manufacturing and supply-chain strategy?
A. The Bhopal facility will serve the Indian market and support LAPP’s global operations by manufacturing specialised cables for export and supply to LAPP entities overseas.
Q. Which markets will LAPP target with products manufactured at Bhopal?
A. The Bhopal facility will serve India and SAARC countries. LAPP also exports cables and harnessing solutions to markets in Asia, the Middle East and parts of Europe. In India, the facility will supply products for infrastructure, solar, e-mobility and data-centre applications, including EV charging.
Q. What role will Bhopal play in serving emerging sectors such as EVs, renewable energy, data centres and semiconductors?
A. We are focusing on e-mobility, data centres and semiconductors, as well as infrastructure projects such as railways and metros. Our engineering capabilities in India allow us to adapt and localise products to meet customer requirements while maintaining our quality standards.
Q. How much has LAPP invested in the Bhopal expansion, and what contribution does it expect from the facility?
A. We cannot disclose the exact investment, but it is in the hundreds of millions of rupees. The expanded facility is expected to account for close to 40% of our business in the coming years.
Q. What has been the impact of the expansion on employment and workforce requirements?
A. More than 200 people are directly employed at the Bhopal facility. The expansion has created over 100 additional jobs, alongside indirect employment across our supplier network. As the facility expands, we are primarily looking for manufacturing-related skills.
Q. How is LAPP building the manufacturing talent required to operate the new technologies?
A. We run an in-house training programme for employees. When needed, experts from our European operations travel to India to train staff at our plants. We also recruit trainee engineers and diploma holders, train them internally and assign them to our manufacturing operations.
Q. What roles do research and development (R&D) and product localisation play in LAPP’s growth strategy in India?
A. We have research and development and engineering teams in India working on cables, connectors and harnessing solutions. These capabilities allow us to localise products and develop specialised solutions for customers. For example, we have developed cables, connectors and harnessing solutions for Indian Railways to meet its specific requirements.
Q. What are the biggest challenges in scaling the Bhopal facility and maintaining a reliable supply chain?
A. Supply-chain disruptions and raw-material price volatility remain major challenges for cable manufacturers. Copper and aluminium account for a significant share of cable costs, while geopolitical developments can affect material availability. Over the past five to six years, we have reduced our dependence on imports by expanding our Indian supplier base, helping us manage risks associated with global supply-chain disruptions.
Q. How does LAPP differentiate itself from low-cost cable manufacturers in India?
A. We focus on quality, reliability and specialised cable solutions rather than competing solely on price. Our Indian R&D capabilities, supported by our European teams, help us develop products that meet specific customer requirements.
Q. Is price competition becoming a bigger challenge in India’s cable and connectivity market?
A. Price competition is a feature of India’s cable and connectivity market. As industrial facilities adopt more automation and digitalisation, customers are also paying greater attention to the reliability of connectivity products.
Q. What are LAPP India’s key business priorities for the next three to five years?
A. LAPP has operated in India for more than 30 years, serving discrete and process industries as well as infrastructure projects. Over the next three to five years, we will focus on railways, metros, semiconductors and data centres, alongside opportunities in solar, e-mobility and OEM markets. We plan to use our existing products and engineering capabilities to serve these sectors.
Q. What is the next major milestone in LAPP India’s expansion strategy?
A. With the Bhopal expansion recently completed, our immediate priority is to make use of the additional capacity. We have a five-year strategy and will assess growth opportunities across India. Depending on market demand, we may expand our manufacturing and sales capabilities further.
Q. How significant is India within LAPP’s global business?
A. India is currently LAPP’s second-largest business after Germany. We see scope for further growth and have expanded our manufacturing capacity to support demand.
