WEG disburses US$8 million in an area of ​​400 thousand m² in Indian territory to grow

WEG (WEGE3) wants to grow in India. In a statement, the company reported having acquired a 400,000 m² plot of land located in Dharmapuri, Tamil Nadu, paying US$8 million, a value that corresponds to approximately R$44 million. The deal was announced on Wednesday (4).

The Hosur industrial complex, another company reference in the region, is 95 km away from this land. From what the company reported, the land serves to support the growth of the Indian operation and gradually expand production capacity.

WEG's presence in the country is not new. According to Money Times, the Indian operation has been operating since 2011 and currently has five units. InfoMoney, citing Reuters, points out that the company has approximately 2,000 people hired in Indian territory.

Today, the local portfolio includes generators and voltage regulators, as well as excitation systems, frequency inverters and electric motors. These products are what the company takes to the new area, whose expansion, according to the published plan, should take place in the coming years.

What changes for the investor

For those who follow WEG on the stock exchange, the announcement shows a company that continues to invest in capacity outside Brazil. The disbursement of US$8 million appears to be a long-term movement: as the expansion will be gradual, the effect on production and results tends to appear gradually, and not immediately. It is worth observing, in the next balance sheets, how the company will treat this investment and whether new expansion announcements in India will appear. The statement does not provide revenue or margin projections, so any reading on results depends on data that the company has not yet released.

Automatically translated from Portuguese.