European bearings maker URB Group today said it will invest $ 65 million to set up a manufacturing facility in India with an initial installed capacity of 1,000 tonne a year.

"The Indian market is huge and has immense potential. After establishing our presence, now we are going to set up an assembly unit at an investment of $ 65 million," URB India President Harun Adiguzel told reporters here.

The company, which is present in India since 1982, will set up the facility in Rajasthan on 25 acre plot, he added.

"The initial production capacity of the plant will be 1,000 tonnes of bearings every year that will later be doubled in future. The plant is expected to start operations by end of 2013," Adiguzel said.

He further said that 70-75 per cent raw material will be sourced locally, while rest will be imported from Romania.

Talking about the sales plan, he said initially 70 per cent of the production will be for the domestic market.

"Later, the domestic and exports will contribute equally. We export the products to both Europe and the US," he added.

When asked about sales revenue, Adiguzel said the firm's turnover has already touched $ 20 million.

"We are looking at a turnover of $ 200 million with our India URB factory in next five years," he added.

The Indian facility will be its fourth factory in the world after Romania, Turkey and Hungary.

Talking about its customers, Adiguzel said: "With local production starting, authentic URB bearings will be available at much lower prices directly to manufacturing companies in automobile, steel, mining, power, oil and railways along with our dealers in India."

He said the $ 168 million URB Group is targeting to become a $ 1 billion entity globally by 2023 with 10 manufacturing plants across the world.