(Yicai Global) June 25 -- Sieyuan Electric will invest USD6.7 million to set up a power equipment plant for gas insulated switchgears in India to feed demand fueled by nationwide grid construction.

The company's wholly-owned unit Shanghai Sieyuan High Voltage Switchgear will form a project firm in India to oversee its construction in the Sri City Industrial Zone in south India's Andhra Pradesh state, with a construction time of 18 months, the Shanghai-based power equipment maker said in a statement.

The first-phase project involves buying land, building a raw materials warehouse, assembly plant, laboratory and finished products stockroom to produce 420 kilovolt and below GIS products. It is set to achieve full-capacity operation by 2022 and turn a profit by 2023, per the statement.

The Power Grid Corporation of India and most of the states' power grid companies have solicited bids from firms which already have factories in the country or those planning them. This investment will help Sieyuan Electric lift its market share in India, the statement added. GISs take up less space than other switches and thus find use in confined settings.

Editor: Ben Armour