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Rieter plans manufacturing hub

M. Soundariya Preetha

COIMBATORE: Rieter, the Switzerland-based industrial group with textile and automotive system divisions, plans to establish in India a large-scale manufacturing hub to cater to the Indian market and for its Asian textile machinery business (except China).

The company proposes to invest $100-120 million in India during the next 5-10 years for its textile and automotive activities and the investments have started coming in, according to its Chief Executive Officer, Hartmut Reuter, who responded to questions on e-mail.

Having obtained government licenses and permission to manufacture, market, and service all Rieter textile machinery here, the company proposes to go in for local manufacturing for a majority of its textile products. The aim is to “lower the cost of total ownership for our customers.” As an immediate measure, the company will expand its manufacturing capacity near Pune and plans to add capacities and invest at its joint venture plant in Coimbatore.

The company will not exclude considering a greenfield project too.

In Asia, Rieter Textile Systems has manufacturing facilities in China and sales and service centres in several Chinese locations. Its automotive division also has manufacturing facilities in China and Thailand. “In Japan, we are present through our joint venture partner, Nittoku, in the automotive business,” he said. “In Asia, we are concentrating on the build-up of production capacities of both divisions in India and China.”

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