Date:23/11/2006 URL: http://www.thehindubusinessline.com/2006/11/23/stories/2006112306730300.htm

Back Italian textile machinery cos eyeing India

Our Bureau

Mumbai , Nov. 22

India's booming textile industry has caught the eye of Italian textile machinery manufacturers who are showing interest in setting up manufacturing units in India.

Matec S.p.A is one such company that manufactures machinery to make socks. The company recently set up a factory in China and is now looking to do the same in India.

"We see a lot of potential in India and are investing about $100,000 on research in India. We are sending people to study the market and conditions as we are looking to set up another factory like the one in China," said Mr Bruno Pardini, Sales Manager, Matec, speaking on the sidelines of a seminar on Italian textile machinery.

China ahead

For Italy though, India is not even close to China when it comes to exports of textile machinery (Matec exports around 300 machines to India compared to 4,000 to China annually). But companies such as Matec and SMIT Textile have expressed their optimism about increasing their exports to India.

"India is our third largest importer after China and Turkey and accounts for 15 per cent of our turnover. By the next year, we expect India to become our second largest market," said Mr Luciano Corain, President, SMIT Textile.

India currently exports machinery worth € 129 million (approx Rs 741 crore) from Italy. "With more and more companies foraying into retail, domestically there will be a huge demand for textiles," said Mr J.N. Singh, Textile Commissioner, Union Ministry of Textiles.

"Italy is known for its high quality machines and if they want to take advantage of the situation here, then they should look to set up joint ventures or direct manufacturing capabilities," he added.

Mr Singh also said that he expects the total investment in the textile sector in India to be Rs 1.4 lakh crore in the next 4-5 years.