With the first machines delivered to India in 1886, a joint venture set up in 1968, the 100 per cent subsidiary established in 1995 and the decision to embark on local manufacturing in 2007, Rieter is progressively implementing its strategy with the top priority of providing customer-oriented service.
Rieter enjoys very good, long-term relationships with its Indian customers. This close association is based on mutual success and trust. All the leading mills in India have been Rieter’s customers for decades. Global economic recession in 2008-09 resulted in a drastic drop in textile business across the world. The drop in demand from major markets like the US and the EU hit exports business of the Indian textile industry, which, however, managed the recession with efficient cost management and increasing domestic consumption. This signals clearly the strength of the Indian textile industry to become a global player in future.
The history of the Indian textile industry dates back to the early 19th century, when traditional handloom textiles were its core feature. Availability of raw cotton was the main reason for this industry to increase domestic output. After a period of recession during the 1930s, the industry again developed great momentum and at that time availability of machinery became a bottleneck restricting the further growth of the industry.
Development of the textile industry became strong and vibrant during the 1950s. India imported lots of machines from Switzerland and Germany, and the industry modernized and expanded to meet growing demands during the period from 1950 to 1960. Since 1960 there has been progressive growth in the spinning industry, reflected in the increase in total spindle capacity from 13.05 million in 1958 to almost 42 million by the end of 2009.
With the economic liberalization starting in the late 1980s the export-oriented unit (EOU) scheme was launched, and between 1989 and 2000 “100% EOU” units emerged, focusing on leading-edge technology and machinery to compete in the global marketplace.
From 2000, the Government made considerable efforts to boost the industry’s performance, launching schemes such as the Cotton Technology Mission and the Technology Upgrading Fund. The Government also plans to launch a national fibre policy and technology mission on technical textiles in 2010. The industry has responded with record growth in cotton production and a substantial increase in the production of yarns and other textile materials.
Rieter’s association with India
The first Rieter machines entered the Indian market in the last quarter of the 19th century. The Tata Group’s Svadeshi Mills already opted for Rieter machines in 1886. Rieter re-entered the Indian market in 1930 when quality machines were in demand even if investment costs were higher. In 1938, Rieter supplied a blowroom line to Rajapalayam in South India, which is still running today.
The company went a step further with technology transfer to a joint venture with Lakshmi Machine Works Ltd. in the late 1960s, further strengthening its position in the Indian textile market. On August 1, 1995, it formed its 100 per cent subsidiary – Rieter India Pvt. Ltd. – and opened offices in major locations to offer doorstep services to customers. This enabled it to get even closer to the market and offer doorstep service and after sales facilities to its customers.
Rieter built up its manufacturing plants in Pune in 2008 after having approval for investments in 2007. Demand from the spinning industry for machines made by Rieter in India has been long. It was a proud moment for Rieter to roll out its first indigenous draw frame RSB-D 221 in March 2009 and the first indigenous Ring frame G 312 in May 2009. More than 40 RSB-D 221 and around 200,000 spindles were under supply until February 2010.
Quality and flexibility
For Rieter, India has always been one of those markets for textile spinning where quality and superior service take priority over price. In an era of increasing energy costs the Indian spinning industry appreciates all Rieter’s innovation efforts in the fields of consistent quality, flexibility of machinery setup and minimum energy consumption per kg of material output. In addition, the reduction of waste throughout the spinning process has become one of the main reasons for the increasing preference for Rieter machines in India during the past two decades.
The presence of qualified mill managers all over the country makes it easier for investors to opt for Rieter technology and machines and operate them efficiently to extract all possible innovation benefits.
From only 10 customers in 1989, today there are have more than 600 mills using Rieter machines and technology and supplying their end products around the world.
Joint venture with LMW
Rieter LMW Machinery Ltd., a joint venture of Rieter and Lakshmi Machine Works Ltd., was set up in 1992 itself for manufacturing ring frame assemblies. In 2005, Rieter completed the acquisition of the Suessen Group globally, and the manufacturing plant of Suessen Asia Ltd. in Satara district near Pune became a part of the manufacturing facility of Rieter. By 2008, this plant was completely refurbished to manufacture state-of-the-art technology machines. Rieter also initiated building up of a second manufacturing facility in Koregaon Bhima near Pune in 2008.
Today, Rieter is manufacturing ring frames, draw frames and fiber preparation machines in these two locations for the Indian market and for export with R&D and technology support from its head office in Winterthur, Switzerland. The factory in Wing, Satara district, is fully equipped with state-of-the-art machines for sheet metal manufacturing, machining and coating. It also has the most modern assembly and R&D facilities for engineering and manufacturing.
With the Indian textile market growing at more than six per cent driven by domestic consumption and increasing exports, Rieter will look forward to expand its manufacturing activities in India in the near future.
Future growth
The world has witnessed enormous growth in India and China in recent years. India’s GDP has been growing at an average of 7-9 per cent in the past three years, with industry and services growing at 10-11 per cent. The textile industry has also grown at a similar pace, reflected in increasing investment in factory buildings. The Indian textile industry has already identified weaving and finishing as the weak links in the value chain. The action taken to remedy these weaknesses will once again trigger a new surge in growth and opportunities for all sectors of the industry.
The Indian textile industry is also facing many short-term problems in the areas of infrastructure, power shortages, increasing raw material prices, high interest costs and a shortage of skilled labor. The positive outlook is that the industry and the Government are now making joint efforts to minimize and solve these problems.
Rieter’s commitment to building close relationships with customers has resulted in long-term plans for India. The focus now is to expand manufacturing facilities, enhance product portfolios and offer superior sales, marketing and service facilities with suitable machines and technology. India is one of Rieter’s key markets. With positive growth trends in the past years and inherent strengths in raw material and the workforce, there are enough reasons to look forward to a long-term presence and association in India.