Cos eye US & EU firms for 2nd hand textile machines
05 Dec '05
2 min read
Indian textile firms are prowling for manufacturing companies in the EU and the US, which may dispose off their machinery and relocate it in India and other Asian countries.
Indian textile industry has either obsolete machinery that needs replacement or on a look out of latest technology, which is a major hurdle in the expansion plans of its leading companies.
But, there is a hope awaiting those who wish to seek a number of defunct textile mills with usable machinery that are up for sale at cheap rates in the US and EU countries.
Meanwhile, sources inform that the Government's Inter-Ministerial Steering Committee is also considering a relaxation of the stringent residual life norms for imported machines for imported machines such as second-hand spindles to make the process of imports viable.
European textile players, including firms from Italy and Germany, present at the recently concluded Asian textile conference Textech 2005, were in search of buyers for their plants.
Italian machinery manufacturers including Promatech-Savio, Essico Srl, Marzoli Spa, Mario Crosta Srl and Panter Srl, are also among those preparing to enter Indian market.
Acknowledging the growing Indian interest in European and US plants, leading supplier of second hand machinery, German Machine Tools Corporation is undertaking project appraisals and consulting assignments abroad from Indian textile mills.
Most of the European and American players have been rendered uncompetitive following the phasing out of textile quotas. They have hi-tech machinery, which can be shipped out at almost fraction of the price of new machinery.
Sources say Gujarat Heavy Chemicals Ltd, a Dalmia Group company, is in talks to buy out four large home textile units in the US and Europe, with plans to relocate the machinery to India.
As the waiting period for most types of textile machinery in the country is about 18 – 24 month, Mr Shishir Jaipuria, Managing Director of the Delhi-based Ginni Filaments, opines that Indian companies have no other option in this situation.
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