Chennai, April 11 (IANS) China-based Renminbi 220 million turnover LMW Textile Machinery (Suzhou) Co Ltd, a wholly owned subsidiary of the Coimbatore-headquartered Lakshmi Machine Works Ltd, has decided to expand its operations there, said a top official.
"China is the world's largest market for spindles with around 110 million spindles operating there. As we want to be there for the long haul we have decided to move into our own building, increase capacity and introduce our whole range of textile machinery," K. Soundhar Rajhan, chairman told IANS.
Declining to disclose the proposed expansion outlay Rajhan said: "Our total registered capital is $12. 5 million and we have not invested the whole sum. The proposed expansion outlay will fall within the said amount."
According to Rajhan, LMW Textile Machinery has a monthly capacity of around 40 machines and produce 35 machines.
"We cater to new as well as replacement market in China. Nearly 60 percent of our orders go for new mills and the balance is for replacement demand," Rajhan said.
He said the Chinese textile machinery market could be divided into three segments - small, medium and big.
"The small mills source the machines from local players while the medium sized ones buy from the large state owned machinery makers. The big mills are the ones who look at European technology," Rajhan said.
He said the company is targeting a turnover of RMB (Renminbi) 330 million in 2012.
"Our focus in only the Chinese market and we do not export out of China. On the other hand we import some components from India for the machines. The new plant will be ready in 2013," Rajhan said.
According to him the company would soon break even.
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