DMG mulls setting up assembly plant in India

To set up technology centre in Bangalore.

DMG India, the sales and service arm of the Euro 1.3 billion Gildemeister Group of Germany, a manufacturer of CNC metal cutting machine tools, is exploring the possibility of setting up a dedicated assembly plant in India for both the domestic market and exports.

Said Thorsten Schmidt, director, sales and service worldwide and CEO Asia, Gildemeister Group, "We see India to be among the top five manufacturing countries in the world in machine tools in the next five years and among the top three in eight years. We aim to be part of this growth story."

The firm has recently invested Euro 10 million for a greenfield facility in Shanghai to produce 4,500 machines per annum.

As part of its India plans the company is setting up a technology centre in Bangalore this year. This will be DMG's 8th technology centre in Asia and the first in India. The centre, spread over 15,000 sq feet, will be dedicated to developing customised solutions and application support in tooling, fixtures, software and engineering time studies for the auto and auto parts, dies and moulds, aerospace and other sectors.

The company will invest Euro 4 million for its technology centre at Bangalore which will customise machines for its Indian customers to better their quality and productivity standards. The centre will showcase 8-10 machines constantly.

DMG aims to achieve a 10 per cent share of the Indian machine tool market, which is estimated at Euro 850 million. Its main focus will be on aerospace, automotive, medical, plastics and semiconductor sectors.

The tech centre in Bangalore will also house the company's service competence centre in Asia. This will service machines in China, Korea, Japan and India. Its global customers in India include Ford, Honda, Visteon and Suzuki.

At present DMG has 45 employees in Bangalore and it will raise it to 100 by the end of the year. It aims to sell 150 machines in India this year. The company, which earned revenues of Euro 20 million in 2006, is aiming at Euro 50 million by 2010.

At IMTEX 2007, DMG has introduced new machines including low-cost high speed vertical milling centres, vertical turret lathe and other machines that enable ultrasonic machining in combination with milling operations.