Bekaert highly optimistic of Indian market

New plant commissioning in 2011

Bekaert Carding Solutions Pvt. Ltd., India a fully-owned subsidiary of Euro 4 billion Bekaert NV of Belgium, with its plant in Pune, currently manufactures flexible tops. With a workforce of 75 and six regional offices in Coimbatore, Madurai, Hyderabad, Ludhiana, Ahmedabad and Kolhapur, Bekaert established its presence in India by acquiring the renowned English Card Clothing (ECC), Damgaard & Sobelcard in 2005. With the emergence of India as one among its major markets, the company has made huge investments to produce high-quality tops, mainly the TV Series for which India has become a major hub meeting Bekaert’s worldwide requirements.

In an exclusive interview to The Textile Magazine at the recently-held ITMA Asia in Shanghai, Mr. Michel Vandevelde, Managing Director, Bekaert Carding Solutions NV, said India, with its locational advantage and industrial potential, offers good market for the company. Considering the various advantages, the company has already developed different new products, including tops, fillets etc., at its Pune plant. The company’s primary focus is on the aftermarket by providing world class service to customers. The ultimate aim is to make Indian operations by Indians for Indian customers. Most of the employees of the Pune plant have been thoroughly trained in the Belgian operations. This has enabled the company to maintain a uniform quality standard at all production levels.

Further, India being the fastest growing economy in the world, Bekaert set up a Technology Development Centre in Ranjangaon (at outskirts of Pune city) in Maharashtra in March. Inaugurated by the Prince of Belgium in the presence of the officials of Bekaert, including its Chairman, the Centre would be utilised for the development of new products of Bekaert’s various divisions, including carding solution, for meeting the global requirements of the group company, Mr. Vandevelde added.

According to Mr. B.L. Bhattak, who has recently been elevated to Sales Director for India and South-East Asia, the major contributory factor for the company’s success in India is its focus on top class niche customers. This has helped the company gain a market share of 22 per cent in the higher & mid segment in Indian market. Currently, Bekaert enjoys 25 per cent market share in Europe and in the US, Bekaert has of course a higher market share.

The other growth factor, said Mr. Bhattak, is the direct marketing of products with adequate customer assurance. The current return of investment (ROI) from the Pune plant is around 18 per cent. The company has a large clientele base with leading Indian textile companies and the list of customers keeps growing on a regular basis.

Mr. Bhattak also disclosed that with the Pune facility, now functioning in a rental premises, running to full capacity, the company is setting up an ultra-modern new plant in Ranjangaon in order to produce high-tech items as well as to meet the growing demand for the company’s products. This plant, being set up at an investment of 2.5 million Euro, is expected to commence production by 2011. The machineries required for carding wire manufacturing are made in-house. The wires are not only for self-consumption but also to be supplied regularly to other leading global manufacturers.