Staubli optimistic of growth prospects in India in 2015

Interview with Fritz LEGLER, Vice President, Staubli

Stäubli is continuously observing market needs, listening to customers’ requests and trying to anticipate new trends on the textile & fabric markets. This ability to listen, in combination with its long-lasting experience of more than 120 years in the textile machinery business, has enabled the company to offer products adapted to the market needs. Mr. Fritz Legler speaks about the business in 2014 and what we can expect from Staubli and the global weaving industry 2015 and beyond.

How has 2014 been for Stäubli?

Staubli-FritzLegler-pic

After 2013 and its intense investment activity into weaving machinery, our business in 2014 is fully in line with our expectations and plans. There was a clear cooling off and reduced investment activity in China. Excess capacities are immense and need to be balanced. Other major textile producing nations performed reasonably well, but could not entirely make up for what was missing from the biggest cloth manufacturer worldwide.

A major milestone was the ITMA Asia in June where Stäubli could introduce new solutions or further developments in areas of its active warp control systems – e.g., with new Jacquard  solutions or novelties in areas of warp preparation systems or carpet weaving. Another major achievement was the fact that we could gain qualitative momentum through the acquisition of many new customers worldwide and our active customer retention initiatives.

Which were the markets that did well for the company? Are there interesting global market trends that emerged in 2014?

Turkey and India were living up to expectations although we would still anticipate even more forward-looking investments from India; innovative and financially strong investors are pushing the business in these countries. The political unrest in different countries in the Middle East brought about further relocations of weaving capacity to other countries or enabled new entrants to get into markets like home textiles. Jacquard weaving clearly gained momentum in 2014. Another trend is probably the ongoing growth of technical and industrial textiles which helps traditional markets like Germany, the US, or for that matter also India, to foster their textile industries.

Looking into 2015, what are your expectations from the global textile industry?

The odds are that next year is going to be again an uphill battle for the global weaving industry. We would, however, see India as one of the countries which should profit the most and further grow its textile export potential. This should bring about some investment needs in new technology which Stäubli should benefit from. The new government will have set the full pace by then and given further positive impetus to the textile industry. China will have to live with, and get used to a new level of qualitative growth on a lower level (around 7% GDP growth), and the Chinese will have to convert their country from excessive investment growth to more domestic consumption. There are still some concerns that Brazil would not move out of the doldrums and that the issues in some CIS countries will not be resolved very soon. Thus, we cannot really expect any major growth next year.

How does Stäubli plan to leverage on the growth opportunities that would emerge in the future?

Stäubli is continuously observing market needs, listening to customers’ requests and trying to anticipate new trends on the textile & fabric markets. This ability to listen, in combination with our experience of more than 120 years in the textile machinery business,will enable us to offer products perfectly adapted to market needs.

As the global leader who provides technology leadership for the weaving industry, and what can we expect from Stäubli in 2015 and beyond?

In one word: “Continuity!” Expect more of the same. This with a view to making sure that our customers’ investments in Stäubli technology and solutions pay off well and fast.

We will strengthen our leading market position with innovative new solutions. The cost of ownership over the lifetime use of our products is very important to our customers. We have to pay a lot of attention to this and further improve benefits in this respect. Simultaneously, we will strengthen our reliable service worldwide with our strong local presence in different markets.

2015 is going to be a big year for the global textile industry with ITMA 2015 slated for the end of the year. ITMA usually is the launch pad for future technologies in the textile industry. What can we expect from Stäubli at ITMA 2015?

It is a little early to let the cat out of the bag – don’t you think so? Joking aside, we intend to live up to expectations of our customers and the market place and will definitely present new products and solutions.

Visitors will discover interesting and beneficial novelties on an attractive booth in areas of our active warp control systems such as shed forming technology (jacquard, dobby, cam motion), weaving preparation systems, the magic “savoir-faire” of our brand Schönherr and our carpet weaving systems ALPHA, and DEIMO branded controlling systems and accessories for socks machines.

For weaving mills that want to stay ahead of the curve, we truly recommend a visit to us in Milano in November next year.

India has always been an important market for Stäubli. How do you foresee opportunities unfolding in the Indian textile industry?

India has a great opportunity to find its way back to positive growth going forward. Some of the homework has been done (decisions and plans of the new government or decisions made by Bank of India). Currency advantages help boost exports which in turn foster local textile manufacturing. The TUFS is still operational and market adjustments in other countries (e.g., China) will help boost India’s textile industry. The investment activity into spinning has been huge, of late. This should also foster the weaving industry. If India manages to keep down the “red tape” it will have an even better future.

Would Stäubli look at enhancing its engagement with the Indian textile industry by having a manufacturing presence to cater to the needs of the local market?

Stäubli’s presence in India with our local staff is covering all important manufacturing hubs in the domestic textile industry. Our team is supporting the Indian customer base with devotion to assure smooth business relationships, ensuring highest efficiency levels of our machines, thanks to local aftersales services and quick supply of spare parts.

As for your question pertaining to FDI into India by our company, we do not see a pressing need at the moment. The domestic market of machinery suppliers requesting our technologies is still rather small. We are currently investing in strengthening our local team and hubs further as we go along. We intend to grow together and in line with the Indian textile industry.