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ShareMumbai: Homag India, a wholly-owned subsidiary of Germany's Homag Group that manufactures wood-working machines, plans to set up a unit in India and expects to start production by mid-2012, a top company official said.
The company has zeroed-in on Bangalore as the location to set up its unit, the official said.
The Homag Group today has 12 manufacturing facilities in Germany, Spain, Brazil and China.
"We will set up a facility for manufacturing Computerised Numerically Controlled (CNC) machines at Peenyain Bangalore. We have already acquired five acres of land there and production will start by mid-2012," Homag India's managing director, Govind Assudani said.
He, however, refused to divulge investment details.
The facility would have a production capacity of 400 CNC machines per year, Assudani said, adding that a CNC machine is used to manufacture modular furnitures, interior elements and flooring out of reconstituted wood like Medium Density Fibrewood (MDF) and Pre-laminated Particle Board (PLB).
"The demand for modular furniture is growing at a rate of 20-25% and there is a huge potential for CNC machines as well. The machines almost double production and turnover of the modular furniture manufacturers," Assudani said.
The modular furniture market in India is pegged at Rs9,000 crore.
Currently, Homag India is only involved in marketing and distribution of the CNC or wood-working machines which are imported from Schopfloch, South Germany.
"Presently, we are only into distribution, sales and training and import around 400 machines per year," he said.
The company counts majors such as Godrej and Durian amongst its clientele of 600 companies, he said.
The wood-working industry has a market size of euro three billion of which Homag has a major share of Euro 1.2 billion.
