Global furniture fittings manufacturer and brand Hettich, having a turnover of $1.2 billion, will invest Rs 500 crore in India over the next five years.
The German company, which established operations in India by setting up a 50:50 joint venture with the Saroj Poddar Group in 2000, has launched its Vadodara facility, set up at an investment of Rs 100 crore.
The Vadodara plant will manufacture Cargotech wire basket, primarily for the kitchen segment initially for domestic use and later to meet Hettich’s global requirements. The company is also looking at the possibility of manufacturing complimentary products later, Dr. Andreas Hettich, Global CEO, said.
India can become a major base for servicing our growing markets in South Asia and West Asia. “We plan to make more investments in the local unit by pumping in over Rs 500 crore over the next five years.”
He said the 13-acre Vadodara facility was Hettich’s first factory in India, and the first for wire products anywhere. More products will be added to Hettich’s basket.
The company expects to export 40 per cent of its production by 2016, by leveraging the Hettich’s global network and customer base.
Hettich India Pvt. Ltd, a joint venture between the Hettich Group and Adventz, the Saroj Poddar Group, is a market leader. Currently, the company’s business model is based on imports. The Vadodara factory will help it generate foreign exchange through exports, thereby helping to partly neutralise the impact of foreign exchange fluctuations and volatility.