New Delhi, Feb 25: Singapore's sole locally-owned machine tools manufacturer and one of the prominent players in several countries, Excel Machine Tools Ltd, is keen to set up a wholly-owned subsidiary in Bangalore.The company intends to apply to the Foreign Investment Promotion Board (FIPB) in March, seeking permission to start the company. It is already in the process of identifying land to set up the factory in Bangalore.
Excel's business activities include manufacturing of precision machine tools, factory automation and robotics, waterjet and laser cutting systems and machines.
Robin Lau, the executive chairman and president of the company, told The Financial Express that Excel was planning an initial investment of Rs 5 crore in India, which could later go up.
Besides setting up the manufacturing base, India Excel Pvt Ltd will also set up its sales, marketing and training, and more importantly, an R&D arm, the centres in all the four regions of the country. This would help the company toprovide one stop turnkey solutions to its clients in India.
India will be the fifth country, besides Singapore, where Excel will set up its base, according to Lau.
As much as 95 per cent of its products in the other five factories are exported, mostly to Europe and the US. ``Since ASEAN forms a very small portion of our exports, we are not affected much by the currency crisis, Lau claimed. Excel has nine subsidiaries in Singapore, Malaysia, Thailand, Hungary and the USA.
Its worldwide clients include General Motors, Ford, Toyota, TRW Aerospace and Rockwell. Excel already supplies its machine tools to Bharat Fritz Werner Ltd (BFW) and Delphi in India.
In the beginning, about 90 per cent of the production will go to the domestic market. Later, exports would form about 50 per cent of Excel India's total production.
``Excel is known worldwide as a one-stop solution centre. In India, we are planning to concentrate on the automobile, moulds and dies and precision engineering industries. We would help ourclients to increase productivity through flexible product ranges and solutions, adaptable to the changing market needs,'' Lau said.
Since Excel's inception in 1986, its sales turnover, profitability, assets and markets have witnessed steady growth. Starting with an initial paid-up capital of S$1,50,000, Excel now has a current market capitalisation of S$16 million and a turnover of S$69 million.
Since its inception, the group has introduced new designs and products every year. It has successfully penetrated markets traditionally dominated by long-established competitors through its competitive pricing, reliablility of its products, innovative product features and good after sales support, Lau claimed.
Copyright(c)1998 Indian Express Newspapers (Bombay) Ltd.
