Biesse India aims for 80% localisation of manufacturing within two years

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Biesse India aims for 80% localisation of manufacturing within two years

Updated – November 20, 2024 at 03:22 PM.

Biesse India operates two manufacturing plants in Nelamangala, Bengaluru, which export 75 per cent of its products manufactured in India

Sayeed Ahmed, CEO, Biesse India

Sayeed Ahmed, CEO, Biesse India

Biesse India, a company that manufactures integrated lines and machines for companies like IKEA, Nilkamal Industries, and Godrej Interio, aims to localise 80 per cent of its manufacturing in India within the next two years. Currently, 68 per cent of its products are manufactured locally.

The Indian arm of the Italian company, which contributes 29 per cent to the group’s global profit, plans to significantly increase its localisation efforts. “We are continuously working to bring the supply chain closer and more under our control,” said Sayeed Ahmed, CEO, Biesse India. “The challenges we faced post-COVID, along with emerging geopolitical uncertainties, have highlighted the importance of this shift. Our goal is to achieve approximately 80 per cent localisation in the near future.”

Biesse operates two manufacturing plants in Nelamangala, Bengaluru, which export 75 per cent of its products manufactured in India. Highlighting the industry’s potential, Ahmed stated, “India’s per capita furniture consumption is currently negligible. Even if we consider just the Indian middle class, whose per capita income is comparable to that of Vietnam, our furniture consumption would need to grow 16 times to match Vietnam’s levels.”

Looking ahead, Ahmed projects the industry will experience fourfold growth by 2030, highlighting its significant potential.

To support the growing demand the company is also planning to set up a new factory with a larger capacity to produce more machines. “We are looking at an investment of over ₹200 crore to expand our manufacturing capabilities,” said Ahmed.

Biesse India, a subsidiary of Biesse SPA, Italy, manufactures CNC Wood Working Machines as well as CNC Machines for Stone and Glass Machining. The company reported a turnover of ₹450 crore in FY24, with a 10 per cent EBIT. Over the last five years, it achieved a compound annual growth rate (CAGR) of 10 per cent, he said. Biesse’s clientele includes Featherlite Office Systems, Wakefit, Wurfel Kitchens, Merino Industries, Greenlam Industries, Monarch Office System, and Stanley.

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