State of the art Indo Japanese joint venture to manufacture pre-hung doors at Butibori
Nagpur: While addressing the gathering, Chief Minister of Maharashtra Devendra Fadnavis said that it is proud privilege to be performing the ground breaking ceremony of an Indo-Japanese company. He said that this is the first FDI of its kind in Maharashtra and India. He expressed his pride and said that he is happy it is happening in Nagpur. He claimed that most of those from Nagpur have seen Spacewood grow. They have made it a reputable brand in furniture.
Dispelling the statement of the Founder Director Kirit Joshi that the Japanese have taken 20 years to come to India, CM Fadnavis said that since the Japanese Company Sumitomo Forestry Company Limited have 300 years of experience (established in 1691); they have taken 300 years to come to Nagpur and India. He is expressed his gratitude to the Founder Director of Spacewood for bringing the Japanese company to Nagpur.
While explaining about his trip to Japan, CM Fadnavis said that he saw a lot of interest in investing in India. This could be because of Prime Minister Narendra Modi’s visit which is bearing fruits.
Chief Minister Devendra Fadnavis said that this could be because of many reasons.
Japanese Industries have been investing in China. Now after saturation in China, China itself is looking for investments in India. This has provided a Global challenge opportunity for investments. The only destination to host investments for the next 30 years in India. This is the right time to invest in manufacturing industries in India. CM claimed that this is also the right time to host partnerships. He said that the Japanese take time to take a decision unlike the Chinese but when they do take a decision, they tie a Sustainable partnership of a life time. They also bring their cutting edge technology with them.
In India, when one sees a product which claims to be manufactured in Japan, one does not need marketing strategies, since the product quality speaks for itself. This also talks about Japanese credibility.
Now that they have partnered with Spacewood, they are certain to bring their cutting-edge technology especially in the modular furniture etc.
While encouraging the Managing Director of Spacewood, CM Fadnavis said that he wants them to market their products not only pan-India but globally. He wanted them to become IKEA (IKEA is a multinational group of companies that designs and sells ready-to-assemble furniture). He wanted them to have a global presence.
He spoke of the need to manufacture affordable furniture and low costs.
He spoke of the need to go forward.
He spoke of the present times as right for Make in India. He added that the concept is taking a leap forward. This according to Fadnavis will generate many job opportunities too. He asked the MDs of Spacewood to play the role of anchor to woo other Japanese investors to Nagpur.
He added that recently he had allocated land to a Solar panels and equipment manufacturing unit in Bhadravati. He hopes that this will revolutionize and solve many the power issues.
Spacewood, one of the country’s biggest brands and manufacturer of modular furniture has become one of the first companies in the furniture sector to attract FDI. One of Japan’s leading name in the domain Sumitomo Forestry Company Limited has invested to form a joint venture to set-up this advanced manufacturing facility.
Chief Minister of Maharashtra Devendra Fadnavis performed the formal Bhoomipujan and laid the foundation stone this afternoon of the plant at MIDC Butibori. Those present on the occasion include Executive Officer of Sumitomo Forestry Company Limited Masayuki Tabuse, President of Sumitomo Forestry Crest Limited Yoshihiro Yoshioka, Yoichi Hosoya of Sumitomo Forestry Singapore and both the Founder Directors of Spacewood Furniture Private Limited Kirit Joshi and Vivek Deshpande.
Sumitomo Forestry through its subsidiary Sumitomo Crest Limited is providing technical assistance to set up the factory as part of the joint venture. Sumitomo Crest has thirty years of experience and expertise in manufacturing readymade doors and door frames in Japan.
The new manufacturing facility is located on a sprawling 7 acre piece of land and will have about 3 lakh square feet of built-up facility to be completed in two phases with an initial investment of around Rs 30 crores.
The plant to be completed in 6 months will generate direct and indirect employment for about 300 people.
Indian building and construction company is going through a transformation, there is increasing pressure to complete the building in a short time. Such ready to install products will cut down the competition time tremendously, thus leading to a huge savings in the interest cost and turnaround time said Kirit Joshi.
These doors will be sold in all major metros, tier-1 and tier-2 cities across India.
The basic material for the door will be sold wood frame and HDF/ Plywood surface with tubular hollow core. The doors will come in different finishing such as Olefin from Japan, laminate, veneer, etc. Special Olifine from Japan is a new material which has a natural look and feel. It has a high abrasion resistance too.
Currently such doors and imported from Europe. This will be the largest capacity in India to manufacture pre-hung door sets. Most importantly the project aligns extremely well with our Prime Minister and Chief Minister’s vision of Make in India and Make in Maharashtra added Vivek Deshpande.
Masayuki Tabuse while addressing the audience said that we see India as a big potential for building material products and we are happy to be part of this growth story. We are glad to bring our expertise and technology and are sure many more innovative and useful products will be added on in time to come. Vivek Deshpande proposed the formal vote of thanks.
Vivek Deshpande and Kirit Joshi while addressing a press meet said that they have 20 years of experience in the field of making modular furniture. The Japanese conglomerate has 26% Equity stake and will be investing Rs 90 crores of which Spacewood will be utilizing Rs 30 crores for this Butibori plant and the remaining for their various showrooms.
The Founder Directors claimed that they intend to complete the construction of the Manufacturing Unit by April and will start trial production in May-June 2016.