Switzerland-based Rieter Group has signed a contract to sell all of its shares in India-based
Rieter-LMW Machinery Ltd. (RLM) to India-based Lakshmi Machine Works Ltd. (LMW), its partner in a
joint venture (JV) established in 1994. The transaction is expected to close in August 2011, and JV
production for Rieter will continue until June 30, 2011.
According to Rieter, market conditions in India have changed, and both companies going
forward will focus on their individual strengths. RLM currently employs 450 workers, whose jobs are
expected to be retained after completion of the sale.
Rieter will continue to operate in India and plans to ask RLM suppliers to join its global
sourcing network. The company has established a new plant in Wing to manufacture ring-spinning
frames for its Indian customers, and also manufactures machinery in a plant in Koregaon. Rieter has
approximately 975 employees altogether at both manufacturing sites plus more than 100 sales, sales
support and service staff throughout India.
April 5, 2011