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PICANOL SUCCESS IN INDIA

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Picanol Group

2100 Employees 250,23 million Euro Group turn-over

35 nationalities 15 sites worldwideNext to headquarters (Picture) also following

activities in Ieper:

Foundry and machining activities:

Development, assembly and sourcing weaving machines

Weaving accessories Mechatronics

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Activities

• Weaving-machines– 65 % of Turn-over

• Weaving-machines • Accessories for weaving-machines• Spare-parts

• Industries – 35 % of Turn-over

• Mechatronics• Foundry• Drives• Toolings

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R – Research & development P – Production M – Marketing S – Service

China (R,P,M,S)

Mexico (P,M,S)

US (R,P,M,S)

Brazil (P,M,S)

Belgium (HQ)

(R,P,M,S)

India (M,S)

France (P,M,S)

Indonesia (M,S)

Italy(M,S)

Romania (R,P)

Turkey(P,M,S)

Worldwide presence

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Milestones

New organization structureLaunch of OMNIjet, OMNIplus 800 TC & TERRYplus

1936

1951

1963

1966

1971

1994

2005

2006

2007

Creation of ‘Weefautomaten Picanol NV’ by Charles Steverlynck

Launch of the President weaving machine

New production halls in Ypres

First stock listing in Brussels

Launch of the MDC, the world's first electronically controlled weaving machine

Own production plant for weaving machines in China

Launch of the OMNIplus 800

Launch of the OptiMax & GT-Max

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Apparel

e.g. Denim, Shirting, Blouse, Ladies Wear, Work wear, Corduroy, Sportswear and Lawn and Flax

Household

e.g. Percale, Upholstery, Curtains, Household Linen, Blankets, Flannel, Tablecloth and Bedspreads

• Technical

e.g. Glass Fiber, Filter Cloth, Airbag, Medical fabrics, Parachute, Tire cord, Nets, Sail - Cloth , Aramides, …

Markets for Weaving-machines

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Weaving Machines

OptiMax TERRYplus 800GT-Max

OMNIplus 800 OMNIplus 800 TC OMNIjet

GTXplus

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Picanol Presence in india since 1956

• Represented through Agent for the last 42 years

•Installed base of around 8000 machines

• Picanol customers presences in India spread over from North, West & South India

• Top market share held by Picanol brand name in india

•This made us to believe we need to estabilish 100% subsidy company in India

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• Foreign Direct Investment – Freely permitted in almost all sectors.

• Under the Foreign Direct Investments (FDI) Scheme, investments can be made by non-residents in the shares / convertible debentures / preference shares of an Indian Company through two routes:-

- Automatic Route – The foreign investor or the Indian company do not require any approval from the Reserve Bank of India or the Government of India for making/accepting foreign investment.

 

- Government Route – Prior approval of the Foreign Investment Promotion Board (FIPB), Ministry of Finance, Government of

India is required for making foreign investment.

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ENTRY ROUTE

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• Foreign investment in any form is not permitted in entities (whether incorporated or not), which are engaged/propose to engage in following activities: -

- Business of chit funds;

- Nidhi company;

- Agricultural or plantation activities;

- Real estate business or construction of farm houses;

- Trading in Transferrable Development Rights.

• “Real estate business” does not include development of townships, construction of residential / commercial premises, roads or bridges educational institutions, recreational facilities, city and regional level infrastructure, townships.

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PROHIBITION ON INVESTMENT IN INDIA

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• As an incorporated entity: -

- Joint Venture with an Indian/foreign partner (JV)- Wholly owned subsidiaries (WOS)

Foreign equity in such Indian companies can be up to 100% depending on the requirements of the investor, subject to equity caps, if any, prescribed in respect of the area of activities under the FDI policy.

• As an unincorporated entity (with the prior approval of the Reserve Bank of India):

- Liaison office/Representative office–Role is limited to acting as a communication channel between the Head office and Indian

entities.- Branch office – Permitted activities include export/import of goods, rendering professional services, promoting technical collaboration between Indian company and parent company. Not allowed to undertake manufacturing/processing activities in India.

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ENTRY OPTIONS FOR FOREIGN INVESTOR

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• A company may be incorporated in India as a : -

- Private limited company; or

- Public limited company.

• A private limited company is required to have at least two shareholders and two directors, as against requirement of having at least seven shareholders and three directors for a public limited company.

• Lesser number of compliances are prescribed for a private limited company.

• A private limited company is generally considered to be more preferred form.

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INCORPORATION OF A COMPANY IN INDIA

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• Obtaining Directors Identification Number and Digital Signature Certificates for proposed directors.

• Seeking availability of desired name from the Registrar of Companies (RoC).

• Drafting, Stamping & Signing of Charter Documents.

• Filing of Charter Documents and prescribed Forms with the RoC.

• Scrutiny of documents by the RoC and issue of Certificate of Incorporation.

CERTAIN IMPORTANT POINTS

• Minimum paid up capital prescribed for a private limited company is INR 100,000.

• In case name of a foreign company is proposed to be used, No Objection Certificate (by way of Board resolution) is required from the foreign company.

• In case foreign entities are proposed to be kept as subscribers, authority needs to be granted (by way of Board resolution) for subscription of shares and taking necessary actions for incorporation of the company.

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STEPS FOR INCORPORATION

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Picanol presence in India

Picanol India starts operation from Jan 2008

Head office in Delhi

Branches in Mumbai & Coimbatore

Sales & Service Team of 30 professionals

Increased direct customer relation

Improved service activity

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Your Picanol Team

Picanol of India’s market-share increased from average 34 to 41 %

This in rather difficult economic conditions between 2008 and 2009

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THANK YOU

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