SVP Worldwide to make India global hub for Singer machines, plans new unit

New Delhi, Mar 20 (PTI) US-based multinational SVP Worldwide, which owns the iconic sewing machine brand Singer, plans to invest in a green field facility in India following its strategy to make it a global manufacturing hub for the brand, said its Chief Operations Officer David Jude Rotell.

The company is “very optimistic about working in India”, where it plans for a second manufacturing unit for Singer’s high-tech Zig-Zag machines, which will cater to the global markets besides the domestic, where it anticipates a growth, Rotell told PTI.

“We anticipate growth for the Indian market, which is really where the focus is. But beyond that, we also think there are opportunities as we look at setting up manufacturing operations in India. Partnering with Singer India is the biggest opportunity to potentially export products in the future. So not only do we look at servicing the local market, but also the opportunity to expand and make India one of our manufacturing hubs,” Rotell said.

The new unit would be a flagship manufacturing unit, which will ship to the markets of North America, Europe and potentially South America, besides fulfilling the domestic growth here, he added.

SVP Worldwide, which owns three iconic sewing machine brands – Singer, Viking and Peaff – is the world’s largest consumer sewing machine company, accounting for approximately one out of every three household sewing machines sold annually across the globe.

The company is in the process of selecting and identifying a place, where it would set up its second unit, which would be much bigger than its first one in capacity terms. The focus would be to manufacture Zig-Zag and other high-end tech-rich Wi-Fi-enabled sewing machines.

Though Rotell did not share any investment details but said it would be a “very reasonable investment in something that we would be able to accomplish”.

“We are looking at options for our manufacturing partnership in India to be able to potentially support other regions around the world,” he said.

SVP Worldwide has manufacturing operations in three countries and is now trying to derisk factors in supply chains, which companies faced after the pandemic, Rotell said.

“One of the things we are doing is to look at the risk factors and how we can derisk our concentration possibly in some regions. I think India is a great opportunity for us to look at a region that has great growth potential internally and then also has the skilled labour, the financial backing, the research, development and the intellectual horsepower to be able to take us to the next level,” he said.

On the India market, Rotell said it is a “significant market” and “one of our top markets”, where he sees continued growth.

“I see Singer products in India as a very significant market for us and that is going to continue to grow over time as we continue to develop our relationship and look at its expanding investment and manufacturing in India,” he added.

Presently, Singer has a small manufacturing unit in Jammu, India and its contribution to the export is negligible.

However, with its proposed new flagship manufacturing capacity, Rotell sees an opportunity to cater to the domestic demand as well as global markets.

“We see an opportunity to grow our manufacturing potential…in this country and that potential would be first and foremost to be able to service the Indian marketplace. But then our secondary outlook is to be able to expand exports from India. Going into other regions such as North America, Europe and potentially South America,” he said.

When asked whether SVP Global has plans to introduce its other brands in the Indian market, he said Singer already has a portfolio of high-end machines here and the market is more familiar with those sewing machines with projection systems and internet Wi-Fi capabilities to be able to download patterns to embroidery.

“As the Indian market is more familiar with some of these other high-end machines, we will be able to see some opportunities to potentially bring those brands into the market,” he said.

Singer has around 20 per cent market share and is a dominant player in South India. It operates here with two brands, Singer and Merritt, in the sewing machines category.

Singer India Vice Chairman and Managing Director Rakesh Khanna expects a “significant increase” in the sales of high-end Zig-Zag sewing machines, where it is investing substantially in branding on the digital side to connect with millennials.

“We are looking at Zig-Zag, which is today around 7 per cent of the market. We are expecting this to grow tremendously fast, at a rate of around 50 per cent of growth for…year-on-year for the next three years,” he said, adding, “in the normal sewing machine market, which is rather stagnant and not growing at a high rate, where we are continuously looking at around 10-15 per cent growth for the next three years.”