THIS may be the first major battle between an MNC and a domestic firm for the share of India's booming textile machinery market after scrapping of the controversial Press Note-18 norms. Press Note-18 was subsequently rechristened as Press Note 1 (2005 series) with modifications. South-based Lakshmi- Machine Works (LMW), the largest Indian textile machinery manufacturer, has now invoked the Press Note-1 to check its Swiss partner, Meter's India's ambitions. LMW, in a representation to the government, has said that Rieter's proposal to manufacture textile spinning machinery "would affect LMW adversely." It has invoked provisions of the Press Note-1 as Rieter still holds over 13 percent equity stake in LMW. Rieter had sought the government's nod to expand the activities of its wholly-owned subsidiary Suessen India.
展开▼
