Klaus Steilmann, one of the largest German apparel firms, on Wednesday said it would set up a manufacturing unit in India by 2005 with an investment of about Rs 28 crore (Rs 280 million).
"We have decided to make India our manufacturing base to cater to the south and south-east Asian markets. We hope to start our operations in India by next year," its director (sales) Klaus Friedrich told PTI.
Friedrich, who is part of a German business delegation visiting India, said the company is closely working with FICCI and CII for identifying a partner to set up the unit.
Steilmann, which supplies garments to the world's largest retail fashion chain Marks & Spencer along with other international retailers, plans to invest upto 5 million euros (Rs 28 crore) for setting up the facility in India.
The manufacturing unit will have a capacity of 60 lakh pieces per annum for trousers and shirts.
He said the selection of the partner would be done after a thorough scrutiny. "We supply to international players and to maintain our goodwill, we will like to ensure the quality and reliability of our Indian partner," Friedrich said.