Korean manufacturer DN Solutions inaugurates first India plant in Bengaluru with Rs 600 crore investment

Bengaluru: Korean machine tool maker DN Solutions on Wednesday inaugurated its first manufacturing plant in India, marking its first overseas manufacturing investment since it established its Yantai plant in China in 2003.

The 25-acre facility, developed with the Karnataka Industrial Areas Development Board (KIADB), has received a Phase one investment of Rs 600 crore. The company is considering investments of a similar scale in future phases, depending on market demand and business growth, it said in a statement.

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The facility will house manufacturing, research and development (R&D), a technical centre and after-sales service operations. It will initially manufacture smart vertical machining (SVM) series vertical machining centres and LYNX and LEO series horizontal turning centres. Production of high-end five-axis machines is planned for later phases, the statement said.

The company said the Bengaluru facility is not a relocation of manufacturing capacity from Korea or China, but a new investment aimed at creating production capacity in India.

“We’ve been deeply committed to the Indian market for more than a generation, and as a result we’ve achieved one of the highest market shares among global machine tool companies. We will continue investing in India for the long term,” said Wonjong Kim, CEO of DN Solutions.

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Kim said India has the potential to become a global manufacturing hub, citing its large and growing domestic market, English-speaking workforce, engineering talent and young population.

The company said the plant will initially focus on products tailored to the Indian market. The R&D centre will work with DN Solutions’ four existing research institutes in Korea, Germany and China, as well as technical centres across Asia, Europe and the Americas.

The technical centre at the Bengaluru facility will allow customers to test machines and identify machining solutions suited to their manufacturing requirements.

DN Solutions currently has a localisation level of about 80% by parts count in India. It aims to source most components locally over the next five years, excluding spindle assemblies.

“We have already localised large-part machining, key machined components, and shaft-related parts in India,” Kim said. “Our goal is to build a truly local manufacturing ecosystem that creates significant value within the country.”

The investment is also expected to create local employment. DN Solutions currently directly employs 240 people in India, while the broader employment impact, including suppliers, logistics and service providers, is estimated to be at least twice that number.