DN Solutions Opens ₹600-Crore Bengaluru Plant, Targets Top Spot in India by 2035
South Korean machine tool manufacturer DN Solutions has inaugurated a ₹600-crore manufacturing plant in Bengaluru, marking its first overseas production investment in over two decades as it targets market leadership in India by 2035.
What Happened
DN Solutions officially launched its first Indian manufacturing facility on August 26. Spanning 25 acres in Bengaluru’s ITIR Industrial Area, the ₹600-crore project represents the company’s first overseas production footprint since establishing a site in Yantai, China, in 2003.
Speaking to CNBC-TV18, Chief Executive Officer Wonjong Kim outlined a revised roadmap to lead the Indian machine tool industry by 2035, adjusting an earlier objective of reaching the number one spot by 2030. At present, the company ranks second in India’s imported machine tool category.
The newly opened facility is engineered to produce several thousand machine tools each year. It will begin by assembling SVM vertical machining centres as well as LEO and LYNX horizontal turning centres. DN Solutions plans to add five-axis machines in subsequent stages.
Key Highlights
- Significant Capital Commitment: An initial investment of ₹600 crore covers a 25-acre facility designed for manufacturing, research and development, services, and workforce training.
- Production Capacity: The site can manufacture several thousand machines annually, adding to the firm’s global output capacity of 17,000 to 18,000 units per year.
- High Localisation: About 80% of components by parts count are already sourced locally. Sourcing targets will expand over the next five years, though spindle assemblies will remain an exception.
- Workforce Growth: Direct staffing is set to increase from approximately 240 people to 500, with indirect employment through logistics and suppliers estimated to reach at least double the direct headcount.
- Global R&D Role: Indian engineers at the Bengaluru centre will contribute to DN Solutions’ global software, artificial intelligence, and digital initiatives alongside units in South Korea, Germany, and China.
Why This Matters
The investment reflects a noticeable shift in how international equipment manufacturers view India’s industrial landscape. DN Solutions has maintained an operational presence in the country since 1992 and installed its first machine here in 1994. According to Kim, Indian industrial buyers are increasingly prioritising higher-performance machinery, automation, and software integration over low cost alone as they seek to compete internationally.
Furthermore, the move dovetails with the Indian government’s Make in India initiative. Instead of establishing a simple assembly base, DN Solutions has chosen an integrated approach that connects local component sourcing with global engineering development.
What to Watch Next
The Bengaluru plant currently uses approximately half of its 25-acre footprint, providing immediate room to scale up output before establishing another site. However, the company is already open to additional investments of a comparable scale. Should a second facility become necessary, Karnataka will remain a prime contender due to its engineering talent base and established industrial supplier ecosystem.
In 2027, the company aims to roll out a formal supplier-development initiative focused on domestic micro, small, and medium enterprises (MSMEs). While the immediate focus remains on fulfilling Indian market requirements, DN Solutions may eventually develop the Bengaluru hub into an export facility to serve other international markets.
Frequently Asked Questions
When does DN Solutions plan to become the leading player in India?
CEO Wonjong Kim stated that the company expects to reach the top position in the Indian machine tool market by 2035, pushing back its original 2030 projection.
Is DN Solutions shifting its manufacturing operations out of China?
No. Kim explicitly noted that the company has no plans to relocate operations from China, adding that China remains an attractive market and that its Yantai factory primarily caters to domestic Chinese demand.
What types of machinery will the Bengaluru facility manufacture?
The site will initially focus on SVM vertical machining centres along with LYNX and LEO horizontal turning centres, with plans to introduce five-axis machinery at a later stage.
Source: Based on reporting by CNBC-TV18.