Take a look at this thread https://community.jboss.org/thread/196714
The above describes a way using Teiid Designer and XSD to define a XML model and build XML document from that model.
Additionally, there is no tooling support currently, but you can use full range of SQLXML functions to describe XSD model and author a XML document in Teiid too. Take look at Reference Guide for all the SQLXML functions available. Basically in this route you are defining the Teiid procedure transformation using SQLXML functions.
Let me elaborate little bit more for our scenario.
We have complex xml as source of data (It has too many hierarchy).
Basically the aboue source should be transformed into again in the complex web service. We have around 50 different xml templates as source. How do i load all into TEID parallelly. Is teid will support xslt during import source.
For exposing webservice is TEID will support data mapping to existing wsdl (Will it support contract first).
First of all it is called Teiid, not TEID. There are many questions in your post. Let me see if I can answer them.
Yes, Teiid supports complex XML as source. Try using Teiid Designer and use new XML import wizard and see if that helps in converting the XML into relational tables. If you are just looking for XML to XML then you are better off using XSLT directly or using something like Smooks. Teiid does provide XQuery support if you want use that to convert the incoming XML document into another XML document. Or if you already developed XSLT, you can use UDF (user defined function) where you can write some java code to apply the XSLT of your choice on the XML document to produce the result document.
Yes, Teiid supports creating a web service through WSDL. There is a import wizard in Teiid Designer for this. Once wizard creates the skeleton structure, you are still responsible to attach the above XML document into this to produce a webservice. Once the VDB ready there facilities in Teiid Designer to generate a WAR file for the web service.