Monday, October 10, 2011

Codissia to explore biz opportunities with Austria, Switzerland

The possibility of importing raw material from Austria and Switzerland, for manufacture of components meeting the design and quality requirements of those countries for exporting back to them, would be explored during the visit of the Indian business delegation accompanying the President of India to those countries from October 3, according to the President of the Coimbatore District Small Industries Association, Mr M.Kandhaswami.

He would also look at the opportunity of using the two European countries as the launch pad for reaching out to the Euro Zone market as some of the industries in Coimbatore region have clients there .
The Codissia President, who is a member of the CII business delegation accompanying the President, Ms Pratibha Patil, during her visit to Austria and Switzerland from October 3-6, told Business Line the main aim of the visit was to promote business relationship between India and the two European nations. The delegation was going with an open mind as `we have to find market’ for our products.

Mr Kandhaswami said the European countries, because of environmental concerns, were phasing out foundries, spinning units and paper mills and he sensed business opportunities in these sectors for the region.
He said during his discussions with the industrialists in the Coimbatore region, he found that many companies here were being supplied with raw materials like steel alloys by European nations for manufacturing finished products on a job work basis since they were able to source the raw materials cheaper elsewhere whereas the labour and processing were cost competitive in India. Mainly auto and textile components and general engineering goods were produced on a job work basis in the region for export meeting the design and quality parameters of their raw material suppliers. He said he would like to take this process forward.

The Codissia President said the two nations have also expressed interest in investing in Indian companies and to become partners. He felt that while the MSMEs in the region may not be keen to allow foreign equity in their companies, they would be ready to have technological tie-ups and buy back arrangements with Austrian and Swiss companies.

Conceding that the potential of Austria and Switzerland was limited because of their size, he said that he would like to enquire whether these countries could be utilised as storage hubs for supplying products to the European countries just as Dubai or Bangladesh are used for reaching out to markets in the neighbouring regions. Already many Coimbatore engineering companies were exporting to countries like Germany and this possibility merited consideration.

He said he would also invite the Swiss companies, some of which supply precision machines to Coimbatore companies, to participate in the forthcoming INTEC exhibition organised by Codissia. Apart from him, the five-member CII business delegation has members from Kolkata, Delhi and Bangalore.

No comments: