Financial Daily from THE HINDU group of publications
Thursday, Oct 16, 2003
Financial Daily from THE HINDU group of publications Thursday, Oct 16, 2003 |
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Corporate
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New Projects Chinese ceramic co to set up unit in Gujarat Our Bureau
Gandhinagar , Oct 15 Foshan NewMay Ceramic Co Ltd, a Chinese company, has signed an MoU in the Gujarat capital to set up a Rs 55-crore vitrified ceramic tile manufacturing company here. It is the proposal of the Chinese company to set up a manufacturing unit in the north Gujarat district of Mehasana with a capacity of 12,000 sq.mt. per day. The initiative is being viewed as a path-breaking one in the annals of Indian business as till now it was trend of Indian businessmen setting up units in China to avail of the cost advantage offered in the Special Economic Zones (SEZs) there. Though the Confederation of Indian Industry (CII)-led delegation of some 100 Indian CEOs who are visiting Shanghai and Beijing are also seeking Chinese investment in India, it is no secret that the current effort in China, being conducted with the support of the Chinese Ministry of Commerce, has more to do with Indians setting up businesses in China. Foshan NewMay, one of the leading tile manufacturing companies in China, with a capacity of 55,000 sq.mt. per day, is planning to set up its Indian business as a joint venture with Dhan Mercantile (P) Ltd. Mr Wu Nanchang, Managing Director, Foshan NewMay, signed the MoU with Mr Nayan Parikh, CEO, Dhan Mercantile, here in the presence of Mr Narendra Modi, Chief Minister of Gujarat. The promoters have sounded out the Gujarat Government to take an equity stake in the venture. The Chinese company would be the majority partner in the project and would bring low cost, high volume technology to the Indian shores. The Indian partner is to provide support in the day-to-day management and marketing of the finished goods. The Chinese delegation that included the company's technical chief, Mr Powell Jiang and export manager, Mr Steven Yang, is understood to have zeroed in on Gujarat on account of the existing base of skilled labour in the ceramic tiles industry of the State.
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