This story is from May 18, 2005

Gateway to the world

PUNE: India is more than just a provider of services; it is a huge market in itself. This realisation is pushing companies across the world to re-think their India strategy.
Gateway to the world
PUNE: India is more than just a provider of services; it is a huge market in itself. This realisation is pushing companies across the world to re-think their India strategy. The effects of this can be seen across the manufacturing spectrum, from small to mid-sized German company, Reiter GmbH, provider of paint technology solutions, to the US $ 10.6 billion Arrow Electronics, global provider of products, services and solutions of electronic components and computer products.
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They are all looking at India as a sourcing, even manufacturing location, with Reiter having decided to source from India for its European customers. There is also the trend to make India the hub for the region. Unconfirmed reports suggest that Hughes Network Systems (HNS), global provider of broad band satellite networks, is re-locating its Asia Pacific headquarters from Singapore to India. Breaking with tradition, the move will allow HNS to target the growing Indian market and the rest of the region from here. In the case of Newage Electrical India, it now has charge of the entire South East Asia region and Taiwan while China manages the rest. Again, going against tradition, Newage's Singapore office will report in to India. Arrow Electronics' Asia Pacific arm has sales of over $ 1 billion while India accounts for less than $ 100 million sales. Hence, it has now appointed Sharad Kulkarni as a member on its Asia-Pacific advisory board. "The appointment signifies Arrow Electronics' intention to take the business forward aggressively," Mr Kulkarni said. Part of that will include expanding existing business and acquisitions as well as look at activities where India has competitive advantage for its global activities. The mid-sized German company, Reiter, has definite India plans. "We now have a representative office in India and will soon start with basic engineering and systems engineering. Manufacuring could take two-three years but it will be preceded by assembly," Frank Reiter, managing director, Reiter GmbH and Co, said. Reiter makes paint supply systems and from 05, has become a partner for ITW Automotive Sytems. These products will now be available in India, too. Top of the priority list for Reiter is to source sheet metal assembly parts from India for Europe. "Our plan is to supply design support Reiter (India) from the UK and Germany. The Indian operations will build and supply locally, with the highest local content," Mr Reiter said. While the German plan tiwll support application and automotive design, the UK company will provide systems design. Over two years, the Euro 10 million company plans to invest Rs. 1 crore.
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