Then there is that one thing which is making China attractive to companies the world over - that is the huge potential of the 700 million Chinese consuming class. Here automobile players like Mahindra & Mahindra, Bajaj Auto and Tata Motors are planning big. Their logic too resting on a simple line – manufacture in China and sell to the consumer there! M&M, which currently is India’s largest tractor manufacturer, has set up a JV – Mahindra (China) Tractor Co. Ltd. in the land to assemble, sell and export tractors. Motivated by the superior infrastructure and cheaper availability of land, capital and human capital resources in China, M&M is also eyeing the Chinese auto component market for future growth in the country, besides eyeing an acquisition of a Chinese auto component manufacturer in future. Asserts Anand Mahindra, Vice-Chairman and MD, M&M: “We are planning to increase our presence in China to get access to high quality customers and technology. We are looking at the market to enhance our managerial competitiveness also.”
Bajaj Auto is also planning a foray into Chinese lands to manufacture and sell its two-wheelers. Tata Motors, which recently made headlines with its one-lakh car Nano, is also eyeing the Chinese market to play a decent inning there. After its European foray, this is yet another attempt from Tata Motors to go global as Vaishali Jajoo, Senior Research Analyst, Angel Broking comments, “After Europe, the Tatas are now looking to make a mark in the Chinese market. After that China attack, it’s simply going to be spreading over all of Asia as well. Tata Motors simply wants to have a global presence and after doing well in the commercial vehicles segment, they are also looking to give in their best shot with their passenger vehicles offerings…”
The only word of caution for the Indian giants, according to Harish Bijoor, is to steer clear of the Made in China trap. “Indian manufacturing companies have to make sure that since the Made in China tag does not carry much respect. They could manufacture in China, but the branding and the tagging should be simply Made in India.”
Even in the field of finance, China seems not too bad a bet; a fact proven by State Bank of India which opened its first branch in China in August 2006 thus fulfilling its global dream and financially facilitating the entry of Indian giants.
And why just talk of the big giants. Today, even a mid-sized yet fast-growing company like garment manufacturer and seller Lilliput is weaving the Go-China dream as Sanjeev Narula, MD, Lilliput Kidswear Ltd. puts them in words as, “By August 2008, we will have 10 stores in China as we believe China is a good market for us. There’s a huge demand for branded Indian apparel in China, as there’s no concept of a Chinese brand in China…”
There are many companies in India who are swearing by the Chinese market - Aditya Birla Nuvo, Sundaram Fasteners, Essel Packaging, Tata Steel, Tata Motors, Videocon, Onida, Nitco, Apollo Tyres, JK Tyres, TVS Motors, Hero Cycles and Bajaj Electricals and many more. They are developing customised China entry strategies which will not just help them gain much from the Chinese market, but will also enhance their image as global behemoths.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
Bajaj Auto is also planning a foray into Chinese lands to manufacture and sell its two-wheelers. Tata Motors, which recently made headlines with its one-lakh car Nano, is also eyeing the Chinese market to play a decent inning there. After its European foray, this is yet another attempt from Tata Motors to go global as Vaishali Jajoo, Senior Research Analyst, Angel Broking comments, “After Europe, the Tatas are now looking to make a mark in the Chinese market. After that China attack, it’s simply going to be spreading over all of Asia as well. Tata Motors simply wants to have a global presence and after doing well in the commercial vehicles segment, they are also looking to give in their best shot with their passenger vehicles offerings…”
The only word of caution for the Indian giants, according to Harish Bijoor, is to steer clear of the Made in China trap. “Indian manufacturing companies have to make sure that since the Made in China tag does not carry much respect. They could manufacture in China, but the branding and the tagging should be simply Made in India.”
Even in the field of finance, China seems not too bad a bet; a fact proven by State Bank of India which opened its first branch in China in August 2006 thus fulfilling its global dream and financially facilitating the entry of Indian giants.
And why just talk of the big giants. Today, even a mid-sized yet fast-growing company like garment manufacturer and seller Lilliput is weaving the Go-China dream as Sanjeev Narula, MD, Lilliput Kidswear Ltd. puts them in words as, “By August 2008, we will have 10 stores in China as we believe China is a good market for us. There’s a huge demand for branded Indian apparel in China, as there’s no concept of a Chinese brand in China…”
There are many companies in India who are swearing by the Chinese market - Aditya Birla Nuvo, Sundaram Fasteners, Essel Packaging, Tata Steel, Tata Motors, Videocon, Onida, Nitco, Apollo Tyres, JK Tyres, TVS Motors, Hero Cycles and Bajaj Electricals and many more. They are developing customised China entry strategies which will not just help them gain much from the Chinese market, but will also enhance their image as global behemoths.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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