Chinese companies upbeat on Indian market

Friday, 07 February 2003, 20:30 IST
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NEW DELHI: Several Chinese electronic companies, including the $87 billion conglomerate Haier Group, are firming up plans to enter the Indian market. "We are preparing to enter the Indian market later this year with a range of household appliances," Zhang Xiaolan, director of R&D of Haier Group, said here Friday at an infrastructure fair of the Confederation of Indian Industry (CII). A global leader in air-conditioning, Haier Group has cut into the U.S. market share of multinationals like General Electric and Whirlpool with its lower-end refrigerators and air-conditioners. Controlling 30 percent of the Chinese market in household appliances, Haier has forged joint ventures with Sanyo of Japan and SAMPO of Taiwan in its bid to grab a larger global market. Haier Group is targeting India with "value-add household appliances". Also studying the Indian market keenly are 76 Chinese companies representing a range of industries from heavy to light engineering goods, consumer goods and electronics for possible collaboration and business links. This is the largest presence of Chinese industries in any specialised trade fair. "Our strength is low price and good quality," said Liu Li, vice-president of Dongfang Electric Group, which too is seeking links with Indian companies to enter the local market with its range of power equipments. Xia Lu, brand manager of GD Midea Holding Co Ltd, disclosed plans of entering the Indian market to tap the household appliances segment. The company's major strength is low priced microwaves. Describing the role of the Chinese Ministry of Foreign Trade and Economic Cooperation in promoting Chinese enterprises, Director General of Department of E-Commerce Wang Xinpei said the most important initiative undertaken by Beijing has been to set up a trade databank. "The databank comprises 430,000 Chinese enterprises, 1.7 million Chinese commodities and 260,000 importers the world over. This databank is supposed to build bridges between Chinese and world enterprises," he said. Through participation in local and overseas exhibitions and fairs, the Chinese government has been collecting information to help domestic companies become more competitive and tap overseas markets.
Source: IANS