Electric-machinery Manufacturers Hail India As New Investment Site

Taipei, Dec. 14, 2005 (CENS)--India, one of the so-called BRIC nations (the other three are Brazil, Russia, and China), is being hailed as a hot new overseas investment site by Taiwan' manufacturers of electric machinery and motorcycles.

Taiwanese companies that have made or will make investments in India include Tatung Co., Sampo Corp., Teco Electric & Machinery Co., Ta Ya Electric Wire & Cable Co., Evertop Wire Cable Co., Kwang Yang Motor Co., Sanyang Industry Co., and Shihlin Electric & Engineering Co.

Tatung president Lin Wei-shan noted his company would first select a manufacturer of personal computers and home appliances in India to cooperate with in the fields of sales and marketing, which are vital to making inroads into any new market. The cooperative partner will be chosen by the end of this year. In addition, Tatung is also seeking another cooperative manufacturer of heavier electrical products there to offer assistance in penetrating that part of the Indian market.

Lin said his company is gearing up the pace of making overseas investments as its affiliated company, Chunghwa Picture Tube Co., a manufacturer of TFT-LCD (thin film transistor-liquid crystal display) panels, has become profitable since the beginning of the fourth quarter of this year. Although the profits made by Chunghwa Picture Tube haven't yet made up for its operating loss of NT$2 billion (US$59.52 million at US$1:NT$33.6) in the first three quarters of this year, Tatung believes it will post satisfactory profits in the fourth quarter.

In another case of Taiwanese electronics companies investing abroad, in March this year Sampo set up a joint-venture company named G-Hanz Sampo in Dubai of the United Arab Emirates in cooperation with the Germany-based G-Hanz Group. All the products made by G-Hanz Sampo will be shipped to India

Sampo estimates G-Hanz Sampo will see sales amounting to NT$100 million (US$2.97 million) this year and growing to NT$1 billion (US$29.76 million) next year.

Sampo notes that LCD and plasma TVs products rolled out by G-Hanz Sampo will bear the G-Hanz Sampo brand, while refrigerators and air conditioners would have the G-Hanz brand.

The company says it is currently in talks with Vidiocom Co., India's largest manufacturer of home appliances, for cooperation in distributing Sampo-branded products there.

As for Taiwanese motorcycle manufacturers, both Sanyang and Kwang Yang believe India is a lucrative market for motorcycle manufacturers because it has a demand of five million motorcycles per year. Because they are unfamiliar with doing business in India, they will seek cooperative partners to help them make inroads into that massive market.

An executive of Kwang Yang said his company hopes to enter Indian market sometime next year.

If Kwang Yang and Sanyang find success in their investment projects in India, many domestic manufacturers of motorcycle parts are expected to follow suit, prompting another new wave of investment in India.