Sep 24, 2012

Thailand - Asean firms well placed to serve India’s cities

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The rapid rate of urbanisation and the gradual opening of the Indian economy offer opportunities for companies from the region to penetrate the Indian market in the near future.

The Indian government this month moved to ease restrictions on foreign investments in areas such as retailing and airlines. If it survives the current political uproar over liberalisation, it aims to open more sectors in the near future to restore economic momentum.

Companies from across the region ranging from Malaysia and Singapore to Thailand have already been benefiting from the gradual urbanisation and development of India.

Telephony companies such as Malaysia’s Maxis Communications Bhd and Singapore’s Singapore Telecommunication (SingTel) have been active players in India through AirCel (Maxis holds a 74% stake) and Bharti AirTel (SingTel holds 32.25%).

Malaysian companies such as IJM (India) Infrastructure and GMR Infrastructure have been actively involved in building the New Delhi and Mumbai airports, while Thai companies that have made inroads include the contractor Italian-Thai Development Plc.

Pruksa Real Estate, Thailand’s biggest listed residential developer by sales, has made its mark in Bangalore and plans to penetrate other cities as they emerge. The company has said it wants to gradually expand into other markets in the near future, although the process is relatively slow.

Dcon Products Plc (DCON), a SET-listed specialist in lightweight concrete blocks, recently announced its intention to enter the Indian market where demand for housing will remain strong for decades.

The surge in urbanisation is promoting office development as well, leading to more demand for office furniture. Thailand’s Rockworth Plc has seized the opportunity and has set up plant to manufacture and sell office furniture in India.

The Thai embassy in New Delhi is actively encouraging more investments in the country, holding seminars in Bangkok and also arranging business missions to India.

“India is a large market with high opportunities for Thai entrepreneurs,” Thai ambassador Pisan Manawapat said during a recent seminar for Thai executives in Bangkok.

He said it was time that Thailand expanded its economic relationship with India beyond merely exporting and importing, by acknowledging the capability of India as a base for investments.

Mr Pisan said he had visited 13 or 14 states in India to gather information and open new channels, and found that Gujarat had factors that could make it the best suited to the demands of Thai investors.

To create greater awareness, he will lead a delegation of business executives to Gujarat from Sept 27-29, so they can get a first-hand look at the opportunities available.

“We will meet with the chief minister of Gujarat and Indian companies that are likely to become business partners in the future,” he said.

Umesh Pandey



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