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Chinese companies strengthening footprints in India

NEW DELHI – India’s rising automobile market continues to attract Chinese injection molding press manufacturers.

Molding press makers from across the MacMohan line are scouting joint venture partners to avoid the high anti-dumping duty on the import of Chinese molding presses in India. Existing ventures from Eastern China are improving their businesses in the aftermarket.

The Foshan-based Only Machinery Co., Ltd. with sales volumes of above $100 million annually is planning to enter the India market. The press maker is negotiating with Haryana (North Indian State)-based injection molding machinery company Guru Harkrishan Hydraulics for possible distribution and a manufacturing JV. The newly formed entity named “Only India Plastic Machinery” is going through the process of business registration.

“We are looking for either a manufacturing JV with a local partner or a distribution network first,” company marketing director Joe Huang told CBU/CAR at the recent 5th Plastasia in New Delhi.

Only Machinery is now contract manufacturing injection molding machines with clamping force of 70-450 tones for Hyundai Injection Machinery. The Korean company is getting manufactured presses from China worth $50 million last year.

SJP Ultrasonics plans to upgrade its distribution venture with Kebar Ultrasonics (China) to a manufacturing JV in the Thane district of Maharashtra. “We will start joint manufacturing of Kebar range in the Thane plant shortly,” said SJP Ultrasonics director Jignesh Parekh. Both partners are investing around INR 10 crore (about $1.6 million) manufacturing venture in equal ratio. The distribution JV was started in July 2015 and received positive response in India.

The JV targets India initially and later on caters to export markets of South East Asia, Africa & the Middle East. Commenting on bringing production to India, Parekh stated, “Production in India would save import duty, reduce lead time and ease of service support to growing number of customers.”

The partners would likely to start with automotive presses as SJP has wide clientele in the Indian automotive sector including tier-1 suppliers like Tata, IAC, Mutual, Varroc, Faurecia, Sumi Motherson, etc.

Suzhou Keber Precision Machinery specializes in the development and manufacturing of plastic welding machines like ultrasonic plastic welders widely used in the automotive electronic, medical, household appliances, packaging and the toy industry.

The Taizhou Hunggyan Longli Plastic Mold Factory has been supplying India over the past three years. “We have supplied molds to Maruti Suzuki earlier, but now only supplying the aftermarket and our business is growing 20 percent annually,” said a company sales staff. India is one of Longli Plastic Mold’s main markets besides China. But pricing remains a major issue in India. 

Cavin Wang, general manager of Zhejiang-based Gangnam Mold Co., also finds pricing a competitive issue, even though company business has been growing by 10 percent yearly.

Ethan Zheng, Asian manager of Kaihua Molds Co., Ltd., also from Zhejiang, is looking for partners to provide aftersales service. “India is a growing market but it is not willing to pay a good price for quality product. Mold prices are still 15 percent lower compared to China,” he said. Kaihua supplies molds to main auto hubs at Pune, Chennai and Mumbai. It also supplies to the regional markets of Pakistan, Sri Lanka and Bangladesh.

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