Jesper Svensson - Establishment in India
For a couple of years, India has been a market for our covered conductor BLX. In order to ensure future competitiveness as well as to reduce lead times, the company has now decided to place part of manufacturing locally.
Jesper Svensson, CEO of amo kraftkabel AB, says:
We have chosen to establish ourselves in the market by allowing our distributor to manufacture the product on license. Manufacturing takes place in Raychem RPG's factory outside of Mumbai. We contribute with a production line as well as know-how.
What are the benefits of this venture?
The market in India is very interesting and will be so in the future, as major investments are made within infrastructure. At present, covered conductors, is a niche product, but we are seeing a positive development. Today, it works to manufacture and ship the products from Sweden, but as the market grows, domestic manufacturers will wake up. At this stage we will not be able to compete without local production due to long lead times as well as expensive shipping and import costs. In addition to cost reduction, we also think it is important to reduce the environmental impact with less shipping overseas.
Do you have more projects abroad in progress?
We have several interesting projects in progress, both in Africa, Europe and Australia. Internationally our products has some other uses than Europe, which makes it interesting with future export investments. We expect to launch a number of international projects in 2018.
