Foreign companies start own ventures in coimbatore

In another interesting development on the industrial scene in Coimbatore, a number of foreign companies have started their own ventures or have set up joint venture manufacturing facilities in the past two years.

According to an official of the Inspectorate of Factories, Coimbatore District has about a dozen units as joint ventures, 100 per cent export oriented units, or just production centres. Almost 75 per cent of these were established during the last two years. Another 10 or 15 are in the pipeline. These include engineering units, textile, textile machinery, and valve manufacturers. Southern India Engineering Manufacturers' Association Vice President Jayakumar Ramdass says that a significant point in this development is that many of them are small and medium enterprises.

Most of the units chose Coimbatore because of the contacts they have with the industries here. Normally, foreign companies prefer to set up shop in larger cities. The advantages these units in the engineering sector enjoy here as against starting off in bigger cities are lower overheads, abundant availability of engineering skills and castings.

For Coimbatore industries, it means immediate accessibility to better technology and equipment, and improving quality. "It is a win-win situation for all," he says.

Mr. Ramdass estimates that the units started recently could have taken off with a total investment of Rs. 200 crore to Rs. 250 crore. The region has the potential to draw foreign investments to the tune of Rs. 4,000 crore in a couple of years.