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During the last decade, China has grown incredibly,
practically in every industrial sectors and has surpassed India
by miles. Its plastics consumption has crossed over 20-22 million
tonnes and still continues to grow at about 7% every year almost
with the same level as that of North America, the largest consumer
(about 35 million tonnes). In fact, the large domestic demand on
account of huge population (1.25 billion) is a major attraction
for all international players. No wonder that huge investments are
being made by many renowned international organizations.
Is the huge domestic demand the sole driver for such a large foreign
investment in China? The answer to this question was very well addressed
by Mr. Cyrus Bagwadia, in his lucid presentation at the Annual get-together
of Organization of Plastics Processors of India (OPPI) on August
31, 2002 at Mumbai. Mr. Bagwadia is the MD & CEO of Essel Propack
(EP), the largest global Indian player in the field of plastic tubes
having almost 25% global market share. Ep has invested about US$
40 million and has 3 plants in China for plastic tubes. In fact,
EP almost commands 55% market share in China. What emerged from
his presentation speaks very highly about the Chinese government
in proactive and quick support in developing the foreign investment.
Additionally excellent infrastructure setup by the Chinese government
not only in terms of ports, roads, industrial zones but also of
financial stability and infrastructure. The low cost of finance
and very stable currency are indeed the reasons for the glaring
success of the Chinese government.The work ethics and dedicated,
focussed labour force not only help in achieving very high productivity
but bringing pride to what the nation is aimning to achieve. The
bias towards modern technology setup clearly brings about excellent
quality at the most competitive cost. In fact, China can offer better
markets, better infrastructural support, lower capital cost and
ease in exports to an entrepreneur who has a global vision and an
urge to succeed. Those plastics converters who can use World class
technology certainly can consider in making investments in China.
Click
here for the presentation of Mr. Bagwadia and learn about
his experience in China.
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