The Hindu : Tamil Nadu News : More Australian firms to set up shop in India

Online edition of India's National Newspaper
Saturday, Jun 12, 2004

Tamil Nadu

Tamil Nadu

More Australian firms to set up shop in India

By Our Special Correspondent

CHENNAI, JUNE 11. Victoria State in Australia is expected to set up an office in India, possibly in Chennai, while Queensland will be opening a trade office in Bangalore. Two Australian financial journalists will visit India in a few months to study India's BPO (business process outsourcing, including call centres), according to the Chennai-based Indo-Australian Chamber of Commerce.

Victoria is a major centre of automobiles production. It has decided to open an office in this country in view of India's emerging strengths in the auto components industry, the chamber leaders said here today. A high-level business delegation from Victoria is coming here in November/December.

Addressing a press conference on the recent visit of an 18-member delegation of the chamber to Australia, Sarat Chandran, director (Business Development), said David Jones and Target, Australia's chain stores, were planning to open buying offices in India, which was expected to dominate the world market in cotton textiles after the expiry of the import quota system under the Multifibre Arrangement in January next. The Australian media drew attention to Indian strength in textiles, highlighting the fact that Jennifer Hawkins, Australian who was crowned Miss Universe this year, was wearing India-made fabric.

Goodman Fielders, the largest Australian-owned food manufacturer, was examining the possibility of setting up a distribution network in India in association with an Indian group, in view of the changing lifestyles in this country with a large population (50 per cent) below 30 years. Australian food groups were also keen on setting up plants in India for processing Indian fruits and vegetables. Australia was expecting an expanding market for processed foods in India, giving rise to an APO (agricultural process outsourcing) sector once the absence of India's own large retail chain stores with a brand strength was remedied.

Mr. Sarat Chandran said other harbingers of strengthening of Indo-Australian economic cooperation included the decision by Qantas to resume from September a direct Sydney-Mumbai service (discontinued in the aftermath of September 11, 2001), which would obviate the need for Australian visitors staying overnight in Singapore, and the interest being shown by TAFE (Technical and Further Education) of Western Australia, specialising in vocational education, in setting up joint operations in India.

The State of New South Wales was thinking of setting up a nursing training centre, most probably in Kerala.

Mr. Sarat Chandran said bilateral trade was shifting towards information technology, biotechnology, financial services, tourism and education from the traditional profile dominated by coal, minerals and wool. A few Australian companies had started using Indian skills in gold and diamond jewellery, sending the precious metals to Surat for processing.

Mr. Sarat Chandran said the perception of exporters of Indian food products that Australia was imposing unreasonable quarantine conditions on imports was discussed during the visit. The chamber felt that Australia should not oppose to India imposing similar conditions on Australian exports.

K.V.V.Rajan, trade representative of Western Australia in Chennai, said TAFE was interested in promoting education in marine engineering, interior decoration, multimedia and call centre operations.

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