— PHOTO: PTI

PROMOTING BUSINESS: Member of Parliament and Managing Director of Videocon Industries Ltd., Rajkummar Dhoot, addresses an India-China Business luncheon meeting organised by Assocham and the China Council for the Promotion of International Trade in Beijing on Tuesday.

NEW DELHI: Around ten Indian companies signed memoranda of understanding (MoU) on Tuesday with their counterparts in China for establishing manufacturing units and service outfits in China, involving an investment of $5 billion.

The MoUs were signed by a high-power Assocham business delegation to China in Beijing with the China Council for the Promotion of International Trade (CCPIT).

LCD unit

Videocon Industries Managing Director and Member of Parliament, Rajkummar N. Dhoot, who is leading the delegation, signed the MoU on behalf of his company to set up an LCD manufacturing unit at the electronic city of Shenzhen in which the total investment would be $1.5 billion.

Mr. Dhoot said the LCD unit would be set up in the next one year and 50 per cent of its production would be for export and the balance for domestic consumption.

The technology for LCD production would be transferred to China from Videocon's research and development centre in Japan, so that production would be effected at cheaper and competitive cost.

In addition, two companies in the telecom and electronics sectors that also signed MoUs include ZTE Telecom India Private Ltd and Spice Communications Private Ltd for setting up telecom manufacturing units in Shenzhen.

Maharasthra Industrial Development Corporation, Rajasthan Industries Development Corporation and Unity Power have also struck business deals with their counterparts under CCPIT and Assocham banners.

Service outfits

The other companies which signed MoUs include Adfactors for providing consultancy in a variety of areas, Law Firm to provide consultancy as also International Certification Private Ltd for general trading, AKS Associates signed an MoU for providing consultancy and Cosmos Industries for setting up a unit in power and coal and food.

Ore import

Speaking on the occasion, CCPIT Chairman, Wan Jifei, said Fino Steel of China, a leading steel manufacturer, would be setting up two steel plants in India in the next 4-5 years in Orissa and South Karnataka.

The Chairman said China intended to import 150 million tonnes of iron ore from India as against its current import level of 85 million tonnes in view of its growing requirement for steel production.

The Chairman said China would acquire No.1 position in international trade by 2010 from its second position now and had also decided to be the lead manufacturer of steel.

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