Manufacturer offers advice on doing business in India

A HEREFORDSHIRE businessman is to share some of his tips for export success at a breakfast event in the Black Country.

Simon Children, managing director of TRP Sealing Systems, has seen business boom after expanding into the Indian market.

TRP, which designs and manufactures sealing systems for global blue chip engineering companies, was set up by Mr Children’s father Peter Children in 1980.

The £26m turnover business has grown to the point where it now exports 99% of what it produces and in addition to the UK, has operations in India and Romania.

Simon Children, who originally trained as a lawyer but returned to the family business after working for 10 years in London, said: “Our customers are mainly in the oil and gas field, the ship building industry, the food and drink sector and the nuclear industry.

“All of them have approached us to design and manufacture new sealing applications. Our growth has been down to the fact that every single application requires a specific design to solve a unique problem.

“Because we have been trading for over 30 years we already have a catalogue of materials which allow us to meet almost all our customers’ needs. But with technology ever evolving, we must remain ahead of the game by developing new material for upcoming applications – so we are growing and expanding our product range all the time.”  

The firm started working in India three years ago because the company was growing and looking for a manufacturing strategy which would help the firm expand.

The business has been helped by the fact there are only three companies across the globe which does what it does – two of which are in Sweden.  

“The market in India was attractive, not only because of its competitive labour costs, but because it was a faster growing market then its counterparts in Europe,” he added.

All of TRP Sealing Systems’ corporate functions are still managed in the firm’s Hereford base, including the whole corporation’s financial operations, and all material design and testing.

In the UK it employs around 300 people; 120 in India and 100 in Romania. The Romanian site is a service facility for the UK operation, but in India all manufacturing processes are on one site.

“Clearly the Indian and Asian markets are growing. If UK firms and West Midland businesses don’t get out there our competitors will,” said Mr Children.

“I saw working with India as a crucial strategic step to grow the business. Any company that wants a global footprint must start looking at working with India, China or Asia – or all three.”

He said it could be nerve racking setting everything up, while such a move could not be done without proper planning and research.

“We initially looked at China and India, when researching potential locations, but finally decided on India. There were many reasons why, some of them cultural but the main one was that we found a business partner that was already established there,” he said.

He said for an SME, finding a partner to launch such a venture with was crucial. He said his own business had benefited from support from HSBC and RSM Tenon.

“If you are a company like TRP, which turns over £26m, you need local knowledge of the domestic market you’re moving into, so you can get your venture more easily established.

“Seeking professional advice is essential. You can learn a lot from others,” he added.

Mr Children will be talking about what he has learnt about working with India at the breakfast briefing, Doing Business with India, tomorrow.

The aim of the free seminar is to offer West Midlands’ businesses practical advice and insights into the challenges and rewards of doing business with India, which is the second fastest growing economy in the world.  

Bharat Pattni, UK representative on the RSM Tenon India desk, said: “It is vital that we equip businesses in the West Midlands with the right tools to successfully trade with India.

“This free seminar is ideal for business owners, MDs, FDs and decision makers with international aspirations. Navigating the international maze can be challenging – but it is also very rewarding.”

Roy Harris, HSBC’s Midlands regional commercial director, said: “India presents exciting trade opportunities to UK business and we must ensure we take advantage of those.

“It is a burgeoning economy with a growing and increasingly affluent middle class; our analysis forecasts that India will outstrip China in terms of import and export growth between now and 2018.”

The free breakfast seminar, which is hosted by RSM Tenon and HSBC, takes place at The Hawthorns, home of West Bromwich Albion Football Club between 7.30 and 10.30am.