Indian tie-ups could boost manufacturing – Clearwater

MIDLANDS manufacturers should consider joint ventures with Indian counterparts as a way of gaining a foothold in lucrative Asian markets, according to advisory firm Clearwater Corporate Finance.

Specialists from Clearwater have just returned from a visit to India, during which they found the interest in the UK market is high.

This puts Midlands businesses in a strong position, they suggest, as overseas companies are keen to improve their own manufacturing bases via technology transfer: the sharing of specialist knowledge across borders.

It means that joint ventures with UK companies are an attractive proposition for Indian firms. This, in turn, allows businesses here to capitalise on India’s buoyant economy, which is expected to grow by 5% this year.

Jon Hustler, industrials partner at Clearwater in Birmingham, said: “India offers staggering opportunities to UK firms looking to grow. It is a country hungry to improve its manufacturing base and it knows the UK, with its world-class engineering assets, can help it do that. The benefit for companies here is access to one of the world’s largest and fastest-growing economies.

“For those looking to enter the Indian market, a joint venture offers huge potential. It can provide a ready-made manufacturing site and invaluable knowledge of the local market, which is a massive benefit. The quid pro quo, though, is that Indian businesses will expect some technology transfer and the end game may in fact be an acquisition.

“During our visit we met a number of Indian businesses keen on a UK joint venture. It is clearly an idea with potential that could step-change the growth of UK manufacturers.”