India is a strategic market for Taiwan companies and TPC has played a key role in helping businesses to seek relevant partners in India
- Define the role of TPC in India?
Taiwan Product Centre (TPC) was launched in India by the Taiwan External Trade Development Council (TAITRA) with an objective to get Taiwanese businesses to the forefront and help Indian counterparts secure joint business ventures and reliable suppliers for their value chain. TPC currently has three centers across India in Mumbai, Chennai and Delhi respectively. These Product Centres display a wide array of products from reputed Taiwan companies and thus is a strategic avenue for consumers to experience the latest innovative offerings across various industrial segments, all under one roof.
- How has the experience for TPC been in Indian market so far?
India is a strategic market for Taiwan companies and TPC has played a key role in helping businesses to seek relevant partners in India. Taiwan Product Centre aims to garner USD 25 million in sales by 2023 and hopes to assist 15 companies to have sales channel in the Indian market. The current trade volume with TPC is in the range of 8 – 10 Million USD and the immediate aim is to pave way for at least 5 new TPC companies to enter market with average sales of 1 Million USD.
- What are the major hinderance faced by TPC here in the domestic market?
The big challenge for companies coming to India is the huge diversity and local market intricacies, which makes it difficult to seek the right channels for business. Another challenge is the proliferation of cheap Chinese products in the market, due to which often suppliers argue on price versus quality. The other challenge is with Pricing, especially due to the currency exchange rate. Appreciation of Taiwan dollar is unfavourable to our export business. Remittance is also a challenge, because India is one of foreign exchange control country, more procedures and documents will be required.
- How has the India-China tussle impacted business or bilateral ties between India and Taiwan?
The relations between the two Asian democracies have significantly improved since the mid-1990s when the two sides established informal ties, albeit China’s shadow looming large over India-Taiwan relations. In the current scenario, there might seem many challenges in strengthening the bilateral ties, but both India and Taiwan can continue to work towards creating strategic partnership and trade relations.
- Can you briefly tell us about the New Southbound Policy? How will it benefit trade relations between India and Taiwan?
The New Southbound Policy speaks of the same goals and ideals of the Association of Southeast Asian Nations (ASEAN) Outlook on the Indo-Pacific and India’s Act East Policy. This Policy is Taiwan’s regional strategy to collaborate together and achieve mutual benefits with complementary economic and social successes. Awareness about the role NSP could play in advancing bilateral ties and also help brighten prospects for the tourism and hospitality industry for inbound visitors from India. India’s role in global and regional markets will continue to prosper and thus collaboration between India and Taiwan under the NSP framework is mutually beneficial.
- What are the expectations from the Indian government to facilitate better business ties for TPC companies in India?
Better infrastructure, policy recommendations to encourage better contribution and participation from domestic companies to collaborate with TPC, support to raise awareness about TPC in the regional market and advocate the work of TPC to other Asian markets.
- Many companies are looking to diversify their supply chains out of China, so India is in a good position to present itself as a major export manufacturing hub. How to you see this helping TPC?
With India garnering more attention as a major manufacturing hub for global market, even the domestic companies will have to enhance their productions in terms of volume and quality. So having strategic partner like Taiwan for operational excellence and state-of-art technology support, will be a boon for the trade and help both economies to flourish over time.
- How badly did pandemic affect TPC operations or business growth plans in India?
The pandemic was a knee-jerk to economies and businesses around the world and we too faced the adverse impact of the lockdowns. But having said that, India and Taiwan also are among the few countries who were resilient and managed to survive the Pandemic period and now are on the revival mode to the pre-Covid numbers.
- What is the roadmap ahead for TPC in India?
- Taiwan Product Centre aims to garner USD 25 million in sales by 2023 and hopes to assist 15 companies to have sales channel in the Indian market. The current trade volume with TPC is in the range of 8 – 10 Million USD and the immediate aim is to pave way for at least 5 new TPC companies to enter market with average sales of 1 Million USD.
- Technology and renewable energy sectors are in the limelight, are there any companies/technology from Taiwan in these sectors wanting to enter India?
We have companies across varied sectors from Automation, technology, Hardware, Smart Machinery, Food, Auto & medical parts and many more. Key companies in TPC Chennai include Acon Optics Communication Inc, a leading manufacturer & solution provide for Fiber Optical Components Industry, Goldencrops Corporation a leading player in the food industry with their main businesses of food raw materials import and export trade, food production, and food OEM/ODM. Another key company is Labelmen who manufacture offset label printing machines, digital label printing machines and letterpress label printing machines.
The TPC Mumbai center also has key Taiwan companies like Acewell International Co. Ltd that specialise in the designing and manufacturing of Speedometers for Electric 2 wheelers and 3 wheelers and motorcycles, Advanced Connectek (subsidiary of ACON group) who provide apt solutions in manufacturing Electric Motorcycle chargers (Plug and Receptacle) and cables for scooters and motorcycles and Magtech Magnetic, prominent manufacturer of Permanent Ferrite Magnets and NdFeb Magnets.
The key companies at TPC Delhi include, Bestak Self-Adhesives Inc., well-established player in labels and paper domain. A-Tech System Co. Ltd offers Mechanical, Electrical, Optical, Control, and Systems integration technology as its core mechanism and LUFTQI, is a leading player in the air purifier space. Another key company is ComeupIndustries Inc. a leading manufacturer for winches which include AC, Automotive, ATV/UTV and Industrial categories.
- What would be your learning from the pandemic which impacted the world?
As business players we need to be ready to handle any unprecedented events and have the patience and resilience to see through it. Every country should learn that collaboration and co-operation should not be be limited to only traditional areas of security and commerce. Lastly, reminds us that empathy, love and grace for our co-workers and our customers will go a long way, during the time of crisis.