Thailand’s Siam Cement to build $50mn plant in India
Thailand-based The Siam Cement Public Company Limited SCG, makers of Smartboard fibre cement sheets and Smartwood fibre cement based wood alternatives, is planning to set up a manufacturing plant in India.
"SCG is expected to set up the manufacturing facility within two years involving an investment of about $ 50 million",
Harsha Bhutani,managing director Hydrobaths Ramco Marketing Private Limited which is a joint venture partner of SCG in India, told Business Standard. He, however, said that SCG would go ahead with its plans to have its manufacturing base once the sales volumes of Smartboard and Smartwood touched the "critical volume of 1 million square metres sq mts a year in India.Currently, the annual sales of the two products in the country stood at 300,000 sq mts.
Listed on Thailand stock exchange, SCG is stated to be having an annual sales of $ 20 billion worldwide. Hydrobaths, a producer of bath products, markets SCG products in India.
India has a huge market with its vast population of 1,200 million people.
BOI Secretary General Mr. Udom Wongviwatchai said that India is one of Thailand’s target countries for investment promotion under the BOI’s new policy. India’s economy is the world’s 10th biggest and Asia’s 3rdbiggest after China and Japan.
BOI investment promotion services in Mumbai will not only convince investors to invest in Thailand, but also encourage potential Thai investors to do business in India. India has various industries that match Thailand’s investment promotion goals, such as auto parts, software, chemicals, and pharmaceuticals.
In the meantime, India is ready to support investments from Thailand, especially in the agriculture and agro industries, vehicle parts, electrical appliances and electronics, construction, energy business, real estate and hotels.
“We’re confident that the beginning of services here will encourage more investments from India to Thailand and encourage potential Thai investors to expand their businesses to support the huge demands of the Indian market. It will also provide a chance for Thai investors to expand their businesses into countries that are neighbors of our two countries,” said Mr. Udom.
From 2007 through 2012, 114 projects by Indian investors were approved and received promotional incentives from the Thailand Board of Investment with a total investment value of 30,203 million baht. Large-scale projects are Aditya Birla Chemicals (Thailand) Ltd., a rayon manufacturer; Apollo Tyres Ltd. (Thailand) that manufactures radial tires; the N.T.S. Steel Group Plc., that manufactures raw steel products and semi-finished and finished steel products; Polyplex Ltd., that produces pet resin and polyester film; Indorama Holdings Ltd., that manufactures wool yarns; Bharat Hotels Ltd; Tata Motor Ltd., which manufactures trucks, etc.
Large-scale Thai companies that operate businesses in India include ITD Cementation India Ltd.; Charoen Pokphand Foods Plc; the Siam Cement Group (SCG); Pranda Jewelry Plc.; Thai Summit Auto Part Industry Co., Ltd.; the Pruksa Group, etc.