Saturday, October 11, 2008

[ Technical Textiles - Tata's Nano Shows the way.]


Tata move kindles investment interest.
AHMEDABAD: On Thursday morning, Kaushal Mehta, the CEO of Ahmedabad-based Motif, woke up to a mail from a foreign business associate. The question was never put to him before despite his average six trips abroad every year. His US-based associate learnt about the relocation of the world’s cheapest car in Gujarat and was wondering if the state was the right choice for his proposed $100-million semi-conductor plant. The successful entrepreneur and a venture capitalist from the Silicon Valley was earlier toying with other states for his proposed plant. But now, the American seems to have made up his mind. Tata’s small car has indeed turned out to be a mega ambassador for Gujarat in 48 hours flat. Ever since Ratan Tata announced the relocation of Nano, a host of industrialists from the state received passionate enquiries from their business partners abroad looking for investment in India. Mukesh Bhandari, the chairman of Ahmedabad-based Electrotherm India, which gave country’s first e-bike, YoBykes, said within 24 hours of the Nano announcement, a French electric vehicle player approached him to discuss about the state of Gujarat and the prospects of investment here. Textile major Chiripal Industries, too, has already received enquiries from a domestic player seeking investment in Gujarat. " The company intends to diversify and bring technical textiles under its ambit. It is in talks with us to set up its manufacturing facility around Ahmedabad,” director of the company, Vishal Chiripal told ET. “Nano has created industrial goodwill all around. It was a high-voltage event that charged up everyone. Our overseas buyers are enthusiastic about the developments and have been inquiring about the $2,500 car and investment climate in Gujarat. Textile players from Dubai and France, keen on investing in India, are asking about the infrastructure of the state and the administration."

Another state-based leading homelinen exporter which recently acquired an international brand received enquiries from a US-based technical textile player willing to set up shop near Ahmedabad. “With Gujarat emerging victorious, the state is being perceived as a top investment destination,” said Mr Mehta. Nano's international fame for being the cheapest car has suddenly put it on the world map. Only today I received a mail from a US-based company interested in setting up a $100-million plant, asking me how I could help them in facilitating the investment,” said Mr Mehta.

" Nano's presence has clearly brought us recognition from international quarters. For those in the know of things, Nano will reaffirm their belief in the state. Investors will come in flocks now," said Mr Bhandari.

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