When the dust settles, Cooee Asia’s joint venture in India stands tall
Australian export case study
By establishing a partnership with a local Indian manufacturer, an Australian company has found new markets in South Asia for its award-winning product. Cooee Asia and its joint venture partner, Sumeru India, have developed a dust management emulsion that has updated mining practices, improved safety at mines, power plants and ports, and saved millions of litres of water every day.
For years, large mines in India have used water sprinklers to control dust. This process is water intensive, environmentally unsustainable, and expensive.
Enter Cooee Asia and its pioneering dust suppression product, DustBloc, which not only controls dust more effectively, but also uses 80 per cent less water.
From Maroochydore to Mumbai
Cooee Asia is based on Queensland’s Sunshine Coast. The company’s leading product is DustBloc, an award-winning dust suppressant used by mining companies, power plants and port authorities to control dust, stockpiles of coal and other mining particles.
DustBloc is an emulsion of bitumen, water, and special additives that mixes with water of all types (soft, hard, bore or salt) to form a product that controls dust on a range of surfaces. It is environmentally friendly, safe to handle, and can be stored, transported and pumped without specialised equipment.
Once applied, DustBloc soaks into the road surface and builds up over time. It binds the road together, reducing dust, tyre wear, and road maintenance. Also, as truck traffic breaks up the road, the surface is heavier and less likely to become airborne.
Under standard practice, large surface mines use four million litres of water each day on their access roads to control dust and maintain visibility. In mines this size, DustBloc can reduce water use by the equivalent of about two Olympic-sized swimming pools per day.
Finding the right partner
Cooee Asia’s Managing Director, Frank Vos, says success in India was all about the right market entry strategy; in this case, a joint venture with a local firm.
Austrade arranged for Cooee Asia to be part of the Australian pavilion at the 2010 International Mining and Machinery Exhibition in Kolkata when the company was first investigating the market. Austrade also organised some business networking opportunities for Cooee Asia where the firm met many prospective partners, including the company it eventually chose to work with, Sumeru India.
Cooee Asia was attracted to Sumeru because it had a long business relationship with Bridgestone Tyres in Japan for tyres used by mining vehicles, and strong existing connections in the Indian mining industry.
Cooee Asia and Sumeru India established a joint venture called Sumeru Cooee Dustbloc India to manufacture and market dust suppressants in India.
Cooee Asia’s products are competitive in India because they are manufactured in Kolkata and Haldia, making them much more affordable than if they were imported from Australia.
“We chose a local joint venture partner with 25 years’ experience, who established a new manufacturing unit, and provided a marketing structure which was already in place for other foreign products in the mining industry,” says Vos.
As a result Cooee Asia was able to start quickly manufacturing in India and secure some prestigious orders from mining companies, including Hindustan Copper Limited, Aditya Birla Group’s Essel Mining Limited, and Godavari Power Limited.
How Austrade helped Cooee Asia in India
Apart from helping Cooee Asia with networking at the 2010 International Mining and Machinery Exhibition in Kolkata, Cooee Asia has since joined other such events, the most recent being the 2012 International Mining and Machinery Exhibition. The Australian Trade Commission (Austrade) also maintains a close relationship with Sumeru India on Cooee Asia’s behalf.
“It has been delightful to work with the local Austrade representatives in India,” says Vos.
“They are highly regarded by Indian business people, and have a great reputation among the mining companies in particular. They work hard to maintain relationships, always visiting the head offices of Indian companies. We would not be able to do that.
“I sought Austrade’s advice when I was choosing a partner. It helped me to reach a sound decision. They are a valued asset to us when doing business in India.”
Relationships are personal
Vos says that while big trade shows are an effective way to meet Indian companies, it is essential to follow up on introductions.
“It’s fine being part of a delegation, but you need to go back yourself, rather than be one of 10 companies at an exhibition,” says Vos. “Indian business people appreciate that effort, and they have long memories.”
Also, in India, patience is a virtue.
“Things will happen, but they happen in an Indian time frame,” Vos says.
“It’s a long-term project, but once you establish meaningful contact, and a solid reputation, it’s for life. And the relationships are often personal in nature.”
“For example, I’ve been invited to attend dance recitals for the granddaughters of my Indian business partners. It’s been a wonderful life experience, but you must be prepared to spend the time it takes to make deep connections. There are no short cuts.”
“It helps to understand a bit of the history of the country, and to understand how in India, business, society and family structures all have strong parallels.”
“Then there is cricket. You will have many conversations about cricket.”
Vos describes his experience in India as “fascinating, encouraging, enlightening, and frustrating.”
“You don’t make quick sales in India,” he says. “It will be three years before you earn a dollar. You can have the most gee-whiz product in the world, but without putting in the effort, nothing happens.”
“This is where the Austrade assistance is so valuable – finding the right partner, putting the right business structures in place, dealing with local staff, knowing the regulations, and now, assisting the joint venture partnership to deal with customers.“
“They know the people, and they know how India likes to do business.”
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