Australian export case study
Australian know-how and Indian building expertise have merged to provide inexpensive steel door frames for the domestic market in India.
Two years ago the ASX-listed, Perth-based steel building products manufacturer, JV Global Limited, entered into a joint venture with India’s oldest construction company, the giant Shapoorji Pallonji Group, to manufacture steel door frames.
Production is now rolling out at Sharus Steel Products Pvt Ltd, the joint venture partners’ 2.8 hectare manufacturing facility in Mumbai.
 “The market for door frames in India alone is 100 million units within the next five years, and 80-90 million additional dwellings will be needed by 2015,” said JV Global’s Managing Director, Terry Opie.
High in quality but cheaper than wood
“This is where we can help. Currently, most manufacturing of door frames in India is done at the local level using wood. But roll-formed steel door frames can be quickly mass produced to deliver a product that is not only high in quality but is also cheaper than wood.
“These door frames also address environmental concerns because India’s wood reserves are rapidly being depleted.”
Mr Opie said JV Global’s experience in roll-forming technology has delivered a merger of manufacturing expertise with building experience that can be transferred to many new markets around the world through joint ventures or as turnkey solutions.
“For us, the Shapoorji Pallonji Group in India is an ideal partner,” he said.
“They have a reputation and market share that would be the envy of any large Australian company wishing to do business internationally, and by partnering with them we had an immediate and major client for our joint venture.”
“However,” he said, “India is not an easy market. But we believe we have both the right product offering and the right partner to ensure long term commercial success.”
Growth potential is significant
Mr Opie added that doing a deal in India can take a considerable time and a certain amount of perseverance. “This is just the way business is done, but once you are established the growth potential is significant.”
He said that the Austrade-administered Export Market Development Grant, which JV Global received from the Australian Government, had helped the company.
“We were lucky to have both state and federal government export assistance to defray some of the costs when we were starting out on our export journey.
“We also received assistance in the identification and qualification of possible partners in-country – and that was invaluable.
“Opportunities to expand our joint venture in India into other complementary manufacturing lines, such as steel framing for housing, will be a natural progression for our joint venture,” Mr Opie said.
“And we plan to expand our manufacturing plants to include Chennai, Delhi, Bangalore, Hyderabad and Kolkata.”
Company information
JV Global Limited
Suite 28 87 Adelaide Terrace
Perth WA 6000
Tel: +61 8 9325 2700
Fax: +61 8 9325 2711
Email: info@jvglobal.com.au
Web: www.jvglobal.com.au
July 2008
www.austrade.gov.au/mediacentre
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