India’s infrastructure industry means business
11 Oct 2011
For Australian companies like Sydney-based animation and model-making consultancy – Modelcraft – India’s booming infrastructure industry means big business.
For more than 10 years, the company has been creating scale models of everything from stadiums to shopping malls, highways to high-rises. And with offices now firmly established in the growth centres of Dubai, Saudi Arabia and China, Modelcraft is looking to India to continue its growth.
Since 2009, the Indian Government has introduced a range of policy and structural reforms to improve the award and execution of major infrastructure projects. In its 2011-12 budget, India’s Government also increased its commitment to infrastructure development by 23 per cent, allocating A$5.13 billion for this year alone.
In the long term, India’s infrastructure industry is set for a robust expansion. The development of railways, roads and highways, ports and airports, as well as power, real estate, oil and gas, and sports infrastructure is expected to attract A$98.2 billion worth of private and public sector investment over the next five years.
For companies like Modelcraft, investment in India’s infrastructure industry means significant opportunity for business expansion and export longevity.
“The large township development model is very widespread in India,” says Modelcraft CEO, Matthew Roche.
“The larger the development, the greater scope we have to sell multiple products throughout the project’s lifetime. And when our fees can be spread across larger and longer-term projects, developers are more able to accommodate our services in their budgets.”
After two years’ experience, Matthew Roche sees India’s booming infrastructure industry as an exciting growth market for Australian companies, but he remains mindful of the challenges.
“Timelines tend to be much more flexible than we are used to. There needs to be greater care when allocating resources to a project and you need to be less rigid with the clients than in our traditional markets.
“Deadlines often tend to shift based on cultural sensitivities as much as on market forces. You have to be prepared for this.
“You also need to bear in mind the sheer size of India as a country and each of the population centres individually. Rather than trying to market to India as a whole, we took part in a trade mission visiting New Delhi and Mumbai. This gave us a chance to better target our approach to the markets where we had the greatest chance of a solid return.”
Modelcraft secured their first Indian client in 2008 and with assistance from Austrade, the company now has clients in New Delhi, Gurgaon, Mohali, Noida and Mumbai.
“We spent some time working with Austrade getting advice on the market in New Delhi and further afield across India.
“Securing our new business has been a combination of Austrade’s ability to introduce us to new clients, and our ability to build a strong reputation with each completed contract.”
To enable companies to explore their opportunities in India, Austrade’s South Asia Infrastructure team recently facilitated an industry Master Class in New Delhi. The workshop forms part of Austrade’s ongoing measures to increase Australia’s profile in South Asia’s emerging infrastructure growth story, providing occasion for engagement between Australian and Indian firms, industry experts, and Australian Government representatives.
Throughout 2011-12, Austrade will continue to facilitate opportunities within South Asia’s infrastructure sectors through a client migration program and a series of webinars.
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