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As recession eases, US firms sniff opportunities in India

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BS Reporter Chennai/ Bangalore
Last Updated : Jan 21 2013 | 12:54 AM IST

With the Indian economy showing signs of leaving the recession behind, companies from the US are once again making a beeline to the India shores scouting for opportunities. Companies from varied sectors are looking to test the waters with an investment in mind at a later stage. “Last year, things were rocky and very few trade delegations came to India. However in the last one and half months, things have turned around,”said Sandeep Mehra, committee member, Indo American Chamber of Commerce (IACC), Karnataka branch.

Pennsylvania-based Gamma Sports, which specialises in tennis products, has come to India to tap growing popularity for tennis in India. The company is looking at introducing the brand in India in 2010 for which it is evaluating distribution channels. “We want to start with junior tennis racquets initially where we will look at popularising the brand among young first-timers on the court. After that we will bring our other products,” said David Kukleski, international sales manager for Gamma Sports.

The company is willing to function at base profits for the first three years till it establishes the brand in the country. Apart from tennis racquets, the company wants to bring string machines, ball hopper baskets and accessories like wrist bands and textiles to India. It is also looking at being one of the first organised players to bring string machines into India. “In India, racquets are strung with hands in many places. We have a range of string machines and will evaluate the ideal one for the Indian market,” said Kukleski. He also said the company would speak with the United States Racquet Stringers Association (USRCA) to have some association with India.

Ross Technology, which has provided security products to the US consulates in India is here to understand the security market in the aftermath of the terrorist attacks on the country. The company is looking to either appoint a partner to distribute the goods or will look at selling its products through integrated security companies in India.

“We want to first enter the market on a no-profit strategy to understand the market. At a later stage, we could look at manufacturing in India,” said John Null, vice president of security products, Ross Technology Corporation. The company looks at nuclear power plants, large corporations and research facilities for its security products which are in the premium segment.

Similarly, the Pittsburg-based PNC Bank is also looking at a greater role as a facilitator between clients in the US who want to do business in India and Indian companies who need finance to purchase American products and services. The bank partners Axis bank, SBI and Standard Chartered on a regular basis and might look at setting up an office in India.

The bilateral trade between India and the US is expected to touch $320 billion by 2018 which will be eight times more than the present levels of $42 billion in 2007-08.

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First Published: Dec 11 2009 | 12:15 AM IST

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