Chinese market not mature for investments, says Ruia

Shashi Ruia, chairman, Essar Group, today said the group has an open mind on investments in China, but the nation's rules and regulations are not mature enough for an immediate foray.

"I don't think the market is mature here to get into a venture in terms of rules and regulations," Ruia told in an interview.

"We are here (in China) now and are planning to stay here for a long time. We will evaluate every opportunity that we come across," said Ruia after announcing the opening of a new office of Global Supplies (UAE) FZE, a subsidiary of Essar Global (EGL) in Beijing.

The Beijing office will concentrate on setting up a global sourcing base to procure capital goods required for Essar's requirement in the steel, energy, power, communications, shipping, telecommunications and construction businesses.

"With the market they have, China could be a very interesting place to be in," said Ruia, and added that he was keen on investing in China's coal sector, which could be complementary for Essar's interests in the steel segment.