Company: BALTEC SYSTEMS
State: BRISBANE, QUEENSLAND
BALTEC SYSTEMS IN INDIA
Baltec Systems Pty Ltd is a small Brisbane based firm specialising in products and services to improve the efficiency of industrial flue gas cleaning plants. Baltec developed proprietary technology for this process that is most used by smelters, refineries, power generators and cement manufacturers.
Baltec mostly sells its technology to Australian industries, but in the early 1990s, started exporting. The company drew up detailed marketing plans to identify key potential foreign markets. Along with China, where Baltec also has operations, India ranked highly due to its large cement and electricity industries and the major efficiency improvements Baltec could offer customers.
Initially, Baltecís experience with the Indian market was not a great success. In 1993, they linked up with a Delhi based agent. However, after undertaking two expensive trials for quasigovernment utilities, Baltec secured no business and withdrew from the market.
In 1999, another potential agent with wide experience in their industry approached Baltec suggesting a focus on private sector plants. Baltec management eventually decided to try India again, setting up a liaison office in Pune, near Mumbai, in early 2000.
Since then, Baltec and their agent have undertaken several successful trials and sold the companyís technologies and services to over a dozen industrial plants. They increased their Indian office staff to eight and are undertaking several more promising trials at present. They also export products and services from their Pune office to other Asian countries and back to Australia. Baltec believes India provides good business growth prospects and adds considerably to the companyís expertise and geographical reach. Their Indian operation also lets them access markets in the Middle East, South East Asia and Eastern Europe.
Despite their success, Baltec acknowledge the vagaries of doing business in India, particularly the difficulty of establishing a business and securing reliable power and telecommunications. However, Baltec also feel the business environment is improving; email makes communication a lot easier, import duties on necessary products are falling and bureaucratic problems are gradually disappearing. Given the size of the market and the gradual changes in the operating environment, Baltec believes its business has a bright future.
Source: Baltec Systems, 2001.