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Australian Government - Department of Foreign Affairs and Trade

Advancing the interests of Australia and Australians internationally

Australian Government - Department of Foreign Affairs and Trade

Advancing the interests of Australia and Australians internationally

India New Economy Old Economy

India New Economy Old Economy

Company: CACTUS IMAGING
State: NEW SOUTH WALES
Sector: MANUFACTURING

Cactus Imaging, from Sydney, produces some of the world’s largest outdoor advertisements and billboards, using software technology to generate high resolution colour images which are then projected onto tough, durable vinyl surfaces. In Australia, Cactus Imaging employs 60 people in its Sydney facility.

In December 2000, Cactus opened a 50:50 joint venture production plant in Chennai (Tamil Nadu), where it employs 60 people. Cactus Imaging was looking for an offshore production facility to access Asian markets, while Cactus’ Indian partner wanted help producing modern billboards inside India. Their products have a competitive edge over other billboard producers, because the quality of Cactus’ billboards is better than the typical hand painted Indian billboards that are produced on less durable surfaces. Cactus’ technology found a ready market in India, given its high demand for outside billboards and the tough Indian weather conditions. Cactus emphasises the importance of partner choice in a venture of this type; not only did they build strong business and personal relationships with their potential partners, but also conducted and hosted visits to both countries prior to entering the agreement. They are also finding that their Indian partners are very IT-savvy and are beginning to enhance the technology products that Cactus brought to the relationship.

The future for Cactus Imaging’s Indian venture looks very promising. When they first entered the Indian market, only 5 per cent of outdoor billboards used vinyl; this has increased to 15 per cent and in two years time the share is forecast to be as high as 45 per cent. The Indian joint venture sells billboards within India via offices in Chennai, Delhi, Mumbai, Bangalore and Kolkatta and also exports to regional markets in Pakistan, Dubai and Sri Lanka. They also are looking to expand sales into south-east Asia from their Indian operations.

Source: Cactus Imaging, 2001.

Department of Foreign Affairs and Trade