Company: CLIPSAL INDUSTRIES
State: SOUTH AUSTRALIA
CLIPSAL SWITCHES ON TO INDIA
Clipsal Industries India is a joint venture, JV, manufacturing company formed in India between Electric Control Gear of India and Australian electrical products multinational Gerard Industries Pty Ltd, the owner of the brand name Clipsal. Their factory, based in Ahmedabad in the state of Gujarat, produces light switches for domestic and commercial, particularly hospitality, markets in India.
Despite an interest in India in the 1980s, Clipsal only seriously considered entering the market in the mid 1990s. After some commissioned research and a fact finding mission in 1996, Clipsal entered a JV arrangement with a publicly listed manufacturing firm from Ahmedabad. Following a lengthy foreign investment approvals process, they got their plant off the ground in 1998 and are now supplying 5 per cent of India’s high end switch market. This operation employs 450 people. They have also started another operation in Ahmedabad, employing predominantly female workers, to manufacture intricate electrical devices for safety applications.
Clipsal established a network of offices around India and the company considers this an important part of their success. They believe the customer feels better served by a local representative who knows the product thoroughly, in turn building better customer relationships.
Clipsal believe business success in India relies on three elements: having a superior product at a competitive price; spending time working with customers to understand their needs; and having lots of patience and perseverance. Despite the difficulties of the approvals process, labour laws and supply and regulatory requirements, Clipsal consider the future for their products in India to be excellent.
Source: Clipsal, 2001.