Company: BALTEC SYSTEMS

State: BRISBANE, QUEENSLAND

Sector: SERVICES

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, Baltec's 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 company's 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 company's 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.