Company: CLIPSAL INDUSTRIES

State: SOUTH AUSTRALIA

Sector: MANUFACTURING

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.