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.