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Our Bureau

Coimbatore , Oct. 25

WITH sub-contracting or outsourcing becoming an accepted business strategy not only in the service sector but also in the manufacturing industry, Coimbatore is seeking to become a preferred destination for outsourcing of light engineering products.

Entrepreneurs here are not only looking for scaling up production capacity to meet increasing demand but also are on the prowl for opportunities to buy out plants abroad, dismantle and ship the machineries home for re-erecting the plants here.

After the successful Subcon 2003, which resulted in business transactions worth about Rs 120 crore, the Coimbatore District Small Industries Association (Codissia), which had hosted the event in association with Confederation of Indian Industry (CII) and National Small Industries Corporation (NSIC), is organising the second edition in FebruarySubcon 2005 is expected to garner business worth more than Rs 400 crore.

Speaking to presspersons here on Monday, Mr J. Balu, President, Codissia and Mr V. Lakshminarayanasamy, Vice-President, said the increasing manufacturing cost is making European companies to look for vendors who could manufacture quality products at a competitive price and industries in Coimbatore, with an established reputation in the light engineering industries.

These include foundry industry, castings, auto components, machined components etc. The foreign buyers were on the look out for individual components and also sub-assemblies.

They said manufacturers from the city, who had participated in an industrial fair in Milan in Italy, had received a positive response from the buyers in Italy who looked at India as a reliable partner. The industrialists here also have received good ratings from foreign buyers and are now highly conscious of timely delivery, apart from maintaining product quality and competitive pricing.

Apart from companies such as Ashok Leyland, BEML and HMT, auto companies such as Ford, Hyundai and Maruti are also being wooed. The organisers are also inviting oil majors such as ONGC, HPCL and BPCL which do volume shopping from the small-scale sector, to take part in the exhibition.

More Stories on : Outsourcing | Engineering | Tamil Nadu

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