The Hindu Business Line : EEPC to open India engg centre in US — In pact with Schenker for warehouse back-up

THE Engineering Export Promotion Council (EEPC), as part of plans to tap the US market for engineering goods, has decided to provide a new platform for marketing support to its member-exporters to compete internationally.

Talking to Business Line on the new plans, Mr Rakesh Shah, Chairman of the council, said EEPC will soon be launching an India Engineering Centre (IEC) in Chicago, which will function as a multi-purpose warehousing-cum- exhibition centre for Indian companies to display and market their engineering products in the US.

The centre will have a showroom facility for display of product samples, warehousing for storing the goods and a distribution centre. The showroom will hold product exhibitions all round the year.

He informed that the council has also entered into an agreement with Schenker of the US, a leading shipping agency with whom EEPC already has logistics arrangements, for providing third-party warehousing facility to members of IEC.

According to him, similar facilities are being used by competitors from South Korea, Taiwan, Hong Kong and China.

He said at a nominal cost, facilities of Schenker would be used for both storing of goods, and also as a distribution centre for supplies as per instructions of the participating companies. "The prompt distribution with a local presence of the products will lift the confidence of buyers of India products in a big way."

Mr Shah said some 34 Indian firms have already booked space in the centre, which will have 50 display windows. The list includes names such as Tata Motors, Kalyani Forge, International Tractors, El Forge, Lakshmi Precision Screws Ltd, Wings Automobile and Trinity India Ltd.

The IEC, to be set up under the Market Access Initiative (MAI) of the Ministry of Commerce, Government of India, is estimated to cost around Rs 2.42 crore, of which EEPC will spend Rs 1.45 crore and the balance as Government grant.

Mr Shah said the plan was to inaugurate the project by July, and the Union Commerce Minister, Mr Kamal Nath, may participate in the launch function.

Describing IEC as an ideal platform for holding all future buyer-seller meets of EEPC in the US, he said in the 5,000-sq ft display-cum-showroom centre, some 40 per cent of the space was being reserved for the small-scale industrial units which generally find it difficult to access the US market.

He felt the geographical distance between India and the US puts Indian exporters at a disadvantage to make the best use of the market. Owing to the long shipping time, buyers in the US and Europe are sceptical of placing orders on Indian firms, even if the goods are acceptable to them on the quality front, he pointed out.

While the SSI units have to pay a rent of just Rs 6,500 per month for the facility, non-SSI units would be required to pay a rent of Rs 8,000 per month.

Mr Shah clarified that initially, every company will have to pay Rs 30,000 towards membership charges for participation in the project, which will be a one-time payment and refundable.

On the basis of in-depth market research into the US market, EEPC has identified potential export products such as auto components, castings, forgings, fittings & flanges, industrial fasteners including precision components, pumps & compressors, scientific and surgical instruments, measuring & process control equipment, hand tools and stainless steel ware.

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