The Hindu Business Line : ‘Turkey holds potential for Indian manufacturing cos’

Chennai, Nov. 26 Turkey can be a favourable destination for Indian manufacturing companies having mandate to cater to Europe, speakers at a CEO luncheon dialogue on ‘Turkey as new growth hub in Europe’, organised by the Southern India Chamber of Commerce and Industry, said.

This is due to geo-logistic advantage as well as Customs Union the country established with Europe in 1996.

The Head Project Director of Investment Support and Promotion Agency of Turkey (ISPAT), Mr Mehmet Gokay Ustun, said the Customs Union agreement allows the manufacturers in Turkey to export to Europe without customs duty.

This will make manufacturing companies competitive as, in addition to leveraging cheap labour cost, Turkey will also give access to Europe, West Asia, African and Asian countries, he said. Indian companies could see huge opportunities in shipbuilding, auto components, textiles, machinery, construction equipment and IT and mechatronics, he said.

Trade between Turkey and India, which was $600 million five years ago, increased to $3 billion now. Last year, Turkey attracted FDI of $22 billion, a big jump from the $1 billion it used to get annually in the 1990s. In the current year, till August, the country has received FDI of $11.2 billion.

“There are lot of opportunities to try Indian know-how in Turkey,” said the India representative of ISPAT, Mr Ravi Chaudhry.

Last year, Turkey received $500 million as FDI and during the last 12 months about 20 Indian companies have set up shop in the country, he said.

Turkish companies are also interested in investing in India and the recent one to enter is Celabi, which won the contract for ground handling in Mumbai airport, he said. One of the automotive lamp manufacturers in Turkey has firmed up plans to set up its plant in India, he said.

Indian Oil has an investment plan of $5 billion for the Ceyhan project, which involves refineries, oil pipe and petrochemicals, based on an agreement signed with Turkey’s Calik Holding. It is currently constructing the Samsun-Ceyhan oil pipeline in a joint initiative with Italian energy giant Eni.

TAFE recently announced its plan to set up a tractor assembly plant in Turkey. NIIT has tied up with a Turkish university while Educomp Solutions and IIIT are in the process of entering the country, he added.

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