Chinese cos plan to invest $1 bn in Gujarat this year

The Chinese are coming to Gujarat big way! To start with, they plan to set up a China town next to automobile hub at Sanand, near here, for automotive companies with housing facilities.

Responding to Indian External Affairs Minister Sushma Swaraj appealing to her visiting Chinese counterpart Wang Yi to set up industrial parks in the country, a group of Chinese companies has short-listed three locations near Sanand in Ahmedabad district for this purpose. These are Sachana, Jakhwada and Dalsana.

A consortium of Chinese companies is expected to initially invest nearly $200 million (Rs 120 crore), Jagat Shah, Interim Secretary-General, China-India Trade and Investment Centre (CITIC), told Business Line here on Monday. In all, the Chinese companies have a target to invest $1 billion in Gujarat this year, he said.

This was only the first group of visiting businessmen. “Each month, a group representing nearly 10 companies will now be visiting Gujarat. They will form a consortium to initially invest $200 million.”

A delegation of 15 Chinese companies from Wengzhou of Zhejiang Province, which arrived in India along with its Foreign Minister last week, visited Delhi and Ahmedabad scouting for fresh investment opportunities during the last couple of days.

Sun Jian Qhiang, Managing Director of JBON Control Industry, said that the company would be investing in Sanand. He said: "I have an automotive brakes manufacturing factory in China and am exporting products to India since the last five years. After visiting the automotive cluster site in Sanand, I have decided to invest in Gujarat."

Teng Min Liang, MD of Zhejiang TTN Electric Co. Ltd, said: "I met several interesting companies in Gujarat for joint venture in voltage stabilisers and I will proceed with one at the Chinese industrial park in Ahmedabad district soon."

Jiquan Chen, MD of Yalong Scientific Co., said: "I am interested to represent a Gujarat company in China to promote educational equipment and software in a two-way relationship."

Chinese President Xi Jinping was the first foreign dignitary to call Narendra Modi soon after the latter took oath as the Prime Minister recently and followed it up by sending a delegation to India last week, led by the Foreign Minister.

A township plan was also presented to the Chinese delegation by Technopolis Township, Shah said, who accompanied the then Chief Minister, Narendra Modi, during the latter’s visit to China in 2011 and then set up the Ahmedabad-based CITIC.

Representatives of companies from sectors like automobile and motorcycle parts, real estate, construction, electrical appliances, garbage management, medical equipment, educational equipment and software, art and crafts and finance were part of the Chinese delegation, led Teng Min Liang from Zhejiang TTN Electric Co Ltd. and Sun Jian Qiang from JBON Control Industry, who also represents CITIC in China.

The companies met 30 potential investors and entrepreneurs in Ahmedabad on June 7 in an investors’ summit and visited several factories to explore joint venture opportunities with Gujarat companies. Two companies from Gujarat who are already working with Zhejiang companies shared their experiences.

COMMENT NOW