Delta Electronics thriving in India

Thanks to strong demand for electronic products in India, Delta Electronics (Thailand) Plc predicts sales in India would double or triple from US$100 million in a few years.

Last year sales in the Indian market were outstanding, more than doubling from $40 million the year before, said Anusorn Muttaraid, the company's executive director.

Mr Anusorn discussed the company's success story yesterday at the Indian-Thai Business Summit, a forum held as part of the three-day International India Film Academy (IIFA) 2008 celebrations in Bangkok, which will end tomorrow.

The electronics market in India, one of the world's fastest growing economies, is vast since most products related to electronic components still need high-technology parts.

Mr Anusorn said that Delta had also enjoyed outstanding business performance in India from exports by its local subsidiary.

The company reported a 61% increase in consolidated net profit in the first quarter of this year, slightly higher than expected.

It posted a net profit of 3.16 billion baht last year, up from 1.96 billion baht in 2006.

Delta had been enjoying rapid growth in India because of the business management of local staff, said Mr Anusorn.

''We have 100% foreign ownership there. We set the rules then management follows our rules. One good thing about Indian people is they obey the rules,'' he said.

However, conditions were not always so easy.

''But in the beginning, it was quite difficult for us to invest in India. Unlike Thailand, there is no one-stop-service for investment.

''What you hear from the local authority could definitely be a different story from [what you hear from] the central government. After we got confused, we were back to the start again,'' Mr Anusorn said as more than a hundred Indian and Thai businesspeople laughed.At yesterday's forum, Thai and Indian authorities encouraged the private sectors of the countries to undertake more bilateral trade and investment.

They said the governments of both countries had already paved the way for them, including establishing a free trade agreement covering more than 80 industrial goods. The pact is expected to cover other products and services by 2010.

Delta shares closed yesterday on the Stock Exchange of Thailand at 21.10 baht, up 20 satang, in trade worth 8.63 million baht.