Advice to India Market Entrants & How to set up a plant in India – Mr.Vijay Rawal -CFO, LEMKEN India


We are from Alpen in Düsseldorf. I am holding as a Director and CFO of the Company. Lemken India is in India for the last eight years. We started building the plant immediately after coming to India in 2010.
Completed the plant installation by the end of 2012. Since the last six years, we are selling products in India and also exporting to some markets in Europe. We are making Agricultural Equipments which is suitable for Indian circumstances. As a Sales Manager obviously the quality of the product and the performance of the product, the way people are using it and getting the benefits, that gives a big name to us in India in Agricultural Implements. We are now a known brand in India when it comes to Implements. If you see, since the last six years, during operations, just the beginning was very tough because our implements are costly and we had to really prove the benefits to the farmers. Farmers knows about the need, but we have to give the solution. that is why we are able to sell good number now and farmers have accepted our pricing also in a way. The Government also now supporting as agriculture implements, or we can say agricultural mechanisation is a target for the Government also, Government of India. When it comes to the ease of doing business, yes after implementation of GST, because we already have an established plant, Ii can not say much about coming up a with a plant, but when it comes to the day to day operations, GST helped us a lot. We are exporting, or we are even selling all over India. With GST we are able to dispatch and deliver material very fast now, the machines.So this is a big help and there is a big change in terms of business. When it comes to setting up a new plant, or manufacturing unit or subsidiary in India, the major thing thing which we have experienced is that companiesy really need to work on the market study in a better way for India. India seems a very huge market but not every product is suitable for Indian conditions. Like in agriculture, we are more for small implements, but Lemken is making implements which is suitable for big tractors. So that was a big limitation and challenge. companies who want to come Iindia, they need to really study the market well before starting operations in India.

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