ELECTROSTEEL IN INDIA

During 1990s India achieved growth rate above 5%

It had adopted policies to protect local industry which made
difficult for MNCs to do business here
In 1991, the government started liberalization program that aimed
at reducing these barriers
Electrosteel has been producing pipe since 1965
Overall production reached 231,000 for DIP and CIP generating
revenues of US$124 million and contributing to cash reserves of
about US$50 million
Export sales went from 30,000 tonnes to 25,000 tonnes in 2001

On 30th June 2001, CEO of Electrosteel Castings, Anil Das received a

call regarding their decision to invest in Vietnam
The company was planning out for the international expansion
Narrowed down the options either to new marketing office or a new
manufacturing facility
Two attractive locations- Vietnam(Southeast Asia) or France(Europe)
Approached CMC to assess the locations at Vietnam
Urgency for the decision increased when Mr.Das realised that foreign
competitors were also investigating on the similar lines for the
expansion in India