Rajoo Engineers Ltd. has set out a double-barrel export strategy for this year, focusing on Latin America and the former Eastern bloc countries in Europe, offering competitively priced machines for major upgrades and new start-ups.
“We are seeing signs of the export market recovering, especially in Latin America, and capacity expansion and new startups in Poland and Spain,” said Sunil Jain, president of Rajoo Engineers, in a recent interview in New Delhi.
Jain pointed out the European Commission's efforts to promote industries in former Eastern bloc countries.
The Indian plastics machinery company also is establishing new markets in places like Ecuador and Ghana.
“Indian machines for manufacturing plastics are well-received in Africa, but there are more emerging markets that we are working on, having made a breakthrough in Ecuador and Ghana,” he said.
Latin American markets, especially Argentina and Mexico, have the potential to grow above 10 percent a year, Africa above 10 percent, the emerging markets in Europe between 5 and 7 percent, and the Middle East markets about 5 percent, Jain said.
Rajoo Engineers aims to be a strategic and niche player in these markets, particularly by offering technologically advanced but competitively priced machines to investors who prefer to keep investment costs low.
The domestic Indian market demand has helped cushion Rajoo Engineers against the global economic meltdown.
Last year, the company's exports fell to 28 percent of the total output, down from 40 percent previously.
But in India, Rajoo Engineers has had strong double-digit growth for the past five years and projects further increases in sales volume this year.
However, exports would have to be boosted and Rajoo Engineers has planned a new export promotion campaign for the Latin America, European and African markets at the K 2010 show, to be held Oct. 27-Nov. 3, in Dusseldorf, Germany.
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