Ten Indian companies, ranging from consumer durables, electronics, telecom and even industrial development corporations belonging to two state governments, signed Memoranda of Understanding on Tuesday with their counterparts in China.
The Chinese, in turn, will reciprocate by procuring more iron ore from India and also set up steel plants in India in the near future, said executives from the Chinese industry body China Council for Promotion of International Trade.
The MoUs involving investment worth $5 billion are towards establishing their manufacturing units in China. The agreements were signed under the aegis of Indian industry body Assocham, with its Chinese counterpart, CCPIT. A 35-member business delegation from India is currently in China.
Videocon Industries Managing Director R N Dhoot, who is leading the Assocham delegation signed agreements on behalf of his company to invest $ 1.5 billion (Rs 6,300 crore) towards setting up an LCD manufacturing unit at Shenzhen.
He said that the LCD unit would be set-up in a year and 50 per cent of the produce would be exported. ZTE Telecom and Spice Communications are also setting up telecom manufacturing units in Shenzhen.
Among other Indian companies, the state-run Maharashtra Industrial Development Corporation, Rajasthan Industries Development Corporation also struck business deals with their counterparts.
Among other Indian companies to have signed agreements include Cosmos Industries for setting up a unit in power, coal and food. CCPIT Chairman, Wan Jifei said that Fino Steel of China, which is the leading steel manufacturers would be setting up two steel plants in India in next 4-5 years at sites in Orissa and South of Karnataka to make steel.
China intends to import 150 million tonnes of iron ore from India as against its current import level of 85 million tonnes, in view of its growing requirements for steel production.
Over the next six months, 75 Chinese companies affiliated to CCPIT will be visiting India to identify joint ventures opportunities in hardware, software and engineering, plastic toys, IT, BPO, automobile and auto components.
Videocon already has two tube manufacturing factories in China with a capacity of around 9.5 million units. The new LCD facility will have a capacity to manufacture 8 million units of 32 inch LCD televisions every year.