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Overview of Thailand

Thailand is a country located in South-East Asia bordering

the Andaman Sea and the Gulf of Thailand Thailand has a developing economy that mainly deals in agriculture and manufacturing The other areas of Thailands economy are run by: Forestry- Forests cover about 60 percent of Thailand and teak the chief forest product. Anchovies, mackerel, crabs and shrimp are caught in the river and coastal waters Mining- Tin is Thailands most important mineral. Mines in Thailand also produce bauxite, iron ore, manganese Tourism- Tourism contributes to at least 5% of the GDP and is an important source of income

GDP: $586.9 billion (2011)

GDP - composition by sector:


agriculture: 12.4% industry: 44.7%

services: 43% (2011)


1 Thai Baht = 1.6312 INR

International Trade
Major Export Partners: China Japan USA Hong Kong Malaysia Major Import Partners: South Korea China USA Malaysia Japan

Major Exports: Machinery Textile Rice Rubber Jewelry


Major Imports: Capital goods Consumer goods Raw material Fuel

Automotive Component Market in India


The Indian automobile components industry has come

a long way since the countrys economic liberalization. From a quiet supplier of low-value components to the domestic aftermarket, the industry has transformed itself into a global hub for sourcing a range of highvalue and critical automobile components. The industry is the darling of many global auto makers such as GM, Toyota, Ford, Volkswagen, etc., who source auto components worth millions from India. In fact, the industry is one of the front runners for grabbing the auto components outsourcing market estimated to be worth US$700 billion by 2015

Auto Component MarketSegments

The number of players in the unorganized sector is

way higher than those in the organized sector

There has been robust market growth over the last 6

years

Exports have aided overall growth in the industry

Exports are driven by Indias competitive advantage

over its peers

Automotive Market in Thailand


The automotive cluster has been the priority sector for the

economy of Thailand
It is the third largest sector contributing 12% of the GDP Thailand currently ranks as the 12th largest auto

manufacturing country
Thailands automotive industry is the South East Asias

largest and most advanced automotive industry and is called the Detroit of Asia

Thailand produced 1,645,304 vehicles in 2010, a 100%

growth since 2005 (Thai Automotive Institute, 2011)


Thai car sales increased 53.4 percent from 2010, further

proving true that it is indeed Southeast Asias biggest car market


Last year exports of motor vehicles grew 55.2%,

production climbed 20.7% and sales of automobiles increased 18.6% according to the Office of Industrial Economics

Who are we??


We are an ISO / TS 16949 certified company

engaged in manufacturing of transmission & drive train parts like sub assemblies, gears, shafts, shifter forks & other precision machined parts for the past 20 years
Currently we supply to automotive & engineering

OEMs in the domestic and international market


The present contribution of export is 10% of total turn

over.

We are possessors of specialized technology and

machinery that give us an edge over other manufacturers We are based in Bhosari, the industrial belt in PimpriChinchwad

Our Product
Product: Gear Shaft

Gears are either mounted to, or are a part of, a gear shaft
Essentially, the gear shaft is the axle of the gear, providing the rotation that allows one gear to engage with and turn another.

HS Code: 848310
Order: 2000 nos.

Process and machinery required


A shaft is a holder for the gear in automobiles
It is a small, but integral part of a vehicle It has a standardized procedure: Turning- CNC machine Grooving- CNC machine Grinding- Milling machine Heat Treatment- Furnace

Processes carried out by us


Manufacturing
Packaging Export activities

Market Challenges
Duty drawback and incentives:

Auto component exporters find duty drawback a cumbersome and time-consuming process due to multiplicity in processes and interfaces. Currently, it takes anywhere between 3 months to 6 months to get duty drawback amount Exhibitions in foreign markets: The fund provided by the Government for participating in foreign exhibitions is too meager and hence is not of much use.

Market Entry
Thailand has an Institution called the TAPMA which is an

institution set up to promote the development of manufacturers of auto parts


This makes setting up a business or manufacturing plant

unfeasible
This is an important trade barrier that needs to be taken

into account
That is why we chose direct exports to loyal customers

Schemes
EPCG Scheme Relaxations

To increase the life of existing plant and machinery, export obligation on import of spares, moulds etc. under EPCG Scheme has been reduced to 50% of the normal specific export obligation
Department of Heavy Industries & Public Enterprises The Department of Heavy Industries & Public Enterprises

has also suggested creating a fund worth US$ 0.2 billion (INR 10 billion) to mordernise the auto components industry by providing an interest subsidy on loans and the purchase of new plants and equipment.

Promotion
Trade fairs are the most effective marketing vehicle in

Thailand as they are very common and very enthusiastically attended

The Pricing
Particulars A Cost of Manufactured goods/20 footer container pcs 2000 Amount 4000000

B
C D

Factory stuffing
Logistics(factory to Nhava Sheva) Freight (Nhava Sheva to Laem Chabang) Profit@12% on (A+B+C+D) Sales Price (on CIF basis)

2000
1*20 footer container 1*20 footer container $250, 250*49.7 2000 2000

5000
15000 12425

E F

483891 4516316

THANK YOU!!