Patton mulls $50 million investment in India

Patton mulls $50 million- Mumbai Exhibition.jpgOne of the finest New Zealand companies is on an expansion mode, which would see its manufacturing facilities established in India to cater to the growing markets in the Indian Sub-Continent and South Asia.

Patton Group of New Zealand (known earlier as Patton Refrigeration Limited) Chief Executive Officer Sameer Handa is due in New Delhi next week with a number of his Directors to consider the next phase of operations in one of the most exciting and fastest growing markets in the world.

The visiting officials are expected to meet senior officials of the Indian Government, New Zealand’s High Commissioner Rupert Holborow and others connected with the company’s activities in India.

“Depending on the facilities and incentives that may be available, we are considering establishment of a manufacturing plant to produce a wide range of items to meet the growing demand from the Indian and other neighbouring markets,” Mr Handa told Indian Newslink during an interview.

He indicated that the total investment may be around $50 million but did not disclose its composition or the involvement of other companies or associates.

“India is the world’s largest producer of milk and milk products, fruits and vegetables and several other items that would require preservation through refrigeration. There is therefore immense potential for engagement in this market and the best way is through an established manufacturing presence,” Mr Handa said.

Patton Refrigeration India Pvt Ltd was established in Delhi, India in 2007 as a wholly owned subsidiary of the Patton Group. Growth was swift and the Company’s strategy of promoting and selling Patton-branded capital equipment to the Indian refrigeration Industry from its Auckland plant began to yield dividends.

Following the start-up of a manufacturing facility in Bangkok, products from the plant became the main source of supply to the Indian market.

According to Mr Handa, a number of its global suppliers sought the Company’s assistance to establish their presence in the Indian market.

“This opportunity has grown and expanded. Today, Patton represents 12 European and American companies and brands in India on an exclusive basis. This part of the business has witnessed rapid growth, prompting Patton to set up an office in Chennai.

“This has also resulted in Patton setting up distributors all over India to seek better market present and representation on a national basis,” he said.

Mr Handa said the Preferred Trade Agreement between India and Thailand has proved useful.

“Our proposed move to India for manufacture of products and processes would be in consonance with our business plan and the Free Trade Agreement between the New Zealand and Indian Governments, negotiations for which are now being held. Apart from the trade pact, there is a need to constantly explore the market needs and evolving trends,” he said.

Patton showcased its products at the Air-Conditioning & Refrigeration Exhibition held in Mumbai earlier this year. The four-day exhibition attracted more than 15,000 national and international visitors.

“Our products were well received,” Mr Handa said.

He said the Company’s Five-Year Business Plan incorporates a detailed and serious phase of growth and expansion in India.

As reported in these columns earlier (August 1, 2010), the past 15 years have been eventful for Patton in every field of its involvement. Turnover has increased from about $10 million to more than $50 million, the number of staff has risen from 30 to more than 140 today. The Company now accounts for 20 offices in four countries, including nine in New Zealand, eight in Australia, two in India and one in Thailand.

Young Entrepreneur Award

Patton Group New Zealand is the sponsor of the Best Young Entrepreneur of the Year category of the Indian Newslink Indian Business Awards 2010.

“Patton believes in encouraging young men and women becoming successful businesspersons and hence decided to sponsor the ‘Best Young Entrepreneur of the Year Award’ I have immense faith in the growing generations. They should have appropriate opportunities to grow and hone their talents,” Mr Handa said.

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Photo : Sameer Handa (fourth from left) with Patton India staff at the Air-Conditioning & Refrigeration Exhibition held in Mumbai held in February 2010.

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Indian Newslink Indian Business Awards 2010

Our Sponsors & Awards

The National Bank of New Zealand (Title Sponsor)

Best Small Business and Supreme Business of the Year

East Tamaki Healthcare: Best Large Business

WAML Group & Teledata Informatics: Best Medium Business

Stamford Plaza Hotel: Best Business Innovation

Patton Limited: Best Young Entrepreneur of the Year

Millennium Group: Best Restaurant Business

Kalamazoo Group: Best Professional Services Business

Supreme Sikh Council: Best Retailer Business

Indian Newslink: Best Exporter to India Business

Radio Tarana: Best Marketing Excellence

TV 3 (Media Works Ltd): Best Businesswoman of the Year

Our Panel of Judges

Chad Wilkie, Executive Director, Ignition Partner Limited (Convenor)

Adrian Dixon, Business Consultant

Chip Dawson, Managing Director, International Business Management Ltd

Dr Claire McGowan, Managing Director, Commercialisation Advisers Ltd

David Hawkins, Associate Professor, Unitec School of Design

Nevil Gibson, Editor-in-Chief, The National Business Review

Peter Bradley, Managing Director, Qatalyst BioConsulting

Ray Knight, Founder-Director, SPI Capital

Steve Corbett, Chief Executive, e-Centre Ltd, Massey University

Tim Livingstone, Senior Partner, UHY Haines Norton, Chartered Accountants

Tony Bacon, Sector and Partner Manager, Vodafone NZ

Vijaya Vaidyanath, Chief Executive, Waitakere City Council

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