Overview of ThailandThailand is a country located in South-East Asia

bordering the Andaman Sea and the Gulf of ThailandThailand has a developing economy that mainly deals in

agriculture and manufacturingThe other areas of Thailand’s 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 Thailand’s most important mineral. Mine’s 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 TradeMajor Exports:

MachineryTextileRiceRubberJewelry

• Major Imports: Capital goodsConsumer goodsRaw materialFuel

• Major Export Partners: ChinaJapanUSAHong KongMalaysia

• Major Import Partners: South KoreaChinaUSAMalaysiaJapan

Automotive Component Market in IndiaThe Indian automobile components industry has

come a long way since the country’s 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 high-value 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 Market- Segments

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 India’s competitive advantage over its peers

Automotive Market in ThailandThe 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

Thailand’s automotive industry is the South East Asia’s 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 Asia’s 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 Pimpri- Chinchwad

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 machineGrooving- CNC machineGrinding- Milling machineHeat Treatment- Furnace

Processes carried out by usManufacturingPackagingExport activities

Market ChallengesDuty 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 EntryThailand 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

SchemesEPCG 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.

PromotionTrade fairs are the most effective marketing

vehicle in Thailand as they are very common and very enthusiastically attended

The PricingParticulars pcs Amount

A Cost of Manufactured goods/20 footer container

2000 4000000

B Factory stuffing 2000 5000

C Logistics(factory to Nhava Sheva) 1*20 footer container

15000

D Freight (Nhava Sheva to Laem Chabang)

1*20 footer container$250,250*49.7

12425

E Profit@12% on (A+B+C+D) 2000 483891

F Sales Price (on CIF basis) 2000 4516316

THANK YOU!!