PM Modi and Chinese President Xi Jinping
After the meeting of Prime Minister Narendra Modi and Chinese President Xi Jinping at the meeting of Shanghai Cooperation Organization (SCO), there has been a new twist in India and China. The tension between the two countries has reduced somewhat, and now the talks between companies regarding partnership are intensifying. Especially in areas like electronics and automobiles, joint ventures are being emphasized and strategic investment.
This meeting has taken place at a time when America has imposed heavy tax (tariffs) on India, which is affecting the business of the world. In such an environment, the growing proximity between India and China is being considered a good sign for the business of the country.
Higher in preparation to sell 49% stake
According to the Economics Times report, China’s famous home appliances company Haier has almost completed the preparations to sell 49% stake in their Indian subsidiary. It is being told that in the last two days, this deal has caught the fresh speed. According to a senior industry official, a conversation with Indian industrialist Sunil Mittal was going on for a long time to buy this stake, which had recently slowed down for some reasons. Now, HAER wants 49% to be sold to the Indian investor, it should be given 49% stake itself and the remaining 2% should be given to the employees of the company. On this proposal, several rounds of meetings have been held between the company and the merchant bankers on Monday and Tuesday.
Dixon’s big deal with China
India’s largest electronic contract manufacturing company Dixon Technologies is now preparing to take big steps with Chinese companies. The company is soon to apply under the Press Note 3 for Joint Venture with Chongqing Yuhai of China. Through this partnership, high-tech components used in equipment like laptops will be made in India only. Not only this, Dixon hopes that his two more pending plans – HKC and Vivo will also get the government approval soon.
Auto sector also expects relief
Many Indian companies had to face a lot of problems due to the ban on import from China on heavy rear economy magnets used in the manufacture of electric vehicles. Especially two -wheelers like Bajaj Auto had to bear the brunt of this. But now it is expected that after the recent diplomatic initiative, some relaxation can be found in these sanctions, which will give a big relief to the industry. A senior official of an auto component company said that after the Prime Minister’s visit to China, now the situation is expected to improve, and some positive steps can be seen in the coming time.
Big deal of Ashok Leyland and Hinduja Group
India’s leading auto company Ashok Leyland and its parent company Hinduja Group have also taken a big step in China. The company’s MD Shaneu Aggarwal and Hinduja Group President Shom Hinduja on Monday signed an important agreement in China and signed an important agreement. The partnership has been held with China’s Calb Group, under which the next generation battery technology will be worked together. These batteries will be for both automobile and non-automobile regions.
Travel to big Indian industrialists in China
Seeing the atmosphere created at the moment, the top officials of many big Indian companies are turning to China. DIXON Technologies, Micromax’s subsidiary Bhagwati Products and PG Electroplast, senior management of companies like PG Electroplast will soon finalize possible deals to go to China. Rajesh Aggarwal, director of Bhagwati Products, said, “The atmosphere was better than before for the last few months, but after the amicable meeting of the leaders of India and China, things are now moving fast.” We are now preparing to finalize our joint ventures. It is clear that the impact of the softening of the relationship between the two countries is directly visible on the business.