JB Contractors launches in the Indian market

In connection with an analysis of the Indian market, JB Contractors A/S (JBC) cooperated with DIBD. 

For about a year, JBC searched strategically for new potential markets for outsourcing with regards to - in a still more pressured market - minimizing costs in the production for the benefit of its customers. JBC looked into several countries, but found that India was the market which best suited their needs.

JBC employs 100 and is producing larger steel components for the cement industry, amongst others. The headquarter is situated in Aalborg, and the production is placed in Poland with a couple of partners, and at JBC's own factory in Legnica.

Lower costs and new business opportunities
-For a long time we have been able to see at great potential and good opportunities for production in Asia, and not at least in India. After input from several clients, we felt that we could not wait any longer, says Ole Dørum Jensen, Project Contract Manager from JBC.

During the evaluation phase, JBC contacted DIBD concerning assistance specifically in relation to JBC’s phase 2 (actual establishment of own assembly/production). Not alone did JBC wish to move the production to India, they also wished to be closer to their clients, who had also moved to India, as there was also possibilities for new business.

JBC had identified four areas around Delhi that seemed promising. DIBD quickly shortlisted the possibilities and a business plan for phase 2 was composed.

A tailor made tool for the establishment
-Some of the facts that we attached great importance to when cooperating with DIBD, were the several years of experience DIBD has with establishment in the growth markets. DI has always assisted us in the best possible way, and when they moreover can do this in a distant country like India, it was very natural for us to choose DIBD.

Besides, it is a great advantage to know that the analysts, who conduct the research, live in the area and have the same mindset as us at home, says Ole Dørum Jensen.

The result for JBC is that they, after cooperating with DIBD, was in possession of a tailor made tool that could guide them from a to z when phase 2 is to be initiated. DIBD had a broad overview of what barriers that could arise during the project; they knew the total time frame and financials, and the individual phases. This way the unwanted surprises were avoided to a higher degree.

Now, JBC has established a liaison office in the Delhi area with local employees (phase 1), and in close cooperation with representatives from the headquarter in Aalborg, the plan is to establish outsourcing within the next couple of months at a couple of suitable competitive production companies in Delhi as well as in the Chennai areas.

As far as phase 2 is concerned, JBC has, through cooperation with DIBD, gotten a thoroughly prepared foundation for taking the next step and a schedule for this.

26 february 2009