One of the biggest challenges for an entrepreneur is to set up business operations in another country. The compliances and permissions are not a walk in the park but what makes it an even more grueling exercise, esp in India has been the red tapism. It was with the intent of promoting foreign direct investment and also the ease of doing business for Korean companies that the government introduced Korea Plus. Korea Plus is a strategic initiative between the Government of India & the Government of Republic of Korea. The idea was to promote, facilitate & retain Korean investments in India. The reason, Prime Minister Narendra Modi decided to create a dedicated desk within Invest India, the national investment promotion and facilitation agency was simple. India is the 13th largest trade partner of Korea. The countries’ bilateral trade was a whopping $15.78 billion in 2016. Korean majors like Hyundai Motors, Samsung Electronics, LG, etc. invested around $ 4.43 billion dollars in the country till March 2017. These companies were planning to expand further, increasing the Korean FDI in India, thus boosting the Make In India campaign.
DY Auto is a South Korean manufacturer of automotive components like wiper motors, cooling fan motors & power window motors. The company started its India operations back in 2010 setting up its plant in Manesar, Haryana. The company catered to the needs of major automobile Original Equipment Manufacturers such as Hyundai & Maruti Suzuki. When DY Auto decided to set up its second manufacturing facility in Chennai, it was an additional investment of US$ 15 million India was looking at. An employment generation of 205 employees was an added benefit as well. But the company had little knowledge of the business environment in Tamil Nadu & this fact made them skeptical about the idea. DY Auto had already burnt its fingers while setting up their Haryana unit, struggling with land agents, tedious approvals. They did not want to relive the experiences of the past, as they had to wait for 3 years before setting up their unit in Haryana. But this time, they had Korea Plus to help.
DY Auto approached Korea Plus team at Invest India seeking assistance in the matter. The team then reached out to the Tamil Nadu Guidance Bureau and State Industries Promotion Corporation of Tamil Nadu Ltd (SIPCOT) to suggest suitable locations in Chennai. Korea Plus facilitated meetings with the Principal Secretary, Additional Secretary Industries & other relevant government officials of the state of Tamil Nadu to discuss the investment plan & incentives that can be offered to the company. Within four months of approaching Korea Plus, a land parcel was allocated to DY Auto by SIPCOT in Vallam Vadagal Industrial Park.
DY Auto was amazed at the ease & speed with which their case was resolved. Korea Plus partnered well with the Tamil Nadu Guidance Bureau and assisted the company in understanding the single window clearance application process at Tamil Nadu.
Today the company has already started construction at the site is scheduled to start operations by the third quarter of 2018. For DY Auto, who were planning to drop the idea of another manufacturing unit after their first experience, the facilitation from Korea Plus was no less than a guiding light. This experience has now made them confident of paving more paths to create further opportunities for the company in India.