Verkko Global

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Business Expansion in Africa

Overview

Engineering plastics have been replacing conventional engineering materials (metals and ceramics) owing to benefits like performance-driven, abrasion resistance, sustainability, durability etc. They have better mechanical and thermal properties that are widely used in industrial applications. Hence, the sector shows a positive growth outlook in the near future.

Pilot

Keeping in view the upsurging industry, an Indian company (Company X) started its operations for the production of machined components and injection moulds, using plastic engineering. Its very first component- ‘spacers for telecommunication cables’ enjoyed great success in India as well as in European countries, owing to its characteristics and performance. The company soon started expanding its horizon to the international market, with initial trade countries including Finland, Austria, Italy, and UK. Furthermore, it enjoyed a monopoly position therein for several years. Due to this, the company won the import-substitution award and many other recognitions in its initial years of operations itself.

Agenda for Expansion

Plastic has become an essential part of vehicle design and engineering. It is used in a wide array of quality auto parts for commercial vehicles. As the Company X was already a leading entity in designing, manufacturing and supplying engineering plastic components for Automotive OEMs, it had been seeking an opportunity to expand its manufacturing facilities across the globe. For one such project, Company X was considering a business expansion in Morocco to support its automotive sector that caters 90% to the export market (with export destinations being EU, U.S., and Northern Africa to name a few).

Our Approach

Verkko Management Consultants Pvt Ltd and its subsidiary Verkko Global is an International Trade Generating and Management Consultancy Organisation based in India, with active presence in 10+ countries. We support global companies, Economic Development organisations, corporations and Government Trade councils to generate business across the globe.
As Company X specifically wanted to set up a plant for manufacturing of decorative components (such as wheel covers, emblems, garnishes etc) for automotive OEMs in Morocco, we carried out extensive research regarding investment in the region. Some of the activities included interacting with the Moroccan Investment Authority, identifying free zones near the customer locations, and finding out several Investment Aids offered by the region.

Phases of Activity

• Strategic Planning
• Due Diligence
• Business Structuring
• Incorporation
• Resources on-boarding
• Test and Exit
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Project Details

Category – Automotive
Industry – Engineering Plastics
Business Model – Global Subsidiary Formation

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