Why Trade Matters
Success Stories
The stories will resume in the fall
Commercial opportunities developed between Canada and India
The trade mission led by International Trade Minister Jim Peterson
to Mumbai and New Delhi, April 3 to 7, demonstrated the importance
Canada gives to one of the fastest growing economies in the world.
India offers a variety of opportunities for Canadian businesses.
The mission contributed to a deepening of science and technology
relations between Canada and India. In a joint declaration, the
governments of Canada and India agreed to work toward greater cooperation
in this field. Another significant result of this mission was the
Indian government’s invitation to Canada to be the partner
country at the 11th Technology Summit and Technology Platform, scheduled
to take place in New Delhi in September 2005. The Summit will provide
key representatives from industry, government, and academic and
research institutions with the opportunity to showcase Canada as
an innovative country.
A Canada-India CEO roundtable to be held in Canada later this year
will also raise Canada’s profile as the best investment location
for serving the integrated North American market.
The following Success Stories highlight some of the results
of this mission for participating Canadian businesses.
Following the recent Canada trade mission to India, International
Trade Minister Jim Peterson travelled on April 8 to Chennai in Southern
India to officially open the new Canadian consulate, which will
further promote bilateral trade with southern India. From left to
right at the ribbon-cutting ceremony: Ruby Dhalla, Member of Parliament
for Brampton-Springdale, Minister Jim Peterson, Deepak Obhrai, Member
of Parliament for Calgary East, Johanne Deschamps, Member of Parliament
for Laurentides-Labelle, and Gib McEwen, Consul and Trade Commissioner.
Chennai, formerly known as Madras, is the capital of the state of
Tamil Nadu and is one of India’s four metropolitan centres.
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Trade Mission Opens Doors for Building Products Wholesaler
BuildDirect Technologies
Inc.,
Vancouver, British Columbia
Since its founding in 1999, BuildDirect Technologies
Inc. has become the world’s leading on-line
wholesaler of building products. Operating from its corporate headquarters
in Vancouver, BuildDirect is a completely new sales channel that
uses proprietary Internet technology for volume global shipments.
The company is currently doing business in 33 countries on four
continents, and hopes to expand its business in India thanks to
its participation in the recent Canada Trade Mission.
“As a result of our Delhi meetings with prospective new partners,
and others we already do business with, we now have an opportunity
to develop our distribution system for products sold into, as well
as within, India,” says BuildDirect’s CEO Jeff Booth.
“Canadian Trade Commissioner Service staff played a key role
in bringing this about.”
China is another key market for BuildDirect. The company exports
red cedar shakes to that country and is currently exploring the
market for other Canadian wood products. BuildDirect also ships
a wide range of materials—such as bamboo, slate and granite
flooring, composite decking, granite counter tops and ceramic tiles—from
China to the rest of the world.
In just under six years, the company has established a worldwide
reputation with manufacturers in countries such as China, Thailand,
India and Turkey; with shipping companies; and, ultimately, with
purchasers—of whom 70 percent are located in the United States
and 25 percent in other foreign markets. In 2004, Profit Magazine
recognized BuildDirect as the second fastest growing company in
Canada.
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Setting Up Shop in Asia
CANTEST Ltd., Burnaby,
British Columbia
Barely three months after returning from the Canada Trade Mission
to China, Don Enns was back in Asia in April. The President of CANTEST
Ltd. was exploring joint venture opportunities in
India as a participant in this year’s second Canada Trade
Mission.
CANTEST, an employee-owned and operated life sciences testing organization,
wants to establish a testing and/or consulting office in Asia to
meet the needs of the local and international biotech, food, pharmaceutical
and environmental communities. “As a result of the trade mission
to China and subsequent meetings, we have a conceptual business
plan for opening an office in Shanghai with a local Chinese partner,”
says Enns, who is now tasked with comparing the advantages of working
in China with those in India. “We found the trip to China
very useful, so it made sense to also examine the Indian market
within the framework of a trade mission,” he adds. “Both
countries offer lower operating costs and have particular advantages
and disadvantages. Which one is better positioned to meet our current
and future needs, as well as our clients’, is the question.”
Founded in 1969, CANTEST has a multidisciplinary team of approximately
200 scientists and support staff at its Burnaby headquarters and
subsidiary offices in Richmond, Kelowna, Victoria and Winnipeg.
It is also the flagship of the CANAM Laboratories Group, which has
affiliated facilities in Canada, the United States and Malaysia.
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Helping Reduce Greenhouse Gases in India
Gamma Engineering
Ltd.,
Whitby, Ontario
Established in 1955, Gamma Engineering Ltd.
is a world-class, full-service engineering design firm serving the
iron/steel, cement, power generation and transmission, and environmental
services sectors. For Gamma, government-led trade missions to India
have been very fruitful. Most recently, the Whitby, Ontario company
joined the April trade mission in order to explore joint venture
opportunities and ended up signing agreements in Mumbai and Delhi.
As a result of these agreements, the company will be providing
technology and equipment designed to increase efficiency, save operating
costs and reduce greenhouse gas (GHG) emissions for steel mills
and cement plants in India. Gamma is also currently in discussions
with a client in Karnataka state regarding the development of a
mini steel mill.
“Through our participation in this trip and the Team Canada
trade mission in 2002, we have established a network of commercial
and government contacts that has been extremely helpful in broadening
our international presence,” says George Chandy, Managing
Director of Gamma Engineering. “These trade missions provide
instant credibility to those firms who are part of the delegations.”
From preliminary feasibility studies to construction, plant commissioning
and operation, Gamma’s team of scientists, engineers, designers
and project management specialists has a full spectrum of in-house
capability in the engineering disciplines. Adapting its core services
to the Kyoto Protocol requirements, the company provides services
to clients worldwide for climate change and GHG mitigation. Among
Gamma’s latest initiatives in GHG emission reduction is the
establishment of an Environmental Division to help organizations
in Asia, Europe and North America meet the Kyoto compliance targets.
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Electric Cars in India to Incorporate Canadian Fuel Cells
Hydrogenics Corporation,
Mississauga, Ontario
Canadian fuel cells could soon be powering cars in India, following
an agreement signed by Hydrogenics Corporation
during April’s Canada Trade Mission. The Mississauga-based
company is collaborating with REVA of Bangalore—the manufacturer
of India’s first fuel cell prototype car—to equip two
demonstration vehicles with Hydrogenics’ proprietary hydrogen
fuel cell and hybrid technology. These vehicles are expected to
be delivered to a major oil company in India before the end of this
year.
This agreement follows on the heels of one signed in March with
Japan’s Hitachi Zosen Corporation to develop hydrogen fuel
cell-based power products. “We view India and Japan as key
countries in the emergence of a future hydrogen economy,”
says Pierre Rivard, Hydrogenics’ President and CEO. “Agreements
such as these will help showcase Hydrogenics’ technology in
Asia.”
With operations in North America, Europe and Asia, Hydrogenics
develops clean energy solutions for transportation, and stationary
and portable power applications. Its diversified product portfolio
has positioned the company well to take advantage of the growing
variety of hydrogen energy applications worldwide.
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Wrapping Up a Fruitful Trip to India
Emballage Coderre Packaging
Inc., St-Germain, Quebec
Emballage Coderre Packaging manufactures
a wide variety of bags for the Canadian food processing and agricultural
industries, and exports small quantities to the United States. Now,
the 75-year-old family-owned business is looking to expand into
the global marketplace, starting with India.
As a participant in the Canada Trade Mission to India in April,
company President Roland Coderre was introduced to a potential joint
venture partner and established a number of promising contacts.
“The mission was very productive in many ways,” says
Coderre. “With the assistance of local Trade Commissioner
Service staff, I was able to set up meetings with some interested
Indian firms. We are now following up on all these contacts with
the hope of eventually doing business in India’s agricultural
sector.”
Established in 1930, Emballage Coderre Packaging employs more than
100 people. Its products include jute and polypropylene bags for
animal feed, paper bags for potatoes, mesh bags for fruit and vegetables,
cotton bags for flour, and bulk bags for fertilizers and chemicals.
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Setting its Sights on India
Celestica Inc.,
Toronto, Ontario
With a global manufacturing network that spans Asia, Europe and
the Americas, Celestica Inc. delivers
a broad range of innovative electronics manufacturing services to
leading original equipment manufacturers such as Cisco Systems,
Lucent Technologies, IBM, Sun Microsystems, Juniper Networks, Nortel
Networks and Hewlett-Packard.
Well established in the global marketplace, the Toronto-based company
decided to join the Canada Trade Mission to India to gain a stronger
foothold within the Indian business community and a deeper understanding
of the country’s economic and social policies. “It is
important for global companies like Celestica to constantly evaluate
their participation in emerging markets that represent significant
growth opportunities,” says Rahul Suri, Celestica’s
Senior Vice President, Corporate Development. “Celestica prides
itself on maintaining a strategic global footprint that is responsive
to the needs of its customers, and recognizes that India is developing
rapidly in terms of economic growth, creation of personal wealth,
and infrastructure expansion and improvement. India's tremendous
potential in the services market includes product design (hardware
and software), a growing local market and an opportunity for a strong
manufacturing base.”
Celestica employs approximately 46,000 people and has a presence
in more than 40 countries. The company has won numerous customer
and industry awards, including the prestigious 2005 Shingo Prize
for manufacturing excellence for its facility in Monterrey, Mexico.
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