Faced with saturation in European and Latin American markets, Spanish businessmen are contemplating investments in India with a view to target the yet untapped South-East Asian market.

Many Spanish business houses have evinced keen interest to invest in the country as they see India as an excellent base and as a "gateway to South-East Asia".

About 200 Spanish companies are expected to take part in an industrialexhibition Expotecnia '97 to be held here in October. The six-day event is expected to provide a forum for Indian and Spanish industrialists to hold bilateral meetings and explore possibilities of technology transfers, joint ventures and mutual distribution agreements.

Spain, ranking ninth in the world in terms of industrial output, is one of the world's leading economies with a GDP of about $566 billion. The Spanish industry and service sectors account for 90 per cent of the GDP.

With foreign exchange reserves of approximately $67.4 billion and a positive current account balance, Spain is in an advantageous position for investing abroad.

The key areas in which Spain can offer expertise are auto components, food processing, services, electronics, construction, metallurgy and others. The companies attending the event have investment plans of over $500 million.The companies taking part range from the $1-billion Acerinox SA (metallurgy) to the $40-million Ikusi-Angel Igelesias (electrical and electronic technologies).

The Spanish automobile industry is the largest exporter of automobiles in the world. The agri sector and tourism offer immense potential, as well.A host of Indian companies like L&T, Bharat Earth Movers Ltd, ECIL, Sona Steering and others have shown interest in the event.

"Indian and Spanish companies can derive the benefits of various synergies, essential for the success of any joint venture," said Marc Torra-Griso, an investment promoter in the Embassy of Spain.

Most of the participating companies being medium or small sized ones, are essentially family managed, said Torra-Griso. This offers excellent opportunity for medium-sized Indian companies and entrepreneurs to upgrade their production facilities to be able to compete in the global market, he added.

The terms of the joint ventures and agreements, he believed, would be mutually beneficial and sustainable in the long run.

Spanish exports are mainly in the areas of vehicles, nuclear reactors, electrical machinery, steel, plastic and rubber products. Its imports primarily consist of vehicles, electrical machinery, fuels, iron and steel, chemicals, plastics, optical equipment and seafood.

At present, the European Union (EU) accounts for 72 per cent of Spanish exports and 65 per cent of their imports. Japan and Latin American countries are Spain's other important trading partners.

Spain is now in the process of increasing its presence in global marketssuch as China, India and other South-East Asian countries.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.