Kinetic Appoints Japanese Firm To Scout Chinese Sourcing Bases

Mumbai, May 30: | Updated: May 31 2002, 05:30am hrs
Kinetic has appointed a Japanese trading house with expertise in the Chinese market to identify potential sourcing bases in China. "We are talking to three-four leading Chinese players for outsourcing of both components and aggregates. Manufacturing costs in China are around 35 per cent lower than India, so this results in large cost benefits," Ms Motwani said.

The benefits would also accrue in terms of time as outsourcing would also shorten the development cycle. "We would, however, wait for the duties to be brought down, as only then would such a move make sense," Ms Motwani added. She also felt that traditionally Chinese companies are more trading minded, as a result of which outsourcing was a better option to joint development of models. Kinetic is also planning a major international thrust with the setting up of Kinetic International. It is also in agreement with Hyosung, its technical partner to sell the GF motorcycles abroad.