Eleven Indian companies, which were part of a 35-member business delegation to China, have entered into an agreement with Chinese business interest to set up manufacturing facilities and offices there with a total investment of $5 billion, said a leading industry body.
The memoranda of understanding (MoUs) were signed under the aegis of the Associated Chamber of Commerce and Industry (ASOOCHAM) and its Chinese counterpart, China Council for Promotion of International Trade (CCPIT).
Indian business conglomerate Videocon Industries Ltd has signed an MoU to set up $1.5 billion LCD (liquid crystal display) unit in Shenzhen, said a statement by Assocham.
The unit would be put up within the next one year, and 50 per cent of the production would be for the Chinese market while the remaining would be meant for exports.
In addition to this, two other telecom equipment-manufacturing companies of ZTE Telecom India Pvt Ltd and Spice Communications Pvt Ltd have also signed MoUs for setting up of telecom manufacturing units also in Shenzhen.
Besides, Maharashtra Industrial Development Corporation, Rajasthan Industries Development Corporation and Unity Power have also struck significant investment deals.
Others include Adfactors Pvt Ltd, AKS Associates, Law Firm, International Certification Pvt Ltd and Cosmos Industries of India who will be setting up their business establishments there.
According to the Assocham statement, one of India's leading steel companies Fino Steel is also going to set up two plants in India in the next 4-5 years in Orissa and Karnataka.
China intends to also import 150 million tonnes of iron ore from India compared to its current import level of 85 million tonnes in view of its growing requirements for steel production, it said.