Kobe Steel to Open First India Weld Material Sales Arm

Japanese largest welding material maker, Kobe Steel announced on Monday the firm establishes welding material sales subsidiary in India. The subsidiary is the first base in India and the twelfth overseas base for Kobe Steel’s welding business unit. The subsidiary sells mainly for high value-added welding material including products for heat-resistant and for nickel-based alloy. The firm provides sales support for welding robot system. Kobe Steel targets more than 1% of share in annual 310,000 tonnes of Indian welding material demand while the firm’s share is less than 1%. With the better marketing base, the firm eyes potential plant in India.

Kobe Steel controls 80% of the subsidiary, Kobelco Welding India with 5 million rupees of capital. Kobe Steel’s subsidiaries, Taseto Co. and Kobe Welding (Singapore) have each 10% share in the Indian company. Kobe Steel establishes the Indian subsidiary with 5 employees including 2 Japanese in June. The headquarters is located in Gurgaon which is about 30 kilometers southwest of New Delhi and in which many Japanese industries have its transplants.

Welding material demand is increasing in India. The demand is significantly increasing for energy industry when construction continues for many new power plants. Kobe Steel decided to establish the Indian sales subsidiary with expectation for increase of high-value added welding material demand, which Kobe Steel has advantage. The subsidiary sells the welding material and welding robot system, which are made in Kobe Steel’s plants in Japan and Singapore, to not only Japanese users including heavy electrical machinery but also to Indian users.

Kobe Steel provides sales and technical support of welding material and welding robot system for Japanese users including construction machinery and automobile makers, which already have sites in India or plan to open the sites. Kobe Steel also plans to enhance a relationship with local dealers.

Kobe Steel expects the firm could develop new supply source of welding raw materials including wire rod and flux in India. The firm utilizes the subsidiary to strengthen the cost competitiveness of its welding business unit. Kobe Steel expects the subsidiary grows to strategic base for the marketing and sales in India through tie-up with Southeast Asian bases. Kobe Steel plans to build a base for the training of national staff through the Indian subsidiary.