The Ukrainian industrial company “Interpipe” sells railway products in the markets of India and the countries of Southeast Asia, mainly to the large companies – state railways.

Бизнес-партнерство с ИНТЕРПАЙП

The LeagueBusinessInform was informed about this by Alexander Garkavy, director of the railway products division of Interpipe, reports Railway Supply magazine.

“Interpipe is historically present in the market of India, as well as neighboring countries – Sri Lanka, Bangladesh, Pakistan. For example, we have been cooperating with the Indian Railway for over 25 years, implementing large projects. Therefore, we can be called not just a supplier of products, but a technical and commercial partner of railways in the region,” he said.

According to him, Interpipe works mainly with state railways in these countries. “We should also highlight our supplies for the Delhi metro, the capital of India, which has been our partner since its inception. All these companies are large consumers of railway products, and in order to become their approved supplier, it is necessary to pass a long way of prequalifications,”A. Garkavy said.

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The director of the railway division also noted that there are generally no trade barriers in the Indian and Southeast Asian markets. “At the same time, the key feature of the market can be considered the fact that politics affects business to a greater extent than in Europe. For example, political disagreements between countries may lead to disqualification of a supplier in a tender, ” he stressed.

Interpipe has mastered the production of large-diameter pipes for mechanical engineering

A. Garkavy also drew attention to the difference between European and local business models in large state structures. “If in Europe the decision-making mechanism is transparent, then in these countries the decision is often made collectively, and it is necessary to spend a lot of time to figure out how a decision is made in a particular case, as well as to identify key contacts, set up communication,” said the top manager.

Although the decision-making is shifted into a collegial and complex procedure, at the same time, it is important to build personal relationships in the negotiation process, he said. In addition, it is necessary to pay great attention to traditional oriental values. The impression made on a partner directly affects the business.

Interpipe passed the audit of Siemens, the German manufacturer of railway transport

“The Russian Federation and China are key competitors in this market. China has a historically strong position in all Asian markets, mainly due to its geographic proximity, as well as low costs. Nevertheless, due to vertical integration, Interpipe is present in the region,” he said.

A. Garkavy separately noted the Thai market. “This is a new market for Interpipe, and it is fundamentally different from the Indian one. Chinese companies remain the only supplier for state railways, while a Japanese manufacturer occupies the niche of small batches of technologically complex products. We were unable to beat the Chinese in railroad tenders, but we were able to supply a small batch of high-tech products for Bangkok urban transport. And after this successful case, the state railways of Thailand drew attention to us and expressed their willingness to work with us,” stated the top manager.

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