President of the Guyana Manufacturing and Services Association (GMSA), Rafeek Khan, has stated that with Guyana’s investment regime, many foreign companies have indicated their interest in the various opportunities available in the country.
Khan was at the time participating in a webinar with other private sector players who were part of a high-level delegation led by President Dr Irfaan Ali to India in January. The team had included a massive private sector continent that participated in the Madhya Pradesh Global Investors Summit in Indore, India.
“Companies are very, very excited to partner in Guyana. The cost of getting leased land is more lucrative in Guyana… We see our tax incentives are being easier to do business in Guyana. So, there is a wide range of opportunities in Guyana and why businesses want to come in,” he stated.
According to Khan, the GMSA had entered into several Memorandum of Understanding (MOUs) with Indian companies for potential collaboration and partnership in a number of areas including furniture manufacturing.
“We’ve met with one of the largest manufacturing companies in India for furniture [Mehidpurwala Furnishers Pvt. Ltd]. As a matter of fact, their showroom alone is 100,000 square feet with seven floors. That company will be in Guyana within the next 60 days. They’ve already started their due diligence in checking out and doing some feasibility studies remotely. But this company is very anxious to come into Guyana see how they can help build out the country [in the area of furniture-making] both for industrial and residential use,” he posited.
The MoU with Mehidpurwala Furnishers (MFP) was signed on January 11 and seeks to facilitate the expansion of the furniture manufacturing industry in Guyana and allow both countries to access more opportunities for capacity building, transfer of technology and skills, capital, and market development.
The GMSA had noted that the time that Indian company is looking to form consortiums in order to expand operations to Guyana as well as enter new markets both domestically and in the region.
During the visit, President Ali had visited MFP’s massive showroom which featured a wide variety of furniture pioneered by the company for every type of consumer, from affordable to luxury furniture which is utilized in housing, hotel, hospital, educational institution, industrial, warehousing and other infrastructural industries.
Mehidpurwala Furnishers Pvt. Ltd is a fourth-generation company with more than 135 years of experience. The furniture products are constructed with materials such as Indian Tik wood, Pre-Laminated Engineered board, and Steel, some of which will be imported from India and finished in Guyana. Guyanese hardwood species will be used in manufacturing the furniture as well, thereby increasing opportunities within the forestry sector and building indigenous manufacturing capacities within Guyana.
In addition to MFP, the GMSA also inked an agreement with NBR Cooling Systems for the establishment of a radiator manufacturing plant in Guyana.
“You might ask the question why a radiator company in Guyana? It is not a radiator for Guyana but it is beyond Guyana. The market is there in the United States, in the Caribbean, in Latin America, in South America whereby Guyana could produce or import certain raw material to make radiators… and that is being put together to make radiator coolers for the automotive industry for engines and turbines, and generators and so on” Khan stated.
This agreement between the GMSA and NBR, dated January 12, will see the Association identifying and engaging Guyanese companies or forming consortiums to establish a manufacturing/assembly plant in the Engine Cooling (Automotive) Sector. The company will leverage off NBR’s technological advancement, full range of high-quality raw materials and components, market resources and access to international compliance codes and practices.
During the initial stages of establishment, NBR is committing to injecting approximately US$1M. The framework for the business will incorporate: the transfer of skills and technologies of manufacturing and assembling radiator condenser and charge air coolers from India to Guyana; manufacturing and production of radiator condenser and charge air coolers made from aluminum, copper and brass; assembling and exporting various radiator condensers and charge air coolers made from aluminum, copper, and brass to all the countries in Latin America and United states of America; importing all the machinery and raw material required for manufacturing of radiator condenser and charge air cooler made from aluminium copper and brass.
NBR directors are into radiator business for the last 20 years and is a well-established manufacturer of a wide array of Engine Radiators, radiator cores intercoolers and condensers, and Engine Coolant. The Company is renowned for its high quality and standards and serves several industries such as automotive, generator, and boring machines. With an aim to expand its business operations and grow from being the second largest market player in cooling systems in India, NBR selected Guyana to execute the same vision globally.
According to Khan, the Association is also working on getting Indian companies to invest in other lucrative sectors in Guyana such as agro-processing, while adding that major developments will be made in the coming months in areas such as ICT and human resource recruitment, among others.
