Mr Sachdev: We see a lot of opportunities in the region, instead of challenges. We are increasing our localization by investments in India and China, getting closer to our customers, improving our service levels and launching more local products.

Besides, we have a clear business model of working closely and directly with the customers. However, we do recognize that there are certain segments of customers to whom we reach out through distributors. We have both direct and partnership approaches through dealers and distributors, so as to expand our reach in large geographies such as India.

How much do you plan to invest in the emerging markets of Asia Pacific?

Mr Sachdev: We are committed to increase our investments in the emerging high growth markets over the more developed markets. Looking at the growth in the region, we have invested $73 million in the emerging markets, such as India, China and Taiwan, last year. As long as we continue to find opportunities in the markets, we will continue to invest in the region. We generate over $400 million every year in cash. In addition to returning some of this cash as dividends to the share holders, we have the ability to invest more significantly where there are opportunities.

Considering the facilities that we will have in China, Taiwan and India, we are looking at investing about $60 million in these markets. In case of India and China, the investments are largely for the local markets. As far as Taiwan is concerned, we will ship products from there to different parts of Asia and even outside.