To capture emerging business opportunities, we intend to adopt business strategy and future plans as set out below:
Besides our Singapore operations, we have just begun our foray into overseas markets including: (1) Shanghai, the PRC, where we carry out commercial servicing of air-conditioning systems and manufacture our air-conditioning components on an OEM basis; and (2) Mumbai, India, where we are in the process of setting up a switchgear manufacturing facility with our joint venture partner. By leveraging our presence in these places, we plan to enlarge our operations by increasing the range of air-conditioning products and services in the PRC, and to use our switchgear manufacturing plant, VNS India, as a base to lower our costs and to tap into the India market, as well as to increase our exports to other regions including Sri Lanka and Dubai. Our India operations will also focus on the production of our fully knock-down frames, structures and specially designed control boxes catered to export markets.
We have obtained an exclusive distributorship for electrical components marketed under the trademark "Kam". These products are manufactured by Nylex Traders. We intend to promote trading of such electrical components through VNS Singapore. In addition, we also intend to engage in the wholesale, import, export and distribution of various brands of low voltage electrical components.
As an environmentally responsible company, and to achieve our goal of becoming a total air-conditioning solutions provider, we plan to engage in engineering development activities on technologies for the recovery, recycling and reclamation of used refrigerants. The used refrigerants can be reprocessed for further commercial use or be destroyed.
We plan to increase our recycling and reconditioning operations. We will assist our customers in the disposal of such old or damaged components. We will assess the condition of such components, and re-condition them for re-sale if the components are salvageable. Equipment which is damaged beyond repair will be dismantled, and useable parts and components separated for recycling. Parts which are not recyclable will be sold as scrap. Equipment which is useable subject to certain repairs and replacements, will be reconditioned. These are then sold off to second hand dealers or overseas customers from the developing countries.
We believe that in an increasingly competitive business environment, establishing strategic alliances and joint ventures with business partners or investing in new opportunities will be critical in enabling our Group to achieve economies of scale, enlarge our customer base, facilitate improvements in our technology and processes, as well as broaden and diversify our product and service offerings to target other sectors in the industry.