Core Insights - The article discusses the downfall of Baobian Electric in the Indian market after a decade of investment and technology transfer, culminating in the sale of 90% of its stake at a significantly reduced price of 137 million yuan [1][36]. Group 1: Market Entry and Initial Success - Baobian Electric entered the Indian market with a vision of "exchanging technology for market access," establishing a joint venture with Atlante Electric and holding a 90% stake [8][10]. - The initial investment aimed at addressing India's aging power grid, with the expectation of generating annual revenues of 850 million yuan upon reaching full production [10]. - Significant resources were allocated for training Indian engineers and transferring advanced manufacturing processes, with over 120 million yuan invested in training alone within five years [12][14]. Group 2: Challenges and Strategic Missteps - After initial growth, Baobian Electric faced challenges as trained Indian engineers moved to local companies, leading to a loss of competitive advantage [18][20]. - The geopolitical tensions between China and India, particularly following the 2020 border conflict, resulted in unfavorable policies for Chinese companies, including Baobian Electric [22][24]. - New regulations imposed strict scrutiny on investments from neighboring countries, causing delays in Baobian Electric's expansion plans and leading to operational inefficiencies [24][26]. Group 3: Decline and Exit - By 2023, Baobian Electric's revenue in India plummeted to just 30,000 yuan, while its local partner, Atlante Electric, capitalized on its technological knowledge to dominate the market with lower pricing [30][32]. - The decision to sell 90% of its stake in the Indian venture was made in December 2024, marking a complete exit from the market [34]. - The sale to Atlante Electric for 137 million yuan highlighted the irony of the situation, where the company that initially provided technology ended up losing its market position to its former partner [36].