New Delhi, March 2 -- Japanese rare-earth magnet giant Proterial Ltd says that New Delhi should be selective in backing large players to kickstart domestic rare-earth magnet manufacturing, as excessive production and initial high competition can make economic returns on the business unviable for companies.

Proterial, formerly known as Hitachi Metals, is evaluating whether it can set up a rare-earth magnet plant in India, where it already has customers for its magnets, a top executive told Mint."We're looking at how big the market is first and foremost. And [we are] also looking at it in the context of the government looking to get the right players," Proterial's global chief executive Sean Stack said in an interview.

"We want to make su...