Cameron’s mission
View from the Top
Lift-off for Kolkata
Business leaders follow the PM’s lead
Mamata Banerjee Exclusive
Tagore’s writings inspire new airport design
The Gateway to South-East Asia
Issue 03
www.ukibc.com
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Business Exchange Issue 03 www.ukibc.com
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Contents Mission Statement
Business Exchange UKIBC Business Exchange is the UK India Business Council’s new flagship publication, which highlights business opportunities between both countries, predicts trends, profiles success stories, offers tips and practical advice, and carries in-depth interviews and analysis with business leaders and policy makers. Published each quarter, the magazine is aimed at business people interested in bilateral trade opportunities between India and the UK.
The UK India Business Council is a business-led organisation promoting business links between the two countries. Our mission is to facilitate an increase in trade through business-to-business dialogue. We inform UK Plc of the opportunities in India and, more importantly, how they can capture them. Through our partnership with UKTI, and with an extensive network of influential corporate members, we provide the resource, knowledge and infrastructure support vital for UK companies to capitalise on the opportunities in India. For more information please see www.ukibc.com
Contents
Editors: Adam Pollard, Pavel Choudhury & Ian Halstead Production: Open Box (ob-mc.co.uk) For magazine enquiries please contact comms@ukibc.com
Contact Details: UK India Business Council HEAD OFFICE 12th Floor, Millbank Tower 21-24 Millbank London SW1P 4QP United Kingdom t: +44 (0) 207 592 3040 e: enquiries@ukibc.com w: www.ukibc.com Advertising enquiries: Open Box Regent Court 68 Caroline Street Jewellery Quarter Birmingham B3 1UG United Kingdom t: +44 (0)121 200 7820 e: inside@ob-mc.co.uk w: www.ob-mc.co.uk
back 02 CEO foreword 20 Steve’s home sets seeing 03 PM agenda 21 Orbit stars Bengal 04 West facts 22 Bhaskar’s mercy mission from brew 06 View the Top 24 Tasty for Typhoo Bengal in 08 West IDC 25 Tesco India to … British 09 How Manufacturing 26 Business Groups Poetry in 10 Motion 28 How to… Business news Banking 12 UKIBC & events Business Indian 32 Opportunities 14 business news Bournville West Bengal 35 - history repeats 16 culture Asia 18 CDE goes global
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Business Exchange Issue 03 www.ukibc.com
Foreword
Welcome, Dear Reader, After majoring on Gujarat in November and on Andhra Pradesh in February, this edition focuses on the State of West Bengal, which holds huge potential for UK companies operating in India. In many ways West Bengal is playing “catch-up” after a slumber caused by some 34 years of Communist Party rule. Growth in Bengal is accelerating not just for internal reasons but also because of the State’s unique strategic position. Look at West Bengal on a map. It is surrounded by key states like Bihar, Odisha and Jharkhand. It straddles the route into Myanmar and ASEAN. It is quicker to fly to Bangkok from Kolkata than it is to fly to Mumbai. I’d like to call your attention to one real estate development, which encapsulates the tectonic shifts happening in West Bengal. The UK real estate designers, Pacific Interiors, are currently finishing off a high-end retail development of apartments in Elgin Road Kolkata. The floor spaces of these apartments are between 8,000 and 10,000 square ft each. They are specifically aimed at the newly confident middle class. A highlight of the magazine is an interview with Shrimati Mamata Banerjee, the Hon. Chief Minister of West Bengal. Her words convey a real sense of the State’s recent shift towards opening up to business, especially foreign investors. We are also pleased to highlight the role of the WBIDC’s role in promoting business opportunities in the State. We will also be collaborating with the WBIDC to identify future opportunities for UK businesses.
We have various features on how businesses have been successful in India and West Bengal - CDE Asia, Parsons Brinckerhoff and Wolstenholme Knives. The magazine is also packed with useful information, from our “How to” on banking, advice on setting up an Indian subsidiary, as well as a new feature focusing on upcoming business opportunities. At the end of February, when David Cameron took a hugely successful delegation of more than 100 businesses to India, against a background of UK India trade having grown at an average of 23 percent a year since 2010, he announced an increase in incountry support for UK businesses, which is a critical catalyst in this growth. I’m delighted to be able to tell you that, backed by UKTI, we will be launching our first British Business Centre in Gurgaon/Delhi in September 2013. We are planning a further five centres across India to be opened over the next five years. You can read more about this development later on in the magazine, but suffice to say, we believe these centres will be a game–changer for UK plc. We are not neglecting the UK in developing enhancements to the UKIBC’s service offering, and in this edition, you can also read about our new regional branch servicing companies in the North of England I hope you find this edition of the magazine both insightful and useful. Yours sincerely, Richard Heald Chief Executive UK India Business Council
In partnership with:
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View from India
Opportunities galore in wake of PM’s visit Actions really do speak louder than words, so David Cameron’s trade mission to India was worth a lifetime of carefully-crafted speeches from the despatch box. Not purely because it was the largest delegation of business leaders, entrepreneurs, academics and politicians taken overseas by a British PM. February’s visit also displayed emphatic personal commitment, given that India was the destination for Cameron’s first trade visit, and is the only country to which he has returned. The timing was also important for Britain’s defence sector. The £9 billion deal for Dassault’s Rafale fighter jets sale to India is not yet complete, despite the French President, Francois Hollande, visiting India just days earlier. It may still be that Dassault wins the much-prized deal, but Cameron’s behind-the-scenes efforts on behalf of its European rival, the Typhoon, were clearly appreciated by BAE Systems and others in the Eurofighter consortium. Even without the Typhoon work, BAE expects to generate orders worth £1 billion from India between 2012 and the end of 2013, underlining the country’s enormous potential for both blue-chips, and their UKbased supply chains. Many corporate giants enjoy strategic relationships with the Indian government and domestic partners stretching back for decades, but Cameron’s visit also highlighted the many openings for companies new to India, whether global brands or SMEs. The focus on a potential 1,000-kilometre BangaloreMumbai Economic Corridor, emphasised the PM’s desire to see the UK become a leading player in India’s fast-growing infrastructure sector.
Collaboration between the Indian and UK governments on cyber-security was another important outcome from the discussions between Cameron and his Indian counterpart, Dr Manmohan Singh. The underlying theme of the mission was that Britain should become India’s global long-term partner of choice. The countries shared ties of history, language and culture are one aspect. But more importantly, our business needs and strengths are highly compatible. In the short-term, the mood was summed up by Nigel Lang, whose Flitabout venture specialises in helping international SMEs enter the Indian market, and who was on the mission. “To do business in India, British companies have to be in India, and there was no better way to reinforce their presence than to be accompanied by the Prime Minister,” he said. “At a personal level, I have to say that Cameron’s presence opened doors I didn’t realise were there, and we’ve been active in India for 15 years.” “I believe the visit will encourage our SMEs, especially those who are specialists in niche markets, to reach out to the wealth of opportunities in India. Their challenge will be to change their mindset from one which suits the home market, and to learn how to overcome the seemingly intimidating hurdles they see ahead.” For those looking to India, UKIBC’s Sector Subscription or UK Trade & Investment’s new SME portal - www.opentoexport.com – make excellent starting points. During the last week of March alone, Open to Export detailed projects with Indian companies ranging from vehicle testing software and generator endurance test-rigs, to low-cost planners for gated communities and suppliers of silicon solar cells and digital barometers. If Cameron’s passionate exhortations weren’t sufficient to make owners-managers and directors turn to India, then such commercial openings most surely should.
David Cameron visits India
HOW TO JOIN A DELEGATION: Delegations can be a great way to see the Indian market. Business missions to India will introduce you to Indian contacts and potential partners. If your business requires officiallevel engagement such as with Indian state and central governments, then contact the UKIBC or UKTI. This route is far more effective than attempting to seek these contacts independently. Get in touch to find out more Direct: +44 (0)20 7592 3040 Email: events@ukibc.com
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Business Exchange Issue 03 www.ukibc.com
State Fact Sheet: West Bengal By Sanjay Wadvani OBE British Deputy High Commissioner, Eastern India
The state capital of West Bengal, Kolkata, (Calcutta), once at the crossroads of Britain’s trading world sits at the heart of India’s 13 eastern and northeastern states, with a combined population of 342 million spread across 923,958 sq kms. The decades since independence have not always been kind, and strongly held views - within India and overseas - perpetuate myths and prejudices around doing business in the state. Political dynamics, instability together with industrial disturbances resulted in loss of investment opportunities in 1970s and 1980s. However, Kolkata remains the main trading hub in Eastern India and home to many leading business houses. Its growing banking and financial services, energy, and ICT industries sectors all look to trade off the renewed hope brought by the change of government in 2011, after more than three decades of communist rule.
Area:
88,752km² - 5% larger than Ireland. Austria is 83,855km²
Population:
93,000,000 (7.55% of total population of India) – 17% bigger than Turkey and slightly bigger than Germany.
Capital:
Kolkata (Calcutta)
Language:
Bengali and English
Climate:
Summer – 24°C to 40°C Winter – 7°C to 26°C The average temperature in March ranges from 28°C - 32°C Monsoon: June – September
GDP per capita: $1,078
GDP:
$99.97billion > Belgium ($413billion), Spain ($1.4trillion) and UK ($2.3trillion).
Growth rate: 7.6%
With 70% of India’s natural resources in Eastern India, there is a large cluster of mining and metallurgical companies based in the state, some with strong foreign links. The state government plans to improve urban, transport and industrial infrastructure, and many UK firms are taking active interest in these emerging opportunities. With numerous reputable universities and colleges, many with UK links, research organisations, and hospitals, the city has emerged as a major education and healthcare hub, and attracts large volumes of students and patients from neighbouring states and countries. The state government has also shown interest in low carbon technologies and the UK is actively working with the government to introduce policies to increase investment here. UK success in the eastern region is growing. Apart from education and healthcare, there is scope for UK involvement in Metals and Mining, Infrastructure, Power, IT, and Research and Development. Strategically located, Kolkata is not only the gateway to India’s less developed northeast region and neighbouring Nepal, Bhutan, Bangladesh and Myanmar but also to South East Asia. The Government of India’s ‘Look East’ policy to boost trade with the fast growing ASEAN economies will have a significant impact on this region and there are plans aimed at upgrading the infrastructure to create new road and rail links. British companies looking to build business in the region will find that gaining early entry will bring significant gains in the medium term in a part of India that naturally looks east to the fastest growing economies, in ASEAN and east Asia.
Ports:
Kolkata and Haldia. India’s first aerotropolis is slated to come up near Durgapur – Andal region.
Road Network:
299,209 km² National Highways: 2,578 km² State Highways: 4,505 km² Other roads: 11,597 km² Rural roads: 171,307 km² Urban roads: 94,179 km²
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If you need assistance with your business...
Sudipto Sen Head, Trade & Investment - Eastern India UK Trade & Investment, British Deputy High Commission 1A Ho Chi Minh Sarani, Kolkata 700 071 Tel. +91 33 2288 5172-76 Email: Sudipto.Sen@fco.gov.uk
Useful contacts: Chamber of Commerce:
Indian Chamber of Commerce ICC Towers, 4, India Exchange Place, Kolkata-700001 T: +91-33-22303242-44 F: +91-33-22313377 / 22313380 E: (Director General) ceo@indianchamber.net The Bengal Chamber of Commerce & Industry 6, Netaji Subhas Road, Kolkata – 700 001 T: +91 33 2230 3711 / 8394—97 F: +91 33 2230 1289
CII:
Gargi Mitra Deputy Director, Confederation of Indian Industry West Bengal, 6, Netaji Subhas Road Kolkata – 700 001 T: +91-33-22307727 / 28 / 1434 / 22303354 F: +91-33-22302711/22312700 E: gargi.mitra@cii.in
Siliguri
FICCI:
Mousumi Ghose Senior Director, FICCI West Bengal State Council Shubham Building, 7th Floor, Unit No: 701 1, Rawdon Street, Kolkata 700 017 T: +91 33 32940580 / 40035347 F: +91 33 40035348 E: mousumi.ghose@ficci.com
Overseas Business Risk:
Register with Overseas Business Risk (http://www.ukti.gov.uk/export/ countries/asiapacific/southasia/india/overseasbusinessrisk.html) if your business faces issues such as cyber risks, bribery and corruption. The Overseas Business Risk is brought together by UKTI and FCO to give you access to strategic information on the issues and risks related to business security in a wide selection of markets.
Asansol Durgapur
Register with LOCATE before you travel. www.locate.fco.gov.uk/locateportal Howrah
Kolkata
SPECIAL ECONOMIC ZONES:
At the moment, there are five functional SEZs operating in the State Falta SEZ (multi product zone), Manikanchan at Saltlake (Gems & Jewellary), Wipro at Saltlake( IT/ ITes), Dalmiya and Co Ltd at Bantala (IT/ ITes) and Unitech Hightech at Rajarhat(IT/ ITes). The export through the functional SEZs increased to Rs. 5931.67 crore during 2009-10, an increase of 30%.
How to get there:
Jet Airways > London Heathrow – Mumbai – Kolkata Airports: Kolkata (international) and Bagdogra, Siliguri (domestic).
West Bengal has received 11 notified approvals, 22 formal approvals and 14 in principle approvals for setting up SEZs in the State. Most of the approvals are in the sectors like IT & ITES, Electronic Hardware and Software, Engineering etc. The SEZs are likely to provide employment to large number of people in the state.
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Business Exchange Issue 03 www.ukibc.com
View from the Top
Bengal Beckons Chief Minister of West Bengal, Mamata Banerjee, writes about the tectonic shifts occurring in the State
The people of Bengal, 93 million in total, have given us an overwhelming mandate to take office and serve them to usher in a renaissance in Bengal. I am pleased to report that we have had optimistic results in the 2012-13 financial year: Bengal’s GDP grew by 7.6% while India’s GDP grew by 4.96%; Bengal’s Agriculture and Allied Sector grew by 2.56% while that of India grew by 1.79%. Similarly, Bengal’s industrial sector grew by 6.24% while that of India grew by 3.12%. In the Services Sector, Bengal grew by 9.48% while India grew by 6.59%. These results point towards the beginning of a resurgence of Bengal.
According to the leading current affairs magazine – India Today (November 12, 2012 issue) – an interstate ranking showed that West Bengal leapt from an overall position of 17th in the country to 6th in 2012. In the Education sector, West Bengal rose from 17th to 3rd and in the area of Governance West Bengal was ranked 2nd, rising from 10th.
Education, Skills and Training
To boost the education sector, more than 2,000 new schools have been set up and 500 schools upgraded. 90,000 teachers have been recruited. A policy to establish private Universities has been framed and a Bill has been passed. Similarly, 39 new Government General Degree Colleges are being set up. Moreover, four Universities have been created, with one focusing on women and another on the minority population. The UK can be a major partner in our educational endeavour.
“Scores of British companies have invested in Bengal in engineering, metals, agrofoods,mining equipment, refractory, FMCG...”
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In the Technical Education sector, short-term vocational training centres for 10th Class students (GCSE equivalent) have opened in 120 centres across the State. In an ambitious effort, we will set up 341 Industrial Training Institutes (ITIs), one in each Administrative Block. Also, 36 new Polytechnics and 66 Industrial Training Institutes are in various stages of construction. Incidentally, the British Council in Kolkata is already imparting communication and English Language skills to our young officers. UK businesses can seek opportunities in a variety of educational spaces.
Manufacturing and SMEs
Scores of British companies have invested in Bengal in engineering, metals, agro-foods, mining equipment, refractory, FMCG, etc. Since May 2011, the State has received investment proposals to the tune of £13.6 Billion. New ventures have taken route in Bengal such as in ceramic tile manufacturing with a £54.8 million investment by an MNC, 2nd PET Resin Plant with an investment of £48.78 million and an Infra-Logistics Unit has been set up through a joint venture with a UK company. We are upgrading and initiating a large number of manufacturing clusters. The State has 31 functional MSME Industrial Estates and 10 Commercial Estates. Seven more are coming up in the State. So far 105 SME clusters have been identified, out of which 48 clusters have already been selected for implementation. This is the appropriate time for UK companies to come in with their core competencies and investments.
Tourism and West Bengal
Information Technology
In the area of IT, firms operating include IBM, Cognizant, TCS and Wipro. Now, ITC Infotech is bringing new investment of a significant size. Tata Consulting Services, which is already present, is now setting up a new facility in New Town Kolkata which will employ 16,500 IT professionals. I am also pleased that HSBC of UK has chosen Kolkata to house 4,000 IT Professionals for its entire banking back office. Our Government is expanding two IT hubs in Durgapur and Siliguri. The work orders have been issued for two new IT hubs at Rajarhat and Barjora. Our Government has also adopted a new strategy of going to mid-sized towns to create IT hubs where talent is abundant and land is relatively inexpensive. These include IT hubs at Bantala, Purulia, Asansol and Durgapur. Work order will soon be issued for Bolpur, Kalyani, Haldia and Burdwan.
Investing in Infrastructure
To take the State to a new level in road transport, we have formed the West Bengal State Highway Development Corporation. The new Corporation has already surveyed 1000 km of highway potential, much of which will be developed in the PPP mode. British companies can look at this business opportunity. In the port sector, the State has initiated two deep sea ports with 17-18 metre drafts. They will come up in Rosulpur and in the Sagar Island. These deep sea ports will attract huge investments and expertise. UK companies could take advantage of these emerging opportunities.
West Bengal is blessed with majestic Himalayan mountains, beaches, delta (Sundarbans) – famous for the Royal Bengal Tiger - and tea gardens in the foothills (Dooars). We also have heritage buildings with strong Portuguese, French, Dutch and British influence.
As for airports, the new state-of-the-art terminal at the Kolkata Airport has started functioning. A greenfield airport at Durgapur-Asansol in PPP Mode has already been initiated, in which the Changi Airport of Singapore holds 24% equity.
Your business readers would be happy to know that West Bengal has gone into global tendering for eight major tourism infrastructure PPP projects with an investment of £400 million.
Opportunities for UK businesses clearly lie in engaging with the State in the area of power generation. We have embarked on an ambitious plan of additional power generation keeping in view the future growth trajectory. I am aware of UK’s major capabilities and interest in clean energy and would be happy to see some synergies.
The State is also setting up 10 Hotel Management and Catering Training Institutes in Jalpaiguri, Bankura, Darjeeling, South 24 Parganas, Purba Medinipur, Howrah, Kolkata, and Hooghly. I feel there is huge opportunity for UK companies to engage in all of these areas and many other tourism projects that are emerging in the State.
I conclude with a deep sense of optimism on the future of West Bengal. Our Government is keen to build a multi-dimensional business synergy with UK through the active participation of the apex business body - the UK India Business Council. My warm greetings to the Chair, Rt. Hon. Patricia Hewitt, and the CEO, Mr. Richard Heald. I thank you for giving me this opportunity to converse with the business leaders and entrepreneurs of UK.
“Opportunities for UK businesses clearly lie in engaging with the State in the area of power generation... I am aware of UK’s major capabilities and interest in clean energy and would be happy to see some synergies.”
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Business Exchange Issue 03 www.ukibc.com
Practical Advice
West Bengal The West Bengal Industrial Development Corporation Ltd (WBIDC), formed in 1967 under the Companies Act, is at the forefront of West Bengal’s industrial renaissance and has been tasked with promoting investment in the State. WBIDC is the premier nodal agency of West Bengal’s Commerce and Industries Department. Over the years the Corporation has been actively engaged in catalysing investment through the promotion and marketing of West Bengal as a business friendly investment destination. It provides support to industries in four key ways – facilitation, financing, disbursing incentives, and by setting up Industrial Parks. The Corporation works with investors on a wide range of activities, from assisting with the financing of projects to the facilitation of new investments, and through its work it has been able to bring in a significant amount of investment proposals from various industrial groups over the last two years. A key part of this, has been the setting up of a number of industrial parks and other infrastructure projects over the last few years, which has helped improve West Bengal’s core industrial infrastructure.
Single window initiative
The WIBDC is also tasked with reducing obstacles to doing business in West Bengal, and has recently contributed to the streamlining of paperwork in the state through the single window initiative. This initiative has enabled investors to obtain licenses and registrations from one single place and has significantly reduced the paperwork businesses have to conduct in West Bengal from 99 pages to just seven pages. At the same time, this has also had the added benefit of bringing waiting times down from 310 days to 15 days.
Opportunities and Advantages of West Bengal West Bengal is the Gateway to South East Asia and North Eastern Region, and shares international frontiers with Bangladesh, Nepal and Bhutan and is well connected with mineral rich states of Bihar, Jharkhand and Orissa It has rich deposits of coal (11% of national reserves) and other minerals, 22 universities, 431 degree colleges, 83 engineering & technology colleges, 9 medical colleges, 69 polytechnics. The state has 211,000 kms of roads, 4,162 route kms of railway, international and domestic airports, two major ports at Kolkata and Haldia, 15,000 kms of optical fibre, over 580 mbps of international satellite connectivity, and is a leading producer of energy. West Bengal boasts of over 100,000 professionals working in more that 600 IT an ITeS companies generating over 1.36 bn USD exports. Presence of companies like TCS, IBM, WIPRO, Cognizant Technology, Siemens, Accenture, Ericson, PWC, Skytech, and Genpact. Registered growth of 5.85 per cent in total IT exports in 2011-12.
Important Links: Commerce & Industries Department : http://www.wbindustries.co.in
These efforts, combined with major reforms such as the amendments to the West Bengal Land Reforms Act 1995, are expected to sustain the impressive growth rate the State has seen over the last few years.
WBIDC- UKIBC: working together
In addition to improving the business environment in West Bengal, WBIDC and UKIBC are now exploring the promotion of business opportunities in West Bengal and recently, Amit Mitra, the Finance Minister of West Bengal met Richard Heald, Chief Executive Officer, UKIBC to discuss key areas of mutual interest, including technical education, information technology and also the setting up of an entertainment city in West Bengal.
The Vidyasagar Setu bridge
West Bengal Industrial Development Corporation: http://www.wbidc.com/
West Bengal Industrial Infrastructure Development Corporation: http://www.wbiidc.org/
Information Technology: http://www.itwb.org/ West Bengal State Load Despatch Centre: http://www.wbsldc.in/
WEBEL:- http://www.webel-india.com/
Industrial Parks Manikanchan – The Gems and Jewellery Park Shilpangan – The Light Engineering Park Paridhan – The Garment Park The Sankrail Food Park Poly Park Vidyasagar Industrial Park Panagarh Industrial Park Plasto Steel Park Raghunathpur Steel and Allied Industrial Park Rishi Bankim Shilpaudyan Shalboni Industrial Park Godapiasal Industrial Park Rubber Park Foundry Park
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Practical Advice
From Sheffield to Indore... Sheffield-based Wolstenholme Machine Knives has opened its first overseas production plant, in India. Group Operations Director Steve Corbett recalls the journey from concept to reality. In keeping with the historic traditions of our home city, we’re in the steel industry, we’re family-owned, and we’re also fiercely proud of our brand and our products. Since we were founded in 1908, we’ve designed, manufactured and sold high-quality knives - straight, circular or formed - for a wide range of uses. We mainly supply the food processing, graphics, medical, packaging and paper converting sectors, and in each case, we supply the OEMs, (original equipment manufacturers), who dominate their niche.
However, we had previously dealt with a supplier in Indore, so we got back in touch, and discovered a new SEZ was being set up there. Indore was an established engineering centre, so there would be no problem finding qualified engineers or equipment suppliers. A market entry specialist at UK Trade & Investment (Simon Bedford), was tremendously helpful and had good contacts. We also commissioned an OMIS (Overseas Market Introduction Service) report which was invaluable in our first few months, for identifying the right people to meet, and Sudipto Sen and his colleagues (at UKTI in India) also worked tirelessly on our behalf. We did consider setting up a jv, but decided to set up a wholly-owned subsidiary, with an in-country manager. The SEZ was great, so we leased a site, and got contractors in to build a 26,000 sq ft factory. Some specialist kit had to be sourced in Europe, but almost everything else was manufactured locally, to keep maintenance and repair bills down.
Put simply, our knives put serrated edges on such items as bags of nuts and trays of food, cut printed products to shape, and blend fats and margarine.
The zone was 35 km from Indore, so we had to transport the workers there, and arrange for their food and drink to be on-site, but the location was great - right on the Mumbai-Delhi highway.
A central reason for our success is that we abandoned process-orientated production in favour of a product-based approach, so our highly-trained machine operators become product experts, and focus intently on continuous improvement.
Since then, everything’s gone as we hoped. We’ve got 42 people there now, and they’ve all been properly schooled in the Wolstenholme way. We regularly flew one of our operators out to explain how we liked to work.
Five years back, we needed extra capacity, and financial pressures meant we looked overseas.
We went out regularly to check progress at first, but didn’t go out between September 2012 and April, because the quality was right, and there was no need to fuss.
We chose India as there would be no language difficulties, we had a similar legal system and access to skilled workers would be easy. Initially, we considered Delhi, Chennai and Gujarat, but the land prices were very high. One site in Gujarat wanted six times the amount we expected.
“We chose India as there would be no language difficulties, we had a similar legal system and access to skilled workers would be easy.”
Sure, we learned things. We always set realistic deadlines and realised that educating people in a different way of thinking and working was critical, but have absolutely no regrets, and would certainly do it again.
What Next? CONTACT: Prasenjit Dhar Sector Specialist UKIBC T: +44 (0) 207 592 3844 E: Prasenjit.Dhar@ukibc.com F: +44 (0) 207 592 3041 W: www.ukibc.com
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Business Exchange Issue 03 www.ukibc.com
Infrastructure
Kolkata’s new terminal creates poetry in motion The construction of Kolkata’s magnificent new airport terminal was project managed by Parsons Brinckerhoff. Team leader Amit Kaul explains the challenges involved - especially in creating its most eyecatching feature. When the Airports Authority of India (AAI) unveiled the $450m airport project, the pitch naturally attracted global interest. We beat the others on the final shortlist - Louis Berger and Lahmeyer International - to be awarded the contract, and then established an office in Kolkata. It was a traditional Design & Build contract, whereas our airport work at New Delhi was procured through a public-private partnership model. However, we learned from our experiences at Delhi, especially about the need for an early focus on project controls, and how engineering and management teams should interact, and fine-tuned our approach in Kolkata. Due to significant external challenges, the time schedule was extended and Phase I of the project could be completed in August 2012, and the entire project in March 2013. The terminal contract was a huge project from any perspective. At the peak construction period, we had 6,500 workers on site in a single shift. AAI’s vision included a desire to reflect local culture, and the principal architect (RMJM of Hong Kong) proposed using ceiling patterns showing abstractions of the Bengali script, from manuscripts of the great poet Rabindranath Tagore, who was the first nonEuropean to win the Nobel Prize for Literature.
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The ceilings at both arrival and departure levels are now ornamented with these beautiful patterns. The arrival ceiling alone is almost 60,000 sq metres, made of coated aluminium tubes which are 50 mm in diameter, which were designed, manufactured and installed by a UK-based company, SAS International.
Amit Kaul
The patterns were developed by placing pre-designed closed-end cut tubes, between the long installed tubes, which gives the appearance of the handwritten script when seen from floor level. I must say that SAS International devised an installation system which was very efficient, and their tubes were very easy to install and remove, without damage. The departure ceiling was designed and manufactured by Dong Shin, from South Korea, using rectangular aluminium panels. Installing them in the required configuration was very tricky, requiring high levels of concentration and effort, as each single pattern was spread over several panels. One unexpected challenge which we encountered was the unpredictable West Bengal weather. We had made provision for typical monsoon conditions, but in 2011, the rain, storms and high-velocity winds were much more intense and lasted longer than usual, which slowed construction, especially on the steel roof. The brutal weather also slowed the installation of a special six-layer roofing system, over the structural steel framework.
We did manage to mitigate the delays; through introducing crash schedules, bringing in extra workers and working round the clock, but it was impossible to catch up. A second major challenge, although not entirely unexpected, was a series of delays in receiving imported materials which were being shipped in to Kolkata from overseas. The delivery dates planned for the construction schedule proved very challenging for manufacturers, although the teams were able to mitigate the impact of the late deliveries by bringing in some materials by air. Given the vast scale, complexity and innovative design and construction methods being employed on the project, I think the project has been delivered within a very reasonable time frame, comparable with similar major airport projects worldwide. Now the terminal is open though, the problems are forgotten, and everyone can celebrate the transformation it has brought to the airport. Annual passenger capacity has increased more than five-fold, from just 4.8 million to 20 million, with a new and efficient five-level integrated passenger terminal building, which covers almost 200,000 sq.m. The airport now has modern taxiways and runway extensions, allowing Kolkata to receive larger aircraft, such as the Airbus A-380. The launch of the sophisticated terminal and passenger-handling facilities has also attracted interest from airlines which have not previously served the airport, including Gulf Air, Japan Airlines and Turkish Airlines.
What Next? CONTACT: Amit Kaul Parsons Brinckerhoff India Pvt. Ltd. 3rd Floor, A Wing, IFCI Towers 61 Nehru Place, New Delhi 110019 T: +91 11 43700200 W: www.pbworld.com
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Business Exchange Issue 03 www.ukibc.com
UKIBC News Roundup UK government chooses UKIBC to lead the transformation of B2B support in India March 2013: UK Trade & Investment Minister, Lord Green, announced that the government would invest over £1.1million in a new, business-led pan-India network of British Business Centres. This is part of a global initiative to strengthen British business networks in 20 overseas markets. Lord Green said: “I am pleased to announce, that following the Prime Minister’s recent visit to India, we have agreed to support the setting-up of a new business-led pan-India network of British business centres led by the UK India Business Council and supported by the British Business Groups in India.” The UKIBC will open six business centres by 2017. The initiative has been widely welcomed by the British business community in India, in particular, by the British Business Groups (BBG) who are offering their support
in the development of the centres. The Centres are designed to transform the quantity and quality of support available to British businesses, especially SMEs, seeking to enter or expand in India, and they will offer a range of accredited services to UK companies. Within the first 12 months, the UKIBC will open its first two business centres in New Delhi and Mumbai. Richard Heald, UKIBC CEO, said, “It’s a very exciting, as well as challenging, project. These centres and services aim to build on the existing strong UKIBC, UKTI and BBG platforms, and create a significantly higher level of UK-India business engagement, providing UK businesses the additional support they need to succeed in India. Within three years, the majority of UKIBC staff will be based in India.”
Lord Green, UK Minister of State Trade and Investment
UKIBC Member, Imperial College, joins forces with Hero Group to improve management education
Opportunities in Built Environment in West Bengal and India
MoU between Tata and the UKIBC
April 2013: Following the introduction made by the UKIBC, Imperial College Business School and Hero Group have formed an alliance to improve management education in India. The Business School has signed a Memorandum of Understanding with BML Munjal University (BMU) to provide assistance in developing its School of Management. Imperial Business School will serve as a mentor institution helping BMU to form, develop and grow its School of Management. The collaboration will encompass both research and education activities, with BMU opening its doors to students in July 2014. Jesh Rajasingham, UKIBC Skills & Education specialist said: “The collaboration between Imperial College Business School and the Hero Group will create a talented community of students and faculty to excel in teaching, learning and research, with a major focus on technological advancement and socioeconomic development.”
March 2013: Following the successful launch of the ‘West Bengal Urban Regeneration and Development Scoping Study’ in London in November 2012, a subsequent event took place in Manchester at the offices of Pinsent Masons LLP in March. The event addressed the opportunity in West Bengal while informing attendees of a follow up trade mission to India in the coming months. The event featured experts Stephen McKenna of Mott MacDonald and Ruchi Chakravarty of HOK. Both of whom went to Kolkata last year to investigate the current setting in West Bengal and highlight the opportunities within the state for urban regeneration and development.
March 2013: The signing of a MoU between Tata and the UKIBC highlighted the on-going work in skills development. The aim of the MoU is to create a sustainable, world-class, multi-sector training system that could be scaled up and replicated elsewhere to the benefit of the UK skills sector as a whole. Neeru Sood, UKIBC, Skills & Education specialist said: “Tata group involvement in the skills training sector is a key development as India seeks to train 500 million people by 2022. The UKIBC is pleased to be supporting these initiatives to develop a world class training offer in India.”
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Route to the Indian Market: Opportunities for UK Manufacturing SMEs
How can UK Businesses join the Indian Retail and Fashion Market – in Conversation with Rocky S
Upcoming Events Bengal Leads Business Seminar with ICC and SXCCAA 17th May, London Route to the Indian Market: Opportunities for UK Manufacturing SMEs’ Seminar 23rd May, Cardiff NGN ‘In Conversation with Lucy Neville-Rolfe’ Seminar 23rd May, London
February 2013: The UKIBC held a retail seminar with Bollywood fashion sensation Rocky S, for British retailers looking at the Indian market. The event came hot on the heels of David Cameron’s India trade delegation.
March 2013: PwC, in cooperation with UKIBC, have produced a report on opportunities for UK manufacturing SMEs in India. The report aims to provide a clearer idea to British manufacturing SMEs on how to engage better with India. The report was launched with a series of events in March in London, Manchester, and Birmingham. Attendees had the opportunity to hear from senior experts from PwC on the opportunities in India and the route to market, all with a focus on SMEs. Speakers included: Vipul Vachhani, Founder and CEO of Jaivel; Julian Hetherington, Director of Strategic project at Jaguar Land Rover; and Joel Hunt from BAE Systems.
Rocky S spoke of the need to tailor collections to the Indian market. Indian shoppers are particularly price conscious and clothing in Bollywood films are a significant influence. Rocky S also highlighted that winter is “the Indian festive season when shoppers seek colourful, glamorous clothing for Diwali celebrations rather than the black and grey hues usually presented by designers for this season.” He added: “UK brands need to seriously look at the Indian opportunity and not be afraid to take risks. Challenges exist but visionary brands are managing to overcome them by absorbing some of the import costs themselves to offer price parity on their products and therefore a better business proposition.”
What Next? CONTACT: Contact UKIBC’s Communications Department at comms@ukibc.com with news and case studies
The Indian Automotive Sector Seminar with APTN and SMMT 4th June, London Doing Business in India Seminar with Hull & Humber Chamber of Commerce 5th June, Hull Introduction to the ICT Industry in India Seminar 11th June, Bristol Doing Business in India Seminar with Suffolk Chamber of Commerce 13th June, Ipswich India Training Workshop 20th June, London
New Members & Sector Subscribers
3DiFM Baroni Bowman Riley Architects Eastern Country Foods Export2India Hochiki Europe (UK) Ltd Integrated Sky Ltd Irwin Mitchell Janous Design Kernel Consulting Ltd KLBD Mirams Waterhouse Polo Marco Experience Precision Polymer Engineering Ltd Roebuck Capital SKS Business Services Timespace Technologies
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Business Exchange Issue 03 www.ukibc.com
Indian Business News
UK SUCCESS STORIES from India Professional Services
Digital Innovation
Ashurst LLP acted on ONGC’s secondary global (USD$2.4bn) offering through the OFS mechanism through India’s stock exchange. The transaction was the year’s largest equity transaction and particularly innovative as it was the very first offering undertaken via the recently established auction mechanism. Ashurst LLP also acted on behalf of IDBI and Bank of Baroda in the $336 million acquisition finance facility for Binani Industries to acquire Belgian company 3B Fibreglass.
BCS, The Chartered Institute for IT is seeing an increased demand in their globally recognised Professional Certifications in areas such as software testing and business analysis and are working with local partners to provide them to the wider Indian market.
Eversheds LLP were awarded the Rising International Law Firm at the recent Legal Era magazine awards in Mumbai and also nominated in the International Arbitration Team of the Year and IT Team of the Year categories.
Flexera Software’s AdminStudio solution has now been established as “solution of choice” at the top five Indian HQ’d service providers for the automation of their services to customers globally.
Herbert Smith Freehills LLP acted for Strides Arcolabs, headquartered in Bangalore, on their $1.6 billion (+) disposal to Mylan, headquartered in the US. Herbert Smith Freehills also acted for NTPC, the biggest Indian government privatisation in the current fiscal year (US$2.1 billion) and the largest equity deal in India since March 2012, and a block trade deal for Ophir Energy.
Conversor launched Listenor Pro during the PM’s trade visit following a request from the Indian Government for a cost-effective assistive listening device for deaf schools.
Life Sciences and Healthcare Lorne Laboratories Ltd has appointed Microgene Diagnostic Systems (P) Ltd to distribute their range of blood-grouping reagents and diagnostic kits across India.
Advanced Engineering and Manufacturing Aramex (Manchester Airport Station) is now the UK based hub for all weekly consolidation traffic out to all parts of India. Pro² have been awarded a contract for in market testing in Algeria for one of the Indian Automotive manufacturers.
Red Gate Software’s CEO and Head of Operations visited India in February and committed to India as a significant market. Telstra Global held a roundtable in Mumbai in association with CIO Magazine attended by senior IT decision makers from enterprises operating in India.
Standard Chartered’s 98th branch in Chhindwara was inaugurated by Mr. P. Chidambaram, Union Finance Minister and Mr. Kamal Nath, Union Minister, Urban Development and Parliamentary Affairs. The Bank also inaugurated its 99th branch in Agra, The bank is now present in 42 cities.
Follow us: If you would like to get more information on these companies or would like to send us your success stories, please contact BusinessExchange@ukibc.com
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Skills and Education
Infrastructure
In February, Dudley College signed a tripartite MOU with IL&FS and Jindal Steel and Power, formalising an ongoing training partnership. This was signed in the presence of Matthew Hancock MP, Parliamentary under Secretary of State for Skills. During the same visit, they signed three MOUs with Indian colleges as part of Dudley’s on-going collaborative work with Harrow College
BG Group has completed a landmark 20-year agreement with Gujarat State Petroleum Corporation Limited (GSPC) to supply long-term LNG sales of up to 2.5 million tonnes per annum to India. Speaking about the landmark announcement Richard Heald, CEO, UKIBC said: “With estimates that India’s overall demand for energy may rise by as much as 55% in the next four to five years, this deal will play a critical role facilitating and creating future growth.” BG Group Chief Executive Chris Finlayson said: “We have been active in India for more than 15 years and it is a large and important market that we understand well. We expect the country to lie third among LNG importing countries by 2025, behind Japan and China.
Oxford University in collaboration with Herbert Smith Freehills LLP conducted a 5-day workshop on Mergers & Acquisitions in February at the National Law University, Jodhpur.
Retail, Lifestyle and Logistics Booker India Pvt Ltd- Booker Wholesale opened a new store in Chandivali, Mumbai in Feb 2013, taking the total to 4 stores in India. Booker’s Happy Shopper symbol store concept has been expanded to 185 stores. Cox & Kings UK has been awarded Best Tour Operator from the UK for India by the Indian Ministry of Tourism. The award was presented by President Mukherjee. Vivanta by Taj Gurgaon opened in March, right in the commercial district of Gurgaon - the heart of India’s fastest growing city. The new hotel will create a contemporary escape for discerning travelers, featuring distinctive design and edgy spaces that redefine ‘relaxed luxury’. Sun Mark Ltd has become the first ever company to win the “Queen’s Award for Enterprise in International Trade” five consecutive years in a row.
Mott MacDonald Group have been appointed to provide detailed civil and structural design, architectural and MEP services for five elevated stations on the $195 million Gurgaon Metro Rail Project, a 6.1km rapid rail route that will connect Sikanderpur on Delhi Metro Line 2 with DLF Cyber City. Mott MacDonald Group has also been appointed for architectural and structural design services for six stations of the £2bn Hyderabad metro project. PM Group was recently awarded design and project management contracts in India with capital values of almost €40m and was announced during a visit to their new office in Bangalore by CEO, Dave Murphy.
Benoy signed a MOU with Supertech India Ltd and announced the commencement of their fourth project with Prestige Group, during the British Prime Minister’s recent trade delegation to India. Benoy has also won a “Queen’s Award for Enterprise in International Trade”. Gleeds continues to deliver added value Project and Cost Management services to International clients across India, and was awarded for Health and Safety on the delivery of their new Tablet Factory in Bangalore by Astrazeneca.
Dedicated service for Small Companies
Sector Subscription The UKIBC offers a Sector Subscription - tailor made for small companies looking to enter India or are new to India. We all know that entering new markets is never an easy option but the case for export is equally compelling. According to the UKTI, firms that export increase their productivity by 35 per cent in the first year alone; they achieve stronger financial performance and are more likely to stay in business. The sector subscription service provides small companies market intelligence via monthly sector views, quarterly reports, and free access to events in their sector. For more information or to subscribe please telephone 0800 0196 176 or contact membership@ukibc.com If you would like to get more information on these companies or would like to ukibc.com
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Business Exchange Issue 03 www.ukibc.com
Culture
Timeless Bengal Kevin’s Tip
West Bengal’s natural beauty, cultural diversity and awe-inspiring sense of history make it a stimulating experience for every visitor. From the snow-capped Himalayas in the north, through Darjeeling and its glorious tea gardens, to the river deltas and spectacular mangrove forests of the south - home to the famed Bengal Tiger - it’s a land of which you could never tire. Even if there isn’t time to visit the state’s rural hinterlands, the sprawling beauty of Kolkata, the state’s capital - and India’s oldest trading port - will hold you spellbound. Admittedly, you should always allow extra time to visit your chosen attractions, as the traffic jams are notorious, but there is always much to admire, whether you travel on foot, tram or boat - or one of the thousands of yellow taxis. As Calcutta, the city was the commercial heart of Britain’s Indian empire, a gateway to South-East Asia, and the centre of a 19th century renaissance, whose influences are still felt today. A potent and persuasive blend of social and religious reformers, scholars, literary giants and philosophers held sway for decades, turning public opinion against such cultural practices as polygamy, child marriage, infanticide and suttee. To this day, the city is a melting pot of creativity and has retained a national reputation for arts, philosophy, literature and film. As Kolkata, it became India’s first science city, where pioneers carried out ground-breaking research in such contrasting fields as malaria, radio, microwaves and quantum physics. The Higgs Boson project is known worldwide, but it’s rarely acknowledged that its origins lay in the discoveries of Kolkata’s Professor SN Bose, who worked alongside Einstein during the 1920s.
“Kolkata is a great city for sport lovers. Whether it is golf, swimming, or just walking at the Tollygunge Club; or football, cricket and rugby at the Kolkata Cricket and football Club, there are plenty of opportunites to meet people, keep fit and have fun.” Kevin McCole is the COO of the UKIBC, and lived in Kolkata for three years.
The city has also been home to a raft of Nobel Laureates, including the legendary poet Rabindrath Tagore, Mother Theresa, and the revered Oscarwinning Bollywood actor and director, Satyajit Ray. Its trading strength has been underpinned by the Hooghly river which snakes through the state for 260 kilometres, powered by the mighty Ganges. The location was irresistible to the British Empire, and under the East India Company’s all-powerful influence, Kolkata became one of the world’s great cities. Kolkata Flower market
The nearby port of Chandannagar attracted the French, and the Dutch, Portuguese, Danes, Belgians and Germans also established trading settlements along the river banks. However, the age of European imperialism wasn’t the first time the region had been colonised. In the days when the Romans held sway over the Mediterranean, Bengal was part of the Gupta empire, and between the eighth and twelfth centuries it was controlled by the Pala dynasty, usually considered its golden era. Ironically, given that Bengal was once visited by Alexander the Great, and at the heart of great and powerful Asian and Indian empires for 2,000 years, the driving force which transformed three small villages into the future capital was a British trader Job Charnock - who saw the area’s potential after arriving in 1690. Spectacular signs of the British presence are everywhere in modern-day Kolkata. As the Bengal renaissance driven by Raja Ram Mohan Roy was changing hearts and minds, British architects were transforming the fledgling city’s physical structure, replicating the famous buildings London and other European cities … but on a far grander scale. Howrah Bridge
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There are sufficient architectural highlights to require several visits, but stand-outs include St John’s Church (modelled on London’s St Martin-in-the-Fields, and containing Job’s mausoleum), the Victoria Memorial and Kolkata High Court (India’s oldest) which takes its design from a medieval Cloth Hall, from the Belgian town of Ypres. Kolkata also offers eye-catching buildings of a very different nature; Eden Gardens - home to the 2012 IPL champions, Kolkata Knight Riders - and Salt Lake Stadium, used by numerous sports, but most often by football clubs, and one of the world’s largest stadia, with a capacity of 120,000. However, whether you visit West Bengal to embrace the electrifying atmosphere of Eden Gardens, or to admire the fading grandeur of its architecture, one particular visit really is a must. Kolkata is famous for its array of morsels to tempt the sweet-toothed, so persevere through its trafficclogged urban arteries to Ramdulal Sarkar Street, and Nakur Nandy’s ‘hole-in-the wall’ shop. Memories of the melt-in-the-mouth sensation of its sandesh will linger long after you leave, and make you yearn for more of the delights of West Bengal.
Dakshineswar Temple
Where to stay Taj Bengal is a city landmark in downtown Kolkata, located in the city’s greenest precinct, not far from the Victoria Memorial, Royal Calcutta Race Course, Horticulture Gardens, National Library and the Zoological Gardens. The hotel features modern decor with impressive traditional accents. The lavish stone and marble atrium soars skyward for five storeys and contrasts beautifully with the traditional architecture. Designed by the famous architect, Bob Fox, Taj Bengal stands apart as an elegant modern architectural landmark, with a classical atrium design, genuine antiques and priceless art. Telephone: +91 33 66123939 / 2223 3939 www.tajhotels.com
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Business Exchange Issue 03 www.ukibc.com
Infrastructure
Bauma launch underli CDE’s global ambitions Manish Bhartia, MD of CDE Asia, talks to Ian Halstead about his company’s growth strategy and its ambitions. Q: How do you see CDE Asia evolving in the medium-term, and what do you see as your major challenges? A: CDE Asia is ideally poised to become a market leader in material washing technologies in India. The company is already a leading brand in the iron ore washing segment. We have recently adopted a brand new five-year strategy ‘Bridging the one trillion opportunity’ adopted in line with the central government’s latest five-year plan for infrastructure spending, which will lead the company to develop its core competence in aggregate and sand-washing.
What Next? CONTACT: Manish Bhartia Managing Director CDE Asia Limited E: info@cdeasia.com W: www.cdeasia.com
We have also made major progress in attracting young talent in both business development and operations. In the next five years, we see CDE Asia as younger and leaner, and with a major presence in the construction and recycling segments in India, and elsewhere in South-East Asia. In line with our global vision, we hope to consolidate our position as the leading material washing company in India by 2017. Q: Do you believe your track record for innovation will allow you to stay ahead of the competition? A: Of course. Innovation is the key to our business. Both in terms of fine-tuning our models each year, but also in how we develop our process technologies to suit the ever-changing requirements of the mining and quarrying industries. CDE is well known for its aggressive R&D programme which has resulted in the development of mining technologies in India, through CDE Asia. In April, we launched our mining division on a global platform, at the Bauma International Trade Fair in Germany.
From the left clockwise; Brendan McGurgan (director) , Enda Ivanoff (director), Tony Convery (chairman), Manish Bhartia
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rlines ambitions
We have also embarked on the design of a brandnew Combo series of washing plants to cater more effectively to the Indian sand producers, who are currently producing fine aggregates by crushing rocks. Q: You mention a raft of new projects coming forward near emerging cities. Could you identify some of them, to give us a flavour of your work during 2013? A: The situation is similar to a few years back when the economy was at its height. We are expecting a flurry of new projects - from airports to container terminals, and from new roads to low-cost housing schemes - to come forward this year. Q: Do you expect the regional state governments to devote more attention and resources to their Tier Two and Tier Three cities in the years ahead, or do you think their focus will remain on their ‘big brand’ cities? A: Government has been promoting ‘inclusive growth’ for some time, but there is little progress on the ground. These cities offer considerable growth opportunities, although there is a huge amount of human resource available which has not been tapped by almost all states. However, in Gujarat, one can actually notice how the growth has benefited all levels of city, and across society as a whole. We need good governance at the state level, and Gujarat is a great example of what should happen.
Q: How does your supply chain work, and is there scope for UK-based SMEs to enter that chain? A: We now manufacture most of our machines in India, and parts which were imported are now beginning to be available here, through either local distributors or local manufacturers. Going forward, we expect local sourcing to increase, although we will always prefer to deal with existing global brands. Q: You once suggested that local market conditions were more important than the short-term advantages of locating in an SEZ, or an export park. Which route do you think UK SMEs looking to enter India should take? A: It depends on which sector you are talking about. A company like us, which needs to develop a strong local market presence, would not be helped by being located in an SEZ or an export promotion park, as our business plan is to grow within the Indian market. However for IT companies, or other companies looking to set-up their shops in India to benefit from low-cost manufacturing and which will then export their products, it would make sense to opt for these special privileges. Q: Do you think such companies should spend more time researching their market entry, and in particular, focusing on finding the right partner, rather than being quickly seduced by the appeal of SEZs?
Q: As you expand, do you expect the challenge of identifying and retaining talent to increase, and how do you plan to resolve that issue?
A: Agree. If you are coming to India for the Indian market, finding the correct local partner and resource will be the key to success here, because of the myriad cultural, linguistic and social challenges to be overcome.
A: We are fortunate to have a young team in our Indian office. We recently introduced a leadership development program called ‘Future Leaders’ that aims to provide all-round training to potential candidates, and have initially identified ten staff members to take part.
I know some UK companies who are doing ad-hoc business and travelling back and forth to India for the last five years, but are struggling in terms of evolving a long-term strategy for the Indian market.
The training will include visits to project sites and factories of successful modern companies around the world. We believe this will broaden our horizon and understanding of the needs of the future.
CDE Asia:
CDE Asia was established in 2006, as a partnership between UK-based CDE Global and the Bhartia family, to extend the group’s penetration into the Asian market, and to expand its mineral processing capabilities. It specialises in the design and manufacture of equipment for the quarrying, mining, recycling and waste management industries, and dominates the iron ore ‘washing’ market in India, where it has also pioneered sand and aggregate washing. CDE Asia’s HQ is in Kolkata, and it has an advanced manufacturing plant on the outskirts of the city. (managing director).
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Business Exchange Issue 03 www.ukibc.com
New UKIBC Regional Office
UKIBC opens new Manchester Office Manchester-born Steve Toogood is back home after a globe-trotting career in the private sector, aiming to guide companies from Northern England along the pathway to India. As director of the UKIBC’s new Manchester office, it’s clear that he’s relishing the task ahead; strengthening links with the region’s corporate community and debunking some of the myths about dealing with the sub-continent. “It was the obvious place for our first regional office, after it hosted two very successful UKIBC summits which each attracted hundreds of delegates, demonstrating the eagerness of North-West companies, funders and advisers to learn more about India,” says Steve. ‘’It’s also an excellent location to support our existing strategic partners and corporate members, who have significant operations in the region, including JLR and BAE Systems. “The Northern economy has a strong base in automotive and aerospace manufacturing, with a healthy life science sector, and a growing clean-tech industry, and of course Manchester is now a key hub for digital media. “Some companies here also already have strong relationships with India, and Indian corporate ties to the region are significant; through the Tata Group, for example, and Essar Energy’s purchase of the Stanlow refinery.’ “However, many companies are new to India, or looking to grow their operation and distribution structures there, but are unaware of the support that UKIBC can offer.” Steve was the ideal candidate for the new role; both born and educated in Northern England, before a 20year spell with the giant Olympus Corporation, and
then working for UK Trade & Investment (UKTI) as a senior international trade adviser. Olympus is often associated with high-end cameras, but it has also long specialised in medical and surgical equipment which require equally advanced optical technicology. Steve found his niche in the Japanese group’s industrial endoscope division, which designs and manufactures flexible devices for looking inside such varied and sophisticated examples of modern technology as Rolls-Royce jet engines, F1 cars and naval submarines.
“It was a marked change, moving to the public sector from the private, because they both have very different drivers and networks, but I think my four years with UKTI allowed me to see the challenges, and the opportunities in international trade from both perspectives.
“many companies are new to India, or looking to grow their operation and distribution structures there, but are unaware of the support that UKIBC can offer”
“I am sure David Cameron’s visit to India, and the new business centres we are setting up there, will stimulate interest in the country, and add extra depth to the services we can offer.
What Next?
He was vice-president of Olympus Industrial Surgical America Inc. based out of New York, and director of industrial business at Olympus KeyMed Ltd, involved in the design development manufacture and sales of industrial inspection systems, hi-speed video cameras and software worldwide before leaving to join UKTI. “I’ll be raising awareness of the opportunities India offers, working with UKTI, the LEPs, the councils and chambers of commerce to provide a smooth entry to the market, and help business to make the right decisions, understand India and make informed judgements on market entry and strategy for growth,” says Steve.
‘’UKIBC has excellent links through its Businessto-Business network, and an understanding of the political and regulatory environment through its role in intergovernmental activities, as secretariat of the India-UK Joint Economic Trade Committee (JETCO). We also have a wealth of sector-based knowledge and can help companies with their strategic plans and contacts, and I really look forward to helping in that engagement.’’
CONTACT: Steve Toogood UKIBC Director T: +44 (0)7964 401467 E: steve.toogood@ukibc.com W: www.ukibc.com
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Digital Innovation
Stellar performance from Orbit Animate Thousands of Britons are being whisked safely through time and space every month, from the comfort of their seats, thanks to the technical genius of hi-tech content developers in India. Orbit Animate and Carl Zeiss Planetarium Division have installed a spectacular powerdome - digital planetarium system in Liverpool World Museum, which renders seamless high-resolution imagery of deep space and the known universe to audiences. Now, after putting on 1,300 shows during its first year of operation, the museum is upgrading its image generator to match the best the world can offer, with the 2nd generation powerdome. Orbit Animate operates as the Indian arm of the legendary Carl Zeiss optical and precision engineering empire, although it began life as an animation agency, before its skills in 3D modeling led it to explore the scope for astronomy-based projects. It currently operates and maintains 30 planetaria across India, is working on major new projects in Kerala, Sri Lanka, and is in advanced talks about installing a planetarium in Mauritius. Orbit’s West Bengal HQ - in Salt Lake City - also houses specialist teams working in the architectural, educational and industrial sectors, and it opened a satellite office in Northern England to serve the UK market, as general manager Anjan Maitra explains. “The company was established in 2004, and quite early on we worked on projects which required science-based content, for the Indian Space Research Organisation and the Department of Science and Technology. “We began collaborating with Carl Zeiss in 2009, and visited Liverpool two years later, when we were attending the British Association of Planetarium conference.”
“The museum’s system had been installed in the mid-1970s, so it naturally couldn’t offer the highdefinition, interactive and immersive experience which modern audiences expect, which was a real pity, as it is the UK’s last free planetarium. “We’d been very active with Carl Zeiss in India, and had set up jvs with them elsewhere in South-East Asia, so we can now explore the realm of planetaria in Britain.
Examples of Orbit Animates work
“Contemporary planetaria are about much more than just stars and planets, they’re about space travel and interstellar astronomy, and people can experience deep space travel through our 3D digital technology.” Although the core equipment comes from Carl Zeiss, each system is adapted according to the needs of the customer, and installed and maintained by the technical team of Orbit to meet each customer’s specific requirements”. “We have to integrate and customise each installation, but we have the knowledge and the expertise inhouse,” says Anjan. “After we completed the Liverpool project, we were commissioned to install a system at Calicut Regional Science Centre, in Kerala. “We’re optimistic that once people see the upgrade at Liverpool, which will be in operation at the start of May, we’ll be asked to quote for more work in the UK, because it is one of the major markets for such midsized planetariums, and we’d love to do more there.”
What Next? CONTACT: Orbit Animate Pvt Ltd BG-127, Sector II Salt Lake City Kolkata: 700091 T: +91 33 40083725 W: www.orbit-space.com
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Business Exchange Issue 03 www.ukibc.com
Life Sciences & Healthcare
Bhaskar gives hope to Dr Bhaskar Sen Gupta’s research could transform the lives of millions of people throughout South-East Asia. Ian Halstead finds out more. Arsenic’s absence of colour and taste made it the poison of choice throughout history; from the internecine days of the Roman Empire, to the genteel parlours of Victorian England. However, those same qualities now make the metallic chemical a major health hazard to some 100 million people in Bangladesh, Cambodia, India and Malaysia, who rely on untreated water sources; for themselves, their crops, and their animals.
Dr Bhaskar Sen Gupta visiting the project
The World Health Organisation (WHO) warned years ago that arsenic-contaminated water posed a far greater threat than such man-made disasters as Bhopal and Chernobyl.
“The water contained arsenic, and he died in less than an hour. I started thinking about just how many children were dying through drinking this water, and was determined to do something.”
Fortunately, a dedicated research team based in Queen’s University Belfast - led and inspired by Dr Sen Gupta - has created a simple and eco-friendly solution, allowing the deadly substance to be removed from water sources at minimal cost.
Bhaskar was then a chemical engineer, having taken his Masters at the Indian Institute of Science, in Bangalore, before working in Malaysia, where he was also a post-doctoral researcher.
The breakthrough has earned Bhaskar and his team numerous accolades, including a Green Apple Award 2012, whilst he was honoured with an OBE, for services to higher education and international environmental research in last year’s Honours List. His years of effort weren’t driven solely by an academic desire to make a difference, but were underpinned by a very personal understanding of the problem, as Bhaskar - who was born in Kolkata - explains. “It was in 1992. One my relatives had a tiny bottle of homeopathic medicine, and her little boy managed to open it, and to drink perhaps 30 or 40 globules of the liquid,” he recalls.
“The issue of arsenic in water wasn’t new, but many villages in West Bengal and elsewhere used a chemical filter, containing either aluminium or iron,” he recalls. “The system worked, but people didn’t know how often the filter needed changing, and because arsenic has no taste or smell, you didn’t know if it had been safely removed from the water. “Another method was to run water through filter beds, again with iron or aluminium present, but that created another problem because the contaminated chemicals had to be replaced, and usually the sludge was just dumped nearby, often near houses where kids were playing.
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millions ”When water from West Bengal was tested, in some areas the arsenic level was 40 or 50 times higher than the WHO’s ‘safe’ level. Even along the Ganges delta, the readings were four to five times higher, so it was clear that a new and simpler treatment method had to be found.
The system is so simple it can be set up using pipes, tanks and valves which are easily available to the local plumber or engineer,” says Bhaskar. “When it requires maintenance, the same people can do what is needed, and the kit costs just £2,500, plus perhaps another £2,000 for the land, and that would provide a village with clean water for the next 25 to 30 years. “We can also use wind-power or solar-power to provide the energy, but if that isn’t available, the equipment can be operated - as in West Bengal simply by opening and closing valves.”
“The good news was that although adult victims developed painful and visible skin sores, once they began drinking clean water, their health improved dramatically.”
Bhaskar and his colleagues can help villagers looking to set up their own treatment equipment, without leaving their Belfast offices.
Bhaskar researched the subject for the next decade, and finally won a major grant to test his theories in 2004, allowing the project to make significant progress.
“All we need is a sample of their groundwater for analysis. They e-mail it to us, and we supply all the information they need to operate their site, such as the pumping rate.
“I knew we needed bacteria to remove the arsenic, and to turn it into solid form so everyone could see the treatment had succeeded, but the project required a great deal of time and patience,” he says.
However, there are new challenges ahead, though not ones which can be resolved by scientists and academics.
“We had to design a system which was simple to operate, didn’t use chemicals, was relatively cheap to install and to operate, and also didn’t generate contaminated sludge. It was a huge and complex challenge. For the next two years, his team considered, tested and rejected various concepts, until a ‘Eureka’ moment took him to Germany, to research a century-old approach to removing metallic substances from water.
“We need government support for large-scale implementation, to buy the equipment and to acquire the land, which is very precious in some areas, such as the Bengal delta,” Bhaskar admits. “All you need for a plant to supply 1,000 people is 50 sq ft of land, but unless someone is willing to donate that land, then external finance is needed. “Perhaps companies, sponsors, and the big professional services brands will come forward to offer support, but at the moment, tens of millions of people are still suffering just for the lack of finance, which is a very contemporary tragedy.”
“They’d used a precipitation process to extract manganese and iron. It wasn’t the solution we needed, but did put us on the right track,” recalls Bhaskar. After many more months of research, the team evolved the treatment system which is operating today. Contaminated water is pumped up from wells, and sprayed into the atmosphere using domestic shower heads.
What Next?
Exposure to oxygen impacts on the ‘bad’ bacteria which hold the soluble arsenic, allowing the ‘good’ bacteria to create a chemical reaction which drives the poison out in solid form, and the clean water returns to the well.
Bhaskar Sen Gupta OBE PhD School of Planning, Architecture and Civil Engineering Queen’s University Belfast BT9 5AG UK
“The beauty of this approach is that no-one in the village needs to understand why, or how it works.
E: b.sengupta@qub.ac.uk
CONTACT:
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Business Exchange Issue 03 www.ukibc.com
Typhoo Tea
Indian owners infuse Typhoo with success Typhoo Tea was an iconic British brand for more than a century, but is now expanding at record rate under its Indian owners, the Apeejay Surrendra Group. The Kolkata-based conglomerate acquired Typhoo for £80m in 2005, after identifying the significant potential for growth, once the business was vertically integrated with its existing tea-growing and distribution interests. Typhoo now retails in almost 50 countries, and is on course to become a $10m brand by 2016, as Renu Kakkar, Vice President, Technology & Corporate Communications explains. “After reviewing the market dynamics, we decided the best option was to set up a manufacturing site in Kolkata, to take advantage of the local accessibility to tea, and develop innovative blends for Typhoo India. “We launched Typhoo into India at the 2008 IPL. Local technical expertise, combined with our UK skills, enabled us to position the company as a premium brand in the FMCG sector - which is growing 20% year-on-year in India - and we developed both black tea, and fruit and herb infusions. “We used design cues from Typhoo’s UK tea-packs, to develop a premium selection of teas for India. However, the market is the opposite of the UK, as 98% of tea bought by Indian consumers is sold loose.” Typhoo India’s distribution network was built from scratch, adopting a ‘Hub & Spoke’ model; with the Kolkata factory as the mother warehouse, and miniwarehouses at locations which generated strong sales. “Careful targeting, based on extensive research of the food and beverage market, had us zeroing in on the most receptive sectors, particularly among highspending consumer groups focused on health and wellness,” recalls Renu.
“We first introduced Typhoo in the top Indian metro markets, followed by the emerging urban metros, through both large format and mid-size food and beverage stores. “The out-of-home segment was very large, so we gave this an equal and simultaneous focus through special distributors. Training a new sales force, with the skills and local knowledge to match what the ‘many Indias’ require was one of our early achievements. “To connect with consumers, we spurned a conventional mass media approach in favour of high shelf visibility, and merchandising - across multiple points - at stores with the highest footfall. “Consumer engagement in modern retail has to be both intense and sophisticated, and Typhoo India has begun to interact even more closely with potential customers, through ‘tea and food pairing’ concepts which have been received very well. “Going forward, we hope our successful sustainability innovations from the UK, which have won much recognition, will be matched to Indian consumer needs. “As to how other companies should proceed, we strongly recommend collaboration and communication between brand teams, which generated tremendous benefits for us. “Success in general branding terms also requires thorough market research, and companies must also assess very closely what their product will deliver to the Indian consumer. “Decide the best operational structure to suit your business, either importing directly, or setting up a new venture, which will depend on import duties, and finally, take time to find the right partner. “Every Indian has an entrepreneurial streak, so identify the correct individual - or company - and you will be solidly on the road to success.”
Appejay Surrendra is a Kolkataheadquartered conglomerate, whose interests stretch from tea, retail and hospitality, to real estate, shipping and logistics. Founded - and still owned by the Paul family, it celebrated its centenary in 2010.
What Next? Call the UKIBC Business Helpline for more information on doing business in India on 0800 0196 176
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Retail & Lifestyle
Indian ‘techies’ drive Tesco on Having worked for Tesco for over 15 years, she has overseen the evolution and expansion of the grocery giant’s interests in India. Dame Lucy Neville-Rolfe CMG, the recently retired Executive Director at Tesco plc explains the company’s impact in India. This embraces a retail partnership with Tata, sourcing of clothing and some food for the Tesco group, and a high-end service centre in Bangalore.
We also have the Hindustan Service Centre (HSC) in Bangalore - an outsourced part of the Tesco Head Office that opened in 2004. It employs 6,500 people and covers both administrative and research work. The centre pioneered the self-service checkouts for Tesco. They have also researched the operating model for our internet business. We’ve grown our internet dot com grocery across Europe. The entire rollout model was done in Bangalore by the young graduates. They also built the Tesco’s shopping app and ‘scan as you shop’ - a mobile device that you scan your items with as you shop. The most high-profile development, I believe, was in queuing technology. If you go into a Tesco store, they count you as you enter so the staff knows how many tills need to be operated for a quick customer service. This technology was designed in Bangalore, and is not only used in Tesco, but also has been copied by the immigration service in Britain to help manage the queues at Heathrow.
We have a franchise arrangement with Tata’s Trent business, called Star Bazaar, with 15 supermarkets spread across major cities. There will be around 18 by the end of the year.
During my time at Tesco, I have been fortunate enough to visit factories in Delhi and Bangalore and it is absolutely awesome seeing the scale of the factories. There are modern techniques in use that make sure that textiles aren’t wasted. They have crèches for the children and there’s proper regulation of hours and they have a special machine which tests every garment to make sure there aren’t any pins or needles present before they are sent overseas.
One of the most interesting initiatives I was involved in was work between the Indian and UK governments and industry bodies on reducing waste. I don’t think it’s well known that about 40 per cent of food currently goes to waste in India. However, now some of the best logistics companies are improving the supply chain by applying good practice.
I was at Tesco for over 15 years and in that time we were proud to build a great pipeline of female talent. We’ve had a number of women on the board and new appointments to the executive committee. In India, Meena Ganesh, who set up the HSC, is an entrepreneur who did a great job with us and then moved on to set up a group of schools.
As retail opens up it is important to take into account investment that retailers are already making and sourcing goods in the Indian market. We’ve been not only investing in the jv with Tata, but also with excellent local suppliers in the apparel sector for over 20 years, taking over £325m goods out of India every year.
I’ve always felt very strongly about the power of international partnership between countries and especially between Britain and India. Tesco has given me a fantastic opportunity to get to know India in a deep way. It is a fascinating country with a great past and a great future.
India’s consumer base is growing rapidly and retail cannot only be a real channel for growth offering a better life for consumers, but also a creator of jobs.
What Next? CONTACT: Tara Panjwani Sector specialist UKIBC T: +44 (0) 207 592 3844 E: tara.panjwani@ukibc.com W: www.ukibc.com
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Business Exchange Issue 03 www.ukibc.com
British Business Groups
A Special Weekend in Bombay EVENT BBGs First Thursday Drinks Date: 6th June 2013 Location: Delhi - TBC Time: 7.00-9.00 pm Contact Person: Saloni Madan UKIBC Director T: +91- 9560461205 E: britishbusinessgroup@ gmail.com
The British Business Groups in India National Convention 2013. 20-22nd September 2013, The Taj Palace, Mumbai
The British Business Groups in India are holding their third annual National Convention at the Taj Mahal Palace & Towers, Mumbai on 20th22nd September 2013. It’s shaping up into quite an event and quite a party! The theme this year is “Putting the Special back into the Indo British Partnership.” The conference will debate the current state of Indo British business relations and discuss how to take it forward. It will pick up from David Cameron’s commitment to create a new special partnership with India and the progress made in the last few years in deepening the bilateral flows of trade and investment.
already confirmed, including Shashi Tharoor, Sir James Bevan, Rt Hon. Patricia Hewitt, Sir Leszek Borysiewicz, Baroness Bottomley, Sir Richard Lambert, Prof R Mashelkar, Sunil Khilnani, Zia Mody and David Morley. The weekend will kick off at a welcome reception hosted by the Presenting Sponsors, the Tata Group, on the evening of Friday 20th September and the programme will end with a cocktail reception hosted by Diageo and the gala dinner and BBG Awards hosted by BP on Saturday 21st September. The conference itself will be all day on Saturday 21st September and there will be an optional social and cultural programme on Sunday 22nd September. The strong sponsor group will ensure a world class event. In addition to Tata, BP and Diageo, sponsors include KPMG, Standard Chartered, Virgin Atlantic, G4S, UBM, HSBC, Barclays, Rothschild, Pavers and Serco.
There will be an SME theme running through the programme and the new BBG Awards will recognise remarkable market entry both into and out of India.
The Taj is offering great rates for delegates for the weekend at the Taj Palace and the President and Virgin Atlantic will be offering attractive prices from London to attend. Other than members of the BBGs across India (now Bombay, Delhi, Pune, Goa, Chennai, Bangalore and Hyderabad), delegations are expected from BBG Dubai, UK India Business Council and other partner organisations.
The programme is shaping well with Ministers, officials, business leaders and other speakers
More details can be obtained from Rekha Menon on rekha@bbgmumbai.org
BBGs The British Business Groups are forums for British and Indian companies and individuals to meet, exchange ideas and network in friendly and informal surroundings. British Business Group (BBG) is an excellent place to make business contacts and keep up to date with the latest business ideas and opportunities. BBG’s include:
Chennai Delhi Goa Hyderabad Mumbai Pune
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Commercial Feature
CITY IN A HURRY Gurgaon is a business showcase for India. Siddhartha Nigam, partner at Grant Thornton Advisory Private Limited reveals the impetus for growth and the challenges that await. A successful local business is also featured. ‘This area is a melting pot of diverse cultures and good infrastructure and as a consequence it has become the technology and outsourcing hub for the country. ‘It is also the preferred destination for local and international dynamic organisations and it has emerged as an area where people come to find their fortunes. You only have to look around to see the evidence of growth and a buzzing economy. ‘It may have started as a technology hub, but Gurgaon is now a major business centre with a large number of auto, FMCG, hospitality and healthcare companies. ‘Private companies have been responsible for funding much of the development of the area, building highquality offices and residential areas. Local real estate prices are now comparable to those in New York and London. The increased quality of life for Indians is evident in the number of German saloons, Ferraris and Rolls-Royces that zip down the wide boulevards of the National Capital Region (NCR). ‘Delhi has an excellent infrastructure, a phenomenal public transport system and a world-class airport. However, India still needs to overcome certain challenges. The power sector needs development and there needs to be provision of better quality education. These issues are acknowledged and are being addressed by the government with private enterprise.The aim is to make India a stronger economy that is not reliant purely on foreign capital, but also engages with the increasing domestic demand that will continue to drive growth in the foreseeable future.’
A successful local business: Micromax Micromax’s low-cost phones have dominated the Indian market. The next challenge is smartphones and tablets, says Rahul Sharma, Co-founder of Micromax. ‘When the 30-day battery phone was launched it cost around $25 and there was nothing like it.We had consumers coming from Africa because they had the same problem with charging phones in rural areas. That’s when we realised that this humongous market was being supplied by international manufacturers who didn’t understand what the people here need in their daily life. ‘We decided to make products that would solve the everyday problems that consumers face.We do not follow any roadmap. A lot of people come to us and say, “How do you analyse the gaps? Do you do focus groups?” We work with our instinct; we will only make what we feel is right for the market. Our dual-sim phone came from the observation that people in the middle market had a work and a home phone. So we went back to the drawing board and created a phone with two sims on a single band. It was a huge success and became a category in itself and created a vertical market. In fact we’ve created so many vertical markets that the established manufacturers are now following the roadmap that we are making. ‘In 2013 there will be 240 million mobile handsets sold in India, a huge number. With smartphones coming, this year is going to be important for us and we are looking to double our rate of growth. We are already in nine countries, if we play it right there is a big chance that we will be a global player worldwide.’
India market For extra content about other high-growth cities in the NCR and case studies visit grant-thornton.co.uk/india This article first appeared in Strategies for Growth, a Grant Thornton quarterly magazine.
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Business Exchange Issue 03 www.ukibc.com
Viewpoint: Banking
Standard Chartered Business Banking Standard Chartered is one of the world’s largest banks. Rajeev Chalisgaonkar, who heads its SME operations in South Asia, explains how it can help UK corporates understand and enter the Indian market.
Our strong product proposition comprises trade finance, FX, overdrafts, working capital financing and term loans across all industry sectors, including serving the business needs of those micro-segments identified by the regulators as needing financial inclusion in India. This is complemented by powerful and convenient service tools such as Straight2Bank, a unique solution integrating a customer’s online banking to leading ERP Software, apart from other attractively bundled cash management propositions.
India is Asia’s second-fastest-growing economy, with a strong financial system, underpinned by a robust regulatory framework, and good development prospects supported by continuous economic liberalisation and strong domestic demand.
We have a strong team of trade specialists who handhold clients during their initial market entry, allowing them to gain a secure foothold, and we then provide ongoing help so they are able to proceed efficiently with their day-to-day business activities.
February’s Budget addressed major concerns; the need to rein in our fiscal deficit and to revive economic growth. Foreign Direct Investment is being increasingly sought, and several reform bills are in the pipeline which will further ease the trading environment.
Some of the key issues which SME clients bring to our relationship managers are the interpretation of local laws, the need for approvals and documentation, and the best possible means of raising capital.
SMEs are seen to play a pivotal role in India’s growth story, and the recently-issued SME ratings system has been of tremendous benefit, allowing companies entering India to select the best business partners available. The UK has well-established ties with India, at the historic, political, social and economic levels, so its companies are well positioned to take advantage of opportunities here. Most overseas clients look to interact directly with our operations in India, not least as we are the country’s largest multi-national bank; with 99 branches, the highest number yet opened by a foreign bank in India. We are present in 42 major Tier one and Tier two cities spread across India, all serving the SME segment. Our large branch network, and decades of experience in the Indian market, is bolstered by our full suite of product offerings for the SME.
The consistency of service levels in our banking sector was an issue, but has improved vastly over the last few years. Even the old players are waking up to the best practices brought in by foreign players. and are working towards matching those benchmarks. We have always taken service standards very seriously, have a special unit for assessing and improving service quality, and carry out annual surveys to identify further improvements. I am confident the marriage between the UK’s technological excellence, and India’s highly-skilled workforce will act as the perfect catalyst to develop the links between our two great nations.
What Next? Call the UKIBC Business Helpline for more information on doing business in India on 0800 0196 176
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Commercial Feature
Rolls-Royce strengthens its commitment to India with IAMPL A world-leading provider of power systems and services for use on land, at sea and in air, Rolls-Royce has a comprehensive portfolio of products and services across defence and civil aviation, marine and energy sectors. Its association with India started eight decades ago when Tata Aviation Services launched its first aircraft, powered by Rolls-Royce’s Gipsy engines. Today, Rolls-Royce has 4,000 engines in service in India across all its business sectors and joint venture companies. The company and its partners directly employ over 400 people in India. In addition, the company’s two engineering centers in Bangalore employ more than 900 engineers, who work exclusively on Rolls-Royce engine programmes using world class engineering processes and training. Recently, Rolls-Royce and Hindustan Aeronautics Limited (HAL) formed International Aerospace Manufacturing Pvt Ltd (IAMPL) in Bangalore. At an investment of $25m, the IAMPL manufacturing plant India will begin producing components for the Trent family of civil aero engines and a number of a marine and energy gas turbines later this year. Spread across 7,200 m2, IAMPL will incorporate the latest Rolls-Royce manufacturing techniques and will create job opportunities for highly-skilled technicians and engineers.
Commenting on the facility, HAL chairman R.K. Tyagi, “The facility will play a vital role in creating job opportunities for skilled technicians and engineers in India.” Rolls-Royce partnership with Hindustan Aeronautics Limited (HAL) goes back to 1956, one of the longest ties in aerospace history. This relationship is further strengthened with this new facility, and showcases the company’s continued commitment towards the development of the Indian aerospace industry.
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Business Exchange Issue 03 www.ukibc.com
Business Opportunities in India Procurement of silicon solar cells Short-notice opportunity for Expression of Interest for Empanelment of Agencies for providing Technical support to the Cities/ Towns for Solid Waste Management Interested companies that fit the criteria should register their interest below. Deadline: 25/05/2013 www.ukti.gov.uk/uktihome/ businessopportunity/476160.html
Expression of Interest from Consultants to Support Business Expansion A public sector unit in the machine tool industry are in the process of establishing joint ventures in order to realise their business expansion plans.
New Healthcare and Technical Education University Diverse opportunities ranging from university design to development of appropriate courses at planned new state of art healthcare and technical education university. A large private sector Business House has signed an MOU with a state government to build a medical and technical university. This is one of the oldest and largest business houses with diversified business operations in the healthcare, automobile and financial sectors. It is intended that the new university will add value to the existing education system by producing international quality technical professionals in the area of the medical sector and engineering industry. This is a green-field project and land for construction has been assigned. Opportunities start from planning level through to commissioning. Tender deadline: 01/03/2014
The company is inviting EOIs from experienced consultants for empanelment in the areas of Hi-tech machines; strategic sectors like defence, nuclear, aerospace, etc. and turn-key projects for metro rail, missiles, etc. The panel of experts created will support in expanding the business by encasing the business opportunities in the above mentioned areas.
www.ukti.gov.uk/uktihome/ businessopportunity/309560.html
Interested companies that fit the criteria should register their interest below.
An Indian company which manufactures magalloy wheels for two wheelers is interested in a JV with a UK company, which is looking to enter the Indian market, preferably in cars and heavy commercial vehicles.
Response deadline: 01/01/2014 www.ukti.gov.uk/uktihome/ businessopportunity/451800.html
Joint venture for mag alloy wheels for cars and other 4 wheelers
The company is a Tier II supplier of magalloy wheels to two wheeler manufacturers with a daily volume of 1000 units per day. The company has the requisite land for setting up a new plant for the JV and are also willing to commit financial investments. UK companies interested in this opportunity or who seek further information should register their interest below. Deadline: 30/06/2013 www.ukti.gov.uk/uktihome/ businessopportunity/473220.html
Electro-Mechanical Work of Small Hydroelectric Project in Chamba, Himachal Pradesh Engineering, Procurement and Construction (EPC) work (electro-mechanical work) is required for Kalhel (2x1.25 Mw) small hydro-electric project in Himachal Pradesh The employer is looking towards international competitive bidding for electromechanical work for the small hydro-electric project. The work will be on EPC basis. For more information on this opportunity please register your interest on the link below. Deadline: 28/05/2013 www.ukti.gov.uk/uktihome/ businessopportunity/440640.html
Import of plastic pipes used as building material One of the largest cast iron pipe manufacturers in India are keen to represent a UK based plastic pipe manufacturer, which is increasingly being used as a substitute for cast iron pipes. They will initially like to import these pipes in India to establish the brand and then look at a joint venture. The company has an established distribution network, which can be used for plastic pipes. The company will like to deal directly with plastic pipe manufacturers. UK companies interested in this opportunity should register using the link below. Response deadline: 31/05/2013 Deadline: 30/06/2013 www.ukti.gov.uk/uktihome/ businessopportunity/474620.html
Send us your company’s India based business opportunities and tenders to comms@ukibc.com
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Commercial Feature
Plan your market entry counsels Avasara MD UK companies looking to trade in India need to take their time, and carry out more background research, according to an Indian entrepreneur, who is organising a series of business workshops on issues around market entry. Abi Reddy, managing director of Cambridge-based Avasara, says that while India offers huge potential for British business, it has to be approached in the right way. “People think that trading in India is easy because most business people there speak English, but there are certain things people need to bear in mind,” he counsels. Abi cites the issue of punctuality as one major difference between the two business communities. “In India, many business people will think nothing of being two hours late for a meeting, but if they are in the UK, they need to be precise with their timekeeping,” he says. Having identified the need for
more pre-entry training, Avasara is setting up workshops, lasting either one or two days, six times a year, at venues across the UK. “Each event will be run by experienced trainers and consultants, who will cover both business and cultural issues, and if clients wish, the workshops can be held in their own offices,” says Abi. “For those wanting to do business in India, we will include negotiation, sales techniques, how to conduct oneself in meetings, small talk, conducting presentations and building relationships, both business and personal. “The cultural side will study differences between Indian beliefs and culture and Western thinking, religious beliefs, outside interests - such as sport, films and politics - the importance of relationships and family, Indian history, influential Indian figures and places of interest. “We are also running workshops for those wanting to do business in the UK from India, which will cover basic business etiquette, the difference in regional areas, corporate culture, communication, negotiations, entertaining and behaviour. Contact Abi Reddy, Managing Director, E:info@avasara-events.com
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Business Exchange Issue 03 www.ukibc.com
Skills & Education
Echoes of history in college’s mission A passionate desire to improve the lives of Cadbury’s factory workers was the catalyst for the creation of Bournville College in 1913, with compulsory classes in English, maths and science. Bournville College
Norman Cave, Principal of Bournville College
So it’s fitting that a century later, the Birminghambased institution is devising equally radical solutions to help thousands of people in India find gainful employment.
“It’s all about collaboration, finding the right partners and about devising programmes to address specific needs. You certainly can’t go to India with a ‘one size fits all’ solution, or you’ll fail,” says Norman.
Principal Norman Cave was on David Cameron’s history-making trade mission this year, but Bournville College’s relationship with India began in May 2011, just as West Bengal’s communist-led state government was swept from power, as Norman recalls.
One project involves the Indian Institute of Management (IIM) and Microsoft, where Bournville College trains the trainers, through a 120-hour programme shared with Microsoft.
“In 2011, we were about to move to our wonderful new, purpose-built campus in Longbridge, so we had the capacity to increase our international presence, and India was certainly one place where we wanted to be; as much for its economic potential, as its huge skills requirements. “We asked UKTI to identify a state with major educational challenges, where our expertise really could make a difference, and they suggested West Bengal. “When we arrived though, it was the first day after the Communist regime fell, and we wondered if our meetings might be cancelled. Instead, it was just the opposite. We were overwhelmed by the response. “The minister for vocational skills met us, the Confederation of Indian Industry (CII) invited me to address its annual conference, and there was a real enthusiasm from everyone we met to engage with the skills agenda.” A subsidiary was set up as Bournville College’s training and consultancy arm in India, and the College has since developed several strategic alliances to deliver industrial training, vocational programmes and higher education courses.
“In the early stages, it was about giving 2,000 uneducated people the confidence and the skills to become employable. The training is done in various centres in West Bengal, and now we know the model works, it is being replicated across India,” says Norman. Another alliance, with Delhi-based Centum Learning, is delivering finance and banking skills online in Bangladesh, and a third, with the Globsyn Business School, will see fifteen Indian MBA students visit Bournville in June, to enhance their finance and marketing skills. The College is also very active in the Association of Colleges’ Indian activities, through its new Delhi office, but Norman doesn’t allow his evident enthusiasm to camouflage the significant challenge ahead. “It’s one thing to have a desire for vocational skills, but another to have the facilities to deliver the training,” he admits. “We are totally committed to India. I’ve been there a dozen times in the last 18 months, and we’ve just moved our office to Salt Lake City, which is an amazing place. Now though, West Bengal and our Indian partners need to find the investment they require to match their aspirations.”
“We are totally committed to India. I’ve been there a dozen times in the last 18 months, and we’ve just moved our office to Salt Lake City, which is an amazing placee.”
What Next? CONTACT: Amerdeep Jakhu International Development Director E: amerdeep.jakhu @bournville.ac.uk
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Commercial feature
Addressing the gap in knowledge about India Scotland has a rich history of welcoming and engaging with the people of India and broader Asia. Launched in Edinburgh in 2012, The Asia Institute was founded to address the gap in knowledge about India and the broader pan-Asian region.
Programmes have started with the Adam Smith Series of Global Economic Briefings, the first of which featured Dr Gerard Lyons, then Global Chief Economist of Standard Chartered. He was followed by Professor Danny Quah of the LSE and the third in the series takes place in Edinburgh and then Glasgow on May 15th, featuring Stephen King, Chief Economist of HSBC. Future Briefings are by Jim O’Neill on July 2nd and Lord Desai in September.
Its Mission is: “to promote awareness, understanding and collaboration between the peoples of Scotland and Asia in order to realise mutually enriching economic, cultural and educational opportunities” The Institute’s Founding Chairman, Roddy Gow OBE, previously Chief Executive of Asia House and is also UK Chairman of the Gurgaon based Indian global executive search firm Positive Moves Consulting. He explains: “The Institute’s objectives are based on an awareness of Scotland’s historical connections with India in particular and the belief that we can re-ignite that spirit that led our forebears to travel to, live and work with India and the broader Asian region.”
Dr Gerard Lyons launches Briefing series
Similarly, to assist Indian and other Asian entrepreneurs and investors considering the Scottish market; the Institute works closely with Government agencies such as Scottish Enterprise and SDI as well as Scottish Financial Enterprise and the CBI in Scotland. It can effect introductions, access expertise and guide interested professionals to finding successful solutions. Through its planned courses it will equip young professionals in Scotland with the knowledge and skills to do business effectively in India and beyond.
Roddy Gow OBE
For more about Asia Scotland Institute and how to participate and benefit from their activities visit www.asiascotlandinstitute.com www.facebook.com/asiascotland http://www.linkedin.com/groups/Asia-Scotland-Institute-4733591?trk=myg_ugrp_ovr or contact Roddy Gow on roddy.gow@canongatepartners.com and +44 (0) 7917 283786 or Gurjit Singh Lalli on g_lalli@hotmail.com and +44(0) 7888 953332
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