INSIGHT

More bang for your Rupee

With many SMEs focused on gaining a foothold in India, working with a major conglomerate can provide an accelerated approach with plenty of on-the-ground support

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arlier this year, the Prime Minister led a UK trade delegation – the largest-ever headed by a Prime Minister – to India during a three-day visit including more than 20 small and medium- sized enterprises (SMEs) who met with Indian government ministers and inward investors in Mumbai and Delhi.

During the visit, the Prime Minister called on UK firms to explore opportunities in what is predicted to be the world’s third-largest economy by 2050. The Government has also announced the creation of a new pan-India network of British Business Centres by 2017 and has released a new study, UK India: A Natural Fit, identifying eight key sectors where UK strengths match India’s economic requirements. With the latest drive to encourage UK SMEs into the country, one Indian firm believes that working with existing large conglomerates rather than forging a path alone can boost their chances of success. This approach can give UK firms rapid access to a wide range of different businesses through a single set of relationships.

BIG BUSINESS

UK-based Roger Newman, senior VP at Mahindra Satyam, the global business consulting and information technical services arm of the Mahindra Group – with a $15.9bn turnover – explains that, by working in this way, UK firms can maximise their opportunities in the country. With more than 30 years’ IT experience, including the implementation

of retail systems in UK retailers such as Sainsbury’s and Waitrose, Newman has been with Mahindra Satyam since 2001 and is today responsible for the company’s business development and relationship management across the manufacturing, oil and gas, utilities and digital convergence markets in the UK. The group employs more than 144,000 people in over 100 countries. In 2011, it acquired a majority stake in Korea’s SsangYong Motor Company, and Dun & Bradstreet ranked it number one in the automobile sector in its list of India’s Top 500 Companies.

EASING THE WAY “Mahindra Group is a large conglomerate, well-recognised across India,” says Newman. “It is the largest tractor manufacturer in the world, but operates across multiple sectors, including leisure, aircraft and IT. We work with a number of UK companies across a spectrum of sectors and sizes, helping them to operate in India. “Regardless of size, there is a certain way to go about business and working with a large national company can help to ease the path. For example, if one of our UK customers is looking to expand its footprint in India, we could facilitate discussions with other Indian companies in vertical markets and capture market intelligence. Subsequently, we are able to help fill in the dots technically and commercially to enable it to do business.” He continues: “There are lots of synergies between our two countries. History and language are a distinct advantage for UK companies. A UK utility firm recently wanted to understand

the Indian market and learn more about potentially setting up there or providing consultancy. Within the Mahindra Group, we have a water utility and so we could broker a deal between the two companies, while another part of the group could provide IT support. “Any sector can approach business this

way. Conglomerates are a very big part of Indian business and are in fashion right now. They can bring huge benefits to a small or medium-sized company looking to get a foothold in India.

RELOCATING EFFORTS “Many people focus on two or three key Indian cities. There is a wave of movement out of the centres and there can be quite a big difference in the way business is done in different regions. A conglomerate can help navigate these aspects of local trade. “It’s good that the Government is supporting UK SMEs here,” concludes Newman. “India is a rising economic power and if we don’t move now the opportunity will be missed. People shouldn’t take it for granted that India would choose the UK over anyone else. Seeing is believing and I would urge companies to visit, with UK Trade & Investment or their trade associations, and experience India for themselves.” n

LET’S DO BUSINESS

CONTACT THE UK India Team to learn more about business opportunities in India. Call Pamela Jacob on +91 11 2419 2276 or email

pamela.jacob@fco.gov.uk springboard | 21