GOING GLOBAL TO SURVIVE IN INDIA.

In late 80s, CampaCola was one of the most sought after aerated drinks in India. Today’s kids may not even have heard of the name Campa or GoldSpot, another popular Orange drink at that time. Hindustan Motors, the proud manufacturer of Ambassador Cars that were synonymous with status and power are not to be found on road these days. Whereas Hyundai motors started in Korea almost 25 years after Hindustan Motors is a global automobile giant today.

Both these companies could not survive when faced with global competition.

If you think, this is about technology supremacy, maybe it is not. It is more about ability to market your product globally. It is a marketing supremacy. Once you decide to compete with best in the world, you will find means to get best product or technology in the world. In fact in case of colas, it is a simple flavored aerated drink, of course the competing company (Coke/Pepsi) may have robust R&D, market research, and supply chain capability apart from marketing budgets.  

We often hear of Indian industries asking for protectionist policies, govt support, minimum price, or demand guarantees. But all this does not make the small businessman or industry competitive and agile to sustain in face of global competition. Eventually, the big foreign companies will get entry in India and will kill these small businesses or industries because Indian also consumer wants the best product at best price.

So while it is very important for Govt to somewhat protect and encourage Indian industry, the smaller companies should also be ready to expose themselves to more mature global competition.  

A very good example recently has been Flipkart, started by 2 IIT Delhi graduates; the online retailer took head-on with global behemoth Amazon India and seems to have won decisively. Now, part of Wal-Mart, this online platform may compete with Amazon and other ecommerce giants globally.

Going back to automobile example, our own “Hamara Bajaj,” today has operations in around 50 countries globally and is world’s third largest motorcycle manufacturer, a company that started as importer of 2 wheelers in India some 70 years ago. Mahindra & Mahindra has 5 plants in USA and an R&D unit in Detroit, their website mentions them to be world’s highest selling tractor company by volume.

Aditya Birla Group’s Hindalco is world’s largest aluminum rolling company, Mittal Steel’s merger with Arcelor created world’s largest steel company ArcelorMittal; Tata Group’s takeover of Corus Steel, Jaguar and Landrover, Tetley Tea; there are many examples. And it is not limited to private sector only, ONGC Videsh explores gas overseas while ISRO has launched commercial satellites for developed world countries like Germany. In fact, there are 58 Indian companies in Forbes Global 2000 list of 2017.

But the same attitude will have to be imbibed by small and midsize Indian companies before they become big. Indian ITES industry is a good example where clientele maybe a entirely be global even for a small ITES company.

Another sunrise sector that has particularly taken shape in last decade or so is Indian healthcare, or their services popularly known as medical tourism (medical value travel). Here Indian hospitals lead on 3 fronts, technology, talent, and price. Foreign patients travel for complex treatments to India where outcomes are at par with best of global institutions, offered by a USA/European certified surgeon, using high-end German, Japanese, or American technology, in a JCI accredited hospital; add to that Indian hospitality. In my own experience we have treated patients from 121 countries across the globe.

In 21st Century, where the world is described as a Global Village, the global competition is inevitable. One has to be prepared to face competition, no matter how big or small you may be or what industry you are in. And the best way to do that is to go out and face the challenge before competition comes and challenges you. Test the markets with smaller bets, with the aim to learn first than to earn.

In times to come, the best way to survive in India would be to go global.