India Inc warms up to South Africa

[Ulhas Joglekar]

6 January 2000
India Inc warms up to South Africa
By N Vidyasagar
Business Times Bureau
NEW DELHI: Domestic engineering major BHEL, IT firm HCL Consulting, Bharti
Telecom and Kiroloskar group, among others, are planning to set up shop in
South Africa, head of CII operations in South Africa Vijay Chopra said here
on Wednesday.
``A large number of Indian corporate giants are in touch with us to help
them find partners and set business in South Africa,'' Chopra told The Times
of India. ``One of the proposals of Bharti Telecom is to produce 50,000
telephone instruments per month in South Africa,'' he added.
Chopra said Indian companies can positively look for good returns as the
South African economy is growing. Corporate South Africa is looking for
joint ventures in sectors such as steel, chemicals, telecom, IT, food
processing and mining. ``Though Indian firms have to compete with companies
from US, UK and China, Johannesburg is a fantastic investment destination,''
declared Chopra.
Leading Indian companies including Tata, Eicher, State Bank of India,
Ranbaxy, NIIT, TCS, UB group and Aptech, among others, have established
business in South Africa. Eicher is reportedly strengthening its South
African operations and Exim Bank has entered into an agreement to set up
Exim Bank of South Africa.
``Johannesburg is becoming a new gateway to foray into the entire African
region,'' he said. Currently India exports $ 1.3 billion to South Africa
while imports are worth $ 380 million.
Chopra who networks under the CII umbrella as a matchmaker maintained that
infrastructure majors from South Africa are keen for tie-ups and many
companies are currently negotiating to enter the Indian market.
Companies including Group 5, LTA, South African Breweries are gearing to
venture into the Indian market. South Africa's oldest insurance major Old
Mutual which is already present in India is expected to foray into the
insurance sector in India.
A high powered 15-member South African business delegation with three
ministers will visit India next week to participate in the Partnership
Summit and look for business deals. A chief geologist of diamond major De
Beers is also part of that delegation.
``India has suddenly become important in South Africa,'' remarked Chopra
explaining that business houses in South Africa look to India in the same
stream as that of Europe. ``There is a sudden realisation that certain
Indian firms can match European companies in quality products'', Chopra
said.
For reprint rights: Times Syndication Service
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