Interview with Alok Tiwari, managing director of GC & P India. Why is India so interesting?

Alok Tiwari is managing director of GC&P India. He studied in Italy, worked for several Italian companies and then decided to come back to his country.

We interview him in GC&P Mumbay office.

Why is India so interesting?

I think India is interesting for many a reason:

– it is one of the largest economies in the world and at the same time a stable democracy as shown by her 65 years of independence;

– the emergence of a middle class with increasing income and propensity to consume insures for many years to come a growing market for consumer goods as well as for durable goods;

– lower costs make India an ideal place for multinationals to relocate their production. More than 100 (Fortune 500) companies are already present in India;

– the country can offer qualified managers and professionals as well as skilled manpower;

– foreign investment is welcome in almost all sectors except those of more strategic importance such as defence and atomic energy.

Are there chances for Italian SMEs?

Yes. Indian economy can be a great opportunity for small and medium sized businesses, which are now finding difficult to operate in saturated western markets.

What would be the right approach for SMEs to enter and be successful in the Indian market?

It’s good to start with marketing and branding. After creating brand awareness and after seeing the market reaction, a company can choose to import products from Italy or set up a new factory in India. It is advisable to set up a joint venture only after reaching a good level of sales because in this case the Italian company has more negotiating power with the potential Indian partners.

What areas of the Indian subcontinent would you suggest to start operations?

India is very large and offers opportunities everywhere and for everybody. But of course there are areas specialized in certain products:

– Chennai (Tamil Nadu), Pune (Maharastra), and Gurgaon (Haryana) are good for automotive and ancillary units for automotive industry;

– Himanchal Pradesh and Indore (MP) are good for Pharmaceuticals Industries;

– Gujarat is best for manufacturing setup;

– Nashik (Maharastra) and Nilgiri (Karnataka) is perfect for wine making;

– Hyderabad (AP), Bangalore (Karnataka), Pune (Maharastra) and Delhi NCR are good for IT/ITES.

There are lots of other areas where most industries are present. It’s always advisable to set up plants in SEZ (Special Economic Zones) and SIR (Special Investment Regions), since there are lots of tax benefits/rebates.

Which industries are more interesting for Italian SEMs?

Well, Indians perceive Italian brands as high quality product as well as status symbols. A list of Italian products in high demand in India could be very long but it ought to include the following:

– cosmetic products;

– fashion products e.g. textiles, leather product, etc.;

– sports e.g. motor biking outfits, ski/biking boots, etc.;

– building and home Interior e.g. bathroom fittings, modular kitchen, Italian marble or tiles, furniture, etc.;

– wine – red wine and brut. The demand for these products is increasing and most people prefer to buy it from duty free or shops selling imported liquors;

– food & beverages (people in India like Italian food);

– agricultural products.

In general we can say that the demand of Italian products is increasing except for electronic products because Indians prefer buying Japanese products for their quality or Chinese products for their prices.

You have studied in Veneto and worked in this area, so you know many Italian companies. What is your impression? Does our business style and approach match with Indian business practices?

Well, this is a very important question. There are many similarities between Italians and Indians:

– Indians prefer establishing personal relationships before starting doing business , which is quite common in Italy as well;

– in India most SMEs (Small and Medium Enterprises) are family owned exactly as in Italy and especially in the Veneto region;

– Indians are open to adopt new approaches and look for more efficient solutions and this is also what the Italians do;

– Indians like to work hard but also to enjoy themselves and celebrate with friends and family , exactly as most Italians, especially in our region.

In a word Italians and Indians are very similar the only major difference being that Italy is a developed country, while India has just started moving along the path of progress. So most of the economic and social differences are due mainly to this reason. But I think that most of the values of the two peoples are quite similar.

Alok, thank you very much!