Posts from — October 2009

I was recently interviewed by  “Change Agent” as part of an article on Marketing/Selling consumer goods in India and what foreign companies must do. This is a subject that my company and think about a lot.  Many American and European companies try to repeat their China or Brazil strategy in India and are surprised when it fails. Others give up on India, saying “I‘ll Never Do It Again.”

Here is an excerpt from the article, written by Justine Doody.

“Retail sales in India were worth US$455 billion in 2008, making up 38% of the country’s GDP, which leaves plenty of room for growth when compared with developed markets, and that growth is well under way: in spite of recession troubles in 2008, the retail market grew by an annual average of 11.4% valued in US dollars between 2004 and 2008.

The people responsible for this boom are a new breed in India. Liberalisation of India’s economy in 1991 gave rise to the economic success story that the world has marvelled at – and as the economy grew, a new middle class grew up alongside. The Indian middle class has more than tripled in size in the last 20 years… ”

To read the rest of the article,

Click here or here.

(As first published the article contains a slight error in my quote. Titan is a an India brand, owned by Tata, not an American brand. I have requested a correction).

What a pleasure to have an American President be able to pronounce Lord Rama’s name correctly (so it does not sound like a sports team!). And one who goes into the nuances of Diwali beyond Hinduism to other great religions such as Jainism and Sikhism.  President Obama’s intellect and sensitivity is such a welcome relief and contrast to some other Western leaders, whom I won’t name. Watch the video on You Tube.

President Obama Diwali message

Read the report from an Indian newspaper with more photos.

Former US President Bill Clinton spoke at the Global conference of the alumni of the Institutes of Technology  (IITs)last Saturday. He was as passionate, artculate and direct as ever and he spoke about the work of the Clinton Global Initiative (CGI) in India, Africa and Haiti. Incidentally the CGI may fund the largest solar farm in the world, in the Rann of Kutch in India’s western Gujarat state.

Clinton recalled how he had persuaded manufacturers of generic medicine to reduce the cost of their products for treating the side effects of AIDS. He cited the example set by India’s Cipla in offering low cost medicines to fight AIDS. The Indian companies like Cipla changed the way drug companies worked. Instead of concentrating on high cost medicine which the poor hardly afford, they started offering high volume but low cost medicine. He challenged IITans to come up with more business models to fight inequities and health problems worldwide. As President of Pan IIT USA, Inc, I got to shake hands with big Bill himself, see photo.

Gunjan Bagla with President Bill Clinton

Pointing out that India has “the largest number of NGOs per capita” anywhere in the world, he applauded their work, challenging at the same time IITans and other similar institutions to make the NGO work even more effective.

The IIT Alumni conference is held every year, alternating between the United States and India.  The most recent one was held in the Chicago area this month.

Gunjan Bagla, President Pan IIT USA, Inc

Indian Prime Minister Dr. Manmohan Singh has finally confirmed what insiders have known for a while.

Two nuclear park sites have been allocated to “American technology” for construction of new Atomic Power Plants.
On the west coast is Mithi Vardi in the state Gujarat located by the Gulf of Khambat in Saurashtra. One the east coast, in Andhra Pradesh in the West Godavari area is a site called Kowada or Kovada. There are multiple American contenders for these sites, notably General Electric (in possible alliance with Hitachi) and Westinghouse Electric (mostly owned by Toshiba)

Areva of France has been allocated a nuclear park in Jaitapur, Mahrashtra. Haripur in West Bengal will host Russian V.V.E.R. units.

Midlevel Indian steel firms including Usha Martin, Electrosteel Casting, Bhushan Steel and Monnet Ispat are seen as attractive targets for joint ventures or acquisitions by foreign companies according to the New York Times. Smaller steel companies, which make up nearly half the industry in India, are attractive targets given their value-added steel capacity and their coal and ore reserves.

While global steel demand slumped by more than a tenth in the past year, India’s 55 million-ton steel market has seen nearly 10 percent growth as its $1 trillion economy focuses on building physical infrastructure and as auto sales revive.