In an exclusive conversation with BWBusinessworld’s Suman K. Jha, Swadeshi ideologue S. Gurumurthy talks about the Patanjali business phenomenon. Referring to the battle between desi versus foreign-grown companies, he says cultural appeal is a necessary part of the innovation of companies like Dabur, Tata, apart from Ramdev’s Patanjali. Excerpts:
Is it an unequal battle — desi companies vs foreign multinational companies, with deep pockets?
Yes it is. In more than one sense. First, we are a debt-dominated economy, where current cost of capital has to be met, whereas the MNCs are driven by equity and they can postpone returns to the investors. Second, there is so much of phoney money unrepresented by production — over $700 trillions against power money of just $7 trillions that too much of hot money is seeking instant investment opportunities. Indian capital, or banks cannot compete with that kind of cheap money. So the MNCs are generally able to out-fund, undersell, outsell and buyout desi companies. This was proved in the case of consumer durables and automobile, where Indian companies lost out huge space to MNCs.
A number of homegrown desi companies are posing a stiff challenge to foreign brands. Ola is taking on Uber; Micromax is holding on to its base in the face of an aggressive Samsung charge; and of course, we all know about the successful Patanjali forward march. Can this become the norm? Can our desi companies, through innovation, and by invoking national pride, beat the foreign competition?
I will answer it in two parts. First of all in a business like local transport, I prefer neither an global or local major. This is a business, which can be efficiently done by small operators by forming a cooperative digital networking App. The Ola and Uber model converts present and potential entrepreneurs into employees. Therefore, I do not prefer either Uber or Ola.
It is true that some desi companies are doing well, but only in select segments. That Micromax has been able to stand up to Samsung in India is a good thing. But the strength of a company domestically is important for it to become face competition outside. Samsung would not have been able to penetrate the Indian market without being strong in Korea.
Denne historien er fra August 8, 2016-utgaven av Businessworld.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra August 8, 2016-utgaven av Businessworld.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Gauging Trumponomics For India
Despite some shortto mediumterm headwinds in trade and immigration, the broader Indo-US vision of counterbalancing China’s influence is expected to ensure continued cooperation under Trump 2.0
Reflections on Consciousness and Creation
Indian-American DEEPAK CHOPRA on the nature of the universe, the digital fabric of existence, and the power of a conscious mind
MORE TAKE TO DRIVING IN STYLE
High-end luxury vehicles are no longer part of a niche market, but a rapidly expanding segment of automobile sales, driven by changing consumer preferences, rising disposable incomes and better infrastructure
India's Growing Affinity for Swiss Watches: A Luxury on the Rise
NDIA'S ROBUST ECONOMIC growth, projected to exceed 6 per cent in 2024 and 2025, is fostering a rising demand for aspirational products. As disposable incomes increase, particularly among the expanding middle class, luxury goods such as Swiss-made watches are gaining popularity.
An ENRiching Outlook
KPMG's latest report shows energy CEOs being optimistic about the sector's outlook. ANISH DE, Global Head, ENRC, KPMG speaks to BW Businessworld's Arjun Yadav on what's driving this confidence
Paving the Path to a Sustainable Future
Salesforce's ESG journey has made an impact beyond the company. SUNYA NORMAN, SVP of ESG Strategy and Engagement at Salesforce, shares more on how the tech giant integrates sustainability into its core operations, supporting global goals while empowering employees
LEADERSHIP TRANSITION AT XIAOMI INDIA
Xiaomi India is experiencing a leadership evolution, beginning with Muralikrishnan B's departure as President by the end of 2024. This change underscores Xiaomi's shift towards nurturing local talent amidst dynamic global shifts. The story tracks key transitions from Manu Kumar Jain's leadership to Muralikrishnan B's impactful tenure, along with recent strategic hires, highlighting Xiaomi's alignment towards market adaptability and consumer focus
WEAVING SUSTAINABILITY
Once a modest home textile manufacturer, Jindal Worldwide has evolved into a vertically integrated textile powerhouse, spanning critical segments of the yarn and fabric value chain
FORCE FOR GOOD
FY24 saw capacity expansions for Century Enka in nylon and polyester segments, along with investments in modernisation, renewable energy, and safety initiatives
REIMAGINING TOMORROW
For V-Guard, tomorrow signifies progress, driven by today's actions, setting the foundation for future growth and value creation for all stakeholders
