Caparao Group: After India, now China on their investment list
November 6th, 2007 - by 2point6billion.comUK-based NRI and prominent businessman Lord Swaraj Paul who founded the 1.5 billion Caparao Group, a steel products and engineering major now begins to look at China after successful business in India for many years.
What are they doing in India:
Have built 15 new plants in the last three years and 16 are under construction. Their revenue from India will be around US$ 1 biilion by 2012.
What do they want to do in China:
Its not that China is new to them. They have a representation here. Presently it’s the automobile sector that’s attracting them and the drive that they want to be specialists in the industry that they cater to, this is just a step ahead.
In the words of Paul:
China is very much on our agenda. If an opportunity comes, our people would love to do so (make investment) in the automobile component sector, We certainly see more potential in China
we are still looking for more and if we have the customers, we will go to any extent (to invest), mostly in the automobile components.
Its really amazing to see the number of Indian businessmen venturing into China. For many Indians living here in China is like home…There are lots of myths that Indians carry when thinking of moving to China.. well they shouldnt- once here you will really like the place.
Email This Post
Print This Post
November 6th, 2007 at 8:57 pm
Yes - is very comfortable for indian businessmen to venture into china - much easier to do business here than in india.
Lord Paul is not an Indian though.
November 7th, 2007 at 10:41 am
Suraj, Mr. Paul is an Indian by birth, though later migarted to UK for good.
November 7th, 2007 at 11:47 pm
At Dezan Shira & Associates we’re seeing a lot of Indian interest in buying Chinese businesses. The problems with Indian infrastructure mean, short-term at least, that Indian multinationals are finding it easier to set up in China and manufacture than to set up in India ! Plus they are buying, not joint venturing. India has the cash and the confidence.
The issue over investing in China to sell goods in India will change, and Indian companies will progressively start to manufacture in India once various restrictions relax and regional political situations calm down and the infrastructure improves, but for the moment, it’s China for sale, and India buying the capacity. Nice indication however of where the actual demand is….India’s middle class are buying; China’s is stagnant.
So where is the sustainable money ? Our bet is on India. It’s far more outward looking than China is.
November 11th, 2007 at 1:29 am
Chris Devonshire-Ellis
“India’s middle class are buying; China’s is stagnant”
From what sources do you make this conclusion?
November 12th, 2007 at 12:37 pm
Dear MM;
These are my own observations. I travel extensively around India and China, and while China appears to be consumer driven in the primary cities it is certainly not the case in the second and third tier cities. Little or no sustainable international brand penetration and not much expenditure. Contrast this with Indian 2TC such as Bangalore, Pune and Hyderabad and consumption is obvious. India’s middle class is buying and has purchasing power. China’s appears not so. Purely my own observations.
November 12th, 2007 at 7:39 pm
Not the first time I have read that India’s eco is fuelled by internal consumption whilst China’s by exports. Having lived in China for a year now though I cannot quite picture consumerism to be any less than that in India - my 2 bits is that there are more international brands in China, more buying power & just the number of cars(NOT small cars as in India) reflects consuming power. However, I have not been to second tier cities beyond Qingdao & Xiamen which are again probably comparable to a Pune or Hyderabad. The Chinese seem to be consuming even more here……