Comments on: Force India Developing as China F1 Remains A Global Spectator

By: Chris Devonshire-Ellis

Chris Devonshire-Ellis — Wed, 29 Apr 2009 10:28:07 +0000

…and I forgot they also own Whyte & Mackay, which if you’re a Scotch Malt Whisky drinker means the Dalmore, Isle of Jura and Fettercairn single malts, plus of course the ubiquitous W&M blend. If you’re on this site and wishing you were down the pub instead, the W&M website has a Darts Game and a “Hunt Lions in a Glasgow Pub” feature on their website here: http://www.whyteandmackay.co.uk/index2.cfm
Slainte!
Chris

By: Chris Devonshire-Ellis

Chris Devonshire-Ellis — Wed, 29 Apr 2009 10:08:32 +0000

Pffefer; Kingfisher is a major listed group. The international airline is one of only six that is listed by Skytrax as being “Five Star” along with Cathay Pacific, Singapore Airlines, Malaysia Airlines, Qatar Airlines and Asiania. They tie-in globally with Hilton. They also operate the budget airline Kingfisher Red. You should try flying them, the service is really good. As for Kingfisher beer, as anyone that has been in an Indian restaurant anywhere in the world will probably know, is owned by the same group, and is India’s largest brewer with about 40% domestic market share. Vijay Mallya is the Chairman of both. If you think of him as India’s version of Richard Branson, you’re about right. As for “Brand India” well, F1 participation is one way in which India is trying to convince you to buy its cars. And frankly, I’d much rather drive a Jaguar or a Range Rover than a Shanghai Buick, which in any event is a US Joint Venture and only partially a Chinese vehicle.

By: Pffefer

Pffefer — Tue, 28 Apr 2009 21:08:01 +0000

Brand India? By participating in the events India certainly raised its national awareness for sure, no argument here. But if I were a F1 or NASCAR fan would I increase my desire to buy Indian cars because I saw the Indian team participating in the races? Most certainly not, unless India convinces me that its cars are worthy my money.

By: Pffefer

Pffefer — Tue, 28 Apr 2009 21:04:20 +0000

Laurentius,

But who is Kingfisher? Does anyone outside India know what it is? Sounds like it wants itself to be like a Hyundai-tyle chaebol that does everything. Personally I think it is wiser to focus on one area and does it really well instead of trying to come up with everything, from A to Z and doing just OK on everything.

By: Chris Devonshire-Ellis

Chris Devonshire-Ellis — Tue, 28 Apr 2009 08:50:13 +0000

They have their own designed car, with Mercedes engines. My point is about branding, while Force India is flying the national Indian and becoming synonymous with F1 and racing, China isn’t. India’s auto industry is likely to have credibility spin offs via their participation, China’s isn’t. China holds one event, in Shanghai. India races it’s cars in 17 events annually. The marketing exposure for national “brand India” is obviously greater.

By: Laurentius Metaal

Laurentius Metaal — Tue, 28 Apr 2009 05:50:41 +0000

Yes Pffefer they are promoting the Indian car industry. You see Kingfisher now has an Airline (A), beer brewery (B) and now it is time for the Kingfisher car (C), next will be kingfisher drugs manufacturing (D), elephant farming (E) etc. until they reach Z. Ofcourse the impact of a bit of F1 racing is limited and has no impact on the car industry in India whatsoever just like the stories about it have no impact whatsoever.

By: Pffefer

Pffefer — Mon, 27 Apr 2009 21:19:35 +0000

Chris,

I don’t see how either holding F1 or participating in it helps polish the image of one’s auto industry. You mean the Indians are actually racing with Indian cars? Land Rovers and Jaguars don’t count.

By: Chris Devonshire-Ellis

Chris Devonshire-Ellis — Mon, 27 Apr 2009 06:15:47 +0000

Hi Pffefer, Chinese companies need approval from the State before they can invest overseas. Even private ones. There’s no such restrictions on Indian companies, who can do whatever their board decides. They have stockholder approval to take into consideration and adding value, not political considerations and approvals. It makes a huge difference in the international arena. So, just as one example, in F1 it manifests itself by the Chinese limited to sponsoring just one race held in China, while Force India get to have all the fun, and have cars in all 17 races. Which is the better marketing initiative if you want to promote your auto industry worldwide. As for China “showing it can hold international events” as is often touted as a reason for them hosting the F1, well they should be able to, shouldn’t they, with their resources! And Delhi holds it anyway in 2011, so any ‘advantage’ China has over India by then will be equalized. It’s the strategy of China in hosting this event I question. It doesn’t seem to make any sense. Megawati is right, there is a glass ceiling Chinese companies hit when it comes to investing overseas – their own government.

By: Pffefer

Pffefer — Mon, 27 Apr 2009 01:59:01 +0000

I don’t get this, “Chinese glass ceiling”? What do you mean?

And Chris, “while the Chinese auto industry remains largely under state ownership”? There are more than 1000 Chinese car makers out there (some serious consolidations are needed), the Chinese state owns most of them you are saying?

We will say who comes out ahead. It is too early to tell.

By: Megawata Priya

Megawata Priya — Sun, 26 Apr 2009 13:06:40 +0000

Chris this is quite an astute observation that India is using sport to promote “Brand India” where China seems to be half-hearted about it and only invests in events on its own soil. I was reminded of your comments when I learned today that Liverpool FC are in talk with Indian billionaire Grandhi Mallikarjuna Rao over buying the club, and also what you said earlier in the week about Indian M&A. Indians are not only using sport to promote and help the nation become a “brand” for different industries, such as auto you mention here, but it also highlights the fact that Indian companies are free to invest in whatever they want unlike their Chinese counterparts. You’ve hit the nail on the head I think about a Chinese glass ceiling, and it is the Indian’s who are taking matters forward to the next stage. Very very interesting.