INDIA Yes Yes, No Problem?
© Project India 2005
“India will be the global high-tech engineering hub in the near future. Swedish engineers must take part in this development.” Anders Flodström President, Royal Institute of Technology (KTH)
Project India 2005
© Project India 2005 International Business Association for Students KTH www.projectindia2005.com
EDITORS Project India 2005, Dr. Simon Moores
AUTHORS Viveka Andersson, Fabian Bonnier, Per Wennerström, Marie Håkanson, Sam Rahbar, Pernilla Emenius, Robert Lagerström, Malin Olin, Harald Knape, Sofia Groth
GRAPHIC DESIGN Harald Knape, Fabian Bonnier
PHOTOS Harald Knape, Project India 2005
PRINT Fälth & Hässler, Värnamo
© Project India 2005
Project India 2005 is a one-year journey through culture, political and business issues in India. The unique project-based course is initiated and run by students at the Royal Institute of Technology (KTH) in Stockholm. The aim of the venture is to analyse the potential of the Indian market – to investigate what Sweden and India can gain from this business cooperation. The project group consists of ten students with different backgrounds and experiences, deliberately selected to form a unanimous and strong team. Close to receiving our Master degree, the course is an opportunity for us to challenge our analytical and engineering skills as well as our knowledge in financial and cultural issues. This is achieved by letting responsibilities, normally handled by the faculty, rest on us. These include setting up course goals, administrate the work, finding project partners and finally present the result with a seminar and this book. Our journey with Project India 2005 is coming to its end. Through the year, we have gained invaluable experiences in project organization, teamwork and international business. We are proud to present this book, in which we have assembled our experiences, analyses and results based on relevant literature, interviews and personal reflections. We would like to take the opportunity to thank all persons involved in this project; both in Sweden and in India. We are truly honoured by the generosity, interest and support you all have shown. A special thanks to all our project partners, The Royal Institute of Technology and our supervisor Professor Gunnar Benediktsson for giving us the responsibility to run Project India 2005.
Project India 2005 - Stockholm October 2005
Project India 2005
Contents INTRO India, Yes Yes No Problem?
10
The Land of Contrast
11
An Exciting Journey
12
ECONOMY Brief Historical Outline of the Economy
18
Introduction to a New World
20
Sweden vs. India in Figures
22
The Major Market Segments
24
Outsourcing Trends (outsourced article)
36
How to Outsource Outsourcing
38
The Indian Giants
42
The Backside of India’s Economic Boom
44
India - Threat or Possibility
46
Start-ups Advantages and Challenges
50
Project India 2005 Starts a Company!
56
Other Swedes in India
58
© Project India 2005
infrastructure Mission Impossible
66
The Monsoon in Mumbai and Project Air India
72
Bangalore year 2030
75
CULTURE Cultural Differences
78
Poverty
84
Education
86
The End Conclusion
90
Members of Project India
92
Acknowledgements
94
Partners95
Project India 2005 -
The aim of this book is to inspire; to give you a glimpse of India, the giant country that will take a central role in what might become the Asian Century. Please do not read this book from start to end: open it, browse it through and find an article or some pictures that are especially interesting to you. Maybe you want to read about Royal Shirts, a company we started in order to illustrate how to operate a business in India. Or why not study outsourcing? We did that by outsourcing a chapter in this book – check out the result.
10
© Project India 2005
INTRO India, yes yes no problem? The Land of contrast an exciting jouney
Project India 2005 - Intro
India, Yes Yes No Problem? Why is north Indian food fattier than food
can expect the unexpected.
in the south? You will find some reflections
experts on the subject. What we can and will do, however, is share with you our own expe-
on this in the chapter about culture. What
As Swedish engineering students we have
riences and opinions about a country with
does the word “Volvo” mean in India? You
since January 2005, and especially during
more than 5,000 years of history and which is
can read about this in the chapter on mar-
our journey through India in August 2005,
home to one-sixth of the world’s population,
keting. Yes yes, no problem, is a commonly
had the luxury of exploring a country which
half of them being under the age of 25.
heard phrase in India that reflects the peoples
most definitely will grow to be one of the most
optimism towards the future. However, the
important countries of our future. The pur-
We hope that you will enjoy reading this
country has many challenges to face which the
pose of this book is to create curiosity and an
book and perhaps become inspired to carry
question mark in the book’s title is meant to
insight into India by sharing our experiences.
out further studies, make investments or
illustrate. Our overall perspective is that India
This book will give you our picture of India.
travel to India.
is the country of diversity, which we will show
We cannot simply after a month-long visit and
in this book. India is the country, where you
half a year of studying the country claim to be
We are up in the mountains outside Aurangabad. Some children were playing cricket at a play yard when we passed by. As you can see in the picture, they got truly excited when we asked if we could join them in the game.
12
© Project India 2005
India Capital Independence
The Land of Contrast
Population
New Delhi 15 August 1947 (from UK) 1,080,264,388 (2005 est) 0-14 years: 31,2% 15-64 years: 63,9%
Climate
varies from tropical monsoon in south to temperate in north
“East is East and West is West and nev-
and impressions, which may turn the world
er the twain shall meet”, wrote Rudyard
around. In India, you will get to see the snow
Kipling, a British writer and soldier in In-
covered Himalayas, the sunbathing paradise
dia. In today’s world of highly complex
beaches, extreme poverty as well as enormous
technological interdependence, India still
wealth.
Population growth rath
Ethnic groups
Indo-Aryan 72%, Dravidan 25%, Mongoloid and other 3%
appears to most Europeans as an incom-
Religions
prehensible culture. This is a problem as it sometimes discourages companies
1.4% (2005 est)
Hindu 80.5%, Muslim 13.4%, Christian 2.3%, Sikh 1.9%
World’s biggest democracy
and other groups including
from starting up in India. The root of the
Buddhist, Jain Parsi 1.8%
problem is ignorance, which creates ste-
“India’s biggest disadvantage compared to
reotypes and cultural misunderstandings.
China is that it is a democracy”, states Philip
A better knowledge of India is justified not
Davidson, MD of Atlas Copco India. “But the
just by the opportunity of good business
fact that India is a democracy is also India’s
who can read and write.
in an important part of today’s economic
greatest advantage”. In China, the government
total population: 59.5%, male:
market, but also by the fact that one out of
acts extremely fast in all political decisions.
70.2%, female: 48.3%
six people on Earth is Indian. This chapter
But what happens when the citizens cannot
will give you a short introduction to “The
influence the results? In India, however, the
Land of Contrast”.
system tends to be slow and badly affected by
Literacy
definition: age 15 and older
the complicated bureaucracy. Rapidity, however, can never match the value of freedom
Land of Contrast
to challenge your brain and create new ideas; something not allowed under a dictatorship.
“The Land of Contrast” is a commonly used phrase when describing India. Few coun-
It is hard to fully grasp the magnitude of
tries in the world are as diversified as India.
a national election in India. The electorate
India is therefore best viewed as a continent
exceeds 670 million voters in about 700,000
rather than as a country. From north to south
different polling stations spread across the
and from east to west, the geography as well
country. One national government and 28
as the people, the language, the culture and
state governments are elected out of more
traditions differ completely. Traveling in
than 5,000 candidates (2004 election). In
India provides one with memories for life
the 2004 election the Election Commission
13
Above: Jawahalal Nehru (left) India’s first Prime Minister speaking to Mahatma Gandhi. Below: Manmohan Singh (left), Sonia Gandhi.
An Exciting Journey! Januari 2005 Project India 2005 started. The following 7 months were dedicated to extensive preparations for our travel to come. July 28 – August 7 Our first days in India were full of impressions; hectic traffic, noise, New Delhi
intense colors, heat, humidity, Indian spices and smells. We went to
Agra
Rishikesh in the north and to Agra to see the Taj Mahal. August 8 We met the journalist Narendra Taneja and the KPO company Evalueserve. August 9 The project group visited Ericsson’s main office in Gurgaon and dinner
Mumbai
at the Swedish Embassy.
Pune
August 10 Bangalore
We visited Indiska’s New Delhi office and one of their suppliers.
Cochin
August 11 The group visited SECO Tools India’s headquarter/plant in Pune.
employed almost 4 million people to help the
leader Sonia Gandhi, an Italian-born widow
Minister, Sonia Gandhi plays an important
actual 390 million who voted, not counting
of the former Prime Minister Rajiv Gandhi,
role in keeping the coalition together.
the vast number of civilian police and security
had unseated the ruling National Democratic
forces who ensured that the election was car-
Alliance (NDA). Sonia Gandhi, however,
ried out peacefully.
renounced the Prime Minister’s post and pro-
History
posed that the noted economist, Manmohan
The Indus Valley civilization, one of the
After the last election in May 2004 it was
Singh, replace her as Prime Minister. Even
oldest in the world, dates back at least 5,000
clear that the 19 party coalition UDP, with its
though Manmohan Singh today is the Prime
years. Aryan tribes from the northwest invaded
14
© Project India 2005
August 12 We visited Atlas Copco and gave interviews to three Indian newspa-
Gurgaon, New Delhi
pers. August 13 – August 15
Taj Mahal, Agra
Saturday morning we left Pune for Aurangabad. August 16 We learned about outsourcing at Capgemini, missile technology at L&T (LARSEN & Tubro) and schooling for the poor in India at the Akanksha school.
Veer Savarkar Road, Mumbai
August 17 At the harbor of Mumbai we learned about the logistics of Indiska. We
Atlas Copco, Pune
also visited the Indian Institute of Technology (IIT). August 18 Some of us had a meeting with Astra Zeneca and some of us visited
Volvo, Bangalore
IBM in Bangalore.
Astra Zeneca, Bangalore
August 19 The group visited Volvo’s production plant and head office. August 20 Some of us went back to Sweden and some of us stayed for another
Allepey beach, Kerala
two weeks of vacation.
around 1500 B.C. and created the classical
tance to British colonialism led by Mahatma
All of these waves of immigration have
Indian culture. Arab and Turkish incursions
Gandhi and Jawaharlal Nehru resulted in
given India a complex culture with many dif-
in the 8th and 12th centuries respectively were
independence in 1947. The subcontinent was
ferences, which are apparent in, for example,
followed by those of the European traders in
divided into the secular state of India and the
the 17 major languages. Spiritual acceptance
the late 15th century.
smaller Muslim state of Pakistan. A third war
is also peculiar to India as every religion
between India and Pakistan in 1971 resulted
is represented, including Hinduism, Islam,
in East Pakistan becoming a separate nation
Buddhism, Sikhism, Jainism, Zoroastrianism,
known as Bangladesh.
Jewry and Christianity.
By the 19th century, Britain had political control of all of India. Non-violent resis-
15
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© Project India 2005
At the footstep of Himalaya lies Rishikesh. People from all India go there to see the Ganga.
After having gained independence indus-
in the tropical to the tundra regions. Only
Geography
trialism started to take root, the population
the altitude influences how the vegetation is
grew and people moved from rural to urban
India, with an area of 3.3 million sq. km,
dispersed. In the rest of the country the type of
areas. A massive film industry, Bollywood,
is a subcontinent divided into 28 states. The
vegetation is largely determined by the amount
was born in Mumbai and many other cultural
peninsula is separated from mainland Asia
of rainfall. Outside the Himalayan region, the
programs started. Lately, India’s economy is
by the Himalayas. The country is surrounded
country can be divided into three major veg-
booming, the political situation is more stable
by the Bay of Bengal in the east, the Arabian
etation regions: the tropical wet evergreen and
and the optimism among people is high. Once
Sea in the west and the Indian Ocean in the
semi-evergreen forests, the tropical deciduous
again, India must not be seen as a country, but
south.
forests, and the thorn forests and shrubs.
as a continent.
The Himalayan region has a rich vegetation with varieties that can virtually be found
17
Project India 2005 - Intro
The Indian economy is growing rapidly
both foreign trade and investment have been
but that has not always been the case. For
reduced in some areas, but high tariffs and
India’s diverse economy includes tradi-
many years, socialism dominated the Indian
limits on foreign direct investment are still in
tional village farming, modern agriculture,
market, holding back privatization and for-
place. The privatization of government-owned
handicrafts, industries and services. The
eign trade. Since the 1990s the government
industries has proceeded slowly, but political
country is capitalizing on its large numbers
has eased the pressure on the market, but
and economic inflexibility continues to block
of well-educated people skilled in the English
there are still a lot of problems to overcome
the required initiatives.
language.
in order to boost economic growth further
Economy
In di ag ai ns in Co de ng pe nd re ss en Pa ce r ty . , le d by De Ja at w h ah of ar Pr la lN im eh e M ru in ,w ist Fo in er rm sf J irs aw G a er P tg a nd rim ha en hi e rla er by b M l al Ne 57 eco inis el hr ec .5 m te u. % es r tio af P Ne n. r t h er im ru In pr e 's di es M da ab su in u ec re ist gh om fro er. te es m Ind r In th th ia dir e In e W de a w di or ra or val l d ld ue Ga 's Ba s six nd nk rup th hi ee re nu tu cle rn ar st Th po o e po w Co er w ng . e ra re ss sh Pa ea r ty d In of di lo th aj se e oi st ns he th g en eW er TO al Th . el ec e BJ tio P n. fo rm sa In co di al a's iti on bi llio he A n ad di t h ed pl c iti an om by ze d at Pr n th ic im is e o bo Co e UK ffe M rn ng ns in u . M re rg ive ist an ss e er th is l m Pa At ei au oh rt al an y w r cit nc Be ize he Si in ha d ng s t ns t ri o h he t o av be g l ea oi co en ve d w m er es al In ar di w Pr ele a it im c t i e on and h Pa M . ki in st ist an er .T . he US
and improve the lives of the poor. Controls on
Timeline 1947-2004:
1947 - 1951 - 1951 - 1964 - 1965 - 1966 - 1968 - 1971 - 1974 - 1977 - 1980 - 1984 - 1989 - 1991 - 1995 - 1996 - 1998 - 1999 - 2000 - 2002 - 2004 nd co
n, la rP ea 5Y
er ov
ch hi w
an st ki Pa
b ir m sh Ka
a ts en es pr re
e th
n. tio ra t cla en de id ce es ea pr p d a te n he ec ig rt s el ve to , is if so ar am ke al Sh ta lK h az c i w du h a m Ab ,w rN ro JP PJ ie sf tB m ,A er re lis ist ig P na nt 's il T ie tio an sc am st na er ki eT du th Pa rm n to Fo Hi ith e w tic r. th ts he ve ee by at so p d m e ke ym . ee at , ta fe r s in ay g e e hi e jp d b nd Va is m sb Ga bo r m rty r. jiv Pa we de efo Ra ici r ss o , u n on re f p o o a s ati ng s rs by aliz Co gn ). He e rei s. ed er an r b Th rd st de li ki ua ur ic Pa yg t m om by s od e hi on . Ea r ad n d ec yb on e i b t m m Ga e c h r e ss ed jiv a. T el re (fo er d Ra k og he sh t an ur e pr m iL es ad he Sr hi os gl .T yl nd an t re B r Ga su Pa of ra es d. n ss di pr ne re tio In tic te ea ng es h cr Co m tig 's he do are hi rt nd ve ng ols o Ga tro tr n n. s ra ta on o tio s c i t di t k s r iza In Pa al ad o le imp er ith n . lib w r i tio nd ar m a a ive h w lu d s ss re va pe ird Ka de op og Th er e st pr ov siv is of an as n d st m io rio ki e zat Pa pe Th ali ith er w lib ar w
Se
st Fir
ith w ar W
r. de or Oxford Analytica, India: A Five Year Outlook
18
© Project India 2005
ECONOMY Introduction to a new world the Major Market segments How to Outsource Outsourcing
Project India 2005 - Economy
Brief Historical Outline of the Economy In order to understand the changing and
and a complicated system of import licenses
In June 1991, Narasimha Rao became
dynamic Indian market, one needs some
protected the domestic trade from overseas
Prime Minister and took the controversial
basic knowledge about the history.
competition. Imports of consumer products
decision to appoint the Oxford-educated
were prohibited with some exceptions, which
economist Manmohan Singh as the Minister
After the Second World War, India
were charged with import taxes up to 300%.
of Finance. He claimed that India could be a
declared its independence in 1947. This was
At this time, the government employed 70%
global economic power by implementing the
followed by an economic policy influenced
of the work force. This was a time of bureau-
following two new reforms. The first aimed
by the Soviet planned economy. For a long
cracy and India’s share of world trade fell
to open up the economy globally in order to
time, the country had a very moderate eco-
from 2.5% in 1938 to 0.5% in 1980.
attract foreign investors. The second intended to reduce the bureaucracy – by this time one
nomic growth – slower than many other underdeveloped countries. Between 1947 and
During the 1980s, the GDP in India started
needed a license for nearly everything. Since
1980 the GDP increased on average by 3.5%.
to increase. However, the reason was much
this economic liberalization, India’s economy
However, given an annual population growth
as a result of borrowed resources. In 1991,
has grown on average by 6% a year and the
of 2.2% this represents a per capita growth
India faced a deep economic crisis and was on
country is starting to be a key player in the
of approximately 1%. During this period,
the verge of bankruptcy. They could hardly
economic world.
India’s economic development strategy aimed
pay their debts and could not borrow more
to achieve self-sufficiency and was totally
money.
controlled by the government. High tariffs
Astonishing Facts About India 38 % of the doctors in USA are Indians
Measured in number of films and movie visitors, the Indian movie industry
36 % of the scientists at NASA are Indians
is the largest in the world, with a turnover of 40-50 billion SEK.
34 % of Microsofts employees are Indians
(Source: SvD)
12 % of USAs scientists are Indians (Source: Evalueserve) The worlds richest man is an Indian born businessman, named Lakshmi Mittal. (Source: DN) The third riches man on Earth is Aziz Premji, CEO of Wipro Industries. (Source: Fortune Magazine)
Pictures from the world famous movie Monsoon Wedding
20
© Project India 2005
Project India 2005 - Economy
Introduction to a New World The Indian Market A great new economic power is taking
Rate of GDP growth in India
shape in the East. India is bubbling with
10
optimism and is ready to play a big role in
8
the world market. This chapter will give a
6
brief introduction to the market that will
4
take a central role, in what might become
2
the Asian Century. “Understanding the Indian market is a must for the next generation of engineers”(Prajeet Patel).
0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005f -2 -4
India
The Western perception of India has changed radically. When you open the news-
Sweden
Since 1991, India has been among the top ten growing economies in the world. Considering India’s huge population, this has a dramatic influence on the global economy.
papers nowadays you find headlines like “India’s spinning wheel arouses global anxi-
become a strong economic power with a huge
potential as a trading partner, one needs to
ety” (Svenska Dagbladet, August 26, 2005).
and diverse industry. India has, for example,
consider its economic growth, for which GDP
This has not always been the case. When one
developed its own space program and nuclear
growth is a measurement. Without a stable
searches for articles concerning India some 20
power plants. In the outsourcing industry,
economic growth, the country might not be
years back, they typically described the same
many believe that India will be the number
able to make essential investments to produce
thing: a small, poor, urban village. There, the
one – the back office of the world. The middle-
attractive export products. The country’s
journalist would find a widow with many chil-
class is growing rapidly; today it includes up
imports of value products will also decrease
dren from a lower caste. Some heartbreaking
to 300,000,000 people, and their consump-
sooner or later if the growth is not stable.
photos were taken and the story was about
tion is rising even faster. The newspapers are
Economic growth is also needed for long-term
epidemics, starvation and poverty. Finally, the
filled with articles with headlines like “India
social development as it reduces poverty and
article was headed “India: A Huge Country
is moving fast to become the global economy
increases the opportunities for households to
on the Verge of Collapse” (Time Magazine,
power No. 1”. True or not, you can literally
make savings and investments. A stable eco-
1975). Basically, these were the Western per-
feel the optimism when visiting universities
nomic growth also improves the government
ceptions of India until lately.
and companies – they are eager to compete
income, which may be used for investments
with the rest of the world.
in economic and social development, for example, health, education and infrastructure.
Even though India is still a very poor country in many respects, it is starting to
In order to estimate a developing country’s
22
Since 1991, when economic liberalization
© Project India 2005
reforms were started, India has been among
many ways, Sweden’s future, and the future
the poorest people in the world live in India.
the top ten growing economies in the world.
of the European Union, of which Sweden is a
So, once again, India should not be seen as a
Considering India’s huge population, this has
member, lies with India”, said Inga Eriksson
country, but as a continent!
a dramatic influence on the global economy.
Fogh, Swedish Ambassador to India. Back in 1975 it was a mistake to only
Looking ahead, investment firm Goldman
It is important to remember that India
illustrate India as a country on the verge of
Sachs predicts that India will be the third larg-
must not be seen as a single economy. The
collapse, and it is also a mistake today to be
est economy by around 2030. An even wider
economic
between
worried that India will soon take over as the
spectrum of India’s population will escape
regions, cities and the countryside, or even
economy of the world. But the Indian market
from poverty and contribute to an enormous
more so between the parts of India that have
is indeed an increasingly important global
market of consumers and a huge, highly quali-
been influenced by modernization and the
player and must be considered accordingly.
fied manpower. India will certainly, together
ones that remain unchanged and extremely
“Understanding the Indian market”, explained
with China, take a central role in what might
poor. There is an incredibly rich elite and a
Prajeet Patel of Evalueserve, “is a must for the
become the Asian Century. Consequently, India
growing middleclass. In Mumbai alone there
next generation of engineers”.
is becoming an even more important business
are over 45,000 millionaires (USD). However,
partner for Sweden. “I am convinced that in
it should not be forgotten that a huge part of
differences
23
are
huge
Project India 2005 - Economy
Sweden vs. India in Figures USD bn
Total Trade History
120.0 100.0
Sweden
80.0 Export Import
60.0 40.0
Macro Economic Population: Adult literacy rate: GDP total: GDP per capita: Components of GDP (% of total):
Main Sectors of the Economy:
20.0 0.0
9.0 million (2005)
1999
2000
2001
2002
2003
99% USD 240.3 billion
USD mn
USD 27,310
Swedish Exports to India 1128
1200 1000
Private consumption (48.7), Public consumption (28.0), Investment (17.2),
800
Exports (43.3), Imports (-37.2)
600 400
Iron and Steel, Equipment (bear-
879 642 512 295
287
211
221
1998
1999
285
359
200
ings, radio and telephone parts,
0
armaments), Wood, Pulp and Paper
1995
1996
1997
2000
2001
2002
2003
2004
Products, Processed Foods, Motor Vehicles
Principal exports (billions of USD):
Machinery and transport equipment (41.1), Wood and paper products (11.3),
Business Climate
Chemicals (9.7), Manufactured goods (9.4), Total incl. others (81.1)
Principal imports (billions of USD):
Machinery and transport equipment (30.5), Miscellaneous manufactured goods (14.1), Chemicals (7.9), Mineral
28%
Employment costs:
USD 47,636 (annually)
Number of university students:
fuels (5.9), Total incl. others (66.5)
Top 5 trading partners + Sweden:
Corporate tax rate:
Internet users:
1. Germany, 2. Norway, 3. USA, 4. UK,
Cell phone users:
5. Denmark, 25. India
320,000 6,700,000 (73.6% of population) 8,190,000 (91% of population)
(Source: Sweden – India Business Guide 2005-2006)
24
© Project India 2005
USD bn
Total Trade history
80.0 70.0
India
60.0 50.0
Export Import
40.0 30.0 20.0
Macro Economic
10.0 0.0
Population: Adult literacy rate: GDP total: GDP per capita: Components of GDP (% of total):
2000
2001
2002
2003
61.3% USD 510.2 billion USD 490 Private consumption (64.4), Public consumption (12.5), Investment (12.5), Exports (22.8), Imports (-15.2)
Main Sectors of the Economy:
1999
1 082 million (2005)
Textiles, Chemicals, Food Processing, Steel, Transportation Equipment,
USD mn
Indian Exports to Sweden
350
307 268
300 250
199
191
200
189
183
1995
1996
1997
1998
1999
200
205
208
208
2000
2001
2002
150 100 50 0 2003
2004
Cement, Mining, Machinery, Software
Principal exports (billions of USD):
Gems and jewellery (8.8), Engineering goods (8.4), Textiles (5.8), Ready-made garments (5.4), Chemicals (5.0), Total
Business Climate
incl. others (49.3)
Principal imports (billions of USD):
Petroleum products (17.7), Capital goods (7.7), Gems (6.1), Electronic goods (5.4), Total incl. others (56.5)
Top 5 trading partners + Sweden:
1. USA, 2. China, 3.UAE, 4. UK, 5. Belgium, 29. Sweden
(Source: Sweden – India Business Guide 2005-2006)
25
Corporate tax rate:
30%
Employment costs:
2,167 USD (annually)
Number of university students:
7,078,000
Internet users:
39,200,000 (3.6% of population)
Cell phone users:
41,000,000 (3.8% of population)
Project India 2005 - Economy
The Major Market Segments Our visits to different companies in India
to the country, but will not be dealt with in
gave us the opportunity to look at the emerg-
this chapter. Some of the rapid growing sec-
ing market of India. The rapid growth in India
tors with high international importance will
during the last decade is often associated with
be presented. India is well known for its
the IT sector, and other industries are not
outsourcing industry. This segment is of such
far behind. The agriculture sector, which
great importance that we have dedicated a
corresponds to 23.3% of GDP and 60% of
whole chapter to it. Related market segments
the population, is also of huge importance
will also be covered briefly.
26
© Project India 2005
Telecom Industry Cell Phone Explosion
Ericsson Are Getting into New Operations During our visit to Ericsson’s head office in India, located in Gurgaon outside New Delhi, we
India and China have the highest market growth in the telecoms sector globally. Recently, phone connections in India have passed the 100 million mark, which means that over 9% of Indians have a phone. The cell phone penetration in India is today about 6%, which is relatively low compared with other markets. The market is, however, growing fast and adding some 2 million new customers per month.
were told about the company’s new innovative strategies. Below, you will find the interesting background to this. To evaluate a certain operation in a company, one can use Michael Corbett’s core competence activity test and answer the following questions: - If starting the operation today, would you do it yourself? - Would other companies hire you to do the operation for them? - Will a future CEO come from the department that runs the operation? If the answer to any of the questions is no, it might be profitable for the company to outsource this part of the business. It could benefit the company as it then can focus on its core activities,
Cellular subscribers in India
with increasing revenue, decreasing costs and decreasing risks as a result.
(Statistical Outline of India, TATA)
60 50
Many cellular operators are struggling to manage their networks optimally. The purchasing of
40 30
new base-stations is very costly and the process for running them is difficult. Ericsson is there-
20
fore not only selling equipment for mobile stations, but they have also started to run their own
10
mobile networks. Cellular operators can rent Ericsson’s net and thereby focus on the customer
0 2002
2003
2004
2005
2 million new subscribers/month
The Indian cell phone industry is expected to grow from USD 12 to 27 billion in four years. This will probably come from new distribution channels and value-added services,
care, marketing, sales and branding. Ericsson believes that it can operate the network better as it has the knowledge and the possibility of running more then one operator on a platform. India’s largest operator, Bharti (Airtel), with 26% of the market, is hosting Ericsson’s network. “We have increased the performance for Bharti, for example, the drop call rate is significantly less today than previously” (Kjell Casenberg, General Manager).
for example, ring tones (Financial Times, August 22, 2005). By next year, the country
million telephones by 2007, which means a
you can find a cell phone shop and one can
will have a network covering 350,000 vil-
teledensity of about 22%.
literally see commercials for cell phones
lages and connecting 450 million people (The
or operators everywhere. Many cell phone
Times of India, August 15, 2005). Dayanidhi
When traveling in India, you can clearly
manufacturers are focusing on cheap phones,
Maran, State Minister for Communication
sense that telecoms is a huge industry. Even
especially adapted for the Asian market, in
and IT, forecast that India would have 250
in the smallest village there is no doubt that
order to reach a greater part of the public.
27
Project India 2005 - Economy
IT India’s Specialty In this sector India is one of the most prominent global players. Technology is the fastest growing segment of the Indian industry, both in terms of production and exports. In India, the electronics industry is totally deregulated, except for aerospace and defense electronics. As a step in the liberalization of foreign investments, import-export and export policies of the entire economy, this sector is attracting considerable interest not only as a huge market, but also as a potential production base for international companies. Offshoring is often associated with software development, but it actually ranges from general maintenance and other IT-enabled services like call centers and back-office work.
“Growth is everything for the IT companies.” Kent Kærby Hansen, Danish Integrator, Capgemini
Visiting Capgemini gave us a great opportunity to look at the consultancy industry and get an insight into the important role India plays for the growth within this sector and how the business culture differs between India and Europe. Capgemini emphasized that one of their aims when they started their outsourcing business in India in 1997 was “rightshoring” – their own term for offshoring. There is a possibility for them to reduce the consultancy and development costs for European and US clients. The growth of Capgemini India became clear to us when we entered the office and met a lot of young people waiting for their first interview. The recruitment process is hard to pass. Out of the 300 people that come to an interview session, 50 pass the theoretical test and go on to an individual interview. 10 people are finally selected. © Project India 2005
INDUSTRI
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Today we supply leading-edge solutions for air-, land-, and sea applications. We also develop advanced space technology, and we co-operate with the world’s leading aviation industry. If you’d like to know more, please visit us at www.saab.se
Project India 2005 - Economy
Vehicles 4.2 Million New Motorcycles a Year In India, cars are still an extravagance. It is, however, a luxury that a growing number of Indians can afford. India is not far away from being among the top 10 automobile producing countries in the world and it is set to become a global outsourcing hub for the auto component industry. The industry is expected
“TATA is currently constructing a new car for the price of 18 000 SEK.”
to grow five-fold over the next 10 years.
well as customers are fixated with the lowest price instead of quality. Volvo has therefore worked hard to change the attitude of its potential customers. By emphasizing a total cost perspective when selling the Volvo, customers have started to realize the advantages of cost savings by way of operational reliability when investing in a more expensive truck.
tryside, one can see motorcycles everywhere.
Volvo has experienced that its customers in
The total automobile sales in India have
You often notice a man driving, his wife and
the Indian market are more loyal than in other
grown from 5 million units in the year 2000
a child behind, and yet another child on the
markets. This can be explained by the low
to 7.5 million in 2004. Tata is currently
handlebars.
number of customers in the market, and that
designing a new car for the public that they
they do not have much competition within
will start to manufacture in 2008. The price
Visiting Volvo in Bangalore, we learned
the premium customer segment. However, the
will be INR 100,000, which is SEK 18,000.
more about the challenges for a high quality
dominant manufactures of buses and trucks in
Motorcycle sales have grown most dramati-
brand in a very price focused market. Volvo is
India, Tata and Ashok Leyland, with 99% of
cally with a 100% increase during the same
the first brand in India that is focusing on high
the market, are also learning from Volvo and
period - last year 4.2 million motorcycles
quality and technically advanced buses and
starting to produce more advanced vehicles.
were sold (Statistical Outline of India, Tata).
trucks. This is, in some respects, a challenge:
On the streets of the cities and in the coun-
Volvo faces a market where competitors as
30
© Project India 2005
No Sir, it’s a Volvo Rickshaw
Late in the night after a long dinner, we were tired and eager to get back to our hotel. We were up in Oota, a small village in the mountains south of Bangalore. There we were struggling to find a rickshaw that could drive us to the hotel. Finally, we found one and asked the driver for the price. “120 rupees, Sir”, said the driver, which we knew was an exorbitant price. Sick and tired of always getting “taken for a ride”, but too exhausted to negotiate, we agreed anyway. The rickshaw we now were sitting in had blinkers, new seats and some instruments you normally do not see –a bit more chic than usually. “Well, at least it’s a very fine rickshaw you have, is it new?”, Harald asked the driver. “No Sir, my rickshaw is not new”, the driver answered. He then turned around and smiled proudly. “But it’s a very special rickshaw, Sir, this is a VOLVO rickshaw!” In India, Volvo is more than just cars, trucks and buses, it has, in fact, become a word meaning “very comfortable vehicle” – a standard for comfort and security.
31
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Together we make companies and countries grow.
© Project India 2005
Textile Industry The Old Cash Cow The textile industry is an important sector of the Indian market. Today the industry employs 8% of the population, which corresponds to 88 million people. The value of India’s exported textiles and ready-made garments is approximately USD 13 billion, which makes it one of India’s largest foreign exchange earners. Moreover, the government expects it to increase to USD 45 billion by 2010 (Dagens Industri, February 21, 2005). One reason for this expected massive growth is that the quota system that has regulated international textile trade since the 1960s has been systematically phased out and India as well as China are expected to benefit from this. China is the apparel industry leader, but India is emerging as the most competitive actor in the home textile business market. Moreover, while India is focusing on producing textiles with patterns, China is usually focusing more on mass production of cheaper textiles (Kurt Hellström). In the Indian textile industry, international ownership is still regulated by the government, but many think that this will change soon.
Swedish Indiska in India
Project India 2005 had the opportunity to visit Indiska, the well-known Swedish clothing and furnishing company, in Delhi and in Mumbai. Indiska has been operating in the textile market for many years. During this time the company has learned the market and knows exactly how to operate in it. We were especially impressed by their supply chain management and distribution system in a market that is difficult to control. As the clothing market is extremely trend sensitive, there is no room for delays or any miscommunication between the suppliers and Indiska. The whole business relationship is based on trust between Indiska’s division in India and the 60 or so suppliers, of which most have done business with Indiska for 15-20 years. The company has a distribution hub in the port of Mumbai where they receive all the goods before shipping them to Sweden. At this hub, Indiska price-mark and sort all items into boxes, specifically containing the orders from every shop in Scandinavia. The idea is that the boxes can be sent to the shops without needing to repack them in Sweden, where the garments can be hung up at once. We also had the opportunity to see different quality check-up procedures and learn about the different inspections that the suppliers have to pass. The management also told us about different action taken to prevent problems such as child labor and to improve the suppliers’ working environment. Not only are Indiska’s suppliers inspected, but the suppliers’ suppliers as well.
33
Project India 2005 - Economy
Engineering The Largest Segment in the Indian Industry The engineering industry is a large segment
the opportunity to visit India’s biggest engi-
Tools are located in Pune, outside Mumbai.
of the overall Indian industry. Essentially, it
neering company, L&T, and saw their heavy
Atlas Copco has been operating in India since
can be divided in two segments – electrical
engineering shop and switcher manufacturing.
the 1950s. Last year, it increased its sales in
and non-electrical. The electrical industry is
Most of L&T’s customers are domestic, but,
the country by 30% and it expects this to
related to investments in the power industry,
in recent years, it has made a successful mark
continue.
while the non-electrical segment is driven by
on the international market. However, the
general industrial investments.
domestic trade is big enough for most Indian engineering companies. (See also the chapter
Overall, there is a demand for engineering
Indian Giants.)
equipment in industries like cement, steel, power and chemicals. Domestic Indian com-
Atlas Copco was one of the first Swedish
panies are able to manufacture enough for
companies to enter India. Most of them, for
most of the Indian customers’ needs. We had
example, Atlas Copco, Sandvik, SKF and Seco
A hard working welder in Volvo’s factory in Bangalore.
34
© Project India 2005
The Swedish Street
In Pune, along the street called Sveanagar, which means “The Swedish street”, Atlas Copco is for historical reasons situated next to companies like Sandvik, Tetra Pak, SKF and Alfa Laval. Atlas Copco has been in India since the 1950s and today Atlas Copco (India) Ltd. has about 1,000 employees and has had a very rapid growth in the last two years. From 2002 to 2004 the turnover in India increased from INR 2.5 billion to INR 4 billion. About 50% of the revenue is generated from compressors, 42% from construction and mining and the rest (8%) is generated when selling industrial tools to the automobile industry. The Managing Director, Phillip M. Davidson at Atlas Copco India, gave us the opportunity to learn more about operations in India, difficulties that may occur while operating in India and also some key success factors. The good English skills of the university educated CAD-design staff were important and made it easy to get a better picture of what it is like to work online for demanding customers on the other side of the world.
35
Project India 2005 - Economy
Biotech and Chemicals The New IT “Biotechnology will be the next IT in India” (Beng Johansson, Swedish Trade). The chemical industry is one of the rapidly growing sectors of the Indian industry. Within this sector, the pharmaceutical industry is the fastest growing. In terms of numbers of drug patent applications, India is second after the US but ahead of Germany. At a meeting at the Indian Embassy in Stockholm, we were told
All pictures from Astra Zeneca’s production plant in Bangalore.
that the Indian economy soon would be just as much biotech as IT. The two industries are comparable: both require a high level of welleducated people in the work force. India’s rich human capital may be the strongest asset for the knowledge-based biotech industry. They
“Biotechnology will be the next IT in India” Bengt Johansson, Swedish trade.
have a large English speaking population and a pool of over 300,000 bioscience and engineering students that graduate each year. This
summer,
Kirin
Mazumdar-Shaw,
owner of the largest Indian biotech company Biocon and India’s richest woman visited Sweden. In India, she is called the “Mother of Invention”. She started her business in a cellar in Bangalore. Today, Biocon develops and makes medicines for cancer, cholesterol blockers, insulin and other products for clinical tests.
36
© Project India 2005
The big scary market
Tuberculosis
While visiting Bangalore we had the opportunity to explore Astra Zeneca’s impressive research facility. The unit was established in an effort to combat a disease affecting about one third of the world’s population. According to the World Health Organization (WHO), tuberculosis (TB) is the single leading cause of death from infectious disease worldwide, with someone in the world being newly infected every second. The disease varies, however, between two distinct modes: one active and one latent: the former being lethal. Every year, about 8 million new cases of active TB are discovered in the world, with India constituting about a third of these figures. In 2003, nearly 1.8 million people died of the disease worldwide, mainly in combination with HIV.
The drug against TB, which was made available over 40 years ago, must be taken for a period of 6 months. The Indian Government has implemented a plan against TB, resulting in free treatment for the population. However, since patients already start to feel better after two months, they tend to abandon the treatment at that point. What is more, the drug supply is unreliable in some regions in the country. In addition to producing a large number of cases of relapse, this is also the main cause of the rising number of new cases of multi-drug resistant TB. Shortening the duration of therapy (to about 4 months) to improve patient compliance is one of the main aims of Astra Zeneca’s research in Bangalore. Eradicating the disease completely, even the latent disease in order to reduce the chances of relapse, is yet another goal in India.
37
outsourced article
Outsourcing trends History of Outsourcing
lytical, logical and arithmetical skills. The
a wide range of services. The major catego-
growing Indian diaspora has been creating
ries of services offered are: IT Services, Data
India first saw the emergence of outsourc-
an impression among international commu-
Entry, Programming, Call centres, Business
ing in the field of IT in the early and mid
nity that Indians are good at intellect-driven
Process
1990s. One of the first outsourced services
skills,” said Chandu Nair, president, Scope
Operations, Infrastructure, Communications
was medical transcription. The introduction
e-Knowledge Centre, a Chennai-based KPO
and Networking, Media and Entertainment,
of the New Telecom Policy in 1999, which
firm.
Web
Outsourcing
Development
Relationship
brought about a drastic reduction in telecom-
(BPO),
Services,
Management,
Back-Office
Operations, Community
munication costs in India heralded the golden
“The reason behind India emerging as a
Management, Medical Transcription, and
era for the BPO industry and ushered in a slew
world leader in the KPO sector in the next
On-site services. The evolution and maturity
of inbound/outbound call centres and data
few years is due to its location attractiveness,
of the Indian BPO sector has given birth to yet
processing centres.
infrastructure, communication, country risk,
another wave in the global outsourcing scene:
foreign direct investment (FDI) incentives,
KPO or Knowledge Process Outsourcing.
political environment and time zone attrac-
Why Outsource to India?
tiveness”, pointed out Evalueserve.
Trends in Outsourcing in India The past few decades have proved that
Other reasons why India is reputed for
India is a most reputed and famous country for
outsourcing are that it is a talent-rich country,
Outsourcing in India is undergoing a radi-
outsourcing. 82% of the US companies ranked
exports software to 95 countries around the
cal transformation. The constantly growing
India as their first choice for IT outsourcing.
world, enjoys the confidence of global corpo-
BPO industry in the country is changing,
The majority of outsourcing contracts are
rations, offers multiple advantages, has state-
incorporating new ideas and mindsets as well
moving to India, despite the fact that coun-
of-the-art technologies for total solutions, IT
as opening up new possibilities for global
tries like China or Russia are offering better
is a major thrust area for the Government of
companies. Some of the new trends in out-
rates. The chief reason is the availability of a
India, has a stable government and is one of
sourcing are: E-governance, Retail Services
large pool of IT and engineering talent and a
the world’s 10 fastest-growing economies.
Outsourcing,
important of all, KPO.
costs. The dollar goes a long way in India and
Services Outsourced in India
dollars by shipping out non-core functions. “Indians are good at brain works, ana-
Research,
Financial Services, Health Care, and most
huge skilled workforce, at very competitive companies in the USA are saving billions of
Pharmaceutical
India currently provides outsourcing for
38
outsourced article
Turnover of BPO and KPO in India The table below shows the past, current and forecasted figures of the BPO industry in India. According to a report by GlobalSourcingNow, the Global Knowledge Process Outsourcing industry (KPO) is expected to reach USD 17 billion by 2010, of which USD 12 billion would be outsourced to India. Evalueserve, a knowledge services company providing worldwide business and market research, data analysis for various sectors say: “India will garner a whopping 71% of the projected $17 billion KPO market by 2010 i.e. $12 billion” Many other Asian countries have now begun to provide outsourcing services to the world. Countries such as China, Philippines, Sri Lanka, Vietnam, Malaysia and Singapore, are some which have emerged in this trade.
Brainpower at the KPO company Evalueserve.
Revenue \ Year
2002
2003
2004
2005
2006
2007
CAGR
Offshore BPO Revenue
1,322
1,825
3,017
6,439
12,563
24,230
78.91
Indian BPO Revenue
912
1,205
1,961
3,928
7,412
13,811
69.35
Total BPO Market
110,167
121,687
131,171
143,090
157,033
173,070
9.45
CAGR in % 2002-07
Figures in $ million
39
Source: Gartner Dataquest (May 2003)
Project India 2005 - Economy
How to Outsource Outsourcing A Convinient Way of Work Who wrote the previous article? Not us.
for the product, e.g., Word document, Power
Zainab, our researcher in Sri Lanka, where
In order to investigate the outsourcing
Point presentation etc.
she asked for permission to write a longer article. About two weeks after we had placed
business, we decided to outsource the article above to the company Conve-
Outsourcing is not without complications.
the order, the work was finished. In the specifi-
nient.info based in Sri Lanka. They offer
Before ordering a service from the other side
cations, we had given the researchers 20 hours
research and report writing for prices far
of the world, you must be absolutely clear
for the work. However, they only needed 10
lower than in Sweden. We wanted to ex-
about how you want the result. Due to the
hours and consequently we just had to pay
amine the following: How complicated is
distance, time differences and sometimes lan-
575 SEK for the work. We are satisfied with
it to order services from the other side of
guage barriers, it is often quite difficult to have
the result and find the whole experience very
the world? What are the drawbacks due
a continuous dialogue with the people doing
convenient.
to the distance? Will the result be as one
the job. Working on a project or product
expects or totally different?
often means constant development – it may be unclear how one wants the end result to be.
The process was surprisingly simple. First, we contacted Convenient and opened an
When outsourcing it is difficult to control this development process.
account at their homepage. All contact with the company takes place over the Internet,
We spent a lot of effort describing what the
you order services at the homepage and whilst
article should include. To get the feeling that
“However, they only needed 10 hours and consequently we just had to pay 575 SEK for the work.” the work is being done you can correspond
the text was written by us, we wrote down
via e-mail if need be. When placing a new
some of the experiences we had had in India.
order, one writes a description of the project,
We also attached some interesting articles and
specifies the time the researcher should spend
good homepages for the subject. It is not easy
on the work and finally chooses the format
to follow the process. We got one mail from
40
© Project India 2005
Why has India the potential to be the outsourcing country of the world? Some answers are discussed below. India has a huge work force; companies can fast employ thousands of people. The country has a huge population of well-educated people. Traditionally, an education is considered as very important. India has many engineers, of which many specialize in mathematics, IT and logic. Language; most people speak good English. Many Indians have worked abroad and learned the global way of business thinking. India’s success in the less capital-intensive business-service-outsourcing sector, compared to China that has invested more in heavy industry and manufacturing, is partly a result of India’s economy, which has been less able to finance investments and accumulate physical capital, including infrastructure, machinery and buildings (McKinseyQuarterly, 2005).
During our visits to Capgemini, IBM and Evalueserve we had a first-hand look at the outsourcing sector and its highly skilled people. The companies are expanding massively. When walking around at Evalueserve, for example, one sees huge areas with new desks and computers being prepared for new employees. “I offer all of you guys a job or internship here at Evalueserve”, said Ashish Gupta, Country Head and COO, at a meeting. It is rumored that this year IBM is employing around 1,000 new consultants a month in India.
41
Welcome to the world of Atlas Copco!
Innovation is at the heart of everything we do. It shapes our ideas, it drives our production processes and it has driven us to develop completely new applications and markets. The knowledge and experience we gain from applications around the world is channeled back to our engineering teams who conceptualize, develop and fine-tune products to perfection. Through the years we have taken new and innovative solutions and transformed them into profit-generating business tools, helping our customers to maximize their productivity. Sounds interesting? Find out more at www.atlascopco.com
Dessa motorer ska till andra sidan jorden. Du kan komma ännu längre. På www.scania.se visar vi Scanias offensiva,
Scania är en av världens ledande tillverkare
expansiva och globala värld med dess möjligheter
av lastbilar och bussar för tunga transporter samt
för unga akademiker.
industri- och marinmotorer. En växande del av
Du kommer bl a att upptäcka att vår affär är
verksamheten utgörs av produkter och tjänster
långt mycket större än att utveckla och produ-
inom service och finansiering, som garanterar
cera tunga fordon. Scania är ett högteknologiskt,
Scanias kunder kostnadseffektiva transportlös-
utvecklingsintensivt och marknadsorienterat
ningar och hög tillgänglighet. Scania är verksamt
företag, som med avancerad ny teknik ständigt
i ett hundratal länder och har 30 000 anställda.
skapar mer kunskapsbaserade fordon, intelligenta
Forskning och utveckling är koncentrerad till
serviceprodukter och finansieringslösningar.
Sverige. Tillverkning sker i Europa och Syd-
Scanias framgång är till stor del resultatet av
amerika med möjlighet till globalt utbyte av såväl
ständig utveckling av våra medarbetare, produk-
komponenter som kompletta fordon. Under 2004
ter, metoder och marknader. Vi ger dig utmaning- uppgick faktureringen till 56,7 miljarder kronor ar och möjligheter till personlig utveckling.
och resultatet efter skatt till 4,1 miljarder kronor.
For Demanding People
Project India 2005 - Economy
The Indian Giants Larger than Life to visit in Mumbai was Larsen & Toubro. It manufactures, for example, aerospace equipment, cement machinery, control and automation equipment, defense equipment, petrol pumps, medical equipment, switchers, and much more. One may ask why many Indian companies tend to operate in such wide fields of operations, when western companies have a tendency to limit their organization to a few main activities. The answer might be found in India’s history. When India became independent in 1947, there was a small range of domestic industries. The strategy was to achieve self-sufficiency and the market was totally controlled by the government. The big Indian companies have a strategy to be represented in many different markets. Reliance and TATA are two of them.
Therefore, the social democratic system did not allow the industry to purchase from abroad and, consequently, the Indian compa-
Even if agriculture is extensive in India,
largest company in India, manufactures
nies had to fill all the gaps in the market. “We
most of the income from export comes
anything you can imagine: electronics,
were also limited by the policies – we were
from the industry sector - where textile
cars and trucks, tools and owns more
not allowed to sell as much as we could have.
and the refining of different types of metal
or less entire villages with schools and
So, to be able to expand, we had to get into
and mineral represent a large part. In the
factories. They also operate in nuclear
new business areas”, explained M. K. Patki,
industry sector, foreign companies are
research, chemistry, energy, mobile net-
General Manager at L&T.
making inroads but domestic companies
works, hotels and IT etc. It is omnipres-
are still dominating the Indian market.
ent!
Recently, India has put itself on the map
Some of these companies are truly mas-
when it comes to software and the IT services
sive and tend to operate in nearly every
Another one of these giant companies
industry. Programming and systems develop-
business sector. For example, Tata, the
that Project India 2005 had the opportunity
ment seem to suit the Indian way of thinking.
44
© Project India 2005
This industry has grown rapidly over the last
Tata Consulting Services (TCS) has currently
years. Infosys, Tata and Wipro are the largest
120 persons working in Sweden.
IT consultancy companies in India and they have begun to gain market shares in the competition with other global actors.
Wipro Wipro provides consulting and IT services
Infosys
as well as product design, employing over
Infosys Technologies Ltd. provides consulting and IT services to clients globally - as partners for conceptualizing and realizing
Tata
technology-driven business transformation initiatives. They have over 36,000 employees
The Tata Group comprises 91 operating
worldwide.
42,000 people worldwide. They represent the fourth largest company in the world in terms of market capitalization of IT services. As the second largest Indian IT consultancy firm in Sweden, they have identified Scandinavia as one of the most important markets in order to establish themselves in Europe.
companies in seven business sectors: information systems and communications; engineer-
As one of the pioneers in strategic offshore
ing; materials; services; energy; consumer
outsourcing of software services, Infosys
products and chemicals. The Tata Group is
has “bucked” the global trend of offshore
one of India’s largest and most respected busi-
outsourcing. Although many software out-
ness corporations, with revenues in 2003-04
sourcing companies are blamed for diverting
of USD 14.25 billion, the equivalent of about
global jobs to cheaper offshore outsourcing
2.6 % of the country’s GDP. Tata-owned com-
destinations like India and China, Infosys was
panies employ together over 220,000 people.
recently applauded by Wired Magazine for
The Group’s 32 publicly listed enterprises
its unique offshore outsourcing strategy — it
— among them names such as Tata Steel, Tata
singled out Infosys for turning the outsourc-
Consultancy Services, Tata Motors and Tata
ing myth around and bringing jobs back to
Tea stand out — have the highest combined
the US.
market capitalization among Indian businesses in the private sector. The Tata Group has operations in more than 40 countries across six continents, and its companies export products and services to 140 nations.
45
Project India 2005 - Economy
The Backside of India’s Economic Boom The famous Indian writer, Arundhati Roy,
verge of a disaster – caused by pollution from
dreaming of a cell phone or are you going to
warned the world of the consequences
the big industries and problems with the huge
have control of the resources that are avail-
of the economic boom in India in an in-
dumps.
able to you and have been for generations, but have been taken away so that someone else
terview with Reuters. “India’s economic boom is causing unsustainable environ-
In the past, the ground water was mainly
can have a cell phone?” She thinks the idea
mental damage and is blinding people
used by private farmers. Today, much of the
of turning one billion people into consumers
to the misery of hundreds of millions of
water goes to irrigate thirsty cash crops such
is terrifying.
poor”. Arundhati is a leading environmen-
as soybeans, peanuts and sugarcane, which is
tal activist in India. She became world fa-
unsustainable according to Arundhati. The
Arundhati Roy’s terrifying thought is one
mous in 1997 for her novel “The God of
lack of water in parts of India has forced
side of the coin. One may also argue that the
Small Things”, known in Swedish as “Små
millions of farmers to the brink of economic
economic development in India has helped the
tingens gud”.
collapse. “You have to have a system where
poor. The percentage of the population below
people have access to some amount of water
the poverty line has decreased from 54.9%
to grow whatever is sustainable for them to
in 1974 to 27.1% in 2000. Access to new
survive”.
technology, such as cell phones, has made it
India is on everybody’s lips nowadays. All global companies are considering India as a
possible, to a greater extent than before, for
potential market and they want a part of the boom. “It is almost as if the light is shining so
Roy says that the dream of consumption
people in rural areas to communicate. Even
brightly that you do not notice the darkness”,
has been sold to the poor – a dream that is
though the cell phones and call prices are not
Arundhati argues. She means that the Indian
impossible to deliver economically or environ-
affordable for many people in India, they have
environment is seriously threatened – on the
mentally. “Are you going to starve to death
the lowest rates in the world.
Last year 4.2 millions motorcycles were traded in India. Picture taken in Bangalore, one of many citys with hectic traffic.
46
© Project India 2005
When visiting the big cities in India, the pollution is obvious and terrifying. Countless rickshaws, motorcycles and old cars, most probably without catalytic converters, crowd the streets. Annually in India, 4.4 million motorcycles and 820,000 cars are sold. In the year 2000, the figures were 2.1 million motorcycles and 590,000 cars respectively. “Two years ago, we had only cycles in the employees’ parking spots. Today, however, there are many motorcycles and some cars”(Thierry Cros, Managing Director Seco Tools). This trend will probably continue. Tata recently revealed that it soon would be manufacturing a car for the public that would only cost SEK 18,000. The impression that we got, when visiting the companies, was that they paid a lot of attention to environmental issues. Environmental documents, such as ISO certificates, are highly valued and important for the companies’ profile. Unfortunately, some companies that we met complained about the corruption surrounding these certificates. Environmental
questions
are
highly
important for fast developing countries, but sometimes they tend to be overshadowed by economic success. We believe that Sweden could support India in these issues. This is also an interesting area for Swedish companies, which can export environmental knowledge and products, for example, water cleaners.
The fast development has dramatically increased the need for new houses in Mumbai.
Project India 2005 - Economy
India - Threat or Possibility “The brain rain over India is like a monsoon”, explains Ashish Gupta, Country Head and COO at Evalueserve. At its office outside Delhi, thousands of young graduates from the very best schools in India work with KPO, knowledge process outsourcing. Intensively,
“For over 15 years, the Swedish growth in GDP has been less than in India and most other non-European countries.”
greatest threat as it only results in anxiety and misgivings about the future. In India, on the other hand, belief in the future is stronger than ever. They surf on a wave of self-confidence. Students and businessmen know that the country has a great potential to become an economic power. The
they collect and analyze information for strategic decisions for companies in Eu-
In Sweden, it is generally held that the
financial boom is not without reason: India
rope and America, this for a fraction of
ongoing outsourcing trend is a great threat
has understood the advantages of globaliza-
what the service would have cost in the
to our welfare – companies like Evalueserve
tion and knows how to gain from it. Students
West.
are our enemy. This growing fear could be our
are extremely competitive and work harder
Earlier it was considered that Indian made products were of less quality, but today many companies are starting to be more and more proud of the ”Made In India” signature.
48
© Project India 2005
“For every order Seco Tools delivers we purchase raw material from Sweden. The global expansion is therefore not a threat to Sweden, it is a necessity.” Thierry Cros Managing Director, SECO TOOLS
than ever. Universities and institutions have
Copco and Ericsson, but, on reflection, all
example, 50% of Seco Tools products sold
realized the importance of innovative thinking
these companies are old. Our market is totally
in India are made in Sweden. Before starting
and encourage the students to become entre-
dependent on big industries that started a hun-
its factory in Pune, Seco Tools did not sell
preneurs. The outsourcing segment has been
dred years back. We cannot rely on them sup-
anything in the Indian market. Moreover, an
a gateway to the global market for India, as
plying the Swedish people with work forever,
increasing number of decent paid jobs in the
well as other developing countries, and they
and it will not be the case. Sweden must focus
developing countries contribute to the global
consider it as their market.
on creating new jobs rather than protecting
purchasing power, which will support Swedish
the old ones. The “lay-back-and-do-nothing”
production.
Has the pendulum swung? Earlier, we were
mentality in Sweden is set to fail. Instead of
interested in investing and making purchases
counteracting the natural globalization, we
in India – this was seen as welfare, a way of
must learn the dynamics and use it.
helping a vulnerable country. Now, when
The outsourcing hysteria is exaggerated. In an interview with Kurt Hellström, former CEO of Ericsson, he explained that he is not
India is on the way up, we feel threatened
By staying a part of the globalization race
worried about China or India taking over the
and recoil. We are worried about what is hap-
and understanding the developing countries’
world. China has a dictatorship, which is a
pening in Asia and how it will impact on our
potential, both Sweden and these countries
danger in the future. What will happen if a
welfare.
will gain – it is a win-win situation. By
revolution comes? Kurt Hellström explained
outsourcing services, such as patent filing,
that the lack of laws against plagiarism also
European conservatism and our skepticism
accounting or book keeping, Swedish small
restricted their research and development
about globalization are damaging. For over
and medium-sized companies may focus on
industry, and, In India, the infrastructure and
15 years, Sweden’s GDP growth has been less
their main activities and develop products
bureaucracy were a major problem, which
than in India and most other non-European
that are globally competitive. Globalization
delayed development.
countries. Sweden has many impressive indus-
also opens up a growing market, which also
tries and companies like Ikea, H&M, Atlas
Swedish manufacturing can benefit from. For
49
As discussed earlier in this chapter, out-
Project India 2005 - Economy
“The Swedes are excellent at managing business, and the Indians are good at managing life. Both can gain from a more intensive collaboration.” Narendra Taneja Correspondant for the Scandinavian business papers DAGENS INDUSTRI and DAGENS NARINGSLIV
sourcing is a complicated business. Many
2004). Since the recent downturn in the econ-
ing skills regarding environmental products,
companies focus too much on the savings and
omy, many Swedish students are pessimistic
project management and social structures.
forget the importance of close service rela-
about the future. Many count on being unem-
But, most of all, we must be more optimistic
tions. It is also important to keep a close link
ployed for a year after graduation. Sweden
about the future; we should surf on a wave of
between production and R&D. Consequently, a great deal of manufacturing cannot be relocated. By focusing on the manufacturing sectors, where salaries mean less but service and customer adjustments more, Sweden can continue with a profitable production. Scania,
self-confidence, like in India.
“From India, we can be taught how children enjoy learning.”
for example, is a moneymaking company with a lot of production in Sweden. This may be
has many first class universities. As in India,
the right strategy when there is a low correla-
they should support and help the students to
tion between work costs and product prices.
become entrepreneurs. The universities and the private sector should have a closer rela-
We must learn from India. The amount of
tionship – this would help creative students to
company owners among the Swedish work-
turn their ideas into reality. To keep Swedish
force is today lower then ever with only 7%.
research on a globally competitive level,
In spite of deregulation and a rising number
we must improve our education right from
of contracts from the public sector, Sweden
the first grade, i.e., the first year at primary
has lost 30,000 companies (net) since 1995
school. And India can teach us how children
(Confederation of Swedish Enterprise, June 6,
enjoy learning. We should use our world lead-
50
© Project India 2005
Start-ups Advantages and challenges Project India 2005 Starts a Company! Other swedes in india
Project India 2005 - Start-ups
Start-Ups Advantages and Challenges India is one the world’s most promising
we hope that this document can help as a
cating production. Cap Gemini, for example,
markets for technology. The real issue for
guideline for encouraging a start-up in India.
pays an employee with seven years’ experience and a Masters degree from a university, a
the coming decade is not whether Indian workers will steal our high-tech jobs: it is
The first step is therefore to analyze the
yearly salary of INR 200,000, which is about
whether their high-tech consumers will
opportunities that exist in this vast country.
USD 4,200 a year. Differences in the level of
still buy our products. People in the West
Then we will proceed by identifying the major
often consider themselves the world’s
challenges that companies might have to face.
leaders in innovation while developing
Giving you a practical example of a start-up
countries like India can only aspire to
in detail will allow you to gain a good under-
unglamorous jobs that require less brain-
standing of what it takes to perform these
power or entrepreneurial expertise. Here
kinds of activities. Finally, we will examine
lies the main misconception. Many start-
the road to success for several large global
ups can gain a great deal from the innova-
companies who are now well established in
tive forces of today’s Indian market.
the Indian market.
education, however, do exist. Among the new
In order to really understand the Indian market, a company needs to realize its advan-
“India produces over 300 000 new engineers every year.”
Advantages
graduates, only 10% of them demonstrate excellent skills while 60% are like the average
tages, challenges and learn from former successful start-ups in this country. Before estab-
The major advantage of the Indian mar-
in Western countries and the rest are at a below
lishing operations in this part of the world,
ket is the combination of low labor costs
average level (Atlas Copco). This raises the
one must truly observe the environment, the
and high level of education. India produces
question as to where and how you might find
culture and act accordingly. Several compa-
over 300,000 new engineers every year. The
the best-qualified personnel. Students graduat-
nies have committed genuine mistakes in the
fact that these engineers are ready to work
ing from one of the seven existing IITs (Indian
past, as exemplified here in this document. By
for almost one tenth of the salary paid to an
Institute of Technology) in India or the IIMs
sharing these and providing you with tips and
engineer performing the same job in the West
(Indian Institute of Management) are the most
knowledge about entrepreneurship in India,
makes India a very attractive market for relo-
talented. Students from these universities are
52
© Project India 2005
Mumbai, the center for economics and Bollywood dreams, is often seen as the place where your dreams can be fulfilled.
53
Project India 2005 -
A ferry taking people from Wipin Island to Ernakulam city in Kerela.
therefore quickly drafted by companies who are hiring new staff. There is another element that differentiates the employees in India from Europe. In India, they tend to have a more positive approach to training. Therry Cros, CEO of SECO Tools India, confirmed this saying “There is a greater will to learn”, and pointed out the language skills of his staff. While
visiting
the
Indian
company
Evalueserve in New Delhi, we realized that their highly motivated staff look upon long working hours positively. The competitive atmosphere among the staff was clear and is probably one of the contributing factors to these employees being hard working. “As Silicon Valley developed over time”, says Mike Moritz, venture capitalist at Sequoia
“Globalization in general, is to move production to where the production costs are the lowest” Philip M. Davidson, MD Atlas Copco India
Capital, “it attracted more skilled people and then more good things happened. The same will happen for India”. To further prove this point, the Silicon Valley Bank, which mainly lends to high-tech start-ups, has recently opened a branch in Bangalore. “Globalization in general is to move production where the production costs are the lowest”, as confirmed by Philip M. Davidson, the CEO of Atlas Copco India. During our
54
stay in Bangalore we heard rumors that IBM, for example, was hiring at a rate of one thousand new employees per month, which shows the impact that the market has on global companies. Further, the rent costs and the cost of material from local suppliers are much less. For global companies, however, the notion of moving production is not enough. Small companies can use this as an advantage in order to lower production costs. The global companies also see India as a new emerging market. With a population of over one billion people, India represents a large purchasing power. For example, there are 2 million new cell phone subscribers per month - a figure that cannot be ignored. Knowing this, most large companies establishing themselves in India not only produce their products there, but also sell them to the Indian market. The
© Project India 2005
fact that most Indians can communicate in
handle deals with the supplier and bureau-
Challenges
English, which is the main business language globally, is yet another bonus.
cratic issues. As said before, having a good understanding of the way things work in the Indian
The importance of knowing the market
Being the world’s largest democracy (as
market is crucial in order to have a successful
and choosing the right segments is clearly
opposed to China), the Indian Government
start-up. Some companies choose a joint ven-
shown by two examples: Electrolux and
allows the start-ups to be independent of an
ture; others stay fully owned but hire Indian
Volvo. Electrolux is seen as the global leader
Indian partner if they wish to proceed in that
staff for administrative purposes (lawyers,
in home appliances. However, its strategy to
way. The possibility of having a fully owned
agents). The main advice that almost all the
enter the Indian market was not successful.
business gives these companies more control and power to become involved. Start-ups in India have yet another purpose. By establishing themselves in India, the mere presence in this part of the world pro-
From 1995 to 2002 the company focused on
“There is a need to have a local person or organisation who can help.”
vides them with an opening into the rest of eastern Asia and several new markets.
a multi-brand strategy, in an effort to reach different consumer segments. They encountered numerous problems while signing one agreement after another with other foreign companies based in India. They were therefore not successful in the Indian market. The focus
people interviewed during our trip gave us
on brand making is crucial in India. Being a
was that there is a need to have a local person
global giant, you need to prove yourself to be
or organization who can help, inform and
good value and that your brand is a trusted
55
Project India 2005 - Start-ups
Even though the Indian market abandoned the economic regulations in 1991, the system is still far from flawless. The first major issue is corruption. The average time it takes to register a company is 10 times that of starting the production. All the large companies we met during our stay confirmed the fact that the national government and the state governments tend to claim some funding in order to perform the required activities. Another interesting fact is that, when a company wishes to proceed with a start-up in India, the different states compete with each other in order to convince the company to establish itself there; this is often in the form of tax relief. The states in India are independent of each other
A travel agency in the heart of Bangalore.
and have their own laws, especially taxation
name. The market demands that you have
for example, today a quality standard for safe
laws. Bureaucracy is therefore an important
more than just sophistication.
and comfortable buses.
issue to consider. Patent registration is one of the fields, where the lack of correctness in the
Volvo, on the other hand, has succeeded
The low production costs in the Indian
bureaucratic organization is clearly visible.
with its strategy of producing for the high-end
market attract numerous companies that wish
Astra Zeneca is one example, among many,
(niche) segment of the market. The commodity
to start up. In teeming cities like Bangalore,
which is struggling to improve the system.
part of the Indian industrial market is nearly
where the majority of the IT companies are
Other companies we met testified to the lack
80%. This segment is largely dominated by
located, these new companies pose a problem
of security when handling critical informa-
for the others. Not knowing what salary levels
tion. IBM had difficulties in 1972 and left the
are appropriate or which rent prices for pieces
Indian market, one reason being technology
of land are correct, they tend to pay more than
leaks.
“The average time to register a company is 10 times that of starting the production.”
necessary. The price is still much less than in the West, but they force others companies to
There are also numerous physical chal-
raise their salaries and put up with rent hikes.
lenges in India. The infrastructure in India is
Having a proper knowledge of the business
far from optimal. This causes a lot of prob-
Indian or half-Indian companies who have
environment helps therefore not only the new
lems for the companies’ logistic departments.
already well established themselves and made
companies wanting to establish themselves,
Another obstacle is the power supply issue.
a name for their brand (Tata and Maruti
but even the ones already based there.
Power cuts are very frequent in all major cit-
Suzuki for example). By targeting their efforts
ies, and the federal government has recently
at the high-end part of the market Volvo is,
signed several agreements with the US in
56
© Project India 2005
order to make some progress in this field.
But due to a good education system, the way
same, if not better than those manufactured
Environmental issues are improving in India
of looking at products manufactured in India
in the West. The companies need to convince
with, for example, the ISO certifications.
has changed. This notion is also confirmed by
consumers that the brand is safe, which means
This is despite the fact that during our stay
SECO Tools who have recently launched a
that the product delivered by the company is
people attested to the link between corrupted
“Made in India” campaign with the message
the same, irrespective of the location of the
environmental and safety inspectors and the
that products made in this country should
production. If, for example, you are selling a
certified facilities. To have knowledge of the Indian culture, environment, and the way things actually work in India is crucial for the company’s development. Business ethics are also an important element to consider. Foreigners arriving in
SECO Tools product then it will be the same
“Yet another interesting notion in business-India is that of win-win; it simply does not exist.”
India sometimes encounter communication
is to ensure that you are buying the same product, what matters is the brand of the product, not the manufacturing location. Before even moving production to India, start-ups need to be well aware of the impact on consumers when told that the product actually is manu-
problems. Due to cultural differences, this
not discourage potential buyers but rather
aspect requires an effort from both sides.
encourage them. These companies share the
There are also technical challenges to con-
whether found in India or in France. The idea
factured in India.
opinion that products made in India are the
sider. The Internet connections are far from the high-speed standard, which we are use to in the West, and the quality of several phone lines we tried was poor, even in cities like Bangalore or Mumbai. Yet another interesting idea in “business India” is that of a win-win deal, which simply does not exist. Each side wishes to gain maximal profits from a deal, even if it means that one side is left with the negative consequences. In the West, it is generally felt that goods manufactured in India are of inferior quality to those made in Western countries. Atlas Copco’s set-up for the Indian market was, for example, primarily the idea that the production made here could not be exported. Products made in India were never regarded as consumer goods. A large piece of equipment made in India could never be seen elsewhere.
A visit at the Atlas Copco facility gave us an insight in the different steps of the production. The level of automated activities in the production chain is low, since manual labor is still preferred, being more cost-efficient.
57
Project India 2005 - Start-ups
Project India 2005 Starts a Company! A Small Step Closer to Understanding the Indian Business Culture After a lot of pre studies on companies
The business idea of Royal Shirts is to
tailor will take the measurements and the shirt
in India we wanted to experience on our
import high quality shirts from India, tailor-
models/fabrics will be displayed. We do not
own what it is like to start up a business
made to the customer’s unique measurements
believe that the Internet is the right medium
with Indians. As a study, we have chosen
and for a price of EUR 30 per shirt (including
for attracting new customers, but we will use
to start a shirt import company called
shipping and delivery costs). Our target group
a web page to handle further orders and client
“Royal Shirts”.
is mainly students that need to expand their
contacts. The company will be launched at
wardrobe while starting a business career. To
our project day, the 12th October.
recruit new customers the company will focus on being present at student events, where a
58
© Project India 2005
five Steps to a Start-Up 1 First, we located a tailor in Bangalore who we trusted and thought had the right skills. At this stage we felt it essential to actually be there and try the products and test the collaboration process, which we had the opportunity to do. The good English skills of the Indians clearly simplified this process. 2 We contacted the Swedish Trade Council to find out the exact custom fees. One phone call and a quick look at their complex web site was enough to find the custom taxes: 9-12 % depending on the origin of the fabrics. Also an additional value-added tax of 25 % has to be paid on imported goods. Since there might be certain restrictions regarding imported fabrics from Asia, a call to the Swedish National Board of Trade was also necessary. 3 We then checked out different shipping alternatives. UPS and other similar shipping companies concentrate on expensive short delivery times. The cost of a box (45x30x30cm) weighing 5 kg is approximately EUR 150, with a delivery time of six days. A part of a boat container, the size of one square meter and weighing 1000 kg, costs EUR 2500, if a four-week delivery time is selected. All these alternatives were much too expensive for our business so we tried to use the regular postal delivery system. We sent some envelopes containing shirts to our tailor and he returned them, and the result was satisfactory. With a delivery time of less than two weeks as well as all packages surviving the trip, this encouraged us to continue. If we send it by mail, the Swedish mail company will impose a tax and will charge about EUR 10 for each package. 4 We started a test session for volunteers and registered the business with the Swedish Patent and Registration Office. 5 The final test will be launched at our project day at the Royal Institute of Technology (KTH) on 12th October.
Our experience The language difficulties started to become
too large, we tried to package the shirt in a
benefit from a name with an association with
a problem when we continued our communi-
plastic cover and then used a vacuum cleaner
India.
cation by phone and e-mail from Sweden. On
to suck out the air. This process made the
one occasion when our contact was asked to
package thin and stiff like a normal letter. The
Our overall experience is that India is
write down an e-mail address, he answered:
real problem was communicating this idea to
closer than we thought; a time difference of
“Sorry Sir, I can’t write. It is totally dark here,
the tailor in India. E-mail and phone are good
3.5 hours simply gives us some extra hours
power failure”. Also, apart from the electricity
for information but when it comes to convinc-
in the morning for work. We find our Indian
problems, the different pronunciations make it
ing people, one has to actually be there.
partner to be enthusiastic, helpful and trustworthy. A face-to-face meeting is, however, a
hard to share important information over the phone. A simple thing such as exchanging dif-
Our company name could have been some-
ficult e-mail addresses through text messages
thing like “Royal Indian Shirts” but the com-
was of much help. The tailor also e-mailed us
mon Swedish perception of India as a nation
pictures of different fabrics, which were used
that makes quality products is weak. Maybe
in the selection process of the first samples. To
in a few years this will change. Considering
reduce the problem of the envelope sizes being
the situation today, our company does not
59
necessity when starting up.
Project India 2005 - Start-ups
Other Swedes in India Atlas Copco Rides on Development Sweden has exported products to India
to be produced in India. Managing Director,
Atlas Copco
Phillip M. Davidson, explains how this was an
for a long time, starting with an Ericsson switchboard in 1905. Some Swedish com-
Atlas Copco has been present in India since
absurd statement, which the Swedish factory
panies left the Indian market after huge
1947, entering the market through a joint
claimed right to the very end. Atlas Copco is
failures and some are still waiting for the
venture as several other Swedish companies
now about to launch an air filter production
right time to enter the market. There now
did at that time. In the late 1950s, the trend
facility in Bangalore only for female workers
follows a few examples of successful
was to ditch the collaboration strategy and
with managerial potential.
Swedish companies that have struggled
instead look for your own land.
to understand and benefit from a start-up in India.
Atlas Copco’s set-up was primarily for the Indian market. The attitude was that the production made in India could not be exported. Products made in India were never seen as consumer goods. Through a good education system in India, the new engineers changed this perception however. Atlas Coco has today fully expanded its business in India - 14 out of the 15 business segments are now represented. The future for Atlas Coco in India is bright due to the industrial development, the increased investment in the infrastructure and the growing construction business. The two main areas are compressor techniques, which represent 50% and construction and mining technologies with 48% of the business. There are examples inside the Atlas Copco organization of how Swedish factories are unable to compete with the lower production
This Atlas Copco worker explains that he has clearly noticed the industrial development. The amount of work has increased but the salary is still the same.
costs in India. An air filter made in Sweden was said to be too complicated and high-tech
60
© Project India 2005
Managing Director Phillip M. Davidson explains the compressor technique, one of the core segments of Atlas Copco India.
Our half-Indian member Viveka, used her skills in Marathi to communicate with the rarely English speaking operators and mounting staff on the factory floor. The discussion gave us some new insights into how the workers have experienced the fast developing industry.
Today Atlas Copco India has about 1,000 employees and has had a very rapid growth in the past two years. From 2002 to 2004 the turnover in India increased from INR 2.5 billion to INR 4 billion.
By tradition, no women are working at the factory floor but this is changing. Atlas Copco’s new Air Filter production facility is designed to give women with leadership potential all the necessary experience in production.
The CAD– designers at Atlas Copco are working for global customers with high-tech components. This would not be possible without a good working Internet connection. All the drawings are sent by mail and further communication is done by phone.
61
Project India 2005 - Start-ups
Other Swedes in India Ericsson Connects with India Ericsson works as a provider of network
that will be launched in late 2006.
solutions and services for the Indian telecoms
“If we would have chosen a place today, we would probably have established ourselves
operators. Ericsson has 43% of the GSM
Ericsson established itself in India in 1977
in Bangalore or closer to New Delhi where
market and 34% of the wireless market. The
and for the first 15 years the company did not
all the other IT companies are located”,
cell phone industry is growing rapidly and the
make any profit in India. Today the investment
explained Kjell Casenberg, General Manager
young population is driving the development.
has paid off and for a global company such as
of Ericsson’s production plant in Jaipur.
The pre-paid cards have made it easier to
Ericsson it is a necessity to be a part of this
Ericsson has a good position in the Indian
become a subscriber and a cell phone is now
future market. Ericsson has established a large
telecom network business but the easy acces-
used in all segments. Today, wireless subscrib-
production site for base stations in Jaipur in
sible areas for building network stations will
ers eclipse wire line subscribers in India.
the north of India. The main reason for choos-
soon be exploited. The next step is to expand
The main operator Bharti, which buys
ing Jaipur was that the state of Rajasthan
their network to areas with a low level of
services from Ericsson, has today 12 million
(where Jaipur is the capital) gave Ericsson
infrastructure and often without power
subscribers and a yearly growth rate of 100%.
tax reliefs. The competitiveness between the
networks. This will require new technology
India has today a cell phone penetration of
different states in India often leads to special
such as smarter communications solutions
6% and Ericsson forecasts an increase to 500
treatment if companies can promise future
for directly connecting calls and automated
million subscribers by the year 2015. But the
investments.
network stations.
key element in development is the 3G system
In the Ericsson boardroom the HR manager described the importance of arranging activities for their staff. This is done by reward-programs and activities involving the families of the employees.
“The India school system has got more interaction between students and teachers than the Swedish. After my studies at the S3 department at KTH in 2003, I experienced that it was all about the exams, and not wether you attended the classes or not. I also thought it was strange that no companies were interested in recruiting students, but the economic situation in a develop country like India is not fare to compare with”, explains Pankaj Mukhija.
62
© Project India 2005
ett av världens 10 mest inflytelserika företag inom applikationsutveckling* Telelogics utvecklingsverktyg hjälper företag att utveckla de mest innovativa och häpnadsväckande systemen i världen. Med våra verktyg kan företag automatisera hela sin utvecklingsprocess och öka sin konkurrenskraft genom att produkt, system och programvara utvecklas enligt uppsatta mål och kundernas behov. Detta förbättrar kvalitet och förutsägbarhet, samtidigt som utvecklingstid och -kostnader minskas. Detta gör vi så bra… ... att vi har världsledare inom telekom-, flyg/försvar-, bil-, finans- och ITbranschen som kunder. Airbus, BMW, Boeing, Deutsche Bank, Ericsson, GE, GM, Motorola, NEC, Samsung, Siemens och Vodafone, för att bara nämna några få. … att vi kallas världsledande av flera oberoende internationella analysföretag och IT-tidskrifter, exempelvis Gartner, IDC, Yphise och SD Times. * enligt brittiska Computer Business Review är Telelogic ett av de tio mest inflytelserika företagen i världen inom applikationsutveckling under 2005. Förutom Telelogic, som är det enda europeiska företaget, består listan bl.a. av IBM, Microsoft, Oracle och Sun Microsystems.
Telelogic, med huvudkontor i Malmö, har cirka 900 anställda i fler än 20 länder. Vi har utvecklingslab i Sverige USA, Storbritannien och Indien. Besök www.telelogic.com för mer information.
Vill Du vara med och utveckla Stockholm? Vi på markkontoret har ett finger med i det mesta som handlar om utvecklingen av stan! Här hittar Du projekt som Hammarby Sjöstad, Kista, Norra Djurgårdsstaden, Årstadal och Slussen för att nämna några. Vi har engagerade ledare, ett långsiktigt tänkande, delaktiga medarbetare och många externa samarbetspartners. Markkontoret är en förvaltning i Stockholms stad som ansvarar för stadens mark, exploatering för bostäder och företagsområden, med mera. Vi är 140 anställda och är belägna centralt i stan, på Kungsholmen (i Tekniska Nämndhuset).
Läs mer om oss och våra spännande projekt på www.stockholm.se/markkontoret Requirements-Driven Innovation
Project India 2005 - Start-ups
Other Swedes in India Volvo Aims for the Stars
The Volvo factory and Head Office outside Bangalore is a large facility, still it is 20 times smaller than the TATA facilities in Pune.
Volvo established itself outside Bangalore
The strategy is to only produce high-end
all boat deliveries from Sweden to India have
in 1997. Its business strategy is aimed at the
trucks and buses, which the competitors are
to be reloaded two times because of the small
top segment of the truck and bus market
so far unable to build. This has made Volvo
dimensions of Chennai harbor. The average
with regards the technology, quality and
famous: Volvo is not a brand in India, it is a
speed on the Indian roads is 30 km/h and a
safety. Its forecast for 1997 was to sell 4,000
concept symbolizing luxury travel, and even
normal Indian truck with a 9,000 kg load has
trucks in the year 2004. The price sensitive
some three-wheel rickshaws have Volvo stick-
an engine capacity of 130 hp.
Indian market has, however, slowed down
ers on the back. There are two main threats
Volvo’s strategy is to find more local
its development and it now makes a profit by
to Volvo’s development. The first one is that
suppliers and continuously customize their
selling 340 trucks and 300 busses per year.
foreign competitors like Mercedes are entering
products for the Indian market. But the most
The huge Indian truck market with 140,000
the market next year and the second is that
important thing for Volvo’s future success is
sold items in the year 2004 is obviously a
TATA has started to buy high-end technology
to convince the Indian truck buyers that a
huge market with potential. Volvo has a hard
from other more developed competitors.
one-off big investment can generate profits if
time competing with domestic companies like
The infrastructure is a big issue for Volvo,
TATA and Ashok Leyland who sold nearly
both affecting the production and the full use
140,000 trucks in the year 2004, when price
of the potential of their products. For example,
the operational costs are reduced.
is a factor.
64
© Project India 2005
Rajesh D. and Anantha Valli S. are two of the Indian CAD designers that customize Volvo products for the Indian market. For example, the aluminum fuel tanks are replaced by cheaper steel tanks since corrosion is a minor problem in this climate.
The truck cabins are imported in segments from Sweden and then mounted at the factory in Bangalore. This procedure saves space and money in the expensive shipping process. To compete on the price sensitive Indian market, Vovlo is aiming to produce as much as possible in India.
A test driver analyzes the performance of a newly built Volvo bus. The good comfort and high power engines, compared to the Indian competitors, has made the Volvo brand a synonym for a luxury coach bus. This is an impressive accomplishment if you compare to Volvo’s small market share in India.
65
Truck and bus tires are delivered from a local producer. A glimpse of the old truck fleet inside the organized Volvo facilities.
Project India 2005 - Start-ups
Other Swedes in India Seco Tools & Trapcode Seco Tools
Seco Tools in India is today a profitable
a company in Pune that develops programs.
company with a bright future. Its products
The outsourced project is to build up a new
Seco Tools manufactures carbide cutting
are produced for the global market and the
database web page for a web-centered user
tools and started in India in 1997 by purchas-
quality of products has proven to be of an
community.
ing shares in an existing Indian company. The
international standard. Seco Tools earlier
collaboration led to a fast start-up, but also
avoided showing the “Made in India” logo
Overall, the experience of having out-
to a two-year court battle, when Seco Tools
on its global products since they have noticed
sourced is good “...but one has to give exact
had different expansion plans than its Indian
that customers can make wrong presumptions
specifications of what you want, it is not obvi-
partner. These kinds of problems are common
about the quality when told of the location of
ous that you share the same idea of what is
among numerous small non-Indian compa-
the production facility. But now days the logo
good”, as the Trapcode C.E.O. Peder Norrby
nies that collaborate with locally established
is clearly visible.
explains.
Indian
organizations.
Several
Managing The costs has been ten times less than in
Directors that we met strongly recommended avoiding this strategy. Seco Tools’ choice for
Trapcode
Sweden, but Trapcode will continue to develop the company’s core products in Sweden, at
establishing itself was Pune since it is close to the financial center Mumbai. Pune also offers
Trapcode, a Swedish company interna-
good industrial environments with a lot of
tionally known for its groundbreaking video
Swedish companies as neighbors.
effects, has recently started outsourcing to
66
least for a few more years.
© Project India 2005
infrastructure Mission Impossible The Monsoon Bangalore 2030
Project India 2005 - infrastructure
Mission Impossible Infrastructure is the Key to Success The biggest challenge for India and businesses in India is the infrastructure. The poor quality of the roads is shocking and the amount of vehicles, people and animals on the roads is beyond belief. What is India doing about it? Although India’s infrastructure is improving, it is not keeping pace with the rapid industrial growth. According to CNN/Money, India’s position as the world’s “outsourcing king” is slipping and their outsourcing honeymoon may soon be over, all because of the lack of good infrastructure. Some of the infrastructure problems include the bad quality of the Indian roads, the power supplies and the daily power cuts, ineffective water systems, and the sanitary facilities that only cover 50% of the urban population. If the Indian economy wishes to keep its growth, the infrastructure issues need to be resolved, and fast!
“The infrastructure is the greatest threat to fast growing industrial development in India.” Paulraj Edwin Project Manager, Volvo
68
© Project India 2005
four/six lane expressway. With a new highly
The Golden Quadrilateral
developed expressway network the Indian Government wishes to gain many advantages
Delhi-Mumbai-Kolkata-Chennai
such as faster and more comfortable journeys, reduced fuel consumption, safer journeys and reduced maintenance costs. A high quality
LENGTH:
expressway will also open up a new market
5800 km
Delhi
for many companies, especially for the ones manufacturing cars and trucks, like Volvo for
CONNECTING:
example. Today, a Volvo truck costs consider-
Delhi-Kolkata-Chennai-Mumbai
Kolkata
(Source: Wikipedia, 2005)
Schedule for completion:
ably more than the domestic brands, but what Volvo is trying to sell is a high-end truck that
Mumbai
December 2006
In August 2005, 92 % of the total length was completed.
Chennai
The Golden Quadrilateral
“While driving in India you need three things: a good horn, good brakes and most important of all good luck.” can travel faster, safer, more cost efficient and
North-South Corridor and East-West Corridor
more conveniently. For Volvo to be able to sell such a truck, the roads need to be improved
The representatives from all the businesses
dangerous ride. It does not matter if you are
we met during our visit in India have spoken
in a rickshaw in down town New Delhi or in
of the infrastructure issues as being a major
a minibus on the highway between Cochin
challenge.
and Bangalore: the roads and the traffic are
so that the vehicle can be used to its full potential and with projects such as the Golden Quadrilateral this can become a reality.
Chennai
essential problems and represent the main challenges for every business in India.
Mumbai
The Golden Quadrilateral
According to the India Infrastructure Summit 2005, the investment require-
The Indian Government is well aware
ments of the economy for infrastruc-
There are three rules that need to be fol-
of the chaotic situation regarding the infra-
ture are huge. The Prime Minister
lowed while driving in India: you need: “good
structure and in 1999 the National Highway
has indicated that the country needs
brakes, a good horn, and especially some good
Authority of India started the Golden
to invest USD 150 billion in the infra-
luck”. This Indian joke reflects the reality very
Quadrilateral Project. The aim is to con-
structure over the next five years.
well. When you are traveling on the Indian
nect four of the major cities in India: Delhi,
roads you are in for a very bumpy, noisy and
Kolkata, Chennai, and Mumbai, by way of a
69
Kolkata Delhi
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LET’S ASSUME THIS IS THE FAST MOVING WORLD OF TELECOMS
AND THIS IS THE LEADING COMPANY WITHIN IT
NOTICE THERE’S SPACE HERE FOR YOU?
www.ericsson.com
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“It is hard to sell high power engines to a truck market with an average speed of 30 km/h. Even if the roads are improving the amount of high-way entrances and cows will remain.” Eric Leblanc, Managing Director, Volvo India
What’s Happening on the Indian Roads?
network. Even though the roads will be improved, and the Golden Quadrilateral Project is one step in the right direction, the
Even though the quality of the roads will
culture on the roads will remain and will still
improve, the problem regarding traffic sense
be among the many challenges left to be faced
will remain. The roads are today packed with
and dealt with.
people walking, sleeping and practically living there. Moreover, there are cows and dogs patiently standing at the roadside waiting
Traffic in India: Notice who is wearing a helmet in the picture below.
for their turn to cross, or their turn to just lie down and relax. If you need to buy some snacks, flags, tooth brushes or a book, then there is no need to get out of your car: one of the temporary shops will come right up to you, maybe not with the actual things you need, but they are at your service. When traveling on an Indian highway it is not unusual for the vehicles to be on the wrong side of the road if there is less traffic there, or if someone needs to make a u-turn, they will make a uturn. Because of the amount of people, the
Pilgrims make the journey interesting
traffic culture, and the condition of the roads, the average speed is about 30 km/h. Still, a
The distance between New Delhi and Rishikesh is about 200 km and, according
car journey through India feels heart-rending,
to our Indian driver, it would take about 4-5 hours to get there. It actually took 9
exhilarating and terrifying.
hours. What the driver and us had failed to anticipate was not only the amount of traffic and people on the roads, but also the pilgrimages walk with thousands of
The future of India’s growth is highly
“saints” carrying water from Ganga back to their homes. Some parts of the road
dependent on the infrastructure of the road
were closed and other parts were just packed with pilgrims dressed in orange. It was a long but interesting journey.
71
Project India 2005 - infrastructure
Power Cuts and Cell Phones For the members of Project India 2005 the traffic problems and the road infrastructure became highly visible and were noticed by all of the businesses that were visited. But there are other infrastructure problems that also need to be highlighted. One of these issues is the electrical supply infrastructure, which contributes to the daily power cuts and which has forced all the major businesses to acquire their own backup generators. But it is not all about the power cuts; another problem is that there is not enough power generated, and that the power losses are too high.
“Our main challenge is the infrastructure and the power supply is the most important issue.” Phillip M. Davidson, Atlas Copco India
Comparison of the Cell Phone Market
Sweden
India
Population:
9 million
1 billion (CIA)
% with cell phones:
90%
6% (PTS, 2005)
One progressing infrastructure issue is the cell phone network. Every month 1 to 2 million new cell phone subscriptions are registered in India and there are a total of 56 million subscriptions (June 2005). To handle all the new customers and their needs, the network is steadily growing. The cell phone network business has become a huge market. Even though there are 56 million people using cell phones, there are still several hundreds of millions of Indians left who have not signed up to a new subscription. For a global company such as Ericsson, failing to enter the Indian market would be a significant mistake since it offers great opportunities.
Cost in India VS Cost in Sweden Eight members of Project India 2005 purchased pre-paid Indian cell phone cards, of which 5 stopped working during the project and some did not work as we had been promised. This was a very irritating downside to the expanding cell phone network. On the positive side, we found it to be not that expensive, at least not in comparison with Sweden, to buy a pre-paid card or to actually use it.
India
Sweden
Pre-paid card, activation fee:
20 SEK
100 SEK
Minute cost, local:
0.20 SEK
0.88 SEK
0.40 SEK
0.88 SEK
SMS (local):
0.10 SEK
0.77 SEK
Minute cost, other:
72
© Project India 2005
Back to the future
The first impression of the recently built subway in New Delhi was the huge contrast with the outside world. No cows, no traffic and no exotic smells, basically a normal calm subway station with nice clean open architecture. The high-tech magnetic travel token (2 SEK) was impressively smart. Once we had figured out how to use it, the ride could then begin. The atmosphere inside the carriage was calm, no other foreigners, just us and a peaceful crowd of Indians feeling grateful not to be a part of the hectic traffic above. But the overwhelming experience of feeling the atmosphere of a future India made us forget our destination. After a little confusing help from one of the station employees, and a chat with two young and proud floor cleaners, we found our way back to the city centre and entered the real world outside the subway gates.
73
Project India 2005 - infrastructure
The Monsoon in Mumbai and Project Air India
India is a land full of surprises and sometimes even a yearly event such as a monsoon comes as a big surprise. This summer’s monsoon was expected, as every other year. The tragedy that ensued was, however, not predicted. Normally the monsoon waters and nourishes the soil, giving life to the exotic plants as well as to the people, and not the opposite. But nature can be unpredictable. On 26th July Mumbai received 65cm of rain - the heaviest rainfall recorded in India’s history, causing havoc in a city known for its inadequate infrastructure. Many people lost their homes and their loved ones. Even though this tragedy cannot be compared with our tame experience of the catastrophe, we would like to share our experience of the monsoon in Mumbai and how it affected us. Three members of Project India 2005 left Stockholm Arlanda on Friday 29th July heading for Frankfurt’s International Airport in order to catch the connecting flight to Mumbai. As we had heard about the flooding situation and the possibility of getting stuck in Frankfurt we asked a female member of the cabin crew at Arlanda about our chances of reaching India. We were told we could go to Frankfurt at our own risk. Being as brave as Vikings should be, we decided to take the risk and challenge Mother Nature. A few hours later in Frankfurt everything seemed fine. According to the Air India personnel, the flight would leave as planned, which was a huge relief to us, as we had no desire to wait another day in order to get to India. But the faces of the other travelers told another story than the one given to us by the airport crew. When we arrived at the gate a crowd of nervous people were already waiting, ready to fight over a boarding pass. Worried faces were staring at each other; clearly stating, “I was here first!” The air was thick and the atmosphere tense. The plane arrived from Los Angeles. When it landed in Frankfurt someone heard that the plane was already full. As the rumor spread through the crowd, the mood turned to anger and resignation. What the airport personnel had forgotten to tell us was that there were already several hundred people waiting for a flight to India, both in the United States and in Frankfurt. They had been in the same situation as we were now. At this point we were the ones having to put our names on a waiting list for a seat to India: a list that later appeared not to exist. It had just been a trick to get rid of people struggling to obtain a boarding pass on an already overbooked flight to Mumbai. We were now trapped in Frankfurt. We did not know if there would be a flight to Mumbai the next day, and even if there was a flight, would we be the winning trio who would get seats on it? We seriously considered renaming our project Project Air India. Fortunately, there was a flight leaving for Mumbai the next day and we were lucky to get seats on it. The next problem was the computer network in Mumbai, which was down due to the flooding. Air India could not tell which seats were available on the flight. Consequently, none of the passengers were any longer guaranteed a seat. The chaotic boarding procedure turned into something that looked like the Pamplona Bull Run, except for one thing - the bulls running around were not raging bulls of the four-legged kind, they were a hundred furious Indians as well as three exhausted Swedes. Luckily we got on the flight and even obtained seats next to each other. When the plane reached Mumbai, it was raining so heavily that we could not land. The pilot circled above the city for half an hour before deciding to fly elsewhere. Ok, no Mumbai, we could gladly accept that, considering the “no-water-no-food” situation, which we had heard about. As our final destination for the journey was New Delhi, we were the only people on the plane screaming for joy when the pilot announced that the new destination would be New Delhi. Finally some good luck!
“The infrastructure in the city has collapsed but people have a very short memory. We seem to forget and forgive and do not come up with a constructive plan” John Josy, a resident of Mumbai talking about the monsoon
74
© Project India 2005
75
Fighting serious disease
Elekta was founded in 1972 and has today approximately 1,700 employees in 20 offices worldwide. Elekta’s corporate headquarters are located in Stockholm, Sweden and the company is listed on the Stockholm Stock Exchange. For more information please visit www.elekta.com
Elekta is a world-leading medical-technology Group, providing meaningful clinical solutions, comprehensive information systems and services for improved cancer care and management of brain disorders. All of Elekta’s solutions employ non-invasive or minimally invasive techniques and are therefore clinically effective, gentle on the patient and cost-effective. Elekta’s systems and solutions, including Leksell Gamma Knife® for non-invasive treatment of brain disorders, Elekta Synergy® for image guided radiation therapy (IGRT) and IMPAC oncology management software, are used at over 3,000 hospitals around the world.
Fighting serious disease
www.elekta.com
� Stereotactic Neurosurgery � Gamma Knife® surgery � Functional Mapping � Precision Radiation Therapy � Image Guided Radiation Therapy � Stereotactic Radiation Therapy
© Project India 2005
A picture of a young Rajeev and his sister, Bangalore 2005.
Bangalore year 2030 An ordinary day in the life of Rajeev
It is early Monday morning and the year is 2030. The IT capital of the world, Bangalore, is slowly waking up. Rajeev’s old 5G cell phone makes a loud buzzing sound, but he is already awake and ready to get up for work. Rajeev is one of IBM’s 700,000 Indian IT-consultants and he is now working on a huge business project in the field of nuclear power. Even though he works until 12 p.m. every night he always gets up very early, eager to go to work. When he got his job right after graduating from IIT Bombay the salaries were very low, even by Indian standards, so a promotion or switching company is the best way to get a higher salary. Every year, India produces 7,000,000 IT engineers so the companies can really keep the salaries at an all-time low. Rajeev is, however, not worried. He is smart and really hard working so the future looks promising. He grew up outside Bangalore in a very simple family. They were not very poor, but had limited finances. Thanks to his interest in mathematics and his ambitious spirit he managed to win a scholarship. This gave him the chance to go to one of the best colleges in India and at that time he knew that his future was bright. Even though the middle class has been growing now for many years, poverty is still a huge issue in India and ever since his childhood Rajeev has been grateful for not being very poor.
77
Project India 2005 - infrastructure
Now Rajeev lives in central Bangalore. His office is in one of the suburbs, so getting to work is a tricky business. There is no use trying to drive on the roads, they are already packed with trucks and solar-powered rickshaws. The metro is the fastest way to get there and Rajeev is lucky to have metro stations both near to his home and his workplace. He owns a nice Indo-Chinese car, but he only uses it when there is no other option. The government is encouraging everyone to use the metro and Rajeev is very concerned about the environment and therefore follows the government’s advice. Looking at the roads of Bangalore he thinks that, even though the traffic is less now after the opening of the city metro, Indians still need to learn how to drive. He came to this conclusion while visiting his brother in the United States last year. Rajeev’s office is in one of IBM’s 20 skyscrapers, soon to be 25, and when he gets there at 6.30 a.m., many of his co-workers have already started working on today’s tasks. He sits down at his desk to look at today’s schedule, and he realizes that he probably will not get home before midnight today either. He is a little bit tired and for a few seconds he wants to go home. He reminds himself, however, of how lucky he is to have a job at IBM and continues therefore working with a happy smile. After a long working day, Rajeev returns home to his wife Sahana and their 2-year-old son Chandan. The apartment is quiet; Chandan is asleep and Sahana is working on her doctoral thesis. She is always studying at night because in the daytime she works as a medical doctor and in the afternoon she takes care of Chandan. Sahana means “patience” and Rajeev thinks that, if there is one quality his wife possesses, it is patience. Rajeev sits down on the sofa, he drinks a Coca Cola and dreams about the vacation the family will have in Europe in a few years from now.
Night in Bangalore 2005.
78
© Project India 2005
CULTURE cultural differences poverty education
Project India 2005 - Culture
Cultural Differences When a country is one-third the size of
Geographical Differences
country and one explanation for this is the country’s history. In the past, when India had
Europe and is home to over a billion people, it is bound to have interesting culture
Indian people do not all derive from the
been invaded, the attacks had always come
diversity. During our visit, we encountered
same place. In northeastern India the people
from the north. Once the invaders advanced
cultures that both amazed and annoyed
are descendents of the Mongolians, in the
further south, geographical obstacles stopped
us. We noticed several differences from
northwest the people are of Indo-Aryan
them. Therefore, those living in the south are
Western cultures, but also diversity within
descent and in the south people are darker
considered to be more peaceful and calmer
the country. In this chapter we will em-
as a result of African immigration. The
than those in the north. Another effect of the
phasize some of the cultural differences
ethnic diversity is reflected in the variety of
threats in the north was that the people there
we reacted to.
languages and dialects spoken in India - 17
worried about not getting enough food. The
major languages and 900 dialects or closely
food they ate consisted therefore of more fat
related subsidiary languages. The way people
than in the south, something that is true even
act varies between the different parts of the
today. Another difference in the food is that it
A hectic day in Old Delhi, near the Red Fort. Here one meets Muslims, Hindus, Sikhs, Buddhists and Christians among others.
80
© Project India 2005
is spicy in the south and rice is a common side dish, while in the north the food is milder and wheat is more common than rice. Traditionally, a lot of Indians eat vegetarian food because of their religion. Due to influences from the rest of the world, chicken and lamb are, however, fairly easy to find nowadays.
The Hardworking Nation Because of the different kinds of Indian people, it is not possible to generalize whether the entire nation is hard working or not.
The Akanksha School arranges education for talented children with less means. A typical day starts at 5 a.m. to bring water for the family, and ends at 12 in the night finishing their home works. The children had clear ambitions. “I want to become a leader” a 10 year old boy said and one girl explained “I will be a doctor and make medicine for cancer”.
However, as we traveled around the country, we saw two extremes. the opportunity to meet with Nirav Shah,
lion). Akanksha is an extracurricular school
On the one hand, we saw what you read
who started a year ago immediately after his
that aims to help children achieve higher edu-
about in the newspapers: the hard working,
studies at the university. He told us about the
cation and find their way to a better life. Thirty
efficient and highly qualified people working
training he had done when he joined the com-
of the most talented children get to join the
for a fraction of the cost of an employee in
pany. He had worked day and night without
top class where the days are longer and they
the West. At Capgemini in Mumbai we had
any free time, but he still believed it was the best time of his life because he had learnt a great deal. Being this eager to learn definitely has a positive effect on the company but Nirav also explained the down sides it brings with it - a very competitive working environment. This results in colleagues not sharing information with each other because they are afraid that another colleague will take credit for it.
“Thirty of the most talented children get to join the top class where the days are longer and they receive extra lessons every day.”
Another example of motivation and dedication comes from the sprawling slum areas in
receive extra lessons every day. In Sweden,
Mumbai, where there are a growing number
Social Initiative is one of the companies that
of underprivileged children. Slum areas are
have partnerships with Akanksha and have
selected randomly and the children staying
made it possible for employees at Carnegie
there are given the opportunity to attend
in Sweden to support projects for the poor
Akanksha (in total 2,000 children out of 2 mil-
in India. The children attending Akanksha
An employee in the port of Mumbai
81
Project India 2005 - Culture
have a positive attitude to hard work because
Indian Generosity
they really want to get somewhere and make a better life for themselves and their families.
It is our experience that Indians are very
Many of the children start at 5 a.m., when
generous and always offer their help in every
they fetch water for their families and then
situation. Our first encounter with Indian hos-
they study until late in the evening. Although
pitality occurred at the airport in Frankfurt
they have extremely long days, they still want
where some of us got stuck because of the
to take time to help other children who have
flooding in Mumbai. Even if people were
not had the chance to go to school. The people
desperate and affected in different ways by
mentioned in these examples are not unhappy
the catastrophe, one man still took the time
with their workload; it seems rather that they
to explain how we should find our way when
find themselves privileged to have come as
arriving in India and gave us his number to
far as they have. This is understandable in a
call if we needed any help on arrival.
country, where the competition is extremely tough due to the huge population.
The representatives of the different com-
A happy man in a bus in New Delhi.
panies we visited were more than welcoming On the other hand, we gained another per-
and really wanted to guide us and help us find
experienced that we could not get a straight
spective when travelling around, namely, that
things to do, not only during our visits to the
answer because the people were so eager to
of bureaucracy and a lack of structure in some
companies, but also after office hours. Indiska,
please us. Often a person will say “yes” when
places. Since salaries in India are very low,
Atlas Copco and Evalueserve all arranged eve-
you ask him something, even though he him-
many people are employed for the same tasks
ning activities for us.
self knows that he is unable to help you. For instance, it is quite common that, if you ask
“After a few years in Belgium, my experienced is that Indian employees are ready to work more than double as hard as the European engineers.” Sachin Chava, CAD - Engineer, Atlas Copco India
someone for directions, whether they know the way or not, they do not want to disappoint you, so they will go ahead and give you directions anyway. Communication problems are a frequently occurring obstacle when different cultures meet. As an example Kent Karby Hansen at Capgemini is working on bridging the communication gap between the Danish and
which may results in inefficiency. However,
Indian colleagues by trying to find a common
it is important to remember that this, on one hand, is a social responsibility that the compa-
Yes, Yes, No Problem
the high unemployment and thereby gain the social well fare.
way of communicating. However, it is not only the different languages that vary, but also
nies take. By hiring many people they decrease In India, “yes, no problem” is a phrase
the way we talk as well as our body language.
that cannot always be trusted. We sometimes
Anybody who visits India will notice the dif-
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© Project India 2005
ference in the way Indians nod their heads.
misunderstanding while visiting Seco Tools in
In India, shaking the head from side to side
Pune, when we thought that two people had
means that you understand what the other
different opinions when they, in fact, were
person is saying and usually that you agree
nodding in agreement.
Family Ties Family ties are very strong in India. There is a strong culture of taking care of the elderly
with them. Therefore, often what we consider
and children often work in the family busi-
as being a “no” is, in fact, a “yes”. Once you
ness. When we visited Indiska we got to know
understand the difference, it is quite clear what
Sailesh Nair who is working together with his
they mean. In spite of this, we encountered a
father at the office and living together with
The Indian Way
In Bangalore when we were going to visit Volvo we had ordered two cars with drivers to pick us up at the hotel at 7 a.m. and drive us to the office. At the appointed time only one car showed up and we asked therefore where the other car was. The present driver told us that he was on his way and would arrive within five minutes. After 25 minutes we asked him again, slightly more annoyed this time, and he assured us once again that the other car was on its way “Yes, yes, no problem just one minuet “. Finally we were truly irritated and explained to the driver how deadly important our student tour at Volvo was. This time he told us that the other car had to be cleaned and that it would arrive in 45 minutes. He probably knew this all along but didn’t tell us. Boiling with rage we all squeezed into one car and the problem was solved the Indian way. 83
Project India 2005 - Culture
him at home. More than one generation liv-
than in the cities and in such relationships like
Caste
ing together is very common. Usually when a
marriage than in less personal interactions.
woman gets married, she moves in with her
When thinking of India you cannot help
husband and his family. As a result of the
but wonder about the caste system and how
strong family ties a lot of people, who go
it affects life today. Whenever you ask some-
abroad to work or to study, return home after
body about this you get the same answer: the
a couple of years to be with their families.
caste system no longer exists. Discrimination
”Caste biases is a non issue in the business world but there are strong community links.” Phillip M. Davidson Managing Director, Atlas Copco India
due to caste is against the law. We talked about this when visiting Atlas Copco and we learned that all their managers are Brahmins, i.e., of the highest caste. Is this a coincidence? Caste ranking and caste-based interaction have occurred for centuries and will probably continue to do so in the future. This notion is, however, more common in the countryside
84
We met this farmer family in Aurangabad. Harald asked if he could take their photo. “Yes, Yes, please do so, only 20 rupees”. The agriculture employs 60% of India’s population. After school the children often help their parents on the field.
© Project India 2005
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www.volvo.com
Project India 2005 - Culture
Poverty
According to a report from UNDP’s Human Development Report 2005, over 2.5 million children die in India every year, accounting for one in five child deaths in the world. Girls are 50 per cent more likely
Despite the fact that India has one of the
%
fastest growing economies in the world
60
poverty is still a huge problem. This was
50 40
one of the first things that hit us when we
30 20
arrived in India. Along roadsides in the cit-
10 0
ies, people are living in sheds and on the
Population below poverty line (Statistical Outline of India, TATA)
to die than boys. The report states that if India can close the gender gap between boys and girls in the age of 1-5 year, 130 000 lives will be saved and the child mortality rate would decrease by 5 per cent. The report also states that the life expectancy is
1973 - 74
1987 - 88
1993 - 94
1999 - 00
2007 f
ground. One can see whole families with young children and babies sleeping in the badly polluted air, on the soil between the lines of the jam-packed highways. The
The total amount of people living under extreme poverty is still the same as earlier. The difference is that India’s population has grown rapidly during the same period.
63.3 years to be compared to 79.4 years, which is the life expectancy in Norway. (Source: The Times of India Sept. 05)
contrast from the nice business environment is striking. The main challenge for India today is to reduce poverty. The Indian financial system is one of the fastest growing in the world. The economy is booming and the middle class has increased to over 250 million people. Despite this, one third of India’s population is living in extreme poverty - they have less than USD 1 to spend daily. Moreover, two thirds of India’s 1.1 billion citizens have just USD 2 to spend on a daily basis. Worldwide, one fourth of the poor people in the world are Indians. There is a clear correlation between the vulnerable groups of Indian society and social identities, such as caste, sex and ethnic groups. Also, the development between states and regions differs. Consequently, the injustices are huge, especially concerning education,
health care and economic capabilities. During recent years, poverty has tended to be more and more geographically concentrated. Half of India’s poor population lives in the northern states, of which some seem to be not a part of the economic development whatsoever. Those states can be compared to some of the poorest countries in the world. On the other hand, the wealthier states have reached an economic standard and social level, which one may not
populations in the world. This is a great threat to the future social and economic development of the country. Many argue that the recent economic growth is having a negative impact on the environment. This also affects the poorer population, for example, as it might result in a lack of water. You can read about this in “The Backside of India’s Economic Boom”.
find in other developing countries. Countless children in India live in the most difficult of conditions. At least 20% of the children in the world that do not have the opportunity to go to school and 25% of the children that die before reaching the age of five are Indian. After South Africa, India has
Less than 1 US$ to spend daily
the highest rate of HIV and Aids among the
Less than 2 US$ to spend daily More than 2 US$ to spend daily
86
© Project India 2005
A strong memory is when we entered Mumbai from the highway express that leads from Pune to Mumbai, which is one of the best and most modern highways in India. Coming from such a modern construction we were not prepared for the sight of the slum areas that met us, a number of people sharing a small living area consisting of nothing but mud walls and a tarpaulin as a roof, no toilet, kitchen or water. Small children lying naked on the sideways looking at us with empty eyes is very hard to get used to.
However, there is a lot more to India than just poverty and disaster. The growth in IT and other service sectors is impressive and is one of the reasons why the middle class
“Many Indian companies also take big responsibility in human care programs.”
has tripled to 250 million individuals. India is also a dynamic country with an organized social structure. The country has many different religions and cultures, sometimes causing conflicts. India seems, however, to be able to solve those troubles within the laws of democracy. The government elected in 2004 is, more than ever before, focusing on poverty and is putting more effort into solving the country’s social and economic inequalities. Many companies also assume a great responsibility with regards human care programs, both for their
Clearly, India is a country consisting of two worlds. One where you can see the positive development, changes and innovations ultimately resulting in increased economic and social conditions. The economic boom has
IBM is working on an accessibility project with Victoria Memorial School for the Blind in Mumbai. Another example is Indiska, which since the year 2000 has been helping to launch a school in Karur. The aim is to improve the living conditions of ex-child labor, equip rural youths living in areas, where child labor is rife, for better prospects of employment and help these children to understand the modern professional world.
employees and other citizens. For example,
87
definitely had a positive affect on the social standard of living, especially in the cities with huge contrasts in living conditions. In the other world, however, extreme poverty tends to last. Numerous people require their human rights and are excluded from the dynamic development because of their sex, religion or caste.
Project India 2005 - Culture
Education A winning attitude? “India is not a sporting nation, it is an edu-
to learn. Mats Agervi, IBM, confirms this with
In the past, a significant number of gradu-
cation nation”. This is a general thought
the statement: “Why are the students working
ate students from the IIT left India to live out
that reflects the attitude to education in
so hard in India? The answer is that here is the
the myth of the dream life in Europe and in
India; an attitude that can lead India to-
real world. No one takes care of you; you have
the United States. Fortunately for India the
wards becoming a great economic power
to take care of yourself, through education”.
trend is changing. Indians are starting to see
and can make India a strong competitor
Even though Swedish students go to univer-
the potential of their home market and are
alongside other countries in the world.
sity for free and have access to student grants
proud of the label “Made in India”.
and loans, there is no such sign of gratitude or While comparing Indian and Swedish kids
happiness among them.
The newly gained confidence and a great spirit of entrepreneurship are helping India
it is easy to understand why India is develop-
to become a great economic power. An
ing so rapidly. Even though sports are becoming more and more popular, children tend to focus more on their education. The most
Becoming a Great Economic Power
example of the faith in entrepreneurship is that the IIT are encouraging entrepreneurship by helping students who want to start up a
important thing for an Indian child it not so much winning the cricket game but rather
India has some of the highest ranked
company. Students can apply for assistance
to get the best marks in school. The respect
technical universities in the world. The most
by presenting their idea and the best students
for learning and the happiness of having
popular schools for engineering are the Indian
get workrooms for free for a certain period of
Institute of Technologies, IIT, founded in
time as well as help from professionals. One
1950 by the central government. Their quality
of the former students that we met at IIT was
of education has acquired them the status of
very young and he had already started up four
being listed among the top technical schools
companies. Furthermore, most of the students
in the world. To get into the Indian universi-
that had started up companies were in the age
ties the students must pass entrance exams
group 20-25. “The aim is that the students
and those with the highest scores often choose
shouldn’t have to search for a job when they
the IIT. The rest apply to either the regional
get out of IIT, the aim is that they will create
“India is not a sports nation, it is an education nation.”
engineering colleges, which come next in the
the jobs instead”, says Professor Deepak B.
the opportunity to go to school are evident
rankings, or end up in the private engineering
Phatak. With this interest in entrepreneurship,
among Indian youngsters from well-educated
colleges. It is extremely hard to get admitted
the Indian economy will definitely continue to
families. Living their lives close to poverty
to an IIT, but those who succeed almost cer-
grow with a speed that is impossible for most
makes them realize how lucky they are and
tainly get a well-paid job in the future.
other countries to keep up with.
that is what probably gives them the eagerness
88
© Project India 2005
11-year-old Rohini
11-year-old Rohini goes to school six hours a day and, furthermore, she studies three hours at home every evening. Sometimes she has no homework on Saturdays, but she often dedicates her free time to getting prepared for the big exams. She goes to an English school and her handwriting is perfect. In addition to speaking English, Marathi and Hindi, she has been studying Sanskrit for a few years. Rohini is a typical middle class Indian girl. She comes from a well-educated family and both she and her family put a lot of effort into making a good student out of her. Rohini has been studying hard since she started going to school. Her eagerness to learn new things is astonishing and her dedication and ambition are far beyond those of a normal Swedish 11- year-old. Like Rohini, most Indian middle class children start their schooling with kindergarten classes at the age of three. Even for the first years of schooling many children go to interviews hoping to get into the best schools. After being admitted to a school the student has about 14 years of education to look forward to and specializes in the field, which he or she opts to take as his or her career during the last two years of schooling. It is common among middle class children to go to English schools. Their English skills are often very good. Rohini can, for instance, switch from Marathi to English without any effort. The excellent English skills along with the fact that India has a very highly respected education system probably constitute the major reasons for Indian doctors and engineers being highly regarded abroad.
Japan where the rate of suicides is high due
Despite the fact that the middle class is very
to excessive stress? Have the Indians realized
well educated, some say that there is a lack of
For the Indian economy, it is clearly profit-
that they need to focus on their quality of life
highly qualified engineers - that only the best
able to have a well-educated middle class, but
as well? To some extent, they have. They have
universities are good enough. The number of
what are the drawbacks?
started to go on vacation to other countries
universities has increased rapidly in India. In
and sports are becoming more popular. But
1950, there were 27 universities and today
does the six-year-old child, who is anxious
the number has reached 304. Is the average
about the interview, need more time to play?
quality of education increasing or merely the
The Drawbacks with Ambition
Is it too much stress for a six-year-old child to go to admissions interviews at the
quantity? Companies like Volvo and Atlas
best schools? Will India meet the same fate as
“India’s youth are its greatest opportunity as well as threat. If they are not provided proper education and jobs the nation will be lost.” Outgoing vice-chairman and CEO of Bangalore-based IT company Wipro Technologies.
89
Project India 2005 - Culture
Copco hardly have a hard time finding good
Social Initiative is one of the companies
engineers, but might that be due to the fact
that have a partnership with Akanksha. It
that highly regarded international companies
is through them that Carnegie employees in
attract the best engineers?
Sweden, for instance, support projects for the poor in India. It is very common that Indian
The economic development is rapid, the
companies support schools. For instance,
number of universities is increasing and the
TATA takes an active role within this area.
Indian middle class can look to a bright future,
Hopefully, foreign companies that enter the
but what about the millions of children who
Indian market will also assume responsibility
do not have the opportunity to go to school?
and support initiatives for the poor people.
Even though there are publicly financed
It should be a matter for foreign companies
schools for less fortunate children, not many
to be sponsors since this is an opportunity
of these children can devote sufficient time.
to give something back to the country that
Poor children need to work to support their
they are utilizing and to contribute to a better
families and they do not have much time
future in India.
left for studying. As a consequence, only the brightest poor children have the possibility of succeeding. Furthermore, some people have doubts about the quality of publicly financed education in India. However, for the poor children, progress is being made. One example is the Akanksha School in Mumbai. There are 2 million poor children in Mumbai and Akanksha operates 44 centers, in total giving 2,000 students an opportunity to increase their chances. Most of the children live in shelters in the slum that can easily be seen from the road. In Sweden,
Although the most popular sport in India is cricket, some also play soccer as you can see in the picture above.
“Students shouldn’t have to search for a job when they get out of IIT, the aim is that they will create the jobs instead.” Deepak B. Phatak Professor, IIT Mumbai
90
© Project India 2005
The End conclusion Project members Acknowledgements
Project India 2005 - the end
Conclusion Prior to our visit to India as well as dur-
stances. The cultural differences with our
the foreign companies we visited was that
ing our journey we had the opportunity to
lifestyle, the extreme competitive spirit of the
in order to be successful when establishing
meet numerous individuals who shared
Indians spreading to all fields of business and
yourself in this nation you need to have an
their thoughts with us about India. We
the overall challenges described in this report
Indian representative in the local market. It is
have shown you the country from our per-
(poverty, infrastructure etc.) present a much
crucial to be able to work and communicate
spective, characterized, above all, by the
too great an obstacle for us to tackle.
with a person who knows the market and its conditions very well. This represents a great
experiences that the journey brought with it, and somewhat influenced, however, by
In addition to the country’s bright economic
advantage. In order to enter the market suc-
the common opinions of the people we
future, one must not forget the importance of
cessfully, global companies need to preserve
met.
the country’s culture, dating back to 3000
their core activities while transforming their
B.C. Throughout our journey to the diverse
business segments in order to adapt their
Through this project we set out to identify
regions of India, we came across nearly all
strategy to the Indian market.
the potential of the Indian market. India is
major religions of the world. We noticed that
in the process of claiming its position among
there exists a certain harmony between the
Furthermore, we realized that the com-
the main actors of the global economy. Yet,
different cultures in the country, no matter the
panies we visited were eager to contribute to
several challenges lay ahead. Our experience
religion or the caste. Tolerance and peaceful-
Indian society and that environmental issues
and analysis of the country tell us that the
ness constitute the greatness of Indian culture
were prioritized. They were also very keen to
opportunities that the market presents mean
and the mentality of its inhabitants. Due to
make sure that their employees were working
that India will overcome these challenges.
these cultural differences as well as geographi-
in good conditions. This is one of the factors
The principal force behind India’s emerging
cal ones, India must not be seen as simply a
that motivates a large number of Indians to
economy is the country’s highly educated
country but as a whole continent.
start working for foreign companies in India. Since the companies take good care of them,
and motivated brain pool. This, combined with the enormous purchasing force of the
The lesson learned through this project is
we noticed a high degree of motivation among
market, attracts global companies and their
that India cannot be seen merely as a source
these employees. We can conclude, however,
investments. There is therefore no doubt in
of labor. It presents great potential in several
that back in Sweden there is a certain lack of
our minds that we will most certainly find
fields, research and development being one of
this energy.
ourselves coming into contact with the Indian
the most important. Most of the companies
market again in our future careers. We must,
we visited during our trip had moved parts of
however, point out that not all of us in the
their R&D activities to India.
group can envisage ourselves working in this environment today under the current circum-
An opinion shared by the managers of
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© Project India 2005
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Project India 2005 - the end
Project Members Per Wennerström,
[email protected] Project Manager
“India never stands still. The pulse and movement into a new society is striking. Yet, it is a country grounded on ancient traditions and culture that will remain unchanged. One unforgettable memory was when we travelled from the busy industrial city of Coimbatore to the calm mountain village Ooty. We came there by an old noisy steam train and climbing up the mountains surrounded by tea fields. This was a journey from the new India to the untouched India.” Malin Olin,
[email protected]
“For me, visiting Akanksha School in Mumbai was a rewarding experience; the children attending the school impressed me greatly with their positive attitude although they have longer days than any of us. I cannot describe India in one way, however when I think of India I remember the colours, the smells and the taste of mouth freshener.”
Robert Lagerström,
[email protected]
“The memory that will stay with me the longest is when we arrived in Rishikesh, a small mountain town at the foot of the Himalayas, where there was a pilgrim festival. Apparently meeting a party of eight Swedes was the most exciting thing that had happened to them, a large group of Indian pilgrims were following us where ever we went, no matter if we were shopping, eating or just sight-seeing.”
94
Sofia Groth,
[email protected]
“This picture is from Tah Mahal. After admireing the magnificant building we sat down to await the sunset. Suddenly we were the objects of investigation. In one minute we were surrounded by Indians who unashamed examined our peculiar skin and odd haircolour.”
Sam Rahbar,
[email protected]
“I am grateful to have received an insight into the business culture of India and the strategies adopted by global companies when entering the Indian market. While travelling across the country, one can literally feel the potential and the motivated spirit of this nation. The greatest memory of our journey remains that of the cricket game while visiting a small village in southern India; a game we did not fully master, much to the crowd’s amusement.”
© Project India 2005
Harald Knape,
[email protected]
Pernilla Emenius,
[email protected] Project Manager
“India with its friendly and dedicated people along with the good food, crowded streets and persistent salesmen has had a large impact on me. But one of my best memories is the drive from Aurangabad to Mumbai travelling through the beautiful landscape. Driving on bumpy roads passing villages and open fields with colours so intense it amazed me, the thought of it still makes me happy.”
“One among all of the photos from this journey brings me a very special memory. An early morning in the beautiful Kerala, I took a picture of what I thought was a peaceful fisherman philosophizing at the idyllic beach. Later when I examined the picture everything took a different turn, I had offended the fisherman by taking a photo of his private morning toilet session.”
Marie Håkanson,
[email protected]
“It was amazing to come close to the huge extremes of India. Next to the slum areas and the streets full of cows and goats, one can find high buildings rising which gives an indication of the new India and its growing potential. The entusiastic poor children in the schools, the spontaneous invitatation to a familiy’s home in Aurangabad and the friendly rickshaw driver who let me drive his Rickshaw on the streets in Bangalore are just a few examples of pictures I will keep in my mind.”
Viveka Andersson,
[email protected] Fabian Bonnier,
[email protected]
“Everyday in India gives you memories for life. One among many was riding an elephant through the jungle. The excitement of climbing up, the horror of sitting there and then feeling the back hair of the elephant cutting into my flesh as needles is surely a memory for life.”
“Since my childhood I have frequently visited India, my mother’s native country. I have always loved this country; the friendliness and the hospitality. This time I was happy to see how fast India is moving forward and how Indians are getting proud of what they have achieved. I hope and believe that India will meet an even brighter future.”
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Project India 2005 - The end
Acknowledgements A.J. Satoskar, Larsen & Toubro
Gunnar Benediktsson, KTH
Nitin Seth, Mobiance
Abhijeet Kelkar
Helen Hellströmer, Europeiska Reseförsäkringar
Pankaj Mukhija, Ericsson
Abhishek Johnson, Evalueserve
Jaydeep Deshpande
Paulraj Edwin, Volvo
Ajit Chaphalkar
Jeffrey Jeyaraj, Indiska
Per Norell, Seco Tools
Anantha Valli, Volvo
Joakim Hjerpe, Volvo
Pernilla Bard, Social Initiative
Anders Flodström, KTH
Johan Karlander, Evalueserve
Per-Olof Björk, Ericsson
Anders Thambert , Indiska
Johanna Grönkvist, ÅF
Phillip M. Davidson, Atlas Copco
Anil Trigunayat, Indian Embassy
Jonas Wiström, ÅF
Prajeet Patel, Evalueserve
Anjali Chandavarkar, AstraZeneca
K.P. Ramachandran Nair, Indiska
Puneet Kumar, Ericsson
Anna Kinberg Batra, Author
Karin Hedén, Scania
Pär- Anders Pehrson, Ericsson
Anne Höglund, Ministry of Foreign Affairs
Karl Jonasson, ÅF
R.G. Khatri, Larsen & Toubro
Annika Bengtsson, ÅF
Keenan Pereira, Capgemini
Rakesh Mathur, Webaroo
Anoop Kumar P.K., Larsen & Toubro
Kennet Åhbrink, SAAB
Ramon Wyss, KTH
Ashish Gupta, Evalueserve
Kent Kærby Hansen, Capgemini
Ranjeet Jagtap
Ashok Nehru, Swedfund
Kjell Casenberg, Ericsson
Robin Sukia, SIBC
Axel Widmark
Kjell G. Andersson, Volvo
Sachin Chavan, Atlas Copco
B.D Markad, Seco Tools
Kristina Andersson, Vagabond
Sailesh Nair, Indiska
Bengt Johansson, Swedish Trade
Kurt Hellström
Sandeep Pal, Ericsson
Bicky Chakraborty, Elite Hotels
Lars Walan, AstraZeneca
Sanjay Mangrulkar, Seco Tools
Britt Larsson, Realtryck
Lena Höglund, Elekta
Satheesh Karanth, AstraZeneca
Camilla Larsen, AstraZeneca
Lotta Bynke, Atlas Copco
Sebastian Lourdudoss, KTH
Caroline Cederlöf, Social Initiative
M.K. Patki, Larsen & Toubro
Seema Dueland, Convenient.info
Catrine Larsson, Capgemini
Magnus Chröisty, ManCo Mode
Seshadri Seetharaman, KTH
Christina Baines, Indiska
Magnus Gyllenhammar, Photografer
Simon Moores
Claes Ahrengart, Atlas Copco
Mamta Tyagi, Evalueserve
Sirinivasan Muralidhar, Volvo
Clarence d’Souza, Volvo
Mansoor Ahmed, Volvo
Smiti Ruia, Time Out Mumbai
David Ståhl
Maria Lanner, Swedfund
Srinivasan Muralidhar, Volvo
Deepa Gopalan Wadhwa, Indian Ambassador
Marianne Persson-Söderlind, KTH
Stefan Folkesson, SBL Vaccine
Deepak Phatak, IIT Bombay
Marina Högland, Markkontoret
Thierry Cros, Seco Tools
Denise Johannisson, Orrefors
Mats Agervi, IBM
Tina Vajpeyi, Akanksha school
Ewa Webb, SAAB Baracuda
Merl Iyer, Time Out Mumbai
Ulf Hjalmarsson, SIBC
Fredrika Ornbrant, Ministry of Foreign Affairs
Mikael Kyander, Scania
Ulf Nordqvist, Volvo
G. S. Nawathey, Larsen & Toubro
Mikael Valier, MIFAB
Waldemar Tevnell, Puls Biznesus
Gautam Bhattacharyya, Swedish Embassy New Delhi
Narendra Taneja, Journalist Dagens Industri
Viktor Svensson, ÅF
Girish Johar, Ericsson
Niclas Trouvé, Swedish Embassy New Delhi
Vishal Pandit
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© Project India 2005
Project Partners Main sponsors:
us disease
Elekta was founded in 1972 and has today approximately 1,700 employees in 20 offices worldwide.
Partners:
Elekta’s corporate headquarters are located in Stockholm, Sweden and the company is listed on the Stockholm Stock Exchange. For more information please visit www.elekta.com
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Product Sponsors:
97
Project India 2005 - The End
For all students at KTH. Sign up for next years project!
[email protected]
98
© Project India 2005
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