It’s said, when you go out to conquer the world, make sure you have a firm footing at home and in the neighbourhood. India Inc is trying to do precisely that in Burma, which happens to be the only Asean country to share a boundary with India. In a market dominated by Thai, Chinese and Japanese products, the made-in-India brand is making its first major foray now.
India has already made its presence felt in Burma, thanks to Bollywood. Video discs of latest Bollywood flicks — whether box office duds or hits — are selling like hot cakes on the bylanes of the capital, Rangoon.
But, it is a greater challenge for the Indian manufacturing sector to take root in Burma. Almost every automobile in Rangoon is Japanese, and Thai and Chinese products account for most of the other sectors. Also, Koreans have just started making their presence felt in the consumer durables space.
So where is India lagging behind? Border trade, say most local businessmen whom ET spoke to. “Take China for instance, which has built roads connecting Myanmar, and is pouring its goods through the land route. What is India doing? It cannot even ensure security of the goods being shipped from its regions,” said one businessman. Added Rajul Goenka, executive director of Bandoola International, a fifth generation businessmen of Indian origin, “Given the security issues involved in transporting goods through the north-east, we have to opt for the sea route.”
“The sea trade takes place via Singapore and it doubles the cost of transportation, making Indian products less competitive in an economy with low purchasing power.”
The Confederation of Indian Industries (CII), which organised an exhibition of Indian products in Burma with a delegation of 70 Indian companies, has now taken some initial steps to put the Indian brand known in the country. “We have made an important beginning,” says Rajive Kaul, CMD of Nicco Corp and leader of the CII delegation.
The CII has identified certain areas in which Indian companies can make inroads in the Burmese market. Light engineering products, including auto components, are tipped to be a major driver for Indo-Burma trade, as is construction and building materials. Drugs and pharmaceuticals is another area where Indian products have good potential.
A senior official with the Food and Agricultural Organisation (FAO) told ET, “Indian companies have good expertise in edible oil refining. In fact, we have asked for a $15-m loan from OPEC to develop small scale oil mills in Myanmar, where Indian companies can play a role.”
Given the positive vibes, the two countries have set a target of $1bn in bilateral trade by ’06 against less than $500m at present. Moreover, a taskforce has been created to identify key thrust areas for trade between the two countries . It will also assist in the formation a joint CEOs forum.