March 2019 Second edition International

e-InDigital and Millenndiaials, the Greatest Economic Explosive Formula in the World Business Power 100 Infrastructure, Hi-Tech, All the big names Health, Food, Fashion, in Milan-Mumbai Cosmetics ... All the business relations opportunities from a rapidly growing market The Italian Way Tips and stories from managers and businessmen who hit the bull’s eye Air Italy ING.indd 20 09/01/19 13:43 March 2019 Contents INTERNATIONAL INDIAITALY

INDIA TODAY INDIAN LOOK BUSINESS People, trends, flash The Future Between India Tech The businessman of the year; Mittals’ High-Tech and Sustainability At Research’s Front Line 6 Architects, designers, engineers 56 by Francesco Bisozzi Nerves of steel; Football 34 is right on cricket’s tail; are collaborating on public and Credit Access success; private plans to build the smart Here business is good cities of the next decade. The role for children; Pangea of Italians Vijay Shekhar aims to help women; by Martina Mazzotti The sustainable kart of Lamborghini cover story

Power 100 Agrifood Businessmen and diplomats in Innovation Leads the Field India and Italy that can facilitate by Franco Canevesio 10 bilateral relations and are 60 interested in starting up business Fashion with Italy It’s premium time 64 for malls and online stores INSIDE INDIA Interview with architect Bijoy Jain by Milena Bello India Favours Cosmetics Growth and consumption, starting 36 Italian Humanism the virtuous circle The Make-Up Boom by Milena Bello Montek Singh Ahluwalia, 70 20 economist, and Sumeet Yadav, BUSINESS top manager, talk about their Strategy vision of India in the near future E-Commerce, a Vertical Space in 42 Between the Giants testimonial by Cecilia Giannini Lorenzo Angeloni The Success INFRASTRUCTURE dossier of the Granular Approach Who Leads the Main Projects 24 by Pier Paolo Albricci The Indian government public works plan worth $ 780 billion Pierroberto Folgiero 45 Health of investment in the economy by The Good Drugs and Equipment, 2025. Several are the promises, Chemistry 74 Hospitals On the Look For Know-How 26 but so are the construction sites of the Italian-Indian by Franco Canevesio Alliance already in operation. All the by Pier Paolo Albricci working opportunities for Italian Pierroberto Folgiero companies Guide by Francesca Bruni OUTLOOK The Figures to Consider The Elephant’s Charge 77 Over 7% growth for the next three years The Italian Way 28 and inflation under control: is this the From Delhi to Chennai, winning recipe of the Indian giant? 80 Those Driving the Made in Italy by Cecilia Giannini by Pier Paolo Albricci and Gabriele Ventura Flight Connections The Challenge Focuses on Times & Fares 88 by Francesco Bisozzi Renewable Energy Italian Personalities Betting on Yellow The Who’s Who of Institutions 54 by Stefano Catellani 90 Promoting Business

3 March 2019 INTERNATIONAL Editorial INDIAITALY An Essential Challenge

by Ettore Mazzotti

ndia is like an incredible, life-sized kaleidosco- nefits of a years-old bold decision. All of it despite finance. Thus his company, counting on 12 thou- pe, where Pune gives one of the clearest views the enormous contradictions – with annexed collapse sand employees, managed to aggregate three million of the general situation. The city’s verdant hills, risks – Pune and other Indian realities have started Indians, and has been listed in the Mumbai stock I 130 kilometers south-east of Mumbai, used to to let on, walking a tightrope between the need for exchange for six months now, while supported by be the rich’s favorite summer retreat, allowing a development and for sustainability (quality of life), all major institutional investors in the world. break from the heat of the metropolis. Yet today between innovative technologies and backwardness, Again, it is quite fascinating observing the effects its two districts, Baramati and Chaka, have beco- and between some rich’s excessive private spending of the Aadhaar program, the result of the Modi me the realms of real estate developers and of food and the need for public investments. Yet if the size government’s intense push to digitalization. In and automotive multinationals from all around the 2016 the initiative gave a 12-digit (plus chip) di- world. It hosts hundreds of factories, serving brands the next releases gital identity to one billion Indians, thus leading as General Electric, Coca Cola, Ferrero and them to promptly open 200 million new bank Mahindra, where all involved parties – in- accounts. As some of the more sensible obser- cluding all-size subcontractors, down to the vers may have already noticed, it also affects smallest family business – work 6 days per Millennials – young people between 15 and week, three to four six-hour shifts, with no 24 years old, a section of the population ma- lunch breaks. Commuting takes 2 to 3 hours de of 250 million individuals – whose habit of a day, and despite the surge in real estate using mobile technologies will be the backbo- development, half of the buildings remain ne of consumption influences and drives. And empty. Public infrastructures are in criti- also because they register the highest incomes, cal conditions, in particular communication since they ride the best responsibility horses in ones – in dire need for an upgrade following the Make in India race. The analysis is appro- the steep increase in mobile phones usage, so ximate yet convincing, as 30% yearly growth much that a fixed lines revival was necessa- in purchasing volumes is giving businesses ry to start making decent phone calls again. like denim manufacturer and managers of e- Air quality levels are at an all-time low, as commerce platforms a tangible proof. reported by the local weather forecasts. Who would of all concurrent problems can have the brain-scan All this makes it for the backbone of the analysts’ ever want to work under such conditions, if it we- of Western rationality go flat, people from the East statement: leaving all the macro data out, as it is fa- ren’t for a yearly production and sales growth of know how to approach things in a very different way vorable yet unstable, it is safe to say that the Indian 25-30% on average? “India is a very big ship that’s – through a rather pragmatic analysis of events and elephant has started running, ignoring all duties and about to sail, so I cannot imagine how anyone would opportunities, giving back a much more encoura- international tensions – mainly focused on what want to miss it,” says a successful Italian manager, ging overview. So Paolo Brinchetti learnt from the will happen to computer science in Bangalore and working in India for years. Quite the bet turned lu- masters and applied this predictive strategy to his Chennai, in the automotive industry in Pune, and in cky: today there are over 600 Italian companies plus microcredit project, betting on what’s unanimously agriculture in the north of the country. 200 operative sites on the territory, reaping the be- considered the segment with the brightest future in So why not following in the slipstream?

I FATTI SEPARATI DALLE OPINIONI Finanza Editori, preferibilmente mediante francobolli, o a mezzo assegno. La richiesta sarà evasa entro 30 giorni

e-mail: [email protected] Tariffe abbonamenti Milano Finanza Italia € 160,00 annuale, estero € 266,00 annuale; MF Italia € 230,00 annuale, estero € 770,00 annuale; MF+Milano Finanza Editor in chief and Publisher Paolo Panerai (+39 02 58219209) Italia € 354,00 annuale, estero € 900,00 annuale. Abbonamento estero via aerea. Editor and Associated Publisher: Gabriele Capolino (+39 02 58219227) Stampa: G. Canale & C. S.p.A. - Borgaro Torinese. Distribuzione Italia: Erinne srl, 20122, Via Marco Burigozzo 5 - Milano. Concessionaria esclusiva per la pubblicità: Class Pubblicità, Via Burigozzo 8, 20122 Milano. Tel. 02-58219522/500. Managing director for editorial contents: Edoardo De Biasi (+39 02 58219263) Presidente: Angelo Sajeva. Vicepresidenti: Mariangela Bonatto, Andrea Salvati, Gianalberto Zapponini. Vicedirettore generale stampa e web Business: Deputy editors: Francesco Allegra (vicario, 02-58219875), Antonio Satta (06-69760847) Stefano Maggini. Vicedirettore generale tv indoor & moving tv consumer: Giovanni Russo. Per informazioni commerciali: [email protected]. Sales manager (MF International): Mauro Aurelio Tariffe pubblicitarie a modulo: Commerciali € 520,00; Finanziari: € 340,00; Legali: € 220,00; Domanda e offerta di personale € 520,00; Aziende informano € 520,00. Supplementi per posizioni di rigore: +25%; per pubblicità a colori: +40%. Tutti i prezzi si intendono Iva esclusa. International Reg. al Trib. di Milano n. 266 del 14-4-89 - Direttore responsabile: Paolo Panerai by: Ettore Mazzotti (+39 02 58219885) Contributors: Pier Paolo Albricci, Milena Bello, Francesco Bisozzi, Francesca Bruni, Franco Canevesio, SERVIZIO ABBONAMENTI CHIAMATA GRATUITA CHIAMATA GRATUITA Stefano Catellani, Cecilia Giannini, Riccardo Grisanti, Martina Mazzotti, Andrea Pira NUMERO VERDE FAX VERDE English version: Cecilia Bernabeni and Giulia Donati 800-822195 800-822196 Art director: Enrico Redaelli - Layout: Alessandro Villa Editorial assistant: Rosalba Pagano and Federica Troìa Ai lettori Milano Finanza Editori spa Tutte le informazioni contenute in queste pagine si basano su fonti che MF/Milano Finanza ritiene attendibili. Le asserzioni espresse nei vari articoli Milano Finanza Editori spa - 20122 Milano, via Marco Burigozzo 5, tel. (02) 582191 (sel. passante), telefax (02) 58317518-58317559. dei collaboratori rispecchiano esclusivamente l’opinione degli autori. Nonostante l’estrema cura nel trattare la materia, MF/Milano Finanza non si assume responsabilità per quanto riguarda conseguenze derivanti da eventuali inesattezze o imprecisioni dei dati e delle quotazioni. In particolare, 00187 Roma, via Santa Maria in Via 12, tel. (06) 6976081 r.a., telefax (06) 69920373-69920374 - Copie arretrate: comporre il l’investimento in prodotti derivati (opzioni, futures, premi, warrant) offre la possibilità di ottenere elevatissime performance ma anche correndo un numero verde 800-822195. Risponderà la segreteria arretrati. Indicare cognome, nome, indirizzo, numero telefonico, pubblicazione rischio molto elevato. Nel caso più negativo, si può verificare anche la perdita totale del capitale investito. In un normale portafoglio, la quota da arretrata desiderata e relativa data di uscita. Ai non abbonati è richiesto l’invio anticipato del doppio del prezzo di copertina a Milano destinare a prodotti di questo tipo dovrebbe essere limitata.

4 Tabellare Sace.indd 20 14/01/19 11:29 March 2019 INTERNATIONAL INDIA TODAY INDIAITALy by Pier Paolo Albricci, Milena Bello, Martina Mazzotti

The Businessman of the year The Deal of the Year With a Wallet in His Hands Nerves of Steel

Vijay Shekhar Sharma, 40, over 2 billion dollars of Those Mittals from Calcutta, assets, a self-made man who started from nothing the new owners of Ilva-Taranto

e is only 40, but he is already doing business with Warren hey showed extraordinary HBuffett, Jack Ma (Alibaba) and Masayoshi Son (Softbank). «Tmediation and endurance According to Forbes, his personal fortune in 2017 exceeded the $ 2 skills. They personally browsed every billion. A walking and talking revolution possible solution and, in the end, the since birth. Of modest origins, he one who rounded it off with Di Maio comes from Aligarh, a small town was Lakshmi». Francesco Gianni, in northern India, and couldn’t even business lawyer and founder of his afford two meals a day while studying. namesake law firm, spent the last four An entrepreneur with the broadest of years representing the Arcelor Mittal Lakshmi Mittal with his son Aditya, smiles, brilliant yet never patronizing, group in one of the most important 42, ceo of Arcelor Mittal Europe and definitely the type to show up at industrial and financial negotiation meetings wearing denim and a t-shirt. ever conducted between Italy and India. Finally, the world’s Vijay Shekhar Sharma is the creator of leading steel group could put its own signs up at the Ilva Wallet PayTM, a payment platform and in Taranto last year, on November 1st. The Mittal family, electronic purse worth 10 billion dollars. resident in London for some Vijay Shekhar Sharma At the age of 15, two high school time, made its first offer back promotions allowed him to enroll at the at the beginning of 2015, and Delhi College of Engineering, where they could wrap everything up he soon understood it would have been impossible to achieve his only last September. «It was a plans by speaking only Hindi. So he took an English dictionary and good lesson in entrepreneurial started studying. And when he couldn’t find the money to move to vision, supported by a great the already-legendary Silicon Valley, he decided he was going to industrial competence,» build everything himself. At 20, he launched Indiasite.net, followed added Gianni. Lakshmi two years later by One97 Communications, offering different Mittal, 68, was born in mobile contents including news, cricket scores, and ringtones. It Rajasthan (Western India), was thanks to One97 that, in 2010, he could come up with the idea but his family is from for PayTM – a payment system easily accessible from smartphones Calcutta, hometown of the and QR-code activated, enabling the user to buy anything, even a steel industry. He founded Francesco Gianni 20 cents cup of tea. The boom came at the end of 2016 with the his first steel mill in his early overnight government decision to withdraw India’s most used twenties in Indonesia, and notes, the 500 and the 1,000 rupee ones. Then there was the 2017 started building his career from there. All the steel plants he jump in the B2C with PayTM Mall, competing against Flipkart bought and renovated around the world, including those in and Amazon giants. Thanks to the 300 million registered users, the United States, benefited from his aptitude to innovation Buffett’s Berkshire Hathaway invested 300 million dollars in the and efficiency, leading him to become a steel world leader in Sharma company, supporting Alibaba – a 40% shareholder since the early 2000s – acquiring, of course, an immense wealth 2015 through its Ant Financial Services, and Softbank, holding a as well. In 2017, AM had a turnover of $ 67.8 billion and 14%, through a 1,4 billion dollars investment. produced 93 million tons of steel.

Trend

Football eems like football has opening football schools, Sbecome the second looking for sponsors, and is Right on most popular sport in India, making their brand known Cricket’s with a huge following in to future fans. Italy is still some states of the Union, in its approach phase. Tail and placing just after cricket. Indian BKT Tires, $ 850 The Indian Super League million of turnover in the Lucia Salmaso and a free-style football exhibition sposored by Bkt keeps bringing foreign production of special tires, players and trainers in, took the first step, while is anything to go by. Milan new market, where strong products. Not to mention increasing its technical ratio. Lucia Salmaso, leading and Verona football teams growth is expected both for that even these sectors The big English, German and the European business, have also requested companies trading in sport seem to interest the Italian Spanish clubs – including decided to sponsor the B for Stefano Boldorini’s infrastructure products, companies, which are now Barcelona, Real Madrid, series – rather, the BKT WINH to investigate the as well as for those active working to enter the Indian and Arsenal – are already series, if last year’s contract opportunities offered by the in business-to-consumer market.

6 March 2019 INDIA TODAY INTERNATIONAL INDIAITALy Micro-credit FLASH How Much It Pays to Lend to the Poor A Cappuccino with Birla The exceptional growth of Credit Access, listed on the Mumbai stock exchange last August «The small appliances market is experiencing a significant growth, and India holds the potential to enter our foreign mar- kets’ top10». Tunc Gencoglu, vice president of De’Longhi, head ogether with the Credit Access Grameen brand, inspired by the of Middle Eastern and India markets, TGrameen bank founder and Nobel prize Mohammad Yunus, Italy’s announced the Indian partnership with microfinance debuted at the Mumbai stock exchange last August. The Orient Electric, part of the CK Birla merit goes to Credit Access’ founder group. The company has a 1.8 billion and number one man, leading an dollars in turnover, and is active in au- organization providing over 3 million tomotive technologies, constructions, customers in India and Southeast Asia healthcare, and education. Orient with microcredit – unsecured loans Electric will become the exclusive di- on existing assets from a minimum stributor of De’Longhi, Kenwood, and of 100 to a maximum of 5 thousand De’Longhi Eletta Braun products in the country. A pos- Left, Paolo dollars, repayable over 2-3 years. The sible first step toward the opening of a production plant, seizing Brichetti organization, launched in 2008 by the opportunities offered by Make in India. and a micro-credit Brichetti – first active in Altroconsumo meeting and then in venture capitals with in a Indian Microventures – has its main place of village business in India, where it serves 2.5 A Journey on Myntra million customers in 1,000 branches; its jobs flow grows at 50% per year, while its last year’s profit In the end they chose to focus on was of 14% and is expected to reach 20% when Myntra, the vertical platform of the fully operational. In its efforts to collect the $ 150 million needed to Flipkart group in the fashion and ac- finance rapid development, including Indonesia and the Philippines, cessories sector. The managers of the the Mumbai Stock Exchange felt as the natural choice. The roadshow, Pianoforte group that controls Carpisa, managed by Credit Suisse, the Indian Kotak bank and ICCI, hosted an accessories and travel brand, is get- over 200 institutional investors, mainly Americans and Asians and no ting ready to make their debut on the more than 4-5 Europeans, which eventually signed for the issuing of Indian e-commerce market – an ide- A Carpisa trolley new shares for an amount 2.2 times higher than the offer. Individual al target for their products. Myntra, subscriptions were over 200 thousand. «So far we have grown founded in 2007 by Mukesh Bansai, and organically and at incredibly high rates, but with the capital raised on acquired by Flipkart in 2014, reached its success by gaining the stock exchange, we will aim higher,» Brichetti explained to MFI. customer loyalty through its marketplace model – initial- Even though the latter had Udaya Kumar, formerly Barclays, take ly selling customized products, T-shirts, mugs, mousepad, the CEO chair and the following direct responsibility of the Indian and then exploiting the space to introduce its own brands. business, allowing himself to focus on development programs, he still kept supporting him with management. «We are working on three strategic frontlines,» announced Brichetti. The first one regards the possible acquisition of competitors both in India and in Indonesia, Fila Together with NBNW already identified. The second aims at launching a microinsurance Founded in Biella at the beginning of the 20th century, company, initially focused on life insurances. The third one is the the sportswear brand managed to turn global thanks to diversification of the business through new products, in the first place its new owner Korean designer Gene Yoon, and genera- co-housing, that is the realization of housing units, in the crowded tes today a 2 billion turnover. And Norblack Norwhite, one metropolises of Asia, for young middle-class people. of the youngest and most successful streetwear brands in fashion, is now getting ready to have Fila land in India. NBNW was launched ten years ago by Mriga Kapadiya A Zero-Risk Public Company and Amrit Kumar after they left Canada, where they grew up, to rediscover their Indian roots. Fila, linked above all to redit Access is de facto a public model’s success relies in funding the world of tennis, company, where two new capitals for small family businesses C where it introduced institutional investors – the Asian and for workers with no access to color in the seven- Development Bank with 9%, and the the banking system – ultimately, the ties, is the sponsor US Olympus Asia, a private equity best types of repayers. The quality of of Kiki Bertens, the fund, with 27% – have joined the the credit provided by Credit Access 27yo Dutch tennis initial nucleus of Italian shareholders, boasts a 1% bad loans rate, dropping player, number 9 including those family offices and big to 0.5% in India, and confirming in the world in the moneys gathered by Paolo Brichetti. what all wise bankers know: the risk WTA ranking. The secret behind its business is lower in lending money to the poor. Kiki Bertens, 27, from Netherlands

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March 2019 INTERNATIONAL INDIA TODAY INDIAITALy

Charity Micro enterprises Here, Business is Good for Children Pangea Aims to Help Women

The initiatives of Ferrero, Bonfiglioli and Binda to Micro-credit and financial education are the weapons provide education and future for street children of the onlus founded by Luca Lo Presti in 2002

any of the Italian companies operating in India have he project was launched in Mchildren as the main recipients of their charity activities. TApril 2017 and developed The Bonfiglioli of Calderara (Bologna) established the Cheer in 11 villages, near Varanasi Future Land association for the construction and management (Uttar Pradesh) involving a total of two shelters in Chennai (Tamil Nadu); the first one opened of 684 women. It is a female its doors in 2010 to empowerment program, managed all youth, while the in partnership by the non-profit second one, completed organization Pangea, founded in last year, welcomed 50 2002 by Luca Lo Presti, 55, from young girls. «Thanks Milan; the local organization to Cheer Future Land, Sampark; and the Krishnamurti over 80 youth had the Foundation. It aims at promoting opportunity to access the economic emancipation education and to receive of women through business training for facing development, savings collection, future challenges,» microcredit granting, and the explained president and creation of local cooperatives. CEO Sonia Bonfiglioli. In 16 years of activity, C «We also want to offer Pangea helped almost 50,000 M

practical help to the most women, and over the years Y

vulnerable sections of the organization specialized in CM the Indian population, consulting services – providing MY Sonia Bonfiglioli among the children of Cheer and actively promote women with broad support Luca Lo Presti and Simona Lanzoni, Future Land. Left, Giovanni Ferrero and, above, awareness for the need and giving them the material in charge of the micro-finance CY the kindergarten at Baramati by Ferrero activities. One of them is the Koppal of a culture of social strength to transform their CMY project: two bufalo as the initial

sensitivity,» said Simone lives. Through weekly group asset for the business K Binda, 53yo, CEO of the family group and one of the most meetings, working women learn important Italian players in the watch market (with Breil, to manage their money and follow financial literacy courses, Hip Hop, Wyler Vetta). Mr Binda, together with his brother as well as vocational training with the aim of achieving an Marcello, started in 2006 a beneficial and lasting collaboration independent and virtuous management of their work. Lo Presti with the two Indian NGOs Terre des Hommes Core Trust has been living in Asia for almost thirty years, dealing with and Life Line Trust, based in Tamil Nadu and focused on the protection of human rights in South Asia and then focusing supporting childhood. Binda Onlus focused its support on its activities with Pangea in India, Pakistan, Afghanistan, and the development of aid programs launched in the Tamil Nadu Nepal, choosing as a privileged ground the aid to the female region, in four shelters hosting a hundred children. component of the society.

Sustainable luxury A Golf Kart olf karts create Kinetc group of Pune which will initially be vehicles, mostly Ga 2 billion dollar decided to rely on the distributed in India, three-wheeled, for market, which grows Tonino Lamborghini, China and the United sold through annually in double operating in luxury States, and then in the a network of Lamborghini figures. The Green accessories design rest of the world. The 200 dealers. Energy and Power and production as well first samples should For Tonino Solutions of the as in the hospitality come out of the Kinetic Lamborghini, sector, for the design plant in Ahmednagar, founded in 1981 and the production of Maharashtra, as early by the son of a premium features as next September. Ferruccio, the Tonino Lamborghini kart. In the majority Kinetic Green entered founder of the (75%) Kinetic jv, the electric vehicle sports car factory, strategy so far focused Indians will have an market three years now owned by Vw, on China and Russia on exclusive right of ten ago and has already is an opportunity to a new market with high years on the product, produced 25,000 expand its international growth potential.

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K March 2019 INTERNATIONAL COVER STORY/POWER 100 INDIAITALy The outstanding Indians

1 2 3 4 5 Gautam adani Mukesh Ambani DEepak bagla SANjiv bajaj SHRI hari mohan bangur President, Adani Group President and CEO, Reliance Industries CEO, Invest India CEO, Bajaj Finserv CEO, Shree Cement

6 7 8 9 10 rahul bhatia arundhati bhattacharya kumar mangalam birla anand burman subhash chandra President, IndiGo President, State Bank of India President, Aditya Birla Group President, Dabur President, Essel Group

11 12 13 14 15 umesh chowdhary SHREERAJ DESHPANDE sameer gehLaut adi godrej sanjiv goenka CEO, Tittagarh Wagons KMP, Future Generali India Insurance President, Indiabulls Housing Finance President, Godrej Group President, RP-Sanjiv Goenka Group

16 17 18 19 20 s. KRIS gopalakrishnan vinita gupta dheeraj g. hinduja MUKESH micky jagtiani tarang jain CEO, Axilor Venture CEO, Lupin President, Ashok Leyland President, Landmark Group CEO, Varroc Group

21 22 23 24 25 SaJjan JINDAL rana kapoor uday kotak Kalyan Krishnamurthy baba kalyani President and CEO, Jindal Group Founder, Yes Bank Executive VP, Kotak Mahindra Bank CEO, Flipkart Group President, Kalyani Group

10 March 2019 COVER STORY/POWER 100 INTERNATIONAL INDIAITALy in business with Italy...

26 27 28 29 30 siddhartha lal abhishek lodha anand mahindra darshan metha Cyrus pallonji mistry CEO, Eicher Motors CEO, Lodha Group CEO, Mahindra Group President and CEO, Reliance Brand MD, Shapoorji Pallonji Group

31 32 33 34 35 Lakshmi Mittal PAWAN Munjhal shiv nadar vikas oberoi madhukar parekh President and CEO, Mittal Arcelor President and CEO, Hero Motocorp President, HCL Technologies President and CEO, Oberoi Realty President, Pidilite Industries

36 37 38 39 40 adar poonawalla azim premji Abhijit jagdish rajan Reenat Sandhu dilip shanghvi CEO, Serum Institute of India President, Wipro President and CEO, Gammon Indian Ambassador in Italy President, Sun Pharmaceutical

41 42 43 44 45 vijay shekhar sharma kiran mazumdar shaw Bavaguthu raghuram shetty roney simon rataN naval tata Founder and CEO, PayTm President, Biocon CEO, NMC Healthcare CEO, CRS TrendLab President, Tata Trusts

46 47 48 49 50 kushal pal singh tewatia bhavin turakhia sunny varkey shamsheer vayalil Nusli Wadia President and CEO, DLF Limited CEO, Directi President, GEMS Education CEO, VPS Healthcare President, Wadia Group

11 March 2019 INTERNATIONAL COVER STORY/POWER 100 INDIAITALy

Gautam Adani employees, founded 25 years ago. Last November the flagship Shreeraj Deshpande 1 President, Adani Group IndiGo could count on its 207 Airbus aircraft fleet, connecting 12KMP, Future Generali India Insurance Class of 1962, son of a Gujarat textile trader, Mr Adani 66 destinations (15 overseas), to hold a solid grasp on 43% of Last November Mr Deshpande took over from CEO KMP Rao, started business as a precious stones broker in Mumbai. When market share over domestic flights. It is considered the market’s who was relocated to Malaysia, and became the company’s his brother opened a trading company in the capital city of most profitable company, managing to keep a positive profit Key Managerial Personnel; he is now in charge of healthcare, Amhedabad, Gautam took over and focused on commodities margin for the past ten years. Mr Bhatia is known for being customer service and IT. Future Generali India Insurance is a (plastics) and logistics. He’s now the most important private port extremely reserved, and for having a strong distrust in media joint venture between Generali and Future, one of India’s most operator in India, managing eight different ports. His group was and, supposedly, in economic theories. He has been collaborating important retailers, and there are now 125 insurance offices all among the promoters of the Mudra terminal – the biggest in the with French Accor, managing their seven Ibis hotels and building across India offering their policies. The insurance premium, country – in Gujarat, and is now building a new hub in Kerala, a further 13; he also opened 22 outlets for Hudson News & Café amounting to 370 million Euros on March 31st, 2018, has South India. The group is currently working toward a partnership in Delhi’s subways stations. doubled in the last four years, while corporate customers are with Finmeccanica, and has a joint venture running with Diego now over 2 thousands. Ponte’s MSC on container traffic. Arundhati Bhattacharya 7 President, State Bank of India Sameer Gehlaut Mukesh Ambani She has been the first woman to hold office as the president 13President, Indiabulls Housing Finance 2 President and CEO, Reliance Industries of the State Bank of India, an 200 years old historical credit US Halliburton ex-manager, Mr Gehlaut was only 25 when he Class of 1957, he is the oldest son of Reliance Industries Ltd institution. According to Forbes, she is one of the 25 most founded Indiabulls in 1999, together with two friends he met (RIL, once Reliance Commercial Corp) founder Dhirubhai powerful women in the world. Born to a Bengali family in while studying for a Mechanical Engineering degree at the Ambani. He graduated with a BE in Chemical Engineering from Calcutta, she attended an English Literature course in the Indian Institute of Technology in Delhi. They started working the University of Mumbai and then joined the family business in University of Jadavpur and managed to break into the reality as online broker in a small office close to the coach station. In 1981 as Petrochemical sector director. When his father died in of the bank at the tender age of 22. During her 36-year-long just about ten years Gehlaut’s group became active in real estate, 2002, he and his brother Anil inherited all assets before staking career she played different roles, some involving treasury, human infrastructures, consumer finance, loans, and retail. Today it is them off four years later: Mukesh is now in charge of petrol resources and investment banking supervision. She also worked worth 3.5 billion Euros and operates through its three companies and chemicals, while Anil oversees communications, retail, in New York for some time. The bank has 190 branches in 38 – Housing Finance, Real Estate e Ventures. In 2008, at 32yo, and investments. The Ambani brothers have built a number of countries around the world, including one in Milan. Gehlaut was considered India’s youngest self-made billionaire. connections with chemical and petrochemical Italian companies like Maire Tecnimont and Eni. The Versalis group relies for Kumar Mangalam Birla Adi Godrej trading on the production of their Reliance rubber factory in 8 President, Aditya Birla Group 14President, Godrej Group Hezira, provided the technology licensing and know-how for its The so-called “commodities king”, Mr Birla belongs to the His family’s conglomerate boasts 115 years of history and construction. Regarding retail, Reliance distributes a range of fourth generation of one of India’s most important families, close to 4 billion dollars in turnover and Mr Godrej, as its 74yo Italian brands including Zegna and Diesel. native of Rajasthan. Born in 1967, he spent his younger years third generation president, is active today in real estate, daily growing up between Kolkata and Mumbai, successively consumer goods distribution, industrial engineering, appliances, Deepak Bagla furthering his studies at the London Business School. At 28, after furniture, safety, and agriculture. Mr Godrej has very strong ties 3 CEO, Invest India the sudden loss of his father, he took over the group and turned with Italy, where he’s been scouting a number of SMEs in the Mr Bagla, a New Delhi Economic School alumnus, started his it into the first viscose and fibers manufacturer and the third hope for Godrej & Boyce to start trade Italian quality products as 30-year-long solid career in the central branch of the World copper and steel producer in the world, turning over more than well as to produce Italian-inspired goods in India. He is an active Bank, in Washington. In 1989 he became part of Citibank Global 40 billion dollars. He was also responsible for expanding toward WWF supporter, and created a school campus for his employees’ Corporate, where he held different positions of responsibility in telecommunications and software, and for strengthening the children in Vikhroli, close to Mumbai, comprehensive of a 150- Europa, Africa, Asia and Australia during the following 18 years. cement, fertilizers and textile businesses. Under his management acre mangrove forest. In 2003 he joined 3i Private Equity wishing to kickstart an India- the group has seen the opening of 74 plants around the world – specific fund for building basic infrastructures. Invest India, the including the one in Trecate, Novara province, Italy. Sanjiv Goenka national agency for investments promotion, is a joint venture 15President, RP-Sanjiv Goenka Group between the Industrial Policy Bureau, the Ministry of Trade and Anand Burman Class of 1961, he’s the RPG Group founder’s youngest son. Industry, the federal government, the Chambers of Commerce, 9 President, Dabur His family’s business has a turnover of 2.5 billion and owns and the India states governments. Mr Burman, 66yo, University of Wisconsin Chemistry course companies operating in energy, carbon black, IT & education, alumni, is the son of Dabur’s founder, and joined the family retail, media, and infrastructures. Regarding the food sector, Sanjiv Bajaj company in 1980 as part of R&D. Dabur produces and sells he owns the Spencer’s supermarket chain, managed by his son 4 CEO, Bajaj Finserv consumer goods worth 1.3 billion Euros in turnover, and its Shashwat – who is also in charge of the meragrocer.com website Class of 1969, he is the vice president of Bajaj Finserv, a revenues have gone up during the last few years thanks to its for online food shopping, and is now planning to implement financial services provider operating in insurance through its hair oil, toothpaste, juices and household products. The company a home delivery service. Mr Goenka also controls the power Bajaj Allianz Life and General Insurance branch, and in finance is collaborating with the Indian government to develop two utility CESC – a 117yo subsidiary serving 3 million customers, through Bajaj Finance, capitalizing 7.3 billion euros. The Bajaj Ayurvedic medications for treating malaria and diabetes enjoying a recent expansion through the acquisition of electric group, founded in 1926 by head of the family Djamnàlàl Bajaj, power distribution rights in Rajasthan. In 2014 CESC Properties aggregates 36 companies – including Bajaj Auto, considered the Subhash Chandra oversaw the construction of Quest, Kolkata’s first luxury fourth biggest two and three-wheeled vehicles producer in the 10President, Essel Group shopping mall, selling Canali, Ferragamo, Gucci, and Zegna. world. The automotive company collaborated with Piaggio in Class of 1950, Mr Chandra leads a media empire worth 10 the 60s on the production of some Vespa models, all built under billion dollars and founded in Mumbai in 1926. He has also been Senapathy Kris Gopalakrishnan the Italian’s company license and trademark. It also owns the elected to the Upper House of Parliament in 2016. Essel Group 16CEO, Axilor Venture once-Austrian KTM. Bajaj graduated from the University of is comprised of Zee News, Zee Entertainment, Zee Media Corp Class of 1955, holding a degree in Physics and Computer Pune with a degree in mechanical engineering, and is also Bajaj e Daily news, one of UK’s eight most important newspapers. In Science from the Indian Institute of Technology in Madras, Mr Holdings CEO, managing the family’s possessions. 1992 he released, together with Li Ka Shing, Zee TV, India’s Kris has been the president and one of 1981 co-founders of first satellite channel and today’s Sony Television and Star Infosys, India’s second biggest outsourcing services company. Shri Hari Mohan Bangur Plus leading competitor. Zee Entertainment has broadcasts In 2014 he launched in Bangalore the Axilor platform, meant 5 CEO, Shree Cement in Indonesia, Thailand, Malaysia, Singapore and Philippines to provide support to thousands of businessmen – reaching Chemical engineering Mumbai IT alumni, 66yo, Shri Hari in more than 75 channels, reaching well over one billion 8 thousand in IT during its initial phase in 2015. Through Mohan Bangur is the head of the first cement plant in India – viewers. The group is also active in packaging (Essel Propack), their 100-day programs held twice per year (in March and in based in Calcutta, with a 1.2-billion-euro turnover, and a 33% infrastructures (Essel Infraproject), precious metals (Shirpur September), Axilor Venture allots 180 thousand Euros for new EBITDA margin in 2017. After obtaining the company following Gold Refinery), education and charity. ideas in e-commerce, healthcare, life science, sustainability, and the family business’ inheritance division in 1979, he managed clean technologies. Mr Kris is also a philanthropist, donating 4 to raise production from 600 thousand tons to the current 29 Umesh Chowdhary million dollars every year for scholarships. million tons and to give the company its cost-competitive edge 11CEO, Tittagarh Wagons over competitors. According to an international credit rating Tittagarh Wagons is based in Kolkata and produces cargo Vinita Gupta agency, his success’ critical factor was the employment of wagons, passenger coaches, as well as railroad and subway 17CEO, Lupin innovative and environmental- conscious technologies. electric trains. It owns six plants in India and one in north Mrs Gupta, 49yo, together with her brother Nilesh, are among France and is quoted in Mumbai. In 2015 Tittagarh was also Lupin’s new managerial generation. The pharmaceutical Rahul Bhatia responsible for saving Firema from bankruptcy, thus restarting multinational, based in Mumbai, was founded fifty years ago 6 President, IndiGo its production; the Italian company works in trains supply and by their father and current company president Desh Bandhu Mr Bhatia, 54yo, founded in 2006 India’s first low-cost airline repairs. Tittagarh took over in partnership Paolo Scudieri’s Gupta. Under her 2013 direction, Lupin managed to become as part of InterGlobe Enterprises – a travel & hospitality group Adler Pelzer, which owns 10%. Mr Chowdary has a degree in India’s second pharma company in terms of capitalization, not worth 2.6 billion dollars in turnover and over 5 thousand Commerce and is Vice-President of Indian Industrials. to mention the biggest generic drugs producer in the world

12 March 2019 COVER STORY/POWER 100 INTERNATIONAL INDIAITALy and the fifth biggest in the US – where it produces 48% of its Uday Kotak industrial equipment; logistics and constructions. The group is turnover (2.4 billion Euros in 2017). Through its aggressive 23Executive VP, Kotak Mahindra Bank well-known in the automotive sector, launching 14 new models enterprise policies, the company achieved a 15% per year growth Class of 1959, during the 80s, when India was still economically in 2015 alone – including the Blazo truck, with optimized fuel complimented by a 14% EBITDA margin just in 2017. Lupin closed off, Mr Kotak kick-started a financial services and real efficiency based on road conditions and load, as well as the acquired 12 companies – six of which just in 2015 – during the estate brokerage society, also offering car loans, life insurances, eVerito electric sedan. In 2016, its subsidiary Tech Mahindra last ten years. and unit trusts. He started with a 80 thousand dollars capital, held a long negotiation eventually leading up to the acquisition collected among his family and friends. In 2003 his private of 76% of Pininfarina. Mahindra Europe, car sales leader in the Dheeraj Gopichand Hinduja financial firm was the first in the history of India to receive a continental market, is based in Ariccia (Roma), and has been 18President, Ashok Leyland banking license from the central bank. Today his bank totals selling the Kuv 100 city car in Italy since last year. Class of 1971, he is the most-probable heir to the Hinduja Group. 45 billion Euros in assets, plus 24.9 billion in managed funds The family company was founded in Mumbai in 1914 and is – making it the fourth best performing private institution and Darshan Mehta currently managed by his uncle Srichand (83yo), operating one of the most effectively managed, with 600 branches and a 29President and CEO, Reliance Brand in textiles, transport, oil & power, banks, and cable services. non-performing asset at 0.73%. Reliance Brand, a company from the Ambani group, is one of Parmanand, Mr Hinduja’s grandfather, started his commercial India’s biggest retailers, owning over 3,800 outlets in 680 cities. activity in the Sindh region (today part of Pakistan) and always Kalyan Krishnamurthy In the fashion sector, it has been running some collaborations showcased a clear interest for expanding offshore. Eventually, his 24CEO, Flipkart Group to open online and physical shops for Ermenegildo Zegna, four sons established the company’s headquarters in London, in Mr Krishnamurthy, head of the most popular Indian e-commerce Ferragamo, Diesel, Canali, Gas, Paul & Shark, and Kenneth 1979. In 1978 the Hinduja Foundries, together with Iveco, took platform (acquired by Walmart for 16 billion dollars), made his Cole. Mr Mehta – ex-accountant, as well as financial director of over Ashok Leyland and nominated Mr Hinduja its president, then debut in the company in 2013 as sales and finances director, Lalbhai group and Arvind Brands CEO – has been with Reliance becoming India’s first heavy-duty vehicles producer. yet left the position almost immediately after a clash with the since 2007 and has played a pivotal role in the company’s founder, Sachin Bansal. In 2016, after selling to the US, Bansal expansion. Mukesh Micky Jagtiani left office, allowing Mr Krishnamurthy to make a comeback and 19President, Landmark Group become CEO of all e-commerce business, including the Myntra Cyrus Pallonji Mistry He lived in Madras, in Mumbai, and in Beirut, then emigrated to platform, in 2017. 30M D, Shapoorji Pallonji Group London to attend an accountancy school – which he dropped out Last October Mr Mistry, 52yo and Mumbai business of almost immediately to become a taxi driver. The rebellious Babasaheb Neelkanth Kalyani community’s ex golden boy, launched the investment firm Micky, class of 1952, moved to Bahrain to take over the family’s 25President, Kalyani Group Shapoor, Mistry Ventures together with his older brother. Until children products shop. Today he manages Landmark’s business Better known as Baba Kalyani, 70yo, he’s the president of a 2016 Mr Mistry was chairman of Tata Sons, India’s most from Dubai. The massive retailer owns more than 2,400 shops 2.5 billion dollars group operating in steel, car parts, renewable important industrial group; his family was also the company’s in Middle East, Africa and India, with an estimate turnover energy, finance. Its main asset is Baharat Forge, second biggest largest single shareholder, owning up to 18.4%. After his of 6 billion dollars. The group expanded to include fashion, steel goods producer in the world – following Germany’s ousting, following a clash with Tata Trust’s head and 66% electronics, furniture, and hotels in Middle East, South-East Asia ThyssenKrupp. Bharat Forge, founded in 1961 by his father, shareholder of the group Ratan Tata, Mr Mistry didn’t take and Europe (Venice). Since 2010 Landmark owns Carluccio’s, is listed in the stock market and is India’s biggest car parts on any other operative roles in Shapoorji Pallonji, even after a restaurant and coffee shop chain based in London originally exporter, supplying 38 big car brands everywhere in the world. his 20 years of service. The construction group, founded by founded by chef Antonio Carluccio. Mr Kalyani joined the company in 1972, and in the last 40 years his father and worth 2.5 billion in turnover, is chaired by his he raised the then 1.3 million dollars turnover by a thousand brother Shapoor and is currently active in the infrastructures and Tarang Jain times. Bharat Forge is considered one of Asia’s best performing the oil&gas sectors. In 2016 the subsidiary Sterling & Wilson 20CEO, Varroc Group companies. In regard to defense, they landed an agreement with invested 77 million dollars to acquire the most part of Italian Stc Mr Jain, 55yo, son of Naresh Chandra Jain, founded the group Beretta, which is now providing the Indian army with Italian Power. in 1988 and owns today 86% of the main car parts section, and guns. 60% of the headlights one. He is also responsible for driving the Lakshmi Mittal expansion toward Europe and US, where the group produces Siddhartha Lal 31President and CEO, Mittal Arcelor 60% of its turnover – 1.3 billion Euros in 2017 plus a 9% 26CEO, Eicher Motors Class of 1950, born in a village in the Rajasthan state, went EBITDA margin. Last December Varroc, owning a research Eicher Motors, a vehicle production flagship, was founded in on to become one of the world’s richest man – now living in laboratory in Italy, created a joint venture with Dell’Orto aiming 1948 as a tractor manufacturer; it later diversified its business, Kensington, London, in a 57-million-dollar Taj Mahal style to produce together the new electronic ignition systems in India. and operating now in trucks, buses, motorbikes, and automotive house. Mr Mittal founded in 1976 and is CEO of Arcelor Mittal, parts design, development, and production for local and the world’s biggest steel manufacturer. In 2017 the company Sajjan Jindal international markets. In particular, Siddhartha Lal is linked produced 90 million tons of steel, generating a 70 billion dollars 21President and CEO, Jindal Group to the Royal Enfield Bullet revamp – the legendary Indian turnover, even after losing momentum in 2015 and registering 59yo, he is the oldest of four brothers. They inherited the motorbike produced by Royal Enfield, and owned by Eicher revenues for 64 billion dollars, 20% lower and totaling a 7.9 management of the family’s steel group – one of the most since 1999, whom rode it to success at the age of 26. A few billion seven-time higher net loss. Since last November, Arcelor dynamic in the industry, generating a turnover of 18 billion years back he moved to London, and has recently overseen the Mittal has been managing the Ilva plant in Taranto: it plans to dollars – when their father Om Prak, founder in 1952, died in opening of a shop in Milwaukee – home of rival brand Harley invest 2.5 billion Euros and raise production to 6 million tons 2005 in a plane crash. In 2011 Naveen, his younger brother and Davidson. per year. head of Jindal Steel&Power industrial activities, acquired the Trieste-based Sertubi, specialized in spherical cast iron pipe Abhishek Lodha Pawan Munjal production. Mr Jindal lost the bidding for acquiring Ilva, in 27CEO, Lodha Group 32President and CEO, Hero Motocorp Taranto, but managed to take over from Cevital the ex Lucchini Mangal Prabhat’s oldest son, co-founder of Mumbai’s first real Mr Munjal, 61yo, comes from the group’s founding family, steel plant in Piombino last July. He put in place a 1-million estate group and BJP (the governing party) Vice-President of the native to Punjab. In the early 80s, after graduating from a degree worth investment plan to turn it into a flagship plant, managing a Maharashta state, became CEO of Lodha Group in 2016, after in Mechanical Engineering, he joined the direction of the society production of 2 million tons per year. graduating from a master’s at the Technology Georgia University representing Honda in India. The company later became Hero in Atlanta. In 2018 the Lodha group sold apartments for over Motorcop, one of the biggest in the country and leading world Rana Kapoor 1 billion Euros and is currently involved in 39 construction motorbike manufacturer, producing a 2018 turnover of 4 billion 22Founder, Yes Bank projects totaling 4 million square meters, spreading from China Euros plus 16% EBITDA margin. In 2017 the society sold 7 Rana Kapoor, 61yo, has been a Bank of America manager in to the US. World One, a 117-storey luxury skyscraper, is one of million motorbikes, but they are planning to swiftly achieve 10 different Asian countries, working for the institution for sixteen them, featuring apartments designed by Armani Casa. Among million. Mr Munjal is a sport lover, golf in particular, and also a years – up until 1996. He kickstarted a number of banking its most important projects, the development of the 1-billion- member of the Indian Business School. businesses for Rabobank, in India, then sold them to the dollar New Cuffe Parade village, including four 63-storey towers Netherlands, intending to use the profit to start his own business spread over a 10-hectare area; and the construction of a Trump Shiv Nadar in 2003 and planning to turn it into the best banking institution Tower, already in its advanced state. Ariston, Smeg, and Kaffe 33President, HCL Technologies in India by 2015. Thus, he founded Yes Bank, co-owned at 20% are among its suppliers. Class of 1945, also known as Magus, he is an IT pioneer, and with Rabobank, experiencing a development rate of 42% per founded HCL Technologies in the mid-70. The company, year and owning assets worth 33 billion dollars by the end of Anand Mahindra based in Noida, in Uttar Pradesh, is one of the world’s most 2017; in addition, it registers a 500 million dollars profit margin 28CEO, Mahindra Group forefront hi-tech multinationals, and played a key role in the and a ROE always above 20%. Mr Kapoor met some troubles Mr Mahindra, 61yo, holds a degree from Harvard and is the head creation of the high-tech Indian stock market infrastructure. Its last years, when the central bank asked him to renounce his role, of a group worth 17.8 billion dollars in turnover with over 200 HCL Healthcare subsidiary aims at becoming a sector leader questioning his scrounging on non-performing assets; in the end, thousand employees. Most of his wealth can be traced back to a by providing innovative medical services. Nadar’s company he had to give up management. Together with his daughter, Mr steel trading society founded by his grandfather, active today in a is one of India’s 20 biggest listed companies, operating in 31 Kapoor launched an investment holding including retail, fashion, variety of sectors, including: automotive; agriculture; aerospace; countries (including Italy) while boasting 22.1 billion dollars media, education, sport, and financial services businesses. parts; consultancy services and defense; energy and finance; in capitalization and 6.4 billion Euros in consolidated turnover

13 March 2019 INTERNATIONAL COVER STORY/POWER 100 INDIAITALy

in 2018 – an almost 50% growth compared to the year before – Reenat Sandhu his grandparents after his parent’s divorce. Cornell University plus a 20% EBITDA margin. Last February, HCL Technologies 39Indian Ambassador in Italy alumnus, joined the family’s company in 1962 as steelworks acquired Volvo’s IT section for 130 million dollars; in April Born in 1964, working in diplomacy since joining the Indian manager. He became Tata Industries’ president in 1981 and then, came following Geometric, for 190 million dollars, a software Foreign Office in 1989, Mrs Sandhu took office in Rome in July ten years later, of the whole Tata Sons, holding the position until brand controlled by the Godrej family. Nadar is well known for 2017. Married to another Indian diplomat, she graduated from 2012. In 2016 he fired Cyrus Mistry, head of the group, on the being a philanthropist, always investing in developing India’s the Delhi School of Economics with an MA in Economics. base of strategic differences, shaking the world of finance and education system. Previously working in the Mosca Fiev and Washington the markets. Tata is also a member of the International Advisory embassies, she also represented India during the World Trade Council Board at Bocconi University, in Milan. Vikas Oberoi Organization in Geneva from 2011 to 2014. Mrs Sandhu was 34President and CEO, Oberoi Realty Vice-Ambassador in Washington before landing in Rome. Kushal Pal Singh Tewathia Mr Oberoi graduated from the London School of Economics and 46 President and CEO, DLF Limited started his banker career back in 1977. In the early 80s he played Dilip Shanghvi Mr Tewathia, class of 1931, built in New Delhi India’s a part in founding HDFC, India’s first real estate financial firm, 40President, Sun Pharmaceutical biggest, as well as one of the world’s bigger, real estate aiming at boosting housing, before becoming its general director. Class of 1955, he started business helping his father with company in terms of turnover, market capitalization, and The firm is also active in the bank and insurance sectors, owning his generic drugs wholesale activities in Kolkata. In 1982 he housing assets. In 2018 his property sales yield him 2.2 50 billion dollars in assets. He holds a chair in nine Management founded Sun Pharmaceutical Industries, and in 1997 he took billion Euros in gross revenues, together with 610 million Boards, including Tata Motors, Tata Chemicals, Britannia over Caraco Pharma with the intention of reaching the US Euros in rents. DLF, aka Delhi Land & Finance, founded Industries, Go Airlines, Cummins India, ABB India, and Ambuja market. In 2014 Sun Industries acquired Ranbaxy, another by Mr Tewathia’s father-in-law Thakur Raghvendra Singh cements. He’s also managing a charity trust, the Aga Khan Fund industry titan, and proceed to become India’s biggest pharma in 1946, built its fortune over housing displaced population for economic development. company. In 2016 the company bought 14 medicines from after the Partition. The company owns 42 square kilometers Novartis in Japan for 293 million dollars, and they are now in land, 12 of which are in Gurugram – so-called DLF City – Madhukar Parekh ready for distribution under Mitsubishi Tanabe Pharma. Ranbaxy and in Guargaon. 35President, Pidilite Industries has been active in Italy as well since 2005, where it acquired Pidilite Industries was founded in 1945 by Mr Parekh’s father, GlaxoSmithKline-Allen activities. Bhavin Turakhia and today is the world leader in the adhesives and sealants sector 47 CEO, Directi – earning half of its turnover through that market, for a total of Vijay Shekhar Sharma Mr Turakhia, together with his brother Divyank, joined the 800 million dollars. Pidilite is a well-known brand, both in India 41Founder and CEO, PayTm Indian billionaires roster in 2016, after selling their Media. and abroad, because of the Fevicol white glue. Mr Parekh, 69yo, Mr Sharma, 40yo, is one of new India’s youngest billionaires net – one of the world’s top-5 advertising tech companies – to holding a degree in Engineering and Chemistry, has recently thanks this payment platform, PayTm. The service, allowing a consortium of Chinese investors for 900 million dollars. entered the construction chemistry sector thanks to its Dr Fixit even payments for a few rupiah, was launched in 2010 and They were shy of 30 years of age. They have recently brand. Last April he signed a joint venture with a chemical reached an estimated worth of 10 billion dollars in 2017 (see concluded a few big deals with US Endurance International, factory in Cesenatico – a wooden topcoat leader – and created article on page 6). selling them four hi-tech companies in 2013 and part of their Wood Coat, now active everywhere around the world. Directi – an investment company trading in technology – in Kiran Mazumdar Shaw 2014. The latter earned them 160 million dollars. The two Adar Poonawalla 42President, Biocon brothers started business in 1996, working as technical 36CEO, Serum Institute of India Mrs Shaw, 65yo, daughter of a Bangalore brew master, founded advisers from their Mumbai bedroom. Directi manages web- Mr Poonawalla, 38yo, son of the vaccines’ king and Serum Biocon in 1978, starting at 25yo with a 10-thousand-rupiah hosting activities, cloud-based transaction frameworks, and Institute founder Cyrus, has got back on managing the company capital – about a few hundred Euros today. Her first office advertisement technologies. in 2011. Serum is the world’s biggest vaccine manufacturer was in her rented house’s garage. Biocon came to be one of according to produced doses – more than 1.3 billion. It 2016 Asia’s biggest insulin manufacturer, aiming at acquiring 10% Sunny Varkey profit margin was of 360 million dollars, with a 695 million of the world’s market. The businesswoman’s latest hits include: 48 President, GEMS Education turnover. Mr Poonawalla is currently investing 150 million disposable insulin pens in Japan with her Fujifilm Pharma Born in 1957 in Kerala, Mr Varkey founded in 2000 the dollars in a super research center, which is expected to become partner; and the new EU-approved biosimilar drugs for cancer biggest private kindergarten operator in the world: GEMS operative this year. The structure will house new researches treatment. In 2018 Biocon registered a 5.4 billion Euros turnover Education, aka Global Education Management System, for the production of vaccines against dengue, pneumonia, and plus a 24% EBITDA margin, growing at a over-30% rhythm. boasting a 130-school network spread over a dozen different diarrhea. In 2015 he donated 15 million dollars for helping clean countries. Blackstone Group is among its main investors. Pune, his family’s city of residence He is considered one of the Bavaguthu Raghuram Shetty In 2016 Mr Varkey invested 250 million dollars in funding 50 most influential Indian youth in the world. 43CEO, NMC Healthcare GEMS expansion toward Middle East. Varkey Group, founded Dr Shetty’s career can be summed up as “from pharmacist to in 1979, is also involved in healthcare and constructions, Azim Premji billionaire”: born in 1942 in Kapu, he moved to the United developing hospitals and clinics in Middle East and India 37President, Wipro Arab Emirates and there founded, in 1975, the New Medical through its Varkey Welcare. Class of 1945, in 2016 he celebrated his 50 years as Wipro Centre Healthcare, now the Emirates’ biggest healthcare director. First a soap factory, Mr Premji turned Wipro into one services provider – with over 2 million patients every year and Shamsheer Vayalil of the biggest ICT companies in the world, serving over 300 12 structures in 5 different cities. NMC is listed in the London 49 CEO, VPS Healthcare important clients (including Boeing, Cisco, Ericsson, IBM, stock exchange, and it managed to break in Saudi Arabia through Mr Vayalil, 42yo, is a doctor, a businessman and a Microsoft, Sony, and Toshiba) and producing 8 billion dollars the acquisition of two hospitals. It is also investing 1.8 billion philanthropist. Its healthcare company, VPS, boasts 19 in turnover. Mr Premji is the son of an important businessman dollars in a few healthcare, hospitality and education projects hospitals, clinics, medical centers, pharmaceutical companies, operating in the food sector and graduated from Stanford in Andhra Pradesh, India. NMC provides different services in and pharmacy chains spread over the United Arab Emirates, University before taking over control of the company at 21yo, at a variety of sectors, including pharmaceutical, financial, retail, Oman, ad in the subcontinent, as well as a turnover of about 1 his father’s death. Though the company was originally trading advertisement, and IT. billion dollars. Born in India from a family of entrepreneurs, vegetable oil for soap-making, he started at the management after finishing his Medicine studies he emigrated to the Middle with the idea of expanding business: in 1980 Mr Premji took Roney Simon East, where he started working as a radiologist at the Sheikh advantage of IBM backing from the Indian market to found 44CEO, CRS TrendLab Khalifa Medical City of Abu Dhabi. In 2007, supported by his Wipro Technologies and started manufacturing small computers Mr Simon is the Italian-Indian trade relations reference point father-in-law, he started providing medical assistance in his in collaboration with US Sentiel. He is considered India’s fourth when it comes to fashion. First director of FICCI, the Federation first hospital in Abu Dhabi. His flagship project is the Burjeel richest man, boasting 15 billion dollars in assets. of Indian Chambers of Commerce and Industry, he now hospital, Abu Dhabi’s biggest private cure center. He invested represents the federation in Italy, establishing an office in Turin 140 million Euros in the Indian market for Lakeshor hospital Abhijit Jagdish Rajan in 2004 to promote bilateral relations with India. He is also the acquisition in Kochi (Kerala), and over 220 million dollars for 38President and CEO, Gammon president of Indo-European Association of Fashion & Design, the Rockland Hospital chain in Delhi. Gammon Infrastructure Projects, founded in Mumbai in 1922 and the vice-president of Italy-India Association, the most and listed on the stock exchange, is the biggest civil engineering important associative body promoting culture exchange and links Nusli Wadia group in India, and built the most bridges in all of the British between the two countries. He was awarded with the Cavaliere 50 President, Wadia Group Commonwealth. Mr Rajan, 58yo, promoted the assimilation of della Repubblica title [Italian Knighthood] for his service in Class of 1944, he is the leader of India’s oldest group, dating Ansaldo Caldaie (now AC Caldaie), Sofinter’s most important promoting bilateral relations. back to 1736. Wadia and Tata are two of the most relevant company, in the Gammon group. Sofinter is an integrated group Parsi families, making up one of the nation’s founding made of highly-specialized societies working in the steam and Ratan Naval Tata constituents. Wadia Group is currently divided over six energy productions sectors using a variety of fuels. AC Caldaie, 45President, Tata Trusts sectors, including: civil aviation with Go Air – connecting operating in India since 2005, is the front runner in power boilers Born in Mumbai in 1937, grandchild of founder of the founder 24 Indian locations and 2 international ones; chemistry, with design and construction, and relies on traditional fuels as well as Jamshedji, he is the main person in the Tata Trust family. Mr industrial gas production; agriculture; food; medical and real- biomasses and solid urban waste. Tata comes from an ancient Parsi family and grew up with estate consumer products.

14 gruppoeuromobil.com

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EUROMOBIL-MF LIVING-S-10 2018.indd 1 04/10/18 15:30 March 2019 INTERNATIONAL COVER STORY/POWER 100 INDIAITALy ... and the top Italians

1 2 3 4 5 Lucia aleotti lorenzo angeloni diego aponte renzo arcoria giorgio basile President, Menarini Ambassador in New Delhi President and CEO, MSC MD, Citi India President, Isagro

6 7 8 9 10 valerio battista gianfranco battisti gianpietro benedetti luciano benetton alberto bombassei CEO, Prysmian CEO, FS Group President, Danieli President, Benetton President and CEO, Brembo

11 12 13 14 15 sonia bonfiglioli angelo bonissoni domenico bosatelli paolo brichetti giampiero calzolari President and CEO, Bonfiglio Business Manager, CBA Studio President, Gewiss CEO, Credit Access Asia President, Granarolo

16 17 18 19 20 ANTONIO CAMMISECRA STEFANO CAO enrico carraro roberto colaninno alessandro decio CEO, Enel Green Power CEO, Saipem CEO, Carraro President and CEO, Piaggio CEO, Sace

21 22 23 24 25 biagio della beffa andrea dell’orto ermanno ferrari giovanni ferrero alessandro fichera President, Indena Vice-President, Dell’Orto CEO, Magneti Marelli President, Ferrero CEO, Octagona

16 March 2019 COVER STORY/POWER 100 INTERNATIONAL INDIAITALy most focused on India

26 27 28 29 30 pierroberto folgiero aldo fumagalli federico furlani alessandro giuliani claudio grotto CEO, Maire Tecnimont CEO, Sol President, Simem MD, SDA Bocconi Asia Center President, Gas Jeans

31 32 33 34 35 piero guizzetti mickey manley mirco maschio victor massiah carlo messina CEO, Value Prism Consulting CEO, FCA President, Maschio Gaspardo Group CEO, Ubi Banca CEO, Intesa Sanpaolo

36 37 38 39 40 giuseppe natale pasquale natuzzi francesco pensabene paolo ramadori carlo rosa CEO, Valagro President and CEO, Natuzzi ICE Supervisor, New Delhi CEO, Maccaferri CEO, Diasorin

41 42 43 44 45 renzo rosso cesare saccani angelo dario scotti anton seeber pietro sella President, Only The Brave (OTB) President, Indio-Italian CCI CEO, Riso Scotti CEO, Leitwind President, Sella Holding Bank

46 47 48 49 50 ubaldo traldi cesare trevisani alberto vacchi giuseppe vailati venturi rosario zaccà President, Perfetti Van Melle Vice-President, Trevi Group President and CEO, IMA General Director, Kos Lawyer, GOP Studio

17 March 2019 INTERNATIONAL COVER STORY/POWER 100 INDIAITALy

Lucia Aleotti currently pacing the Indian economy. Enrico Carraro 1 President, Menarini 18CEO, Carraro Mrs Aleotti, 45yo, leads Italy’s biggest pharmaceutical company Alberto Bombassei In 1997 he signed for 51% of a joint venture on behalf of Carraro together with her brother – producing a 3.6-billion turnover just 10President and CEO, Brembo with Escorts Ltd, one of India’s main industrial groups. The jv led in 2017, with a 75% in external. She became active in India in In 2006 Mr Bombassei betted on the biggest market in the world to the development of a production unit in Pune, which became 1994 through a joint venture with Raunaq Industries. In 2011 she for two-wheels (25-30% with disk brakes) and won. In 2008 operative in 1999. In 2006 Mr Carraro acquired the whole capital strengthens the company’s presence in the Asian-Pacific area, he opened a plant in Pune, entrusting it to Luca Bottazzi – who of Carraro India; the company is set on gaining the leadership of constituting the renowned Menarini Asia-Pacific by acquiring started production for Indian-made disc brakes branded ByBre and the local farming mechanization sector. the Invida. In India Menarini trades about eighty products, either managed to obtain 50% of the local market share. In November he acquired or licensed, including a few OTCs. opened a second factory in Chennai. Roberto Colaninno 19President and CEO, Piaggio Lorenzo Angeloni Sonia Bonfiglioli Class of 1943, during a first period Mr Colannino pushed for 2 Ambassador in New Delhi 11President and CEO, Bonfiglio investing in the premium segment of the Indian market – the first Mr Angeloni is a top expert when it comes to Asia and is also In 1998 Mrs Bonfiglioli traveled to India, where she oversaw the in the world for two- and three-wheel vehicles sales. Ape and much involved in reviving Italy-India diplomatic relations. Class planning and management of Chennai’s new production plant, as Vespa have kept growing at a 25-30% yearly rate, boasting further of 1958, he graduated from a degree in Law at the University of well as starting the factory’s new business. As of today, Bonfiglioli leading market shares for light cargo transport (4 wheels) as well. Perugia, in his hometown. Started his diplomatic career in 1985, India has two engines and industrial gearboxes production units Through its Aprilia SR 150 scooter, launched in 2016 and priced when he advised companies to follow a granular approach for the – one in Chennai and one in Mannur – plus a BRPC India plant at 800 Euros, the company managed to reach the middle-lower Indian market (see page 24). in Bangalore, working with renewable energy; all together, it is segments as well. The group has a production plant in Baramati, putting 650 people to work. close to Pune, and generates a turnover for 350 million Euros. Diego Aponte 3 President and CEO, MSC Angelo Bonissoni Alessandro Decio Mr Aponte, together with his local partner Adani Group, invested 12Business Manager, CBA Studio 20CEO, Sace in building Mudra’s containers terminal. The airport is managed In 1985 Mr Bonissoni founded his legal and tax assistance firm, He is the inventor of so-called “push strategy”, which he employed by TIL, an MSC subsidiary, giving the company access to the where he also became a managing partner. CBA works with 120 in his Mumbai office in particular. Following its opening in 2011, most important transshipment hub connecting the Middle East, professionals, has a German branch, and has recently joined hands it became a flagship in the sea of South Asian markets (India, South Asia and India. with Singhania & Co. Advocates and Solicitors, founded in 1969, Bangladesh, and Pakistan), and imputed almost 2 billion Euros used its competence in all aspects of law to become one of India’s in the area in support of new projects. Mr Decio, ex Unicredit Renzo Arcoria main legal firms, as well as one of the most active on the Milan- top banker, renewed Sace’s commitment in India, where he is 4 MD, Citi India Mumbai axis. planning to implement oil&gas, technology, and infrastructure Since 2016 Mr Arcoria has been in charge of market & securities projects worth hundreds of million Euros. services for Citigroup in India, present in the local market since Domenico Bosatelli 100 years ago. He works for Citi since 2010 and held leading 13President, Gewiss Biagio Della Beffa positions in both Italy and Europe. Through its guidance, Citi has Mr Bosatelli, founder of Bergamo-based Gewiss – one of the 21President, Indena become the Italian flagship bank regarding fixed income, holding world’s biggest electrical devices producers – chose India to Indena has been active in the market since 1921 as an ingredients a 11% share of the market. diversify its business: in 2004 he created a joint venture with C&S farmer, developer, producer and seller for the pharmaceutical, Controls & Switchgear Group, thus constituting C&S Gewiss nutrition, and cosmetic sectors. The company owns over 120 basic Giorgio Basile India (P) Ltd. He signed the deal with Ravinder Nath Khanna, patents in more than 70 countries spread across the five continents. 5 President, Isagro C&S president and general director. India is one of Indena’s biggest markets in regard to both production, Mobil Oil and Montedison ex-manager, Mr Basile founded Isagro concentrated in Bangalore, and sales. Giuliano Micheletti, in 1993 and proceeded to become a crop protection leading Paolo Brichetti manager for the Indian division, played a big part in the company’s producer, working mainly in fungicides. Its 50-billion dollars 14CEO, Credit Access Asia development in the area by launching and nurturing the local activity. turnover has in India one of its most thriving markets, where Mr Brichetti is the president and CEO of Credit Access Asia, which he Isagro has some manufacturing and research facilities. originally founded in 2007 in Brescia with the name of MicroVentures Andrea Dell’Orto Group Finance. His society is a public company and one of India’s 22V ice-President, Dell’Orto Valerio Battista main players when it comes to microfinance, and its 140 private Mr Dell’Orto, 47yo, Civil Engineering graduate, was one of the 6 CEO, Prysmian and public shareholders include Mittel, Istituto Atesino di Sviluppo, main advocates for the company’s opening toward India. Through Main character in one of latest years’ best industrial adventures Fondazione Cr Trento e Rovereto, and Banco di Brescia. CA Grameen Simest’s help, Dell’Orto could launch a facility in Pune in 2006. and leader of Prysmian, a fiber-optic cable production flagship, is now listed in the Mumbai stock market since last August. In 2008, when Tata Group started developing its people cars – Mr Battista is now showing interest in the Indian market. He including the Tata Nano – Dell’Orto designed and produced these holds 51% shares of a cable factory in Pune, in partnership with Giampiero Calzolari new cars’ throttle bodies. In December the company signed a the Ravin Cables Indian company. His chances at furthering 15President, Granarolo joint venture with Varroc and will now expand in the electronic development in the area are related to the government big plans Mr Calzolari started from a small gardening cooperative and injection systems market. for TLC and energy networks implementation. ended up, at 63, at the top of one of the biggest ones, Granarolo – right after finishing a 10-year mandate as Lega Coop di Bologna’s Ermanno Ferrari Gianfranco Battisti president. He joined Granarolo in 2007 and became its president 23CEO, Magneti Marelli 7 CEO, FS Group in 2009. The Bologna-based cooperative, generating a turnover Magneti Marelli, which holdings FCA transferred over to Mr Battisti, 57yo, spent the last twenty years of his life managing of 1.3 billion in 2018 alone, has been active in India since 2016, Japanese Kalsonic Kansel, is well established in India, where it FS from the top. He oversees some of the group’s biggest where it sells made-in-Italy produce through Europe Food India. owns eight sites operating in powertrain, lighting, exhaust systems, international projects, including railway and subway development suspension, shock absorbers, electronic systems, infotainment & ones (through Italferr), and certification ones, with Italcertifer. Antonio Cammisecra navigation. The company has been pushing for a few new projects 16CEO, Enel Green Power since a couple of years back. It has expanded toward automated Gianpietro Benedetti The Indian market is one of the world’s most dynamic ones when gearboxes production through a running joint venture with Maruti 8 President, Danieli it comes to renewable energy, and Mr Cammisecra is set on Suzuki. It also opened a new production plant for two-wheel About ten years ago, Mr Benedetti worked in promoting the investing Enel’s advanced green technologies in it. Enel started engine control systems together with MotoCorp. company’s expansion in emerging economies. They started operating in India three years ago, when it took part to the first production in India in 2013. Danieli controls the local market few races even through all the haggling on costs. The group Giovanni Ferrero through two big plants – one in Kolkata, Indian steel capitol, and managed to buy a local company, and last spring used it to reach 24President, Ferrero one in Chennai, in the south, boasting over a thousand employees an agreement for the development of a 285 megawatt wind farm in Mr Ferrero, 54yo, controls one of the biggest confectionery and with trading offices in Pune, Mumbai, and Delhi, recording Gujarat, investing 290 million. production companies in the world. And India, through its modern over 120 million euros in turnover. factory in Baramati (Maharastra), constitutes one of the company’s Stefano Cao major development poles on a global scale. Ferrero has been Luciano Benetton 17CEO, Saipem active on the Indian market since 2004 and saw the construction of 9 President, Benetton Class of 1951, born in Rome, Mr Cao leads the same society where one of the group’s best equipped facilities on a technological level, Benetton’s founder, 83yo, took back control of the company he started his career in 1976 – and knows quite a lot about India. expected to double production over the next three years. and lead it toward India, where Benetton has already become an Actually, Saipem is one of the biggest petrochemical international Italian brands flagship. Mr Benetton plans to see the revenues of contractors in the country, also thanks to Ottavio Quattrocchi’s Alessandro Fichera its 770 Indian stores doubled by 2020, increasing the network’s activity. Mr Quattrocchi is a close friend of the Gandhi family, and 25CEO, Octagona extension and taking advantage of the development dynamics represented Saipem in the market for many years. Business Management graduate from the University of Wales,

18 March 2019 COVER STORY/POWER 100 INTERNATIONAL INDIAITALy

UK, Mr Fichera is a senior partner and founder for the consultancy world and has produced 60 thousand machines for agriculture in Delhi, Gurgaon, Chandigarh, Hydebarad, Bangalore, Pune, and firm Octagona. The firm was the first to open in New Delhi, back 2015 alone. In 2011 it opened a plant in Aundh, close to Pune, Chennai, and are among the millennials’ favorites. in 2002, and has strengthened its presence since, opening a new for shanks and cutters production, destined to the local and the office in Bangalore in 2016. The Octagona team provides support broader Asian market. Cesare Saccani to over 300 Indian companies, and set 50 of them up for as many 42President, Indio-Italian CCI customers. Victor Massiah Mr Saccani was the main actor in restoring IICCI (Indo-Italian 34CEO, Ubi Banca Chamber of Commerce and Industry) fiscal balance. After years of Pierroberto Folgiero Mr Massiah got the ball rolling for the bank’s international financial losses, the Chamber has generated profit for the last two 26CEO, Maire Tecnimont presence – starting from Morocco and, passing from Dubai, years – all thanks to an energetic focus on business, implemented Mr Folgiero has been Maire Tecnimont’s CEO since 2013, and reaching all the way to China. Mumbai is also an important through Mr Saccani and Mr Claudio Maffioletti’s attuned well knows India has always been an historical market for the stop, where its representative office, led by an Indian manager, cooperation. He also manages a small office for ICMQ quality company. The Tecnimont Private Ltd in Mumbai is an assets and is particularly active in getting Italian business missions to land certifications in India, and he is a representative for Fagioli. expertise center for both the internal and the foreign market (see agreements with Indian companies. interview at page 28). Angelo Dario Scotti Carlo Messina 43CEO, Riso Scotti Aldo Fumagalli 35CEO, Intesa Sanpaolo The company has been operating in India for the last five years, 27CEO, Sol The Intesa Sanpaolo bank leads its international growth on where its flagship product is the 5 kg and 1 kg rice bags, serving Mr Fumagalli created the SicGilSol India joint venture together through its open industrial strategy, looking at Asia’s stronger mainly the horeca and the risotto sectors. The business is yet to with Indian businessman Farooque Dadabhoy, number one in markets and at the available New Silk Road opportunities. India, start generating an important turnover, but the “risotto ready-to- the arsenic sector. SicGilSol produces and trades technical, followed closely by Hong Kong e Singapore, represents one of its prepare” products (pre-cooked rice dishes) are selling well. special, and medical gasses, together with all connected materials, flagship locations. facilities, and equipment. The society has recently set up a new Anton Seeber plant in the south of the country, meaning to turn it into the biggest Giuseppe Natale 44CEO, Leitwind technical gas producer of South India. 36CEO, Valagro In 2009 Leitwind pushed for opening a factory in Chennai, Tamil After the 2015 acquisition of Sri Biotech Laboratories India, Nadu, investing 16 million euro in a joint venture with Shiram Federico Furlani Valagro has managed to expand its commercial presence to EPC. As of today, their production covers the Asian internal President, Simem Andhra Pradesh, Telangana, Kerala, Tamil Nadu, Karnataka, market demand, inputting over 250 wind generators completed 28 and Maharashtra. Further growth will lead the business toward The company led by Mr Furlani – together with his brother with blades every year. In India the company built also a 43,2 MW Chhattisgarh and Odisha, two key states rice and horticultural Michele – is specialized in concrete machines production. The wind farm in Tadipatri, Andhra Pradesh, and a 51 MW one in crops. Sri Biotech Laboratories India, founded in 1994, develops a innovative technologies used in both design and production have Kaluneerkulam, near Tirunelveli – a 50-million-euro commission. wide range of solutions, including nutrition and biostimulation. turned Simem in a sector global leader. Its Indian subsidiary, based in Gujarat, was the first Italian construction company to Pietro Sella Pasquale Natuzzi start production in India. At the moment, Simem is involved in 45President, Sella Holding Bank President and CEO, Natuzzi In 1997, while CEO of the family bank, Mr Sella took the quite dam construction projects in the North of the country, as well as in 37 Mr Natuzzi, the group’s founder, looks at India as a strategic innovative decision of opening Synergy (a software development some treatment of industrial waters ones. market – in particular thanks to the real estate boom leading to company) in Bangalore, and of having it create an e-banking Alessandro Giuliani an increase in quality furniture demand. Even more so if made in independent information system starting from the existing mainframe. Italy. Natuzzi has shops in Pune, Bangalore, Hyderabad, Kolkata, MD, SDA Bocconi Asia Center The bank’s brand-new platform was implemented three years 29 Mumbai, Chennai, Belgaum, New Delhi, and Ahmedabad, later. The experience led him to open a Chennai branch in 2008, A couple of years ago Mr Giuliani took over the management of building a network of sales unlike any other in the local market – aiming at turning it into an innovative software house. Following its Mumbai specialization school, launched in 2012 by deputy dean where furniture trading suffers from great fragmentation. actualization, the branch is now serving the whole Sella group. Stefano Caselli as part of Bocconi University’s internationalization scheme. Mr Giuliani, supported by the Italy-India trading chamber Francesco Pensabene Ubaldo Traldi in Mumbai, intends to make the current Management course ICE Supervisor, New Delhi President, Perfetti Van Melle campus an aggregation site for the Italian House of Education, 38 46 Mr Pensabene holds a specialization in International Law and has Perfetti has been active in India for the past twenty years, owning opening up to all kinds of disciplines. been the International Cooperation director for ICE (the Italian three production sites and one of the biggest and best organized National Institute of Foreign Trade), as well as of the institution’s sales networks in the food sector. Its product range boasts 21 Claudio Grotto legal, human resources, organization departments. He also led different brands, generating a several hundred thousand euro in President, Gas Jeans 30 several business missions everywhere in the world. After many turnover. Mr Grotto, founder and patron of the Chiuppano-based company, years of permanence in India, where he vigorously leads the was one of the first Made-in-Italy fashion businessmen to look Italian delegation, he has also started overlooking the market Cesare Trevisani at India. In 2010 he signed a master franchise agreement with situation for Sri Lanka, Bangladesh, Maldives, Nepal, and Bhutan. 47V ice-President, Trevi Group Reliance Brands. Gas Jeans has opened 19 monobrand and 30 In India the Trevi Group controls Drillmec India, a company based so-called shop in shops since, becoming the second most popular Paolo Ramadori in Kakinada, Andhra Pradesh, and specialized in engineering and Italian brand in India, straight after Benetton. 39CEO, Maccaferri building oil rigs, geothermal plants, and water well. He worked for per Bombardier Transportation from 2005 to 2011, Piero Guizzetti managing big international projects. Once Oerlikon Graziano Alberto Vacchi 31CEO, Value Prism Consulting Group CEO, working in transmission components, he went back 48President and CEO, IMA Mr Guizzetti’s MBA, taken from the Indian School of Business to Bombardier for a year before taking the actual position on. Following its recent acquisition of the German company Oystar, in Hyderabad, worked as a fantastic launchpad to get him into Maccaferri is well on the Indian market track, where it mainly IMA has managed to expand in India through the fresh food all major industrial groups. In 2007 he managed to open his trades in the transport and renewable energy sectors. packaging equipment sector. Together with the pharmaceutical, consultancy firm in Mumbai. Today his society is considered cosmetic, and food (tea and coffee in particular) ones, the one the most trustworthy and better placed advisers for SMEs Carlo Rosa packaging industry is one of the fastest growing ones in the area. intending to reach the Indian market. 40CEO, Diasorin It took Mr Rosa just a few years to lead his company to success, Giuseppe Vailati Venturi Mickey Manley and now he is aiming at a 775-million-euro turnover plus 300 49General Director, Kos 32CEO, FCA million EBITDA. He breeched the Indian market in a joint venture Mr Vailati Venturi contributed to creating Kos and has been its Tata Motors is one FCA historical allies, and together in jv they with Trivitron Healthcare, specialized in in-vitro diagnostics, a General Director since 2007. This far, the group as invested have been producing their Jeep vehicles in a world class facility in sector with a 15% annual growth. Diasorin is also investing on a around 20 million euro in India and is active through two joint Pune. Given the product’s success, FCA is now expected to further strong market for innovative medical equipment. ventures – one being ClearMedi Healthcare, now one of the most its involvement in the local market. Since starting production in important outsourcing technology services in the health sector; September 2017, the jv sold 32 thousand Compass, 10 thousand Renzo Rosso and the other being ApoKos, specialized in the yet rather unknown of which have been exported toward 13 Asian markets. Onward, 41President, Only The Brave (OTB) rehabilitation services market. they’re expecting an even stronger growth. Class of 1955, Mr Rosso, aka “Denim Man”, reached an unprecedented agreement between his Diesel brand and the Rosario Zaccà Mirco Maschio Mumbai Indians. The cricket team belongs to Nita Ambani, who 50Lawyer, GOP Studio 33President, Maschio Gaspardo Group happens to be the wife of Reliance’s biggest shareholder – the He’s in charge of the India desk, as well as being a Mumbai IICCI Mr Maschio, 40yo, became the group’s president in July 2015, company distributing Diesel in India. The relationship yielded member and the studio’s co-managing partner. GOP is an advisory a few days after his father’s death. The company has 1,800 the MI-Diesel collection, ready for distribution in all cricket- services leader in Italy, working mainly with big international deals and employees working in 10 production plants everywhere in the enthusiast countries. Diesel has 11 stores located in Mumbai, all SMEs interested in bringing their business on an international level.

19 March 2019 INTERNATIONAL INSIDE INDIA INDIAITALY Growth & consumptions, the virtuous circle goes on Two Indian personalities, the economist who managed the market liberalization on the government side and the top manager of a dynamic privat group, share with MF International their vision on the near future

by Cecilia Giannini

Montek Singh Ahluwalia uestion: What and making sure the insolvency does the recent and bankruptcy code works in prac- GDP growth tice to allow banks to clean up their Q rate of 8.2% for balance sheet are critical. The big Q1 FY19 indicate about risks are oil prices and global dislo- the Indian economy? Is it cation of trade because of unilateral attributable to low base tariff wars. effect or can we expect a sustained high growth Q. How critical is the cycle? NPA situation in India and Answer: There is a base effect in how important is it for the the first quarter. Most commenta- banking sector to free up tors think India’s growth rate in these from the financial 2018-19 will be around 7.3 or 7.4 system’s balance sheet percent. I think the economy has the to infuse credit to retail potential to get close to 8 percent, customers and corporates? but that will take a lot of domestic What is the role of the reforms and a benign global envi- Insolvency and Bankruptcy ronment. There are a lot of reforms Code in curbing the NPA that need to be done but in the short situation? run. I think fixing the remaining A. The NPA situation has now sta- problems with the GST, recapital- bilised and the real question is how ising the public sector banks with quickly can it be reduced. An ac- appropriate governance reforms, celeration in growth will help. The

Montek Singh Ahluwalia

was born in New Delhi in 1943. He studied at St. Patrick’s High School, Secunderabad of Finance. He held several senior positions as a civil servant, including Special and Delhi Public School, Mathura Road. He graduated with a B.A. (Hons) degree Secretary to the Prime Minister, Commerce secretary, Secretary Department of from St. Stephen’s College, Delhi, University of Delhi. He was a Rhodes scholar Economic Affairs in the Finance Ministry and Finance Secretary. In 1998 he was at the University of Oxford where he studied at Magdalen College, as a graduate appointed Member of the Planning Commission. obtaining an MA in Philosophy Politics and Economics.[3] He then read for an In 2001, he was chosen by the Board of International Monetary Fund to be the first M.Phil at St. Antony’s College at the University of Oxford. While at Oxford, he was director of the newly created Independent Evaluation Office, in which capacity he president of the Oxford Union. He has received several honorary degrees, including supervised several studies critical of various aspects of the functioning of the IMF. an honorary degree of Doctor of Civil Law from the University of Oxford and an Ahluwalia has been a key figure in the Indian economic reform process. He has honorary degree of Doctor of Philosophy from the Indian Institute of Technology, consistently pushed for economic reforms involving a shift from the earlier reliance Roorkee. Ahluwalia joined the World Bank in 1968. At the age of 28, he became on extensive government control over the economy with high levels of protection, the youngest «Division Chief» in the World Bank’s bureaucracy, in charge of the to a much more open economy with a larger role for the private sector responding Income Distribution Division in the World Bank’s Development Research Centre. He to market forces and greater openness to imports, foreign technology and direct returned to India in 1979 to take up the position of Economic Adviser in the Ministry foreign investment.

20 March 2019 INSIDE INDIA INTERNATIONAL INDIAITALy Sumeet Yadav «India is set to become the youngest country in

uestion: great consumption story. India is 2022 with an average age of 29. Being the Demographics set to become the youngest country is an important in 2022 with an average age of 29. largest generation in history, millennials have Q driver of the Being the largest generation in his- Indian consumption story, tory, millennials have become the can you tell us a bit about juggernaut that can wield immense become the juggernaut that can wield immense the famous «Millennials» influence on the way businesses demographical cohort’s are run. It becomes extremely im- characteristics in India. portant to understand their buying influence on the way businesses are run» Who are they, what do they preferences. look for? How can they be reached? Q. Could you give us an sharing cabs being a click away – through social media. This affects Answer: Demographics is great example? millennials save their money for buying decisions. As a generation way to focus brand building efforts A. Among millennials, car owner- travel, leisure and experiences. they havw responded to sustainable , even more relevant to as India, has ship is seen more as a liability than They are also a generation native development far more aggressively been redefined by the number of an asset. It is pushed down lower to technology, with instant access than others. In an age where brands people we’ve added to our middle on the priority list of a millenni- to product reviews, deals, price are called out in seconds for any- class which in turn has created a al. With renting, commuting and comparisons and instant opinions thing unethical, misogynistic or harmful to the environment; millen- nials stand in solidarity with brands Sumeet Yadav which are good for them and good for the world around them.

Sumeet has over 20 years experience Q. What does it mean in in building brands India, with 15 concrete? A. They are the chief wage earners specifically fashion retail. He was part with 47% of our workforce being of the founding team Reliance Brands made of millennials– this means they are the primary decision mak- where he spearheaded launch some ers and this is something brands can most successful fashion franchises in easily ignore. In terms of reaching millennials, since they are a co- the country including Diesel, Tommy hort that does not take kindly to Hilfiger, SuperDry, Brooks Bros, Thomas intrusion, we think the best way to engage them is through build- Hilfiger, SuperDry, Paul&Shark etc. His ing communities around brands and role was not limited to being country- adopting a digital first philosophy. Focus on innovation whether at a head of these brands, but he had several product or communication level is general management functions like HR, absolutely pivotal. Projects, E-commerce and Training, Q. Can you talk a little bit gaining a deep insight into the Indian about e-commerce in India. market along way. Most recently, Sumeet Is it helping the overall retail story or is it pinning turned and scaled up the India business online vs offline? of Nando’s, the US$1.8, South African A. E-commerce in India is growing at a CAGR of 30% It is an industry restaurant chain, now headquartered in going full steam ahead and its al- London. South African restaurant chain, most astonishing how far and how quickly it has grown. However, now headquartered in London. His role despite being the second-larg- was not limited to being country-head of est userbase of smartphone users in the world, only behind China these brands, but he had several general (650 million, 48% of population), management functions like HR, Projects, the penetration of e-commerce is low compared to markets like the E-commerce and Training, gaining a deep United States (266 million, 84%), insight into the Indian market along way. or France (54 M, 81%). On the global e-commerce read-

21 March 2019 INTERNATIONAL INSIDE INDIA INDIAITALY

IBC is a good reform and is send- without skills a young population nance for infrastructure. Clearly Q. What are the key ing the right signals but it is a long is actually a disadvantage. the projects have to be financial- initiatives taken to ensure term institutional reform. The more ly viable and to the extent they are that India’s progress is immediate challlenge is how to Q. How do you perceive not, but government still want to not only an urban story improve the governance of public foreign investors and do them, it will have to bear a sub- but is an inclusive growth sector banks since the government how do you think FDI can sidy. across socio and economic has said they will not be privatised. contribute to the growth of classes of society? the Indian Economy? Q. In which sector/ A. Inclusive growth has been a key Q. What does the A. FDI has an important role to businesses is foreign element of India’s growth strategy depreciating India Rupee play and has been playing it. But technology / know how for many years and this remains a mean for the Indian India’s growth will be driven much required? stated priority of the present gov- economy? How does one more by a revival of domestic in- A. I would welcome FDI and ernment also. It includes targeting balance the dual attempt of vestment. That is where we should foreign know how everywhere. a faster growth in agriculture, gen- reining-in India’s import bill concentrate. Especially investment Perhaps most of all in renewable erating more productive jobs in non while spurring exports? in infrastructure which is India’s energy and related sectors and in agriculture to take the pressure of A. The depreciation of the rupee weakest point. It is difficult to say any sector which helps India to link population off the land, improving is a market correction to a long what is necessary to mobilise fi- up with global value chains. skill levels of the population to make standing real exchange rate appre- them more likely to find jobs in the ciation. It will help improve the changing economic environment, It competitveness of the economy. «Skill development is another important element is also important to ensure more in- odf cousr=rse there are many oth- clusive regional development which er things that must also be done. in competitiveness: We have a lot of young requires massive improvement in Clearly better infrastructure and infrastucture in the lagging states re- improved logistics and connectivity people but they are not adequately skilled and gions and improving human capital would help export competitiveness. in those states. Finally there is gen- Skill development is another im- der equality. This is a very important portant element in competitiveness, without skills a young population is actually a part of inclusiveness. There are chal- We have a lot of young people but lenges on all these fronts but then they are not adequately skilled and disadvantage» no one said development was easy.

iness index, India at 10% ranks Q. Luxury ones, also? ing large economies in the world India’s growth and development. So, below countries like Brazil (20%) A. Luxury brands, that earlier saw that has elevated millions of fam- indeed, the consumption story in and Russia (30%) so while the de- e-commerce and the digital comms ilies from poverty to the middle India has been wonderful. Consumer mand drivers are in place, there’s platforms as democratic and not ex- class. India redefined itself from spending has never been higher and still a load of work to be done on clusive, are now lining up to engage being thought of as a laggard and economic progress has faced very the ability to serve customers. with their consumers one on one and slow paced to being the growth en- few hurdles over the years. have a sales footprint in tier 2 and gine of the world. India’s ascent has Q. So what? 3 cities where they cannot easily led to increased incomes which in Q. What abour the next A. I don’t think brands can think of expand. However, while currently turn leads to increased consumption challenges? e-commerce as just another chan- the industry is driving consumer which boosts the economy. It’s a A. There is still a lot of work to be nel anymore. It cannot be online purchases through discounts, there virtuous cycle. After the 1991 eco- done on infrastructure as well as the vs offline. E-commerce has helped needs to be a shift towards creating nomic liberalisation, India achieved benefits of this massive growth per- the retail industry in more ways efficiencies and passing on those 6-7% average GDP growth annual- colating down to the smaller towns. than one. Brands are now able to benefits to consumers, and move ly. Since 2014 with the exception of One of biggest challenges for India reach consumers in tier 3 cities away from discounts. 2017, India’s economy has been the is the massive wave of urbanization and several remote towns – some- Overall, the e-commerce industry world’s fastest growing major econ- as several million people move to thing unheard in the past, unless is definitely a big boon for retail in omy, surpassing China. towns and cities each year in search the brand was deeply penetrated in India. This doesn’t mean brick and for jobs and opportunities. It is the the Indian market. Awareness about mortar stores have lost their sparkle. Q. But the percapita largest rural-urban migration of various brands has increased thanks In fact, they’re even more important income is still very low? this century. Massive investments to e-commerce and with Indian currently. Stores are the bastions of A. India is one of the fastest grow will be needed to create the jobs, consumers becoming more brand brand experience and are thus a key India’s gross national income per housing, and infrastructure to meet conscious, this industry is helping element of the retail story in India. capita had experienced high growth soaring aspirations and make towns the retail industry. Overall, e-com- rates since 2002. It tripled from and cities more liveable and green. merce has made the pie larger for Q. Can you give us your $272 in 2002–03 to $760 in 2010– The challenge thus, is too real. retail and that’s always a welcome view on the overall 11 currently the per capita income However, isn’t insurmountable. The move. Brands in India are em- consumption story at large is $2016. The world bank has stat- growth of consumption in India is bracing e-commerce to build their in India? Is it sustainable? ed that one of the most significant not one to be hindered atleast not businesses. A. India is one of the fastest grow- achievements of our times has been in the near or distant future.

22 DIGITAL intelligence MEDIAMORPHOSIS.it

The growing commitment towards digitalisation of production systems is leading us to Industry 4.0, the new industrial revolution that will change the way we work and live.

Thanks to this evolution, we will be more and more connected: collaboration will become a new form of intelligence. At IMA, the work we do and the way that we think about the future have always combined to create one big collective brain. With digital systems, even more so.

www.ima.it March 2019 INTERNATIONAL TESTIMONIAL/LORENZO ANGELONI INDIAITALy The success of the granular approach The Italian ambassador considers India an indispensable market, where there are more opportunities opened up by social transformation than critical issues. And he suggests a recipe for dealing with it

by Pier Paolo Albricci

uestion. What are surpassing the United and cultural one. Exports grew in the main features States in terms of double digits last year and SACE has of the Indian equal purchasing increased its previous growth esti- Qboom? power according to mates. Furthermore, there has been a Answer. The boom that put India analysts. In demo- renewed dynamism for national com- under the spotlight of world economy graphic terms, India panies, which have recently managed came from the reformist and busi- will overtake China to win important contracts in relation ness-oriented actions of Modi’s already in 2024. to the imposing infrastructure mod- government within a particularly fa- These statistics make ernisation plan interesting the vourable international economic India «the next place country. situation. to be» for Italian companies with a Q. A concrete signal of the Q. More specifically? strong international new climate? A. In the last four years the down- vocation. A. Italy was invited to participate as ward trend in oil prices has allowed a partner in the 2018 edition of the the government to free up resources Q. Do you see a Tech Summit that took place in Delhi political risk in at the end of October, in the presence Bio the next elec- of the Presidents Conte and Modi. tions? The event was attended by highly Asia Expert A. No, even if the specialised companies and cutting- macro-economic pic- edge research centres. It was a s a top expert on Asia, ture of the next few magnificent showcase of the excel- AAngeloni is actively engaged months is likely to lence of Italian production in the field in the relaunch of bilateral present greater uncer- of technological innovation. diplomatic relations. He was born tainties, because the in 1958, earned a law degree rupee has suffered Q. Does your assessment from the University of Perugia, strong depreciation also apply to SMEs? his city of birth, and has been in «These statistics make India against the dollar. In A. Absolutely yes, it could not be diplomacy since 1985. Before addition, the current otherwise, since Italy is present in moving to Delhi, in the spring the next place to be for Italian volatility of oil prices India with 600 companies including of 2015 he was ambassador companies with a strong translates into up- joint ventures, representative offices to Kharthoum, in Sudan (2003- ward pressure on and subsidiaries, with more than 2007), Deputy General Director international vocation» consumer prices and 23,000 jobs generated, and this figure of the Asia, Oceania, Pacific and a growing trade defi- will only grow. Antarctica Directorate (2008- for infrastructure investments, make cit for India, a net importer of crude 2010) of the Ministry of Foreign cuts to indirect taxation and launch oil. Q. Have you launched Affairs, and Ambassador to numerous social programs with a specific initiatives in their Vietnam from 2010 to 2015. sure impact in terms of popular con- Q. Since your arrival in direction? While in Delhi, he has also sensus. India three years ago, how A. The SMEs will be at the centre of launched a communication and how much has the a pilot project that the Embassy is campaign to exploit the potential Q. Is the scenario destined Italian presence changed in putting in place in partnership with of Indian tourism in Italy. «Indians to last? the market? CNA, which will make use of social mainly tend to visit the most A. The short-term dynamics do not A. The year 2017 marked a water- marketing and innovative web mar- famous destinations, based on alter the underlying context: by 2040 shed; it was Italy’s return to India, keting. feedback received from other the Indian GDP will reach 6 trillion with a full revival of bilateral rela- Indians. Few know the South». dollars, while by 2050 India will be- tions not only on the political level, Q. What are the principal come the second world economy, but also on an economic, commercial, obstacles that mainly continue on page 89

24 International FOCUS

AEFI activity and the internationalisation policy

EFI is the association of Italian exhibitions and fairs representing the Italian exhibition system, Awhich is the second largest in Europe and the fourth worldwide in terms of exhibition space. AEFI has always focused on initiatives aimed at the inter- nationalisation of fairs and the companies participat- ing in them in order to seize new opportunities on the world market. AEFI operates with the goal of being present abroad, with attendance to fairs in Italy as its main objective. The activities carried out have led to agreements with interlocutors in strategic markets: to date, partnerships have been signed with Iran, Taiwan, Lebanon, India, South Africa, Thailand and China, and a memorandum of understanding has been signed with AmCham (American Chamber of Commerce in Italy), with IELA, the global association that groups all the operators involved in logistics relating to the exhibi- tion world and with CENTREX, the organisation that represents the exhibition sector in Central and Eastern with investments both for logistics and communica- by over 300 delegates from all over the world in- Europe. An agreement was also signed in 2014 with tion to support fair activities, with the most modern cluding presidents, managing directors, general the ICE Agency to promote the Italian exhibition sys- technologies. International collaborations are highly managers and other decision makers of the sector, tem on the main international plazas through dedicated sought after for development, especially with Italy. together with representatives of the government and meetings and initiatives and incoming foreign delega- AEFI is encouraging these collaborations thanks to ministers. The event was held from 4 to 6 May at tion activities. A memorandum of understanding was the partnership signed in 2017 with the IEIA (Indian the Bombay Exhibition Centre, and had the theme signed with SACE and SIMEST in July 2017. Exhibition Industry Association) which includes: “Fairs: the engine of economic growth”, represent- information exchange, the activation of contacts be- ing the first concrete collaboration between the two AEFI presence in India tween members and support for the development of associations. It was an extraordinary opportunity Within the scope of the activities carried out, col- various forms of collaboration, and periodic meet- for all members to meet industry professionals in laborations with the Indian exhibition system should ings to update the existing possibilities in the two a dedicated context specifically organised by the be highlighted. The increasing attention to fairs in countries. Following this agreement, in 2017 AEFI local association, where they could further mutual India has been used as a tool for industrial policy was invited to participate as a “supporting associa- knowledge, and start or consolidate relationships and territorial marketing, and the great interest for tion” at the 7th edition of the “IEIA Open Seminar”, to support internationalisation and Indian market Made in Italy and the fairs expressing the same. the main conference of the Indian exhibition sector development projects. The contacts continued at the India has great confidence in the future of the sector dedicated to networking and knowledge, attended IEIA Open Seminar in Hyderabad in 2018; AEFI and has the ambitious goal of mak- participated in the annual conclave ing the country the best destina- of Indian industry for the second The sector data in India, provided by IEIA, indicate the following situation: tion for the MICE industry, helping consecutive year. “CONVERGE  Number of events: 750 every year, of which: • 40% national • 60% regional local production establish itself in  Covered exhibition area: 7.1 million square metres & CONNECT” was the title of the world. The Indian exhibition  Annual growth rate of the exhibition system, higher than GDP growth in the this year’s event, held from 9 to 11 system has grown by 27.7% in country in recent years May in Hyderabad and organised the last five years, and significant  76% of the events are at annual intervals by the IEIA-Indian Exhibition In- investments are planned start-  75% of the events are B2B dustry Association and Rom on the ing from the new district of New  51% of the organisers are national occasion of World Fair Day 2018. Delhi. Alongside, the investment  the main Indian events are dedicated to sectors such as construction, automotive, Those interested in learning more sector is growing, which guaran- chemicals, and are organised by trade associations with the support of institutions about AEFI’s activities in India tees the truthfulness of its set-ups can contact [email protected].

Associazione Esposizioni e Fiere Italiane - Italian Exhibition and Trade Fair Association Tel. +39 0541 744229 - Fax +39 0541 744512 - www.aefi.it - [email protected]

The data and information are provided by the company, which guarantees its truthfulness March 2019 INTERNATIONAL TESTIMONIAL/PierRoberto Folgiero INDIAITALy The right chemistry of the Italian-Indian alliance The CEO of Maire Tecnimont group, the parent of Tecnimont PL in Mumbay, explains how the late became a leading example of a large, locally-managed company projected on international markets

by Pier Paolo Albricci

uestion. What second in refining and in hydrogen government, and for Mittal Energy Q. In concrete terms, are the growth and sulphur processes. Investment, a subsidiary of Mittal what is the competitive forecasts in India, Group, and for Reliace. Over the past advantage? Qaccording to your Q. More specifically? five years, we have won four projects A. Excellence in the supply of chemical background and A. We have already secured three from the latter, demonstrating the engineering services and in the sus- those of the major Italian- EPC contracts within a few months, strong loyalty of prestigious custom- tainability of our work. In fact, when Indian company? two with a private customer in the ers, because we know how to comply procuring goods and services for Answer. The group is benefiting polyolefin sector and one with a pub- with deadlines and quality standars. each project we know how to inter- from the recent growth in both pub- lic customer for upgrading a refinery. act, as Indians, with local suppliers lic and private investments already Q. Deadlines and quality equipped with an adequate skill-set under way, thanks to the synergies Q. What customers have standars are therefore to reduce costs and at the same time between Tecnimont PL and our EPC you worked for lately? your key factors in the create value in the business fabric in contractors Tecnimont and Kinetics A. For Hindustan Petroleum competition? which we are operating. It is a huge Technology. The first is a market Corporation, an Indian oil A. Not only that, there is an- competitive advantage. leader in polyolefins for installed company owned by the other specific factor that capacity in the last five years, the characterises us in a par- Q. Who reaps the benefits ticular way. It is the fact of this major advantage? Bio that we are an Italian- A. The advantage is shared by all Indian company with stakeholders: the contractor, the lo- A Career in Finance technological DNA cal supply chain consisting of many olgiero was born in Rome in 1972 and graduated from that can count on the subcontractors and suppliers who Insead of Fontainbleu, then the Luiss University of Rome international network need to grow by working on interna- F of the Maire Tecnimont tional projects, and by the final user, in Economics. He joined the Maire Tecnimont Group in 2012 group, and at the same whether it is the Indian government where he became General Manager in May and CEO in May of time play a leading role or a large private colossus. the following year. He began his career in the Administration and in the local market. Finance area of Agip Petroli, before moving on to Ernst & Young Q. How have you obtained and PricewaterhouseCoopers. In 2000 he joined Wind this result? Telecomunicazioni and became its Corporate A. By increasing our Indian unit, Development Director in 2006. He became which has become our extended the CFO and General Manager of Tirrenia desk of Milan, and is able to dedicate di Navigazione in 2008. more than two-thirds of the engineer- ing hours on all the Group’s global In September 2010 he joined the Maire projects on a yearly basis: a funda- Tecnimont Group as a CFO of KT, mental contribution also in terms of becoming CEO a year later. Maire cost advantage. Tecnimont registered record results in the first nine months of last year. Its Q. Can you explain further? turnover rose up 5.6% to 2.7 billion A. Finding workers who work euros, but above all, its EBITDA at lower hourly costs is not diffi- reached almost 150 million euros, cult, however, this often pays off with lower productivity levels. The with over 12% growth, while difficulty is finding the right com- consolidated profit grew by 27% bination of the two factors, cheaper to 89 million, with a backlog of 7.3 work and unaltered productivity. billion euros in orders. The result is possible with TCMPL thanks to decades of experience

26 March 2019 TESTIMONIAL/PierRoberto Folgiero INTERNATIONAL INDIAITALy

File/Tecnimont PL ent on exchanges and has therefore suffered from the effects linked to A Centre of Excellence for Engineering Services the intensifying of economic sanc- tions against certain countries. Even rom just a few hundred employees in if India is a net importer of hydro- the 90s, the Indian subsidiary of the carbons (between 75 and 80%) and F the increase in the barrel price has Maire Tecnimont group, Tecnimont Private had an inflationary effect, it is driven Limited, currently has more than 2,000 to increase production capacity and engineers in its Mumbai headquarters and modernise energy infrastructure to coordinates 4,000 specialists involved in meet the growing demand for petro- electro-instrumental installation activities. leum products and fertilisers. It is with this force that Tecnimont PL is able to carry out an average 2 to 3 million Q. How do you see man-hours in engineering services every your role as a hub? A. Strategic, both towards the year, equivalent to about two thirds of the Middle East, and in particular the total engineering man-hours at the group Gulf countries where we have a his- level. To date, it has completed more torical presence, and in Southeast than 400 projects in the manufacturing Asia. sector (chemical and petrochemical, fertilisers, refineries, power and oil & gas) Haidia plant, built by the Tecnimont PL to produce plastics in the State of Q. Which of these West Bengala, 120 kilometres from Kolkata and has an annual turnover of more than two areas is more 100 million dollars. The acquisition of the interesting at the moment? to the construction of a methanol plant A. In the Gulf the support of our entire capital was completed in 2008 at in 1973. Its track record in the oil & gas Indian subsidiary in the imple- the end of an ascent that began in the industry was then enriched over the years, mentation of large EPC projects is second half of the 90s. Tecnimont PL making Tecnimont PL a reference point particularly important in terms of has been active in India since 1958. Over engineering services, the procure- the years it has developed considerable for local and international engineering ment of goods and services, and the experience in design activities and in the services. Since joining the Maire Tecnimont direct implementation of electro-in- implementation of feasibility studies; it Group, it has undertaken a progressive strumental construction activities, in entered the petrochemical segment with internal growth process thanks to strong which TCM P Lexcels at an interna- tional level. its first engineering services project related investments. Q. And in Asia? in India. This is supported by the current energy transition, is not lim- Q. So you see a market that A. The Southeast is showing growth fact that the company has won al- ited to the Italian landscape, but to is still expanding? rates and increasing investment most 60% of projects for polyolefin all the markets in which we oper- A. Important investments are cur- trends in the industry for the trans- plants built in India in the last 10 ate, including India. In this moment rently underway and others are formation of oil and gas into refined years. of discontinuity it is necessary to planned in the short and medium and semi-finished plastic prod- «drive» change: this is why we look term in the major industrial and in- ucts with higher added value, the Q. In which segments do with increasing interest to technolo- frastructural sectors, currently so-called downstream, also for initi- you intend to grow? gies and investments adjacent to our contributing to GDP in a relatively atives linked to the Silk Road. A. In our distinctive sectors, from core business, in the field of renew- limited way, and thus needing a de- polyolefins to refining and gas pro- able energy and green chemistry and cisive push. This is why the Indian Q. Where are you working cessing, crucial segments at the in particular bioplastics, a sector that government is pushing Make in India right now? moment considering both the vola- is constantly acquiring importance a great deal. For oil & gas, the pro- A. We are working on two impor- tility of crude oil prices and the great next to traditional chemistry. gram envisages the implementation tant orders. The first is in Malaysia abundance of cheap gas globally. of EPC projects with a greater inci- for Petronas and is for the con- Up to fertilisers, of course, with in- Q. Is it a strategic choice? dence of local content. Make in India struction of a polypropylene plant creasing demand not only in India, A. Yes, because in doing so we fur- is connected to Skill India, aimed at and two high-density polyethyl- but also in the countries of the ref- ther enhance our leadership in large creating a class of skilled workers ene plants. The project is worth erence area. downstream processing plants and with particular attention to the new over 800 million total dollars. In at the same time confirm our role generations, and obviously a strate- the Philippines we are working on Q. In Italy you have begun as a pioneer of change, anticipating gic factor for the government. a new high-density polyethylene to approach so-called the evolution of international envi- unit and expanding a polypropylene green chemistry. And in ronmental regulations. Our DNA Q. So you do not see unit; the order is worth approxi- India? includes knowing how to seize the a risk of slowdown? mately 180 million dollars. And A. The launch of NextChem, the opportunities that market disconti- A. The growth rate is very high, we are considering entering other new Group company dedicated to nuities and the energy transition in around 7%, despite the fact that the countries in the area soon with im- new technologies to support the progress can offer. economy is significantly depend- portant projects.

27 March 2019 INTERNATIONAL OUTLOOK INDIAITALy

300 The elephant’s charge Over 7% growth for the next three years and inflation under control: the winning recipe of the Asian giant has a good chance of imposing itself inside and outside the country. As long as oil and elections...

by Cecilia Giannini

hen India’s head of the economies, ahead of Great Britain eted country that also holds many International Monetary starting next year, while this year it records, just like an elephant, for its 225 Fund Ranil Salgado pre- doubled France. It is the umpteenth size. The fact remains that nobody Wsented his latest report paradox of a country whose current raises any doubts about the growth on GDP growth forecasts in the sub- per capita income is around 2,000 trend. From the World Bank to the continent last 8th August, he said dollars, which reaches about 10,000 Asian Development Bank, from the the elephant is beginning to charge. if calculated at the same purchasing Economist Intelligence Unit to the In fact, the 7.3% expected for this power as the international dollar, yet Bloomberg Consensus, all of them year, and an increase (FMI) of 0.5% remains among the lowest in emerg- forecast 7.3% growth this fiscal end- 199 next year, is an exceptional fig- ing countries and about ing next 31 March, and 7.8% next ure to Westerners, as it is double a third of the Chinese year, which will lead to the end of 184 the world growth average and also per capita income. But the decade. Moreover, the GDP grew 181 above the current record holder, there is no novelty in by 8.2% between last April and June: China. This pushes India up to the fact that India the highest it has been in two fifth place among the world’s is a multi-fac- years, thanks also 167

156 154 150 149 148 147 142 149 142 141 140 136 127 137

125

116 111 112

100 93 87 75 70 Pro-capitePil pro capite GDP Rising imports from China and exports towards USA InflationInflazione Source: Intesa Sanpaolo Bse SensexSensex elaboration on data Itc Comtrade

Source: IMF World economic outlook (October 2018) and MF Database. The inflation data are this ones of endyear while Gdp is in dollar Inter- national (ppp, pair purchase India mainly has economic exchanges with Asian countries (56.1%), and in particular with China, despite political parity) frictions. The importance of Europe was substantially stable (18.7%), with Germany at 2.9%, the United Kingdom (1.8%) and Italy (1.4%). The American continent is growing (15.6%) with the USA as a second business partner (9.7%). Africa is settling down (8.1%), with Nigeria and South Africa in pole position. 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

28 March 2019 OUTLOOK INTERNATIONAL INDIAITALy

to the effects of the demonetisation gives rise to a negative sentiment «We expect economic growth to pick up to 300 in December 2016, which caused towards the rupee», Rodrigues ex- private consumption to decrease in plained to MF International (see also about 7.3 percent for fiscal year 2018/19 from those three months of 2017. In fact Forum, on the next page). However, 6.7 percent in the year prior. Meanwhile, in the second quarter of last year, analysts note that the solid foreign i.e. between July and September, the exchange reserves in dollars, 392 bil- inflation has edged higher, in part due to a growth rate dropped to 7.1%, affected lion dollars at the end of October, is by the weakness of exports and a par- a reassuring element on the state of reduction of economic slack» tial tightening of credit. But the key public finances. Also because the in- 262 to India’s growth, for example the cidence of public debt on the GDP consumption that exceeded 70% of is limited to 50%, down next year 249 GDP in 2017-2018, continues to push to 47.8%. 247 the subcontinent’s economic cycle. 242 This salient feature and guarantee of Good news from industry stability, however, has another side: But the news that most comforts in order to meet the needs of busi- analysts and observers is from busi- 225 nesses and consumers, India must nesses and the real economy. «The 223 massively import goods and services, monthly data between March and much more than it exports. Imports in May confirm the stabilisation of ac- the six months from April to October tivity with sustained rates, although 208 last year still grew by 16%, against they are lower than the peak of the +13% of exports, pushing the trade first quarter», wrote Silvia Guizzo of balance deficit to over 17 billion dol- the Intesa Sanpaolo Research Office 195 193 lars (+17%), mainly due to the import in her latest report on India, updated 189 of petroleum products which repre- last July: «Industrial production rose Asia beats G7: What is the weight of GDP… sent almost a third of imports and 5.4% in April, slowing down from a 50000 grew by 50% in the semester. The peak of 7.8% in January, supported 2018 44.964 The graph shows the GDP in dollars with trade deficit last 31st March for the by the production of infrastructure 40.777 equal purchasing power. The statistic of 37500 previous 12 months was 157 billion goods that partially offset the decel- the emerging Asia countries, which include dollars out of a total 762.5 billion eration of that of intermediate goods 25.313 25000 China, India, the Philippines, Indonesia, Thailand, Malaysia, Bangladesh and minor dollars in trade with the rest of the and industry energy. Companies’ states, has exceeded that of the G7 since world. The export of services was 75 confidence also remained strong in 150 12500 10.401 2016, i.e. the most developed economies. billion in 2017 and is the main item the second quarter and the manu- 2.398 3.496 China and India alone are slightly below the on the other side of the scale, but it facturing SME index continued to 0 G7 Em Asia Cina India Italia Indonesia entire G7. is far from balancing out the weights expand slightly below the average of …and how much it has risen since 2006 (Base 100) despite the substantial inflow of cap- the first quarter (51.8)». According 400 ital from abroad - 52 billion in 2017 to the latest Central Bank data 2018 The graph shows the evolution of the 329 between direct and portfolio invest- (October), overall production grew 292 285 GDP growth trend (in dollars with equal 300 ments - and the high level of Indians 5.1% since April and September of 237 purchasing power) taking 2006 as a 100 basis. China is the record-holder, followed working abroad, which mitigate the last year: double the growth recorded 200 impact on the payments scale, i.e. in the first half of 2017. This per- 143 by India. Overall, Asian countries have 119 that which measures financial trans- formance is also the result, which 100 developed at double the rate of Western ones over the past decade, including Japan. actions, of the trade deficit. «With should continue to occur throughout

0 an average barrel of oil costing 75 the year, of the tax reform that intro- Cina Em Asia India Indonesia G7 Italia dollars, the current account deficit duced a single general tax on goods Source: IMF World Economic Outlook Database, October 2018 - GDP in billion dollars at ppp should rise from 1.9% in 2018 to and services from the first of July last 75 2.7% of GDP in the 2019 financial year, known as GST (goods and ser- 73 73 71 year», predicted Gordon Rodrigues, vices tax) and comparable to VAT, Pil pro capite 67 head of exchange rates and inter- at the national level, instead of taxes Inflazione est rates in the Asian area of one decided by the 29 regions, which cre- 54 of the world’s largest banks, Hong ated enormous difficulties for large Bse Sensex Kong Shanghai Bank Corporation domestic groups and foreign mul- (HSBC). According to the Central tinationals in terms of trading and India, income rising and inflation decreasing Bank it should not exceed 2.4%, but sales planning. However, perfor- in any case this situation opens the mance is not uniform in all sectors; With values attributed to 2006, the chart clearly indicates the divergent paths of GDP per capita growth in India (in blue) and inflation (in green), while the financial markets risk scenario up to investors, under- as always, there are those who drive (the Mumbai Stock Exchange index in yellow) follow the income trend with greater mining the value of its money. «The and those queued up. volatility. The containment of inflation, which the Monetary Fund estimates at 4.7% for impact of oil and the recent spread The automotive industry has a sol- 2018 and 4.8% for next year, is one of the key indicators for assessing the stability of of emerging markets have meant that id growth basis with broad demand the growth path. India probably has a negative bal- across all segments. «This year’s ance of payments for the first time good monsoon made our farmers op- 0 in five years, and even if we expect timistic, and they are now planning 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 an improvement for next year, that to trade in their motorcycles and buy

29 March 2019 INTERNATIONAL OUTLOOK INDIAITALy

that new tractor», explained Luca Invest in India Bottazzi, general manager of Brembo India, which dominates the drum- Bonds at 8%, stock will yield long-term brake market for motorcycles and whose plants are operating at dizzy- rowth, monetary stability, financial market at the beginning of the ing rhythms. In the automotive sector, Greturns, possible risks: MF International year, but the results the mother of all industries, growth asked the managers of three large investment have been lower than driven by urbanisation processes and funds (which can also be bought in Italy) for their expected since then. the middle class living standard is opinions regarding those which have had the best After the last rise at the pushing the demand for energy. «It performance in their respective market segments in beginning of August, we will be the third largest market in the the last five years, as well as about shares, bonds expect the Central Bank world by 2021», assured McKinsey, and ETF. to stop until December the most authoritative scenario think unless the rupee, which tank. PriceWaterhouseCoopers has Question. What are your forecasts has depreciated by Vipul Mehta has been calculated that the market is grow- on the evolution of the short-term 11% against the dollar responsible for Nomura ing at a rate of 9% a year, while the macroeconomic framework, especially since the beginning of investments in Asia since list of producers investing to increase inflation and rates? the year, is not again put 2007, with the exception of Japan, and as manager of their capacity is growing month by Mehta (Nomura): The recent context has also under pressure. the India Equity Fund, which month, led by the Easterners Isuzu, been challenging in India. As a major oil importer, has achieved an annual Nissan, Honda and Hyundai, with India is held hostage to high prices of the black Q. Do you expect performance of 19.4% in some Westerners as well, for exam- gold, and the recent strength of crude oil has had the rupee to the last five years, the best ple Ford, Mercedes and Psa. a negative impact on the current account deficit, stabilise? among equity funds. The fund managed 719 million dollars Thanks also to the automotive indus- interest rates and currency, even if inflation has Rodrigues (HSBC): last 3 January, with 93% try, the steel industry has reaped the remained reasonably contained to date. The rupee is at an all- invested in Indian stocks. The benefits of rising local demand and time low against the top five stocks in the portfolio rising prices, contributing almost 2% Rodrigues (HSBC): But the economy is growing dollar, but with oil at were Hindustan Unilever, Maruti to the GDP. Steel consumption is at strongly, and inflation has fallen close to the 4% 75 dollars a barrel, the Suzuki India, Larsen & Toubro, Housing Development and its maximum capacity of the last five target set by the Central Bank in recent months. current account deficit HDFC bank. years. The marked increase in rates in July and August is expected to rise from Cement manufacturers are facing strengthened the requirements for combating inflation 1.9% in 2018 to 2.7% of more difficult recovery as rising and consolidated the independence of the RBI. GDP in 2019. It is the first time in five years that the material prices erode profit mar- balance of payments is negative, which gives rise to a gins. However, the increase in public Taylor (DWS): It is true, inflation was at its highest negative sentiment against the currency. On the other hand, the foreign currency reserves accumulated best performers in Indian market: Equity FunDs... when the rupee was strong, 402 billion dollars last 3 Revenues % August, which should mitigate the weakness of the Fund Manager 5 years 3 years 2018 1 Nomura Fds India Equity A € Nomura AM UK 19,4 11,7 -6,3 currency. 2 PineBridge India Equity A PineBridge Invest. Ireland 18,3 3,9 -6,3 3 Stewart Investors Indian Sbctnt A Acc€ First State Investments (UK) 16,8 5,7 1,0 Mehta (Nomura): The signs of a recovery in 4 Comgest Growth India € R Acc Comgest AM Intl 16,5 3,1 -11,3 5 GS India Equity I A Inc $ Goldman Sachs AM 16,3 3,9 -12,8 activity are significant, although you have to consider 6 Kotak India Growth I $ Acc FundRock Management 16,1 6,0 -5,2 that the basis for comparison is low due to the tax 7 Fidelity India Focus A-Dis-$ Fidelity Inv Mgmt (Lux) 16,0 7,4 -1,0 reform disruption last year. The recovery has driven 8 BGF India A2 BlackRock (Lux) SA 15,9 6,0 -7,6 9 Schroder ISF Indian Opports A Acc $ Schroder IM (Europe) 15,4 5,8 -3,1 the growth of company profits, which we estimate at 10 Invesco India Equity E € Acc Invesco Management 15,1 4,1 -12,3 around 15-20% for the current and next fiscal year. 11 Mirae Asset India Sector Leader Eq A $ Mirae Asset GI (HK) 14,3 4,6 -9,8 In summary, the scenario is of a micro-context that 12 Aberdeen Global Indian Equity A Acc $ Aberdeen Global Services 14,2 5,7 -0,3 is currently being improved in a complicated macro- 13 Pictet-Indian Equities R $ Pictet AM (Europe) 14,2 5,4 -8,5 14 EdR India F Edmond de Rothschild AM 14,2 5,9 -6,7 context. 15 SLI Indian Equity Midcap Opps D Acc $ Standard Life Investments 13,6 9,0 -15,0 16 Schroder ISF Indian Equity B Acc $ Schroder IM (Europe) 13,5 5,9 -1,6 Rodrigues (HSBC): Much of the volatility we 17 Jupiter India Select L $ A Inc Jupiter Unit Trust Managers 13,5 -1,1 -20,7 18 AB India Growth C Acc AllianceBernstein (Lux) 13,3 1,4 -19,8 have seen is a consequence of the contagion from 19 Franklin India N(acc)$ Franklin Templeton IS 13,2 3,1 -11,9 emerging markets. But India is in a good position 20 Amundi Fds SBI FM Equity India FU-C Amundi Lux 13,0 3,9 -7,4 to resist this situation. The yields on 10-year ... bond funds... government bonds exceed 8%, the highest since 1 Kotak India Fixed Income I USD Acc FundRock Management 9,09 2,45 0,03 2014, making India a very attractive investment-grade 2 HSBC GIF India Fixed Income EC HSBC Investment (Lux) 8,77 1,84 -0,02 bond market. 3 Rubrics India Fixed Income UCITS C1 GBP Carne Global (Ireland) 6,97 0,46 -2,67 4 Aberdeen Global Indian Bond A Acc USD Aberdeen Global Services - 3,02 2,20 5 Invesco India Bond E EURH MD-GI Invesco Management - 0,38 -8,36 Taylor (DWS): I agree that India has a history all ... ETF its own in relation to emerging markets: this year 1 X Nifty 50 Swap ETF 1C Deutsche AM 13,9 4,3 1,9 its growth shows visible recovery, offering a sign for 2 Lyxor MSCI India ETF € Lyxor Int. AM 11,9 3,2 -0,6 the recovery of stocks. For 2018/2019, we expect 3 WisdomTree India Quality $ WisdomTree Mgmt - - -3,7 7.5/8% GDP growth. Source: Morningstar Direct - Data in euro at 28 Dicember 2018, for Etf at 30 July 2018 - Funds distributed in Italy to retail clients

30 March 2019 OUTLOOK INTERNATIONAL INDIAITALy

spending for the construction of af- Q. Do you predict an increase in political government will be reaped in the coming years. The fordable infrastructure and housing risks in the economy caused by the tax on goods and services makes India a truly unique in the run-up to next year’s elections general elections next spring? market for the first time, while the policies that led to should support demand. Mehta (Nomura): Yes, political chaos will likely digitisation and greater protection for home-buyers Another positive aspect can be increase as we approach the end of the year, with have further freed citizens within a stable democracy. seen in the consumer goods sector, elections in three major regions, and in the first half which is the fourth in the economy. of the next with the general elections. As in the past, Q. How much is India vulnerable to the Private consumption recorded 8.6% the NDA government currently in power will manage global trade war? growth between March and June last them like a presidential election, but Modi’s victory as Rodrigues (HSBC): US duties on Indian steel and year and the sector recovered well a leader cannot be taken for granted. If the country’s aluminium exports amount to only 240 million dollars, from the chaotic introduction of last helm passes to a disordered coalition, the economic so the direct impact is very small. However, fears of a year’s GST. The propensity to con- risks will increase. But this is not our basic scenario. slowdown in world trade have undoubtedly damaged sume should be well-supported by investor sentiment and contributed to the sell-off of the increase in wages for millions of Rodrigues (HSBC): Our basic hypothesis is that certain assets from emerging government employees, by Modi will be re-elected in 2019. There are very few markets. We believe that the increased prices of agri- elements supporting a significant decline in his trade disputes between the cultural products, of certain popularity and his reform program is appreciated United States and other crops, especially with the ba- in urban areas. However, we believe that political countries will end up being sic price being guaranteed by uncertainty is destined to last over the coming solved in a positive way for the State, and by an increase months, but has already been taken for granted by most actors, but the times in public spending as the the market. are hard to predict. elections approach. In a coun- try as large as India with very Q. What should we expect in the medium Q. What is the poor land transport infrastruc- term? composition of your ture, significant indicators of Taylor (DWS): There are still a lot of challenges with portfolio and the most the economy’s state of health oil, which risks rising again due to inflation, while the interesting sectors in can be seen in the air traffic political landscape leading up to the 2019 elections the near future? statistics that are growing does not offer any glimpses of tax relief. External Taylor (DWS): We are at double figures and, at the Sean Taylor is the manager of pressures from rising interest rates in the United neutral in India within our the ETF X Nifty 50 Swap Etf 1C same level, also the ability States, the dollar and trade could dampen sentiment global Emerging Markets on behalf of Deutsche Asset to transport because the op- globally. portfolios, with a relatively Management, which has a erators are expanding their unchanged positioning, portfolio of 164 million dollars fleets. The increasing price Rodrigues preferring consumer and invested on an index including of oil which appears stably 50 stocks representing 21 The rural stocks and at the same (HSBC): sectors of the Indian economy. high could slow down growth fundamentals of time adding to those which The annual 5-year performance in the short term in this sec- the economy are benefit from the weakness is close to 14%. tor as well, but the long-term solid. The quality of of the Indian rupee (IT and outlook is definitely positive. the sovereign debt Healthcare) and reducing the and the corporate weight on metals due to the worsening of the global Tail lights market should situation. The real deterrent to this growth continue to improve could instead come from the bank- in the long run Mehta (Nomura): We continue to be optimistic ing sector, where against a sustained as the economy about consumption, which will continue to grow demand for new loans, the gross rate develops. India because it is driven by the young demographic of bad loans could rise to 12.2% this is a country with profile, rising incomes and the optimistic nature year, the highest in two decades, Gordon Rodrigues, foreign enormous potential of Indian society. So we appreciate both the from 11.6% % last year according to exchange manager in the Asian for its young, discretionary and non-discretionary consumption data from the Reserve Bank of India. area for HSBC, is the manager educated and sectors. We are also optimistic about private The deterioration of asset quality is of the Anglo-Chinese bank banks oriented to consumption and retail. Aided by bond fund which has achieved large population. eroding credit institutions’ capital, an 8.7% annual return in the An important point technology, they have the right conditions to acquire limiting their ability to finance large last five years. Last 3 January is the significant market shares from state-owned banks. We are less public works. However, in the first he managed 823 million dollars, improvement of optimistic about the manufacturing sector. half of last year bank credit rose by with 95% invested in fixed the institutional 14%, double what was recorded in income bonds, for the most With the current yield, the part (20%) Indian government framework in recent Rodrigues (HSBC): the same period of 2017. The en- bonds with yields between 6.7 years, with a strong market is already pricing at least a further rate hike ergy sector is also lagging behind, and 7.8%. independent central by December. We lowered the average portfolio causing concern for bankers and pol- bank which has duration, with 12-24 month securities, and sold iticians. Difficulties in the supply been entrusted 10-year corporate bonds and 15-year government of fuel mean that producers cannot with the task of an inflation target. Furthermore, the bonds without sacrificing yield, and we expect to guarantee long-term supply contracts benefits of the many reforms established by Modi’s maintain this position. to the state-owned electricity distri- bution companies, which are all in

31 March 2019 INTERNATIONAL OUTLOOK INDIAITALy

red. Almost 40% of the coal-powered Political risk generation capacity is unused and the sector is recovering from the loss of Modi or Gandhi, but the economy fears expensive oil permits for coal mining in 2014, as well as funding and liquidity prob- he two contenders at the next general elections of the old paper money from circulation and replacing lems. Tscheduled for May are Narendra Modi, prime it with new, larger banknotes to be withdrawn from minister and president of the Bhartiya Janta Party (BJP), the bank along with the identification of the person Rates down or up? and Raul Ghandi, president of the Congress Party. Both presenting them, and the introduction of a single tax In this context, one thing is certain: present a contiguous profile in terms of the economy, on goods and services (GST) for the whole national more than Donald Trump’s tweets on despite their profound historical differences. The territory. The demonetisation was claimed as an attempt tariffs, the threats of trade wars or the Congress Party is historically identified as a secular party to clean the country of black currency but caused a difficulties of other economies, the far from religious influences, while the BJP has roots in serious liquidity crisis that slowed down growth for stability of growth in India will be the concepts of Hindutva, a form of Hindu nationalism. at least a few quarters, with the GDP losing almost determined by internal problems and Both, however, have left the centre, with the Congress 2 points, and especially affecting the lower strata of political power relations. This figure Party having a more leftist vein the income pyramid, above all in clearly emerged on 5 October when and the BJP more to the right. rural areas. In force since 1 July the Committee for Monetary Policy The charge of the Indian elephant 2017, the GST instead had almost met, which is the highest decision- began gaining speed in 2004 immediate positive effects on all making body of the government. The under the Coalition Government sectors of the economy, unifying forecast was that the RBI would have (UPA) led by the Congress Party the market. The Real Estate Act increased, for the third time in a year, and Prime Minister Manmohan of 2016 to clean up the real estate the primary rate by at least a quarter Singh, a worthy economist. And he sector and the Insolvency and of a point, bringing it above the 6.5% accompanied the country’s rapid Bankruptcy Code to solve the threshold and providing an unequiv- growth up to the international crisis problem of non-performing bank ocal sign of the economy’s cooling. of 2009, initiating fundamental assets completed the reform Instead the Committee decided not to social reforms, including that of package, which convinced many touch the rate in force at 6.5%, de- welfare with the Rural Employment investors to focus on the country spite the growing gap between the Act of 2006, and of education with 52.2 billion dollars in 2017, yield of Indian and American securi- with the Right to Education Act of a real record, also attracted by ties, the outflow of nearly 6.5 billion 2009, which recognises education liberalisation in certain key sectors, dollars from India in the first six as a fundamental right of every including retail distribution. The months of 2018, and the subsequent child between 6 and 14 years. undeniable successes achieved depreciation of the rupee, which has But when the country entered a by Modi’s government are, risen to 74 to a dollar, as well as the difficult economic phase marked however, questioned by a difficult increase in oil prices to 84 dollars by rising oil prices, reaching 110 Narendra Modi, 68, government Prime Minister international context in which per barrel. The decision strengthened dollars a barrel in mid-2014, from leader of the Nda party, and above, the volatility of crude oil prices is Rahul Gandhi, 48, head of the Upa. the credibility of the Central Bank, the depreciation of the rupee to the accompanied by the depreciation which is committed to keeping the historical low of 68 rupees per dollar of the rupee back to historic lows. real bomb of the Indian economy un- in 2013, the government was unable able to control the 2018 ended badly for Modi, who lost the election in der control: the level of inflation. The high rate of inflation. So in the following year’s elections, three important states, Rajasthan, Chhattisgarh and latest surveys of the same Central the National Democratic Alliance (NDA) led by Modi took Madhya Pradesh, where two thirds of the population Bank indicate inflation at 3.3% at the over the helm. Also benefiting from the sharp decline lives, punished above all by the vote of the peasants. end of October, slightly down from in crude oil prices, which at the beginning of 2016 had The Congress Party is currently led by a young and 3.7% in September, and regardless fallen to 30 dollars a barrel, Modi’s economic policy ambitious leader, who is currently working on the below the limit of 4%. However, the has been substantially in continuity with the previous creation of a great coalition that wants to serve as government shockingly called for the government. Between 2016 and 2017, the NDA initiated a unification for all anti-BJP parties opposed to the resignation of Governor Urjit Patel, two bold economic reforms: the demonetisation of «totalitarian» and strongly nationalist model of the who on 12 December was replaced 500 and 1,000 rupee banknotes, withdrawing 86% current government. at the summit of the Central Bank by Shri Shaktikanta Das, 61, a sec- Several bankers and economists con- probably underestimating the over- with 120 billion dollars in assets and ond-level official of the Ministry of tinue to believe that a rise in interest all inflation for the fiscal year 2020. 84,000 employees, saying «The RBI Finance who already had worked rates would be a more conservative «Various indicators suggest that eco- has remembered that growth is still with the World Bank and the Asian move, reassuring the financial mar- nomic activity continues to be strong a priority». It is and especially will Development Bank, and will remain kets that the RBI is willing to give despite the risks. Thanks to great- be for the millions of young Indians in office for three years. At the root up some of its growth to keep prices er inflows of foreign investments, who knock at the door of the labour of the unexpected replacement were and fundamentals stable in response the increase in financial resources market every year, where the devel- divergences with the government on to the turmoil on international mar- for the corporate sector and strong opment of services will no longer be cleaning up issues with the banking kets. Pranjul Bhandari, the influential private consumption, the RBI has enough to ensure sufficient employ- system, a theme that has not been chief HSBC India economist, and maintained its forecasts for a GDP ment as in the recent past. And the addressed in view of the upcoming Balachander Prasanna, head of the of 7.4% for 2018-19», countered only decent answer can come from a elections, but according to the cen- Global Markets Division of ICICI Keki Mistry, the CEO of HDFC, dynamic industry and from the trans- tral banker could not be postponed. Banks, both believe that the RBI is one of the largest commercial banks formation of the countryside.

32 International FOCUS

MITA INDIA Dewas Plant

ighteen years after the inauguration of the subsidiary Mita India Pvt. Ltd. in Gha- E ziabad, near Delhi, the Modenese group CBM has relaunched its efforts with a new in- vestment, reflecting the great potential it sees in this country and giving rise to one of the most significant commitments in recent years for the Emilia-based company. The inaugura- tion of the second production plant took place on 26th April in Dewas, a thousand kilometres south of Delhi in the Madhya Pradesh region, a strategic area for agriculture and one which foresees strong industrial growth. Since its last financial statements, Mita India has reached the remarkable goal of 300 crores (about 38 million euros). The new plant will produce hydraulic lifts, three-point and towing connec- tions that constitute the entire rear tractor, for which CBM Group is an OEM supplier. The new plant rests on a total area of 40,000 square metres, has been designed according to the lat- est technology and is equipped with innovative production facilities. Its production capacity in 2019 will be 8,000/10,000 units/month for by the company, which guarantees its accuracy abad site specialised in the manufacture of el- hydraulic lifts, to reach 15,000/20,000 units in for the three-point connections. The CEO of evators and three-point connections has now 2020. The data and information are provided CBM, Enrico Cornia, explained, «The Ghazi- reached its maximum production capacity. The new plant was necessary to allow us to further expand our offer not only on the Indian mar- ket, where we still have significant numbers, but also in North America, Europe and Turkey. Among other things, the plant is located in a strategic area for logistics, on the Delhi-Pune motorway, and one of the two companies that is settling in the area is also one of our main customers (Mahindra, ed), with which we could activate a door-to-door supply channel». With about 600,000 tractors sold every year, the In- dian market undoubtedly offers great potential. Currently the medium-low power classes pre- vail (30-50 hp), but according to CBM fore- casts this situation is bound to change in the next five years with a progressive increase in power, which will push the demand towards product technology that is more similar to what is currently used in Europe. Cornia concluded, «In this context, the ability to innovate will in- creasingly be a key factor in being competitive, even in the Indian subcontinent».

The data and information are provided by the company, which guarantees its truthfulness March 2019 INTERNATIONAL INDIAN LOOK INDIAITALy The future between hi-tech and sustainability Architects, designers and engineers are all collaborating on public and private plans to build the smart cities of the next decade. For now, the Italians are mainly considering design, with a few exceptions

by Martina Mazzotti

The land of dreams and ro- mance, of fabulous wealth and GURGAON fabulous poverty, of splen- The DLF Gateway Tower in Gurgaon, the satellite city dour and rags, of palaces and of Delhi 30 kilometres from the capital, has become « a financial and residential hub for the emerging hotels... of a hundred nations and a classes in the country. The new Trump Towers will hundred tonoves, of a thousand reli- rise here inside the Prime Golf Course: 50 floors gions and two million gods... This is each, 182 metres tall, its expected delivery date indeed India!», Mark Twain wrote is 2022. The interior design will be seen to by the in 1897 during his first trip to the design studio of the Italian Matteo Nunziati. One of the project’s features is the huge lagoon that country. Poetic words, but that’s not opens up inside, while there are also 14 kilometres everything. The American author’s de- of promenade on an artificial beach and about ten scription almost seems to have inspired kilometres of bike and jogging paths.

Amaravati

Amaravati, the city of the future, is the masterplan designed by the British studio of Norman Foster (photo). The project includes a new and futuristic metropolis potentially capable of housing up to 35 million people. It will be the new capital of the state of Andhra Pradesh, with a government building with a needle-shaped roof at the centre. It will cover 217 square kilometres and is a candidate for being one of the most sustainable cities in the world.

34 March 2019 INDIAN LOOK INTERNATIONAL INDIAITALy

VERSACE TOWERs

On the left, The Amaryllis project developed by the Italian group together with the indians from the unity studio, creating two towers linked by a skywalk on the 20th floor, two double-height entrances in each tower, wide open spaces, a clubhouse and a series of luxury services. Above, Abil Mansion, an all-duplex skyscraper in South Mumbai built in collaboration with Abil Group (Avinash Bhosale Group), one of the leading Indian real estate constructors and developers.

Motherboard Housing

Carlo Ratti of the studio of the same name (Cra), based in Turin and with a second office in New York, has developed the project Livingboard: A Motherboard for Instant Open-Source Housing in India in collaboration with WeRise. It is a sort of motherboard that makes it possible to quickly build houses over a prefabricated core using few tools. The product can easily be transferred to the most remote places with a helicopter and even with a drone. the greatest archistar of all, Norman a government building with a needle- he directs the Senseable City Lab. The Housing along with the non-profit Foster, when he was commissioned to shaped roof in the centre, it will cover Lab is a research group that explores company WeRise. It is a prototype of plan Amaravati, the city of the future: a 217 square kilometres and is supposed how new technologies are changing a house which can improve the hous- mammoth project that should come to to be one of the most sustainable cities the way we conceive, plan and finally ing conditions in rural areas of India, stand in Andhra Pradesh, in the south- in the world, despite its size. And Carlo live in cities. His design and innova- a motherboard that makes it possi- east of the country and become a new Ratti seems to also have been inspired tion studio is based in Turin and has ble to quickly build housing over a and futuristic capital capable of hous- by Twain; born in 1971, he is an archi- a second office in New York, and has prefabricated core with few addition- ing up to 35 million people. On the tect and engineer of international fame developed the project Livingboard: A al tools. Livingboard encourages an banks of the Krishna River and with who teaches at MIT in Boston, where Motherboard for Instant Open-Source open-source approach to design and

35 March 2019 INTERNATIONAL INDIAN LOOK INDIAITALy

is currently being tested in the state of Testimonial/Bijoy Jain Karnataka, in the centre of the country. Made with low-cost materials that can India favours Italian humanism be flattened, Livingboard is also in- spired by Richard Buckminster Fuller he awarding of the Pritzker Prize 2018, the Nobel dignity. We have five different religions, more than 24 and his dream of air-deliverable build- Tprize for architecture, to Balkrishna Vithaldas Doshi languages spoken: every Indian state is a world in ing, as Livingboard can be transported of Pune, one of the most influential architects of the itself. The real challenge is how to find a fair quality by helicopters, or even drones, to the twentieth century, and collaborator with Le Corbusier that respects this multiplicity. most remote locations. Ikea was a bit and Louis Kahn, has added splendour to the Indian more prosaic when it flooded electric architectural scene: it is not only bustling, but full of Q. How do you apply this vision to Mumbai, rickshaws with bright canopies and new trends relating to sustainability, urban planning where you were born and live? cushions as a clever promotion - which and social impact. Bijoy Jain is A. What fascinates me about this also spread to all the social networks - the founder of Studio Mumbai and metropolis of 23 million inhabitants for the inauguration of its first Indian one of the leading professionals in (there were only 5 million when I was the generation of fifty-somethings, born) is work, just like Milan. People trump towers as well as a passionate traveller come to Mumbai to work, and it to Italy and strongly believes in affects the way people live in the an architect’s social role. Born in city: an incessant flow. 1965, Jain trained in the United States, collaborating with Richard Q. From an architectural point of Meier. In 2005 he founded his view? studio with the aim of combining A. The challenge is not just how tradition and modernity to preserve to solve immediate infrastructural the relationship between man and problems. We need answers that nature as much as possible to take people’s needs into account. maintain the link between design Italy can teach us a lot in this aspect: and territory. Bijoy Jain plans to open it is really about rediscovering a new a studio at Assab One in Milan, a Bijoy Jain humanism, where the human is at non-profit organisation founded by the centre. Elena Quarestani in a former printing press, which has Trump Organization is an international player promoted art and culture through exhibitions, events Q. You are considered an advocate of slow in the luxury real estate market. It chose the and artistic projects since 2002. architecture. What does this mean? design studio Matteo Nunziati to furnish the A. It’s not about being slow or fast, the interest is more 46 apartments, 400 square metres each, in Question. What priorities characterize the in the way the work is done and how architectural the two skyscrapers of the imposing Trump Indian architectural landscape? inspirations are collected. I think the key is more in the Towers project in Pune. In addition to the Answer. High-quality accommodations and public source of inspiration; the important thing is to focus penthouses, the interior design involved the infrastructure. I’m not just talking about railways on things and approach them with the right level of public areas (photo below), the entrance with reception and the waiting area on the ground and subways, but also cultural infrastructure for the concentration. floor, the Podium Floor on the first floor with public, places for healing the body and the mind, outdoor swimming pools, fitness and yoga infrastructure for exercise and reading, capable of Q. What collaborative possibilities do you see areas, two massage rooms, a reading area, a nurturing society. And, of course, there are priorities among Italian and Indian architects? business centre and a room for poker. related to saving energy and water consumption. A. I think we are very culturally similar. Large families, food culture, a certain sensitivity that dictates Q. What is the core of sustainability? A. True sustainability is ensuring that 1.3 billion people live with

megastore in Hyderabad last August. The 37,000 sq.m. maxi-store has 7,500 products on sale, one thousand of which cost less than 200 rupees (2.50 euro), with another 24 stores following by 2025. «India is already a 2 trillion dollar economy and by 2030 it will be the third largest in the world», predict- ed Peter Betzel, the CEO of Ikea India, confirming that over 30% of the prod- ucts on sale are manufactured locally. Twain’s fabulous riches are instead the cornerstone of the Versace Home

36 March 2019 INDIAN LOOK INTERNATIONAL INDIAITALy

the country’s aesthetics. When I’m in Milan and I observe the city, everything seems familiar or close to the cultural landscape of my country. So I would say yes, there are some similarities. But not in the understanding of contemporary architecture.

Q. What do you mean by that? A. I’m referring to the glass and steel buildings that make us all the same. I believe that we are more united by a cultural and aesthetic base as well as a common sense of materials. I recently visited Palermo for the first time, and I found it more intense than Mumbai. A fascinating chaos. I believe that Italy in general is the home of a very expressive culture, in which India recognises itself.

Q. What are you planning in Milan? A. I am renovating some parts of a former factory in the suburbs, Assab One. I would like to have my own studio in Milan, not only because I love this city, but because it is strategic for some of my important works in progress in Southern Europe. I have two projects in France, one in Nice and a winery near Avignon; and I also work in Portugal and teach at the Faculty of Architecture in Mendrisio.

Q. What do you like about Milan compared to other European capitals? A. It’s an interesting city, one of my favourites. There is architecture everywhere, especially civil architecture, a sort of chaos in which I recognise various eras and stimulating schools, from modernism to the post- war period up to the 60s. The influences of Giovanni Muzio, Giò Ponti, Mangiarotti and Sottsass are Giorgetti extra luxury furniture, company of tangible, up to the contemporary with buildings like Meda (Brianza) that realise fine cabinet-making, present in the market for over ten years: it those of the Prada Foundation or the Bicocca Hangar. recently opened in New Delhi a monobrand A very balanced urban density and the utmost culture showroom of 900 sq.m. of food and dining are added to this. est standards of real estate and luxury Q. What do you enjoy most in Milan? homes, with a unique and unmistaka- A. Walking around the city, simply looking around. ble look». Especially in the morning, when the Milanese are However the problem is addressed, the Architectures by Jain: on the left MPavillon in Melbourne, Australia (2016). hurrying to work in their perfect clothes. It is a city with increase in urbanisation is leading to a Top, Palmyra House in Nandgaon, near Mumbai, private residence in a lot of style. frenzy of work throughout the coun- Mumbai, Byculla West (2015), and a glimpse of Copper House II, in Chondi in the Indian State of Maharashtra (2012) try, with millions of new construction sites, residences, offices, commer- cial developments and infrastructures. projects, which debuted in Mumbai completed by this year, including its a series of additional luxury services. All this activity will likely create a de- in 2016 with ABIL Mansion, an all- façade designed by Hafeez Contractor, The first phase of The Amaryllis will mand for construction and interior duplex skyscraper in South Mumbai, one of the best-known Indian archi- see completion by the end of this year furnishing components worth over 500 the city’s main commercial area and tects. A partnership between Versace and the 148 real estate units will all be billion dollars by 2020, not counting India’s richest urban district with real and Unity Group was signed in New internally designed and furnished un- the opportunities created for architects, estate prices per square metre reach- Delhi in 2018 for The Amaryllis, one der the direct supervision of Donatella engineers, designers and many other ing the top ten in the world’s ranking. of the largest private projects under de- Versace. «Interior design is a different professionals. The Indian scenario has In collaboration with the ABIL Group velopment in the capital, to be built way of expressing the Versace world, so many levels: luxury, sustainability, (Avinash Bhosale Group), one of the in various phases. It will include two offering a unique vision of the lifestyle the boom of the middle class, but al- leading real estate constructers and de- towers, a skywalk that connects the for which the brand is famous», said so nature, esoterism, and the challenge velopers, Versace has added its touch two buildings on the 20th floor, two Jonathan Akeroyd, CEO of Versace. of its complexity, as mentioned by to all the ultra-exclusive duplexes of double-height entrances in each tow- «We are focusing on India to show Bijoy Jain, an established Indian archi- the building’s 32 floors. It should be er, wide open spaces, a clubhouse, and our vocation to work on only the high- tect (interview on the previous page).

37 March 2019 INTERNATIONAL INDIAN LOOK INDIAITALy

In this game with so many elements, Testimonial/Antonio Recinella Italy seems to have a great advantage. «Made in Italy is considered the best at Elica’s value in the Indian game all levels», assured Stefano Boldorini, who has been helping medium-sized It’s a very challenging market, probably the able to leverage Elica’s innovation, creativity and furniture companies, including Cassina, «most complex and fragmented that exists in design, with an excellent ability to implement the Lualdi, and Aster Cucine, approach the world. It is said that, after the Indian market, same. And we needed someone who could provide Indian markets since 2012. «India is a only the Italian one is as difficult». But Antonio vouch from an ethical point of view: a must for a very fertile land where design and plan- Recinella, the CEO of Elica, a world leader in the company listed on the stock exchange. ning go hand in hand with innovation», field of cooktops and range hoods with 479 million Alessandro Biamonti, a design profes- euros in turnover Q. What results have you obtained? sor at the Milan Polytechnic Institute in 2017 and 20 A. In the last two financial years, the economic and said in charge of the Design Faculty’s million pieces financial results have recorded an excellent trend in internationalisation programs, to MFI. produced per year, revenues, which grew at rates of over 30%, settling «A population predominantly below 30 has won his Indian at 24.3 million euros at the end of 2017. The level years of age, on average, can only give bet. Not only on of margins in the last year more than doubled rise to a thirst for know-how and new an economic and compared to 2016, recording an EBITDA equal to technologies». Biamonti continued: financial level, but 14.3% of net revenues. «Italian research enjoys an excellent as a standard- reputation, and important industrial bearer of a modern Q. Future outlook? groups are manifesting a growing in- conception of the A. We would like to keep our growth rates around terest in the development of innovative home and its use. 25-30% year on year. solutions in textiles and fashion, IT, mechanical engineering, interior design Question. How Q. On what basis? and service design». The Polytechnic Antonio Recinella did your Indian A. The demand is supported by the demography Institute’s Design Faculty has long had adventure begin? and the social changes that are transforming the a solid relationship with the School Answer. Internationalisation is a priority mission extended families into smaller ones-which move of Fashion and Design of Gd Goenka for our shareholders; it was already pursued at the from rural areas to cities, have a higher income and University in Guargaon (New Delhi), beginning of 2000 with the expansion in Japan, a greater sensitivity to the brand. An increasingly which provides study programs devel- then in China, in the Americas and then in India, innovative range of products is in line with this oped between Italy and India, as well where we signed a JV with a local partner in 2010. trend in terms of connectivity, and is quite rich, as courses held in India by Poli.Mi pro- with a range that satisfies the most price-sensitive fessors. In addition to relations with the Q. What strategy have you adopted to face a customers and those who instead seek something NID National Institute of Design, a his- market of this magnitude? distinctive in the brand for their homes. toric governmental institution dedicated A. The goal was to produce and to market to design, there are about 20 agree- products under our own brand and others, relying Q. Besides the product and technology, what ments with universities or institutes in on the brand’s value and the group’s technological else has allowed you to conquer the market? India related to the areas of engineer- know-how. We entrusted the management of the A. Several factors: we have invested in marketing ing, architecture and design. Alliances business to Pralhad Bhutada, the entrepreneur with in a very targeted manner, then there’s also the between the major private and public whom we established Elica PB India in Pune. supply base and local production, R&D and engineering and design schools are also branding, together with a great distribution overlapping the business relationships Q. How did you find him? capacity and impeccable after-sales service. All between design firms and companies A. After careful due diligence to identify individuals of this has led us to unprecedented expansion. In seeking synergies and reference points in Italy. «Although there are no high- level architects and designers in India, the interest in Italian know-how and the creation of stable relationships is increasing in this regard», Boldorini added. What if a company or a designer wants to sell in India? The privileged port of entry is still Mumbai, the econom- ic capital and a sprawling city of 20 Italian design brands have understood million inhabitants with a dynamic this. Intercepting this demand Porro, real estate market and a constant in- a Brianza-based company that pro- crease in values. Here the generation jects an image of sophisticated luxury of thirty-somethings, all professional- with high design content worldwide, ly prepared and with a university-level opened a 250-square-metre space education, is trying to stage new land- on two floors in collaboration with scapes in the workplace, in the home, Furnitech in the prestigious area of in leisure and in retail, and the high-end Lower Parel, also promising bespoke

38 March 2019 INDIAN LOOK INTERNATIONAL INDIAITALy

been successfully sold in India since Example of the exclusively with the Elica brand. In essence 2005, and counts the sales of over futuristic hood they are flagship stores, present in the strategic three million pieces of furniture to designed by Elica, locations of the country, with the largest and most date. «The Indian market is in contin- like Interstellar, here on the left. fascinating one to be found in New Delhi. In such uous development, especially in the At the bottom of a fragmented market of over one billion people contract sector, particularly the residen- the page on the with a diversified and heterogeneous distribution tial one», agreed Giovanni Del Vecchio, left hand side, the of income, having so many mono-brand stores has CEO of Giorgetti. His artisan high-end interiors of the New Delhi showroom been Elica’s main strength, all thanks to the work cabinetmaking workshop has devel- carried out by our partner. oped to reach a turnover of 46 million euros, with 80% coming from abroad. Q. Last August you signed a new JV with Giorgetti has been present on the Indian Whirlpool of India. Why is that? market for more than ten years, instead A. We were truly shocked when the number focusing on Delhi, where it opened a one household appliance in the world, with 22 900 sq.m. mono-brand space and a billion in turnover, approached us. Whirlpool contract division two years ago to sup- of India is not very focused on cooktops, our port the design and implementation of main sector, and sought us out to forge both works for high-end clientele. Its posi- a financial and product-based partnership to tion was recently strengthened by the exploit the complementary strength of its product acquisition of Battaglia Contract, a portfolio with Elica’s ability in design, production, company specialised in the creation of distribution, and the intuition of consumer needs. luxury hotels, fashion retail and super yachts. Q. Why did you decide to produce in India? Those dedicated to the luxury market A. We focused on the premium market, and having a local production base in this segment is essential. We chose to settle in Pune, which «Anyone can find the is an excellent manufacturing district. It has all right formula for the characteristics a company needs in order to develop a supply base and obtain the necessary working in India: the organisation to be more and more efficient in an opportunities are elastic market compared to the price. huge, but you have to Q. In terms of R&D, did you find all the invest time and resources in line with your standards? A. Our Indian team has been able to develop creativity to hit the products which match consumer needs, and this bull’s eye» guaranteed for our products to be immediately welcome on the consumer market. It means that seven years we have become the undisputed in India, as in the rest of the world, the product have a particularly appealing chal- market leaders in our category, with a 25% share. is considered reliable and of high quality. The lenge in the new skyscrapers rising up fact that we are recognised as a leader in design all over the large city. Born in 1972 in Q. How is your distribution organised? and technological innovation has allowed us to Bologna, Matteo Nunziati can con- A. We do not own stores, but we rely on a network adapt existing technology to the taste of the local firm this. He opened his architectural of about 200 stores owned by Indian retailers market. and interior design studio in Milan in 2000. The Trump Organization, an international player in the luxury re- Diwan House services. Visionnaire has instead cho- al estate market, appointed Nunziati sen the area of Shakti Mills to create for the turnkey supply of the Trump Diwan House in Kolkata was its own 300-square-metre space this Tower Residence’s interiors in Pune. designed by the Indian architecture year. «Luxury furniture is almost «We were tasked with furnishing 46 firm Agrawal & Agrawal. The exclusively purchased through the in- 400-square-metre apartments in both ventilated façade was built with extra-large Laminam ceramic slabs termediation of architects or interior of the two 25-storey skyscrapers», the from the Avorio Collection. With a stylists, which high-end customers turn architect told MFI. In addition to the consolidated turnover of about 85 to for the creation of a home’s overall penthouses, the planning involved the million euros in 2017, the company design», Andrea Gentilini, CEO of the public areas, the entrance with recep- based in Fiorano Modenese has Bologna-based company with 46 mil- tion and the waiting area on the ground technology specialised in the production of ultra-large, minimal- lion euros in turnover, explained to floor, the Podium Floor on the first thickness ceramic slabs for MFI. Visionnaire is the ultra-luxury floor with outdoor swimming pools, architecture, façades, interiors and brand of the historic company IPE in fitness and yoga areas, massage rooms, furnishings. Bologna, which was founded in 1959 a reading area, a business centre, and by the Cavalli family. The brand has a room for poker. «The request was to

39 March 2019 INTERNATIONAL INDIAN LOOK INDIAITALy

Innovation hand at within the construction world, they are also looking to innovation, and Now offices are built from the top construction techniques in particular. Another example that is setting a standard he first 10 floors were delivered in two months, the other 10 of the is given by the Emilia-based company Tsecond building in four months. Not even the wizards at Intel who are Fagioli, a world leader in the design and accustomed to working with the fastest chips in the world could believe it, construction of handling and hoisting and yet the offices in Bangalore sprung up before their eyes in the amount equipment with high engineering con- of time it usually takes to prepare and sign a contract. The record was tent, which completed the two buildings established by Fagioli of Sant’Ilario d’Enza, Reggio Emilia, owned by the of the Intel headquarters in Bangalore last family of the same name and known all over the world as the leader in the June in record times, thanks to technol- most difficult handling and hoisting operations imaginable. Active in India ogy that was perfected for the first time since 2000, it completed the Intel headquarters in Bangalore last June. in India (box to the side). Technology is The basic idea (shown in the photographic sequence below), which can also the key factor for Laminam, a spe- revolutionise the construction of buildings, was to assemble each floor on cialist in the production of large-format the ground, in all its components, from the flooring to the side and partition ceramic slabs with minimum thicknesses walls to the furniture, services and systems, then lift it with a special system for architecture, interiors and furnishings. of hydraulic jacks to fix it, starting from the top, within the external structure. The company Fiorano Modenese has a «This system has great potential in the future in India for its advantages in consolidated turnover of 85 million eu- terms of implementation times, an element which Indians are very sensitive Ikea in Hyderabad, a 37 thousand sq.m. store ros, 70% of which is attributed to exports, and the three-wheelers used to advertise the to, and in terms of safety, because the construction site works envisage with a rich portfolio of works in North new facility working on one level thanks to the pre-assembly on the ground», explained America, the Gulf countries, Russia Riccardo Tippmann, Fagioli Group’s development manager. and the Far East thanks to its patent on use exclusively and strictly Made in the production of large-surface ceram- Italy brands and materials, starting with ic slabs. Its products are displayed in a Silver Travertine marble, up to the fur- large showroom in Delhi and have been nishing accessories, for which I chose used in a great deal of buildings, includ- Lema, Molteni&C., Listone Giordano, ing the Diwan House in Kolkata designed Florim Ceramiche, Fontanarte, Teuco by the studio Agrawal & Agrawal and and Lualdi», Nunziati shared. Started the Ruby Tower in Mumbai, a 40-storey in 2011, the works were completed skyscraper designed by the studio Access in February 2018 with the inaugura- Architect. tion of Tower B, designed by the studio Environmental sustainability is the other Panchshil Realty. «The first floor of current trend, in the wake of the 100 Smart the tower has a 1,600-square-metre ar- Cities government project: a large 7.5 ea that will become a showroom for billion dollar plan wanted by President Italian furniture and Italian style», con- Modi to build new cities or convert old cluded Nunziati, who is committed urban centres with avant-garde technolo- to replicating Pune’s success with the gies, buildings and structures, especially Trump Towers in New Delhi: 182 me- in the field of digital connections. Cesare tres tall and with 50 floors, it is located Saccani is a manager at ICMQ India, in the Gurgaon district and is scheduled which deals with quality certification; to be delivered by 2022. he clearly understood this when, some time ago, he sent a proposal to Italian Not just design companies in the construction industry According to Boldorini, a brand can on- to develop the Legem project together. ly be successful with the fundamental When Saccani became president of the support of local partners who are able to Indo-Italian Chamber of Commerce and convey the product to architects, devel- Industry (IICCI) last year, which is par- opers and interior designers. Intercepting ticularly involved in bilateral relations, those who work and advise in the con- Legem (acronym for Living Space, struction market is essential. With this Energy, Governance, Environment and idea, Winh collaborated on the opening of Mobility) became part of a project for Ottimo Disegni in 2015: a 1,000-square- Made in Italy design. His is the larg- «Anyone can find the right formula for the creation of a small city built with the metre showroom in New Delhi and a est curtain wall company in India, and working in India: the important thing is best of Made in Italy, which however is true temple of Italian design in the cap- last December it opened Quattro Italia, a to strongly invest in the people who will still in its earliest stages. But the IICCI ital. It is owned by the Indian designer 600 sq.m. showroom dedicated to Italian actually be explaining the products». scouting among different Indian states Ashok Basoya, the founder of Blacksmith furniture which aims to promote Italian Boldorini concluded: «The opportuni- has already begun to poll for interest. «It Design. Meanwhile in Mumbai, the per- companies for turnkey solutions ranging ties are huge, but you have to invest time will be one of the Chamber’s priorities, son to thanks is the Indian entrepreneur from door and window frames to flooring and creativity to hit the bull’s eye». falling within the driver of building de- and owner of Glasswallsystems Kamlesh (Lualdi, Lithos, Mutina) up to complete, However, luxury is not the only ground on velopment linked to the environmental Choudhari, as well as his passion for finished children’s bedrooms (Tumidei). which Italian companies are trying their trend,» Saccani assured.

40 WIDEN YOUR HORIZONS

IL TUO BUSINESS IN INDIA, IL NOSTRO LAVORO

Da 16 anni siamo l'eccellenza italiana per la fornitura di servizi di international business in India. Costruiamo Grazie alle nostre sedi dirette, al nostro team multiculturale presente sul territorio ed alle nostre competenze manageriali progetti affianchiamo concretamente le imprese che vogliono entrare o consolidare il loro business nel mercato indiano. su misura 3 sedi dirette per la 8 uffici partner più di 30 professionisti presenti in India più di 300 clienti tra aziende e istituzioni tua azienda Accesso al mercato Supporto strategico e operativo Supporto legale e societario Supporto amministrativo, fiscale e doganale www.octagona.in

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Tabellare Octagona 19-10.indd 2 19/10/18 16:26 March 2019 INTERNATIONAL Business/Strategy INDIAITALY E-commerce, a vertical space in between the giants While American marketplaces remain nonviable, fashion, luxury and lifestyle vertical platforms could become a good entry point in a rapidly growing market

by Cecilia Giannini

he beginning of the 21st century was the time for online bookings, working for train, plane and cine- Figures about Flipkart, T the main Indian ma tickets. Then came online books marketplace, acquired and electronic products sales during by Walmart for 16 the first decade, leading up to the billion dollars; on current third stage of Indian e-com- the left, Spedo, the platform’s delivery merce – marked by a significant system. Below, growth thanks to the introduction Narendra Modi and of lifestyle, clothing, accessories Jeff Bezos, Amazon and jewelry products sales, as well founder, who is spending 4 billion to place Amazon India on the market, Flipkart’s main competitor. Together with the two giants there is PayTM Mall owned by an Indian entrepreneur

The Second Lesson The third phase is rapidly fading into a fourth, where safe money transfer technologies are what is really making a difference. At least that is what we can deduce from PayTM’s success. The platform cre- ated by Vijay Shekhar Sharmache, offering an online payment system as the digital shopping experiences integrated digital wallet, has been through specific apps. taking advantage of the exponen- Respect for timing is the first les- tial growth in online transactions son to learn for those who want to (from 226 million in August 2017, face the Eldorado of Indian e-com- worth around 950 million euros, merce. Despite 36 billion dollars to 341 million for 2.1 billion eu- transacted in 2017 alone, the sec- ros the year after) to increase its tor is still developing, and with a assessment from 1 billion to 10 growth rate of over 30% per year – billion dollars. So, it attracted the the highest in the world – it is set presence and a lack of secure dig- its 120 million dollars in turnover interest of the notoriously-wary on generating 150 billion dollars ital payment systems, discouraging by the end of 2017, two times high- Warren Buffett, who decided to in revenues by 2022. BigBasket, people from performing online er than the year before. Above all, pay 360 million dollars anyway, the digital supermarket that attract- transactions. The obvious result the platform is providing a way out making it his first investment in ed investments from Alibaba and was the initiative’s fast failure and to thousands of people who, after an Indian company. He was soon Softbank, gave everyone a lesson. its following termination. In 2011, spending an hour and a half stuck in followed by the usual Alibaba and When the founders attempted its BigBasket made a comeback and traffic to cover 10 kilometers to go Softbank. The trigger to their inter- launch in 1999, they missed a bet- things have been going quite well back home, cannot really think of est for PayTM was pulled when the ter evaluation of India’s e-market since, with 18 thousand products getting out again to do their shop- Modi government decided, at the – characterized by a poor Internet from a thousand brands on sale and ping. end of 2016, for a demonetization

42 March 2019 Business/Strategy INTERNATIONAL INDIAITALY

Trend For those without Buffett or Furniture & Design Alibaba, what are the options for Chasing After Myntra exploiting the Indian e-commerce At Made in Italy system? First they need to under- hile e-commerce stand that the sector is segmented on-line store Wmarketplaces have according to different operating n the Made in Italy design cluster, managed to grow significantly, categories – like e-travel, e-tail, Ithe e-commerce SedieDesign took a vertical players, benefitting e-wallet and insurance, e-servic- step forward in the Indian playground. from lower financial strength, es (services for consumers), and The company from Montebelluna, have had a complicated digital content. It is estimated that Treviso, founded in 2008 by Simone experience in India so far. e-travel is worth 18 billion dol- Battaglia and specialised in the Over the past five years Zovi, lars and e-tail 16 billion dollars, manifacturing and online selling of YepMe and Freecultr platforms, equal to 94% of the pie chart. In furniture – including lighting and all focused on fashion, have e-tail, electronics and clothing outdoor – has over 10 thousand attempted to copycat Myntra’s represent, respectively, 45% and products on its catalogue. The achievements of Myntra, but 33%, followed by furniture and format entirely focuses on had no luck. Myntra, founded home products, then beauty and Italian design e-commerce, in 2007 by Mukesh Bansai personal care ones. On the operat- as well as on some private Khrisnamhurty, Flipkart CEO and acquired by Flipkart in ing models, the marketplace is still consumers, mainly architects 2014, managed to win customer loyalty over through its marketplace dominating the market, but omni- and interior designers. It is a model – selling personalized products like T-shirts, mugs, and mouse channel and inventory-led models marketplace offering not only pads during its initial phase, then exploiting the gained ground to are breaking through. Among furniture, but also design and introduce its own brands. As of today, all those non-Indian brands these, the fastest growing segment consultancy services, all from a already holding a good online positioning, can find their own spot is represented by online financial B2B perspective. SedieDesign, in the vertical players game, a rapidly growing market focusing on services, led by the exponential which in 2017 registered a niche segments. They offer exclusive discounts and unique customer increase in startups – promoting, turnover of almost 3 million experiences, leaving the price comparison to all horizontal players’ as their primary services, digital euros and exported to over customers. It is a common opinion among professionals that luxury transactions for money and loans 50 countries, after opening consumers are now ready to accept products that can stand out. transfers. its first international branch Therefore, as B2C remains the relevant playground, it is essential to in Toronto, decided to open identify a suitable local partner capable of storing and selling products New Opportunities another one in New Delhi at the at a local level. The drop shipping model is not a feaseble option for Fashion/lifestyle sector newcomer end of 2017. Pierpaolo Piatto, the single brand strategies, as the transport costs are high, delivery or wanting-to-join operators should the capital city’s ItStyle Home time too long and the procedures of import reimbursement of duties know that e-commerce is probably Solutions owner, coordinates still not clear. the fastest way to India, but they the activities. «The goal is to shouldn’t rely on improvisation. establish India’s first digital It is first necessary to collect da- superstore, dedicated to policy, and proceeded to withdraw The third lesson shows us that the ta and real dynamics information, Italian furniture exclusively, all notes with the most common current winners of the Indian e- and to develop an appropriate busi- and capable of intercepting denominations – trying to hit the commerce race – Flipkart, Amazon, ness strategy, outlining a product the middles class’ growing demand for «moonlighted» earnings making up and Paytm Mall – managed to ar- portfolio and a supply point devel- quality furniture and for pre-and-post a big part of most Indians’ funds. rive where they are at the cost opment plan. Farftech and Ynap, sales services. Indian consumers are Yet PayTM came to the rescue, al- of huge investments, needed to world leaders among fashion online becoming increasingly sensitive in this lowing Indians to use their QR strengthen logistics and delivery retailers, have started to ship and regard,» explained Mr. Piatto. PayTM code to keep buying their schemes, thus launching incredi- deliver in the Indian market thanks fine chai tea, costing 7 euro cents ble offers and discounts, paving the to governmental policies opening on average at the nearest tea wal- way to further fuel market growth. the sector up to foreign ownership hand at any possible way to diver- lah. In three months, platform users Amazon revealed that it spent 4 bil- (but with some limitations in B2B). sify the offer, in particular through have grown from 125 million to 185 lion dollars in the first five years of Something not possible two years very aggressive tactics based on million. So, even after demoneti- activity in India, while Flipkart, ago, but now they are getting ready fast cashing. Thus the brands’ sales zation, the money traveling on the the largest online retailer (Walmart for a new size leap, as they are now managers, as they are able to of- Internet for private transactions bought it for 16 billion dollars, the planning to operate through lo- fer an outstanding product on the has continued to grow. In 2017 the biggest purchase in e-commerce cal subsidiaries. So they are much platform, can also benefit of some India Unified Payments Interface companies ever), is spending 2 bil- more integrated into the territory, leeway in negotiating more fa- (UPI), a real-time payment system lion dollars to acquire new market and can take advantage of diversi- vorable conditions for minimum that facilitates interbank trans- shares. PayTM is chasing after its fied storage facilities and marketing off-takes, preferential positioning, actions, recorded 16.6 million two rivals with PayTM Mall, its e- strategies. and product display. New Balance transactions for a total value of 550 commerce platform, but thanks to A second opportunity for Italian and Under Armor, two sportswear million euros, while in October the financial power of its investors brands lay in exploiting the com- brands, tried this tactic against 2018, registered a further 406 mil- and its leadership in the mobile petition between the three big Amazon, and have seen their vol- lion transactions with an aggregate payment sector, the insiders believe marketplaces – Flipkart, Amazon, umes triple in a short period of value of 7.9 billion euros. that it will manage push through. and PayTM Mall – as they try their time.

43 ADV_MF_Internat_INDIA_273x336mm_301118_ENG.pdf 2 30/11/18 11:23

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TECHNOLOGICAL EXCELLENCE, ENTREPRENEURSHIP AND INNOVATION AN ITALIAN INDUSTRIAL MODEL

40 50 +8500 COUNTRIES COMPANIES PROFESSIONAL FIGURES ~1500 1200 PROJECTS CUMULATED PATENTS

www.mairetecnimont.com

Maire Italia ING.indd 20 09/01/19 13:56 March 2019 Dossier: Infrastructeres INTERNATIONAL INDIAITALY Target 2025 The Indian government plans to inject investments for 780 billion dollars in the economy by 2025, 92.2 billion of which by the end of the current fiscal year. Several are the promises, but so are the construction sites already in operation. A key point is the entrance of private capitals

Smart Cities Railways Metro Ports

• Target: environmental • Target: opening of high-speed • Target: 25 approved projects for • Target: 150 initiative for the rehabilitation (greenfield and lines, traffic decongestion, safety, a total of 500 km of metropolitan ports modernization and their retrofitting) of 90 Indians cities total electrification (by 2022), lines connectivity, 23 projects of new by 2023 replacement and upgrading of • Investment: 7,7 billion in 2018-19 inland river routes • Investment: 34 billion by 2023 rolling stock and stations • Investment: 53 billion Euros for • Investment: 21 ports, plus 770 billion in 2018- billion Euros 2019 more to the river routes

Highways Airports Renewables

• Target: 10 thousand km of • Target: 250 new airports by 2020, • Target: 175GW by 2022 (100 GW highway built in 2017-18, plus 50 an increasing capacity of the from photovoltaic, 60 GW from thousand km more by 2022 current airports from 350 billion aeolian) • Investment: 11 billion dollars in of passengers to 550 billion by • Investment: 125 billion by 2022 2018-19, 22.4 billion dollars by 2030 and, overall, 300 billion 2020 • Investment: in the energy sector in the 45 billion next 10 years

Sources:The Indo-Italian chamber od commerce and industry, Yes bank, PriceWaterhouseCoopers

n South Asia, especially in India, we no- oday more than ever infrastructure ticed a completely new system aimed to represent an essential facility to «Iuse the market, for example, by issuing «Tguarantee the supply of goods and bonds to collect the capitals needed to the infra- services that drives the growth and contributes structural development (..) over the past five years to the well-being of everyone and the conser- all their platforms and political debate focused on vation of our environment. Infrastructure are infrastructure, so that politics know to have a lot an important market with a strong global net- of promises to keep». work».

Parag Khanna, global expert, Senion Research Andrea Goldstein, managing director Fellow of the Centre on Asia and Globalization of Nomisma

45 March 2019 INTERNATIONAL Dossier: Infrastructeres INDIAITALY Who Leads the Main Projects For many years the Indian market could provide important contracts to the companies in the construction & energy. To overcome the main financial obstacle, SACE made sure that...

by Francesca Bruni

The main international insti- tutions predict that India will be the driving force of global «growth over the next decades». On October 7th, 2018, Narendra Modi, the Indian Prime Minister, choose this statement to inaugurate the Investors’ Summit taking place in Uttarakhand, in the north of the country. The small state, laying at the foothills of the Himalayas, is fa- mous for its natural beauty, but could also gain some popularity from the dams that the government wants to build for energy production. Just a couple of days later, the International Monetary Fund confirmed that Indian economy’s upward trend will contin- ue for at least the next three years, keeping the highest rate in the world – above 7%. But the most reassur- ing news came a few weeks later from Nitin Gadkari, a key minister in the transformation of the Indian 1

2 3 4

1. The bridge under construction in New Delhi, sustained by the central pillar, built by Tensoac- ciai, part of the De Eccher group 2. The Trans Harbor link to Mumbai will connect the new international airport and the highways with the port area 3-4. Rendering of the new refurbishment project of the Habibgany station in Bhopal 5. The refurbishment project of the main train station in New Delhi 6. A rendering of the Trans Harbor Link in Mumbai 5 6

46 March 2019 Dossier: Infrastructeres INTERNATIONAL INDIAITALY

Who’s at the Construction Site working on metros, bridges, and highways

Italferr On Transports an impressive infrastructure The operational phase of the cooperation signed program in the urban and between FS Italiane and the Indian Railways was suburban transport sector in launched in September 2017, envisaging the view of the construction of the development of railway traffic safety systems, new capital. Anas Tec, controlled infrastructure diagnostics, and training of Indian by AIE, has also developed a personnel. Italferr, the group’s engineering roadmap for commercial activities company, which opened an office in New Delhi, in the state. is currently the busiest in the Indian market. It is collaborating with Rites, the operating arm of Astaldi Wins on RIL the Indian Railways, in the design, planning, and Astaldi’s financial crisis, currently under special construction supervision of the Anji Khad Bridge administration, blocked the opening of the – a 750 meter long structure, with a central span construction sites for one of Mumbai’s future of over 260 meters, and suspended between landmarks: a connection bridge passing over the Katra and Reasi on a 200-meter gorge. The sea, about a kilometer from the coast, linking the work is among the most demanding of the entire neighborhoods of Versova and of Bandra. The Udhampur-Srinagar-Baramulla railway line, which infrastructure, meant to reach a length of 17.7 will cross the North-Western region of India, running kilometers, involves the construction of a cable- along the slopes of Kashmir up to the border stayed bridge with a central span of 150 meters with Pakistan. Italferr is also contributing to the plus 3 bridges with variable sections and a main supervision, control and project management of light of 100 meters, ensuring navigation through all the design, construction, and supply activities the area. The works will last 60 months. The for the implementation of two lines of the Mumbai builders will ensure infrastructures maintenance Metro Rail Project. It is also engaged in Quality for 2 years. The contract, won by Reliance and Safety Audit Consultancy Services in some Infrastructure Limited in jv with the Roma-based sections of the Eastern group – boasting a world-renowned expertise freight corridor (Dedicated in bridge construction – has a total value of 780 Freight Corridor Corporation million Euros, with Astaldi owning a 390-million of India), as well as running share. The commissioner is the Maharashtra State for other engineering and Road Development Corporation, and the works transport system and responsible for construction management will receive state funding. This year Astaldi was the coordination of investments in contracts. Another also awarded three lots of the Mumbai Metro Line the aviation, rail, port and road sec- area of activity for the 4. This contract is another result of the decisive tors. Mr. Gadkari announced that group has to do with alliance with Reliance Infrastructure – the group the first tranche of loans, 1.2 billion the certification capacity leading one of the Ambani family’s branches, euros, was oversubscribed for the entrusted to Italcertifer: after and one of the main contractors on the Indian construction of nine toll motorways, The Ahmedabad metro receiving accreditation as infrastructure market. The two commissions, where according to the TOT (toll-operate- project, the capital of Independent and Competent Italians are currently at risk, could assist the Salini- transfer) model. He also announced Gujarat. Below, the 17-ki- Safety and Functional Impregilo group in concluding an industrial and the launch of a second, slightly high- lometer bridge project in Mumbai, contracted to Assessor from the Indian financial agreement with its main competitor, thus er tranche. Putting all statements Ril and Astaldi. Right, the Ministry of Railways, the earning an entrance to the Indian market, where aside, what’s sure is that there are Mumbai metro line itine- company has certified Salini is yet not present. construction sites all over the coun- rary and, above, the new management and control subway in Bangalore systems of some sub-urban lines in Chennai and New Delhi. Italcertifer has also acquired contracts for the inspection and the revision of the Mumbai metro line 1 project (Navi Mumbai).

Anas Bets on Andhra Pradesh Anas International Enterprise, the foreign division of Anas, signed a MoU with the authorities of Andhra Pradesh, one of the largest states in the Southeast of the country. The company will now overlook the design, construction, and management of Amaravati’s ring road, a 90 km 12-lane work. At the same time, it is participating in the acquisition of Design & Build and O&M contracts in the same state, which has launched

47 March 2019 INTERNATIONAL Dossier: Infrastructeres INDIAITALY

Testimonial/Alessandro Decio

«We also took into Buy Italy, SACE Pays

consideration the he starter was in July, when 90 million credit government’s $ 200 Tlines were handed to SREI, the Indian giant in construction machinery leasing (interview on the next bn investment plan, page) to spend in Italy. The main course arrived in October, with a further 500 million dollars organized aimed at developing by HSBC with BNP Paribas as lead arranger, in infrastructure favor of Reliance Industries – the 55-billion-dollar group led by Mukesh Ambani and active in oil & gas, projects over the telecommunication, and energy, and acting as the largest distributor of consumer products, online and next five years» offline. And SACE’s push strategy hides behind both Alessandro Decio, SACE CEO (CDP Group) operations. We are talking about the only export credit agency, together with the Canadian one, to Q. How do you choose the groups to finance? have adopted it, thanks also to Alessandro Decio’s A. Based on the countries we are interested in developing, vision, the man who started it in 2017. and on the involved sectors. So, we identify the most important groups satisfying these two conditions and Question. Why did you opt for accelerating having a high reliability in terms of commercial risk. At that toward India? point we contact them and offer our service. Answer. t is an indispensable market for Italian export, since its trade rates are growing double- Q. And what is their interest? digit this year. We also took into consideration the A. We work together with international banks of government’s 200-billion-dollar investment plan, the highest level, which can secure them long-term aimed at developing infrastructure projects over the funds at competitive prices thanks to us acting as next five years. It’s an ideal playing field for Italian guarantor. companies which intend to take those projects on. Q. And what is SACE’s trump card? Q. How? A. Together with the Canadians we are the only A. All credit lines are in view of the financed export agency in the world to offer this service. From companies purchasing Italian products and services. the operational point of view, we have learned to be very effective in concluding these operations. We Q. When will it happen? started to talk about it with Reliance in March, and in A. They are 6-7 year credit lines, but the operation June we were already signing. will start immediately. In July, SREI met in Italy with dozens of SMEs which had showed interest in taking Q. What’s the next stop? the projects on. Reliance invests hundreds of millions A. We are dealing with Yes Bank as one of the largest of dollars a year in purchases on all fronts of the Indian private groups, trying to pull the banking world industry. into our strategy.

try, working on transports, energy, ing as its customer and debtor at the try, as well as some important states, residential and office infrastructures same time. Ownership of the bank including Gujarat, Maharashtra, – following the direction and drive of could pass over to the public sector, Madhya Pradesh, Haryanae, and Modi, Gadkari, and Arun Jaitley, the at least for what concerns road infra- Uttar Pradesh. A first completion Minister of Finance coming from the structures, if the Japanese, Russian is expected by this year already, International Monetary Fund. Jatley and even Italian investors of Atlantia and the rest by 2022. The railways is pushing for an increase in sover- were to lose their interest in inject- are benefiting from direct foreign eign debt, currently at 49% of GDP, ing fund in it. investments, whose best-known ex- which would allow, in addition to In regard to the government’s most ample is the agreement signed with international interventions, the cov- ambitious project, the realization Japan for the construction of the erage of the 200-billion-dollar plan. of a high-speed and high-capaci- Mumbai-Ahmedabad high-speed It would also help settle potential ty smart link between Mumbai and rail corridor. It is expected to be- problems, like the insolvency of IL Delhi – 100-billion-dollar project come operational by 2022, and The excavations of the metro Line 3 in & FS, the leading private finance coordinated through the Delhi- its costs, estimated at 14.5 billion Mumbai, the state of art project, aiming to give to the economic capital a 33-km- company for infrastructure. Many Mumbai Industrial Corridor (DMIC) dollars, were covered by Japanese long infrastructure with 27 stations, lin- investors were concerned over the – the construction works are well un- banks for the 81%. There is one king the suburban areas to the center. It questionable interconnections the der track in eight points, according important detail demonstrating that is one of the 16 metro projects currently company had with the National to Alkesh Kumar Sharma, CEO of high speed is one of Indian author- under development Authority of Indian Motorways - thus DMIC. The eight nodes involve the ities’ big dreams. The IREE, the Gadkari’s ministery – which was act- whole north-west area of the coun- International Railway Equipment

48 March 2019 Dossier: Infrastructeres INTERNATIONAL INDIAITALY

Testimonial/Devendra Kumar Vyas

SREI, Water Will Become the Main Business solution to transport requirements, but as a mean of transforming cities,» evendra Kumar Vyas, number one of SREI energy, advanced technologies, and ICT. I believe that the minister pointed out. Currently, DEquipment Finance, leads a team of 2 thousand there is an ideal match between the availability of young there are about 16 subway projects professionals and finances through lease the Indians with a good technical background and the Italian in the planning phase, expected to be construction of equipments and mines – in particular in ability to produce technology and design applied to completed between 2021 and 2025, the sectors of earthmoving, cement manufacturing, road industrial products. There will be great results in terms of while a further 4 are being discussed. construction, and all related materials. With a market trade and direct investment. In October 2018, the Ministry of- share of 32%, Srei is also expanding its business to fered two contractual packages, part healthcare supplies, IT, and agriculture. Q. In particular, SREI is committed to of the Delhi-Meerut RRT corridor Its network, developed throughout the environment issue. Which Italian and worth almost 84 million dollars, India, includes 264 original equipment technologies could be the most useful with a deadline for submission in ear- manufacturers, and manages assets in this regard? ly November. Despite the concerns for 5.5 billion Euros. Basically, it is the A. Italian companies are leaders in related to IL & FS winning some of main private financial operator in the Europe in waste recycling, both civil and the subway calls for tender, which infrastructure sector, and has already industrial. There has been a cooperation could lead to possible slowdowns, traveled to Italy to meet dozens of SMEs agreement running between the two the Bangalore Metro Rail Project, – looking for potential suppliers on the countries since 2016, covering the already in phase 2, received funds basis of the 90-million credit line granted scientific and technological fields. for 690 million, 340 from the Asian by SACE in the framework of its push Investment Infrastructure Bank and strategy. Devendra Kumar Vyas, SREI Q. What does this mean, in practice? 350 from the European Bank for Equipment Finance CEO A. The environmental technology market Investments (BEI). They will be used Question. What opportunities does SREI offer to is worth 17.8 billion dollars this year in India. One quarter to build 72 km of tracks and 61 sta- Italian companies? of this figure concerns water treatment technologies, tions with an implementation period Answer. The agreement with SACE is an extraordinary a sector destined to grow at a rate between 13% and of 5 years from the start of construc- opportunity to enter with Italian machinery in the 15% per year over the next five years. Public investments tion. government’s 200 billion dollars investment plans to will mainly concern the transmission and distribution of Another big project is the Kolkata build ports, railways, and roads, and to develop mines in water, and the treatment of sewage. In the private sector, subway, partly financed by the the next five years. all kinds of industries are looking for technologically Japanese who have granted a new efficient systems to feed their needs of managing dirty Q. What kind of demand can we expect for new water. equipment? A. We calculated a new demand for machinery and Q. Can you give us a specific example? equipment of about 30 billion dollars. A. The market is rapidly moving toward particular membrane filters rather than using chemistry or Q. Which sectors of the Italian industry will be the demineralization processes in their purification systems. most involved? Basically, it is approaching clean recycling systems at a A. Italian companies are already collaborating in food fast speed, so that water will become completely reused processing, transport, heavy machinery, renewable and not dispersed, eventually.

Exhibition, scheduled for October in The Railroads Delhi, is India’s most important ex- India has the third largest railway hibit related to railways, and picked network in the world – extending a Frecciarossa train inspired by the for 115 thousand km, hosting 12,617 Italian FS layout as its representing passenger trains carrying around 23 image. But the relationship between million passengers per day, and 7,421 Italian and Indian railways runs even freight trains, moving 3 million tons deeper – they have been constantly of goods. And its urgent need for re- cultivated over the years, resulting vision and upgrading makes it for a in a series of commissions, includ- great opportunity for in-depth inter- The key ministers of the Modi government ing the design and certification of ventions. The route from Delhi to hours and 30 minutes to just 90 min- infrastructural plan. On the left, Nitin Godkari, in the metropolitan railway lines. For Jaipur could be updated with a semi- utes. charge of the transport plan, and Jayant Sinha, the development of the three new high-speed corridor, and in March The other side of the railway coin Minister of the Civil Aviation. Above, Arun Jatley, sections of the Dedicated Freight the Indian Railways announced the is the metro revolution. The Indian Minister of Finance Corridor (DFC), the Indian govern- signing of a MoU with FS-Italferr Minister of Urban Affairs, Hardeep ment has planned investments for intended to assess the project’s fea- Singh Puri, announced that they in- line of credit for 240 million dol- 50.98 billion dollars, which include sibility, as the final product would tend to implement 700 km of new lars through the Japan International the adoption of the European ETCS allow trains to run at a speed up to metropolitan lines in 50 cities during Cooperation Agency (JICA). Plans systems to help unifying train con- 200 km/h, reducing travel times be- the next few years. «Metro projects include the construction of 64 km trol systems across all lines. tween the two destinations from 4 in India are not only perceived as a of tracks, where all new lines will

49 March 2019 INTERNATIONAL Dossier: Infrastructeres INDIAITALY

host driverless trains, enabled by the Testimonial/ Giovanni De Lisi CBTC control system and monitored through a designated control center. Ecological Tracks from Greenrail Projects for the East-West line also include the construction of its first The Modi government has just approved the PoliHub, a structure of the Polytechnic underwater section, passing under «the resolutions with the specifications on Foundation of Milan, collected several awards the Hooghly river thanks to a tun- the composite railroad ties. It is a moment during the recent years – entering the finals nel built by ITD Cem – a subsidiary of great excitement». Giovanni De Lisi, 32yo, in 2013 for the Gaetano Marzotto award, and from Palermo, winning the Edison Start one the year after. thanks to his This year it concluded its first major deal Greenrail, with the United States, where SafePower1, a founded company created by a group of investors to in 2012, produce and market Greenrail products in the developed US, closed a contract for a 26 million Euros a high supply, plus royalties on future supplies for performance up to 75 million. Now it has taken an interest and long- in Asia, especially in India and in the big lasting investments plan hitting the railway network. railroad tie The startup can rely on the fact that the made of Greenrail tie not only helps the environment, recycled but helps saving on maintenance costs as materials, well. «Greenrail cuts them by 50%. These tires, and ties last up to 50 years, more than those in plastics. «For concrete and, for each kilometer of reinforced these ties we lines, 35 tons of out-of-use tires and 35 tons Giovanni De Lisi and the green ties designed took a cue of plastic are recovered,» explained Mr. De «Our most recent by Greenrail from a project Lisi. While waiting for the Indian market to technological kickstarted come unlocked, Mr. De Lisi is developing its in India in the early 2000s, which involved product’s most recent update: the new type innovations in the production of recycled plastic ties to of smart ties should be ready within the year, replace the old wooden ones,» he told to and will electronic systems integration, data wheelset components MF International. The startup, incubated in transmission, and energy production. attracted interest in

India as well. After all it «Our most recent technological in- RS, the Lovere-based company in The company also controls Ansaldo is an extremely critical novations in wheelset components Lovere leader in the production and STS, bearer of the most advanced attracted interest in India as well. innovation of these systems. Italian technologies in the field of subsystem for vehicle After all it is an extremely critical High speed and metros will not only railway signaling and, therefore, subsystem for vehicle safety, includ- mean tracks and trains. «The are- of new network connections. So, safety, including a lot ing a lot of parts – bearings, braking as around the high-speed corridor stations are at the center of devel- of parts» devices, transmission reducers – and stations could be developed in self- opment. The government has also contributing to turn the wheelset in- sufficient intelligent cities, which approved proposals for the refur- of the Italian-Thai ITD multinational to an integrated system for high could serve as commercial, educa- bishment of stations and is inviting – which should become operation- speed, heavy transport, and public tional, or recreational hubs,» said tenders to provide services and oth- al by June 2021. Actually, a segment transport in urban area,» explained Mangal Dev, head of Hitachi Rail er requirements. These stations will should become operational as ear- Francesco Lombardo of Lucchini Systems Co. in India and south Asia. allow commercial and mixed-use de- ly as this March, and the first new station was opened last August in Phoolbagan. In terms of rolling stock, the French Alstom seems to have taken the best momentum. In March it completed the production of the first all-elec- tric locomotive in the Madhepura production plant in Bihar. Now it aims at winning calls for tender for rolling stock on Mumbai’s metro lines, competing against companies like Korean Hyundai, Canadian Bombardier, Italian-Indian Titagarh Firema. Yet Italian technology has Gandhinagar, one of the greenest Indian city, in the state of Gujarat, housing about 200 thousand people. Next, the new station project, one of the 236 several cards to play in this sector. that will be refurbished by 2020

50 March 2019 Dossier: Infrastructeres INTERNATIONAL INDIAITALY velopment, as well as increasing the one of European gold standards for els through the Building Information il gap degli investimenti leasing period from 45 to 99 years, metro design. «The stations designed Modeling (BIM) methodology, and making projects more attractive to by Crew in other countries are de- could be using it for public and pri- investors. Rajeev Mehrotra, CEO of signed with the idea of continuity vate clients all over the world. Rail India’s technical and econom- towards the outside-inside, making ic services, said the Indian Railway this public space welcoming, safe The Roads Lead To… Stations Development Corporation and well lit, allowing easy orienta- The huge plan for infrastructural de- is «aiming for the refurbishment of tion and visible circulation routes». velopment is in full swing for the about 600 stations». For Habibganj, Until today, Crew is yet to receive road system as well. India has one Chandigarh, Pune, Mohali, as well as concrete signs from the Indian mar- of the longest networks in the world 2 stations in Delhi and 2 in Gujarat, ket, despite constant monitoring. But – over 5.5 million km – with 64% the refurbishment and modernization Italferr (FS group) joining Crew as of goods and 90% of passenger traf- Fonte: Global Infrastructure outlook, Oxford economics works are under way or scheduled a major shareholder last November fic travelling through it. This year to start shortly. «The stations’ refur- should open new opportunities for the construction of new highways «Regarding the dams, bishment will be a turning point in the the company – enhancing its ex- reached 9,829 km, with an aver- transportation system of new India,» pertise in the integrated design of age of 26.93 km per day. However, as well as other said Lamberto Cremonesi from Crew, architectural and engineering mod- the number of cars and road freight projects, both the

Testimonial/Federico Furlani government and the builders tend to prefer Simem Brings the 4.0 to the Dams cutting-edge We are working on the project of a huge 3D technologies over «printer that makes concrete products. The hope is to use it to accelerate construction works for traditional methods the 30 dams planned by the Indian government in taking advantage of the north of the country, meant to feed as many hydroelectric plants. The energy will support the the abundant great industrial programs of the Make in India,» underpaid manpower» said Federico Furlani, the president of Simem. His company is based in Manerbe (Vicenza), and was the first Italian society active in the construction transport increased in proportions sector to produce in India through a subsidiary in higher than expected, so 18 billion Gujarat. Mr. Furlani has already had meetings with dollars of this year’s public budget the Indian Ministry of Energy, where he illustrated Federico Furlani have been allocated to road con- the details of a project that is raising interest struction – 11 billion specifically for among the government authorities. «Regarding cutting-edge technology. Practically, it can provide highways under the direction of the the dams, as well as other projects, both the manufacturers with specific plants, allowing them India Highway National Authority, government and the builders tend to prefer cutting- to produce fundamental components in-house, mainly working through BOT con- edge technologies over traditional methods thus removing the need for imports, undermined by tracts (Build-Operate-Transfer). taking advantage of the abundant underpaid the congestion of the Indian cities. Simem India is Meanwhile, the government is work- local manpower,» said Mr. Furlani. Builders find also working on major projects for the treatment of ing to attract foreign investors, as it more interesting to spend on time-accelerating industrial dirty waters. In West Bengal, one of the they are necessary to reach the 200 technologies, leading to the powering up of a largest states, with over 100 million inhabitants – thousand km of completed highways hydroelectric plant producing 1.5 million dollars still growing – where the tanning industry develops goal by the set date of 2022. Part of a day, rather than save money by employing a turnover of 2.5 billion dollars, it launched a the government investments cover traditional methods. The Indian game, started in the study for the treatment and purification of the projects, approved last August, to im- early 90s on a commercial level, is one of the top Berntala’s effluent waters, in the eastern district of prove connectivity between Gujarat, priorities for the Vicenza-based company. So much Kolkata, center of tanning production. Simem is a Maharashtra, Rajasthan, Madhya that Mr. Furlani decided to open a second site in world authority in the design and construction of Pradesh, and Diu. Not to mention the center of the country, in Pune, employing over concrete machinery, with the gallons conquered 7,000 km of climate-resilient roads, 130 workers. «In the near future India will become in the production of concrete at a record pace to which will be implemented with the a hub for the entire South-East Asia,» he predicted. realize the expansion of the Panama Canal and the help of the World Bank, and will be For now, however, it is the fast-moving Indian Gibe 3 dam in Ethiopia, the highest in the world. built for 3,500 km using green tech- market that offers the greatest opportunities across «We achieved a similar performance through the nologies. For the current fiscal year, the entire supply chain of the Simem infrastructure. use of predictive algorithms, thus establishing plant the Ministry of Transport has set a Thousands of kilometers of new roads, subways maintenance strategies which can save time and general goal to allocate 15 thousand in big cities, buildings and skyscrapers counting costs, as well as ensuring productivity increases,» km of projects and the construc- 30/40/50 floors are being built everywhere, explained Mr. Furlani. «It is the so-called factory tion of 10 thousand km of national opening construction sites where Simem has the 4.0». Simem works for 95% of its 55 million Euros roads. The Hindustan Construction competitive advantage of being able to provide turnover abroad, in 45 countries. Company, in a joint venture with the Korean company Hyundai, won the

51 March 2019 INTERNATIONAL Dossier: Infrastructeres INDIAITALY

Mumbai coastal road project worth Shipping Services, a large company about 320 million dollars. based in Haifa (Israel), in order to The state of West Bengal is playing a connect India with the main ports of particular role in the roads plan, since the Eastern Mediterranean, travel- three bridges collapsed in the re- ling on the new Maritime Silk Roads. gion last September. Prime Minister In addition, Diego Aponte, CEO of Mamata Banerjee promised for the MSC, has invested in doubling the entire arch of the collapsed Majerhat super container terminal in Mundra, bridge to be demolished and then re- the largest in India, in collaboration built «within one year». The governor with the local partner Adani Group. decided not to go through a bidding «Mundra will strengthen and confirm process to avoid delays, and to di- its role as a transshipment hub for rectly appoint Mackintosh Burn Ltd, South Asian markets,» said Aponte. a public company. In addition, West A second huge terminal for container Bengal Highway Development has ships will open in the south-west- recently called for tenders to build a ern region of Vizhinjam, in Kerala, six-lane link between the Belghoria by 2019. The port, where the Adani highway and the Kalyani highway Group invested as well, will offer a in 30 months – including the expan- depth of 18 meters, with the possibil- sion of the six-lane segment of the ity of mooring and providing service Kalyani expressway – offering an in- to 23,000 container ships – obvious- vestment of 83.5 million dollars. ly aiming at becoming a traffic hub The plan includes some projects at- for the entire South-East area, includ- tracting interest from all over the ing China. world, with the most popular being a 22-kilometer six-lane bridge – the Aviation Development Mumbai Trans Harbor – which will The strengthening of civil aviation connect the capital of Maharastra transport, which currently involves Diego Aponte, CEO of MSC, invested in doubling the huge container terminal in Mundra, the largest with its port, with an almost 80% in India. Above, the aerial view over the port area of Vizag in the Dada Pradesh, southeast of the only 5% of the population, will be share financed by the Japanese country, overlooking the Bay of Bengal. It will become one of the main hubs on the routes of the new one of India’s keys to modernization International Cooperation Agency. Maritime Silk Roads. Above, the Jawaharlal Nehru Trust Port docks in Mumbai and internationalization. Yet planes The work will reduce travel time are already the most-used mean of by one hour, linking the future Navi of the ports, built in shallow waters, ports in Vadhavan (Maharashtra), transport of the middle and upper Mumbai international airport with are not suitable for large container Sagar Island (West Bengal), Paradip classes, since airports are efficient, the highways to the south, the cent- ships and packed loads. Furthermore, Outer Harbor (Odisha), Cuddalore/ can operate as stations even in small- er, Pune, and the port area. the freight and container transport Sirkazhi and Enayam (Tamil Nadu), er towns, and ensure a dense network Another symbol of the new India service between the major coast- and Belikeri (Karnataka). The plan of connections across the country. is the Yamuna Signature Bridge, al cities must be adapted to support is fueled by the belief that even ports And service is guaranteed by a doz- which will link Delhi with the in- domestic and international trade, fol- could come to generate, accord- ens internal lines, where those taking dustrial areas of Uttar Pradesh by lowing a roll-on-roll-off operations ing to an estimate by the Ministry the front are Indigo, one of European the end of this year. The main ac- development plan based on large of Transport, a billion dollars per Airbus’ clients; Jet Airways, partici- tor of this work, which is already set road transport at competitive prices. year, attracting foreign investments. pated by Etihad; and Vistara, part of on becoming an extraordinary land- Sagarmala, the name that the govern- Thus, the government chose to allow the Tata group. «In 2017, India reg- mark, is the Italian Tensacciai of the ment gave to the development plan non-Indian companies to own new istered the fastest growth in domestic De Eccher group, responsible for de- including both coasts and inland wa- port infrastructures in their entire- passengers for the third year in a row, signing and building, together with ters, is based on four assumptions: ty, or to deal maintenance services, followed by China and Russia,» of- Gammon India and Cidade Brazil, port modernization, connectivity, in- and granted a ten-year tax exemp- ficially announced the International the 154-meter central pillar support- dustrialization, and development of tion for companies developing and Air Transport Association. The gov- ing the infrastructure. From the very the coastal community. The goal is managing ports, inland waterways ernment has decided to increase the top, tourists will be able to enjoy a to double the number of national, in- and inland ports – responsible for current number of airports from 100 fantastic panoramic view. Meanwhile land and coastal waterways, generate initiating the National Maritime to 150/200 by 2035, injecting invest- the Italian Astaldi (box on page 49), savings on logistic costs, increase ex- Development Program. But there ments that could amount to more than in jv with Reliance Infrastructure, ports of goods by 110 billion dollars, is more. Since March, the Ministry 60 billion dollars – a capital expect- will work on the Versova-Bandra and create over one million new jobs of Navy has allowed ships carrying ed to come from the private sector Sea Link, 17.7 km of seaside roads. over the next ten years. foreign flags to transport containers mainly. In order to attract them, the Further plans have also been made to for transhipment, and has revised a government wants to guarantee in- Super Ocean Ports cope with the rising freight traffic – model of concession agreement that vestors not only the hedging of A further strategic theme, related +4% last year – wanting to increase offers greater flexibility to investors. investments, but also a good yield. to trades support, is the restructur- capacity in 1,500 mtpa ports (met- MSC of Aponte is taking advantage Meanwhile, the government has al- ing of the port system, as they host ric tons per year) to more than 3,500 of these opportunities on several located 1.83 billion dollars for the the transit of 95% in volume and mtpa by 2025 – especially through fronts. Last September it announced development of infrastructure and 70% in value of total trades. Most the development of six new huge the collaboration with Zim Integrated air navigation services.

52 Tabellare DellOrto.indd 20 16/01/19 16:02 March 2019 INTERNATIONAL Dossier: Infrastructeres INDIAITALY Betting on yellow During the first quarter of 2018-19 photovoltaic production capacity has gone up by 1 megawatt per hour, while the goal remains reaching 100 gigawatts by 2022. Meanwhile wind energy keeps turning blades at full regime

by Stefano Catellani

conomic growth, with its higher energy needs – de- mand keeps going up by E 8% every year – and the government’s decision to rely on renewable sources for production make it for the perfect match and create some of the best new op- portunities for sector operators. Plans provide for 300-billion-dol- lar investments to go out in the next 10 years, with a 125 billion seg- ment designated for increasing the renewable energy production ca- pacity to 175 gigawatt – with 100 from solar and 60 from wind – by 2022. These goals make it for the biggest plan in the sector of the entire world without looking too unattainable. Last July renewable energy production touched the new record of 116 gigawatts, account- ing for 33% of the entire installed capacity, and still aiming to reach 49% by 2040. Yet, it is trend data rather than stock ones that sup- ports the predictions. During this year’s first quarter the investments in clean energy went up by 22%, adding a solar energy capacity of 1 megawatt every hour. Foreign investors keep their at- tention up, if the growing use of Private Equity funds and the 28 Pictures from Shakti Sthala, in the south region of Karnataka, where in March 2018 the biggest solar new M&A agreements, worth over energy park in the world was launched, costing 2.5 billion dollars and covering 5 thousand hectares. a million dollars, are anything to go Above, the massive operational center; on the right, the endless rows of panels. The drawing shows by. Meanwhile, last March ReNew some parts manufactured by Bonfiglioli for wind turbines Power acquired Ostro Energy for 1.5 billion dollars, creating the big- to reach the 100-megawatt objec- boosting domestic production. At gest domestic operator in India. tive by 2022 from the current 25, the same time, solar and wind en- Again in 2018, the financial year solar installations numbers should ergy producers have been trying to closed last March 31st, energy pro- triplicate by 2020. In truth, 2018 bring their presence share in the duction from renewable sources has been a pivotal year for this seg- market up, offering to local admin- touched 101 billion units, follow- ment of the sector, as it hosted the istrations and company prices ever oughbreds – Enel Green Power, ing the growth trend of 25% per inauguration of Shakti Sthala, in so low they reached an all-time re- world-leading facilities builder in year characterizing the market Karnataka, the biggest solar park cord last September. all segments of renewable energy since 2016; between April and in the world, costed 2.5 billion The programs have been piquing bar hydroelectric; and Bonfiglioli, June 2018, falling under the 2019 dollars. In the same period the gov- the industrial investors’ interest using India as its production site financial year, the sector grew for ernment decided for import duties everywhere in the world and led for wind energy components. They a further 20%. Solar energy regis- cancellation for panels parts, hop- to 7 billion dollars in foreign in- both work in partnership with local tered a particular increase in that ing to attract big energy groups like vestments during the last 15 years. companies well-positioned in the period, going up 30%, yet wanting Adani Power and Reliance, thus Italians are racing with two thor- India’s production reality.

54 March 2019 Dossier: Infrastructeres INTERNATIONAL INDIAITALY

Testimonial/Antonio Cammisecra Bonfiglioli knows well this means betting on both new and retrofit Enel GP Rides on the Wind’s Wings and Aims for the Sun facilities, as in renewing the first plants created on the territory. «It’s 2019 will be a key year for our activities in India. at guaranteed prices – thus guaranteed margins – for an interesting business for gearbox- «We are trying to win contracts for solar and 25 years following the site’s entry into operation. es, electronic parts, and engines,» wind energy, and we believe our technologies and she added she has been tackling the our implementing capacity make us extremely Q: How can we expect the Indian market to future by investing in research and competitive». Antonio Cammisecra, transform? development, and has around twen- Enel Greenpower number one, A: Premier Modi is a big fan of ty engineers working in the Global trusts the Indian market, and photovoltaic energy production and R&D center in Pune at the moment, believes it can win his company knows the technology behind it very exploring ad-hoc innovations and some good rewards. Enel GP, well. So, he will probably push in product solutions for the Indian a world-leading company in the the direction of solar energy. India renewable energy sector, chose a wants to overtake China and the soft approach for the Indian market, US and become world’s number starting to take part in tenders about one country of green economy, in three years ago – even if they were particular through renewable energy quite haggled, price-wise. Last usage. spring, they got the first results, when the group managed to win a Q: What are the figures? contract for the development of a A: In three years from now, in 285-megawatt wind farm in Gujarat, Antonio Cammisecra 2022, we expect 100 gigawatt investing a total of 290 million. of photovoltaic energy and 60 gigawatt of wind energy to become fully operational, Question: What was the tie breaker? together with a further 10 gigawatts from geothermal Answer: We stood strong about our price policy and biomass plus 5 from mini-hydroelectric sources. and pitched all in favor of our technological know- So, the current available capacity should grow by 20 how. We also aligned our image to the local reality. gigawatts for solar and by 33 for wind energy. We’ve got a lot to do. Q: What does it mean? Sonia Bonfiglioli opened her businesses in A: In 2015 we acquired a small Indian company, BPL Q: Do you think it’s achievable? India in 1995. 800 employees work in the three Energy, owning dome wind plants in Gujarat and A: India’s starting condition is very good – a lot of plants of the group plus several hundred more Maharashtra. We managed to swiftly integrate them available technologies, good research activity, and in auxiliary sectors in our production chain, also thanks to the human many expert and well-equipped technicians and resources we found. We won the contract in Gujarat engineers. All these features make it for the best market – in particular those for in partnership with them. stepping stone toward the target achievement, in yaw & pitch handling and control, particular since they contributed to the creation as well as those for the management Q: Are the expected revenues appealing? of excellent production chains in each specific of production turbines in any size. A: According to the contract, we can supply energy technology. They are also cooperating with the group’s global customers to research specific solutions for ag- «We are planning for a further future stone to remain in the market ensures Riduttori and has now become one riculture, constructions, materials expansion in India, aiming at reach- a long-lasting and appealing suc- of its most strategic markets. «Our handling, and electric mobility. ing the whole Asian-Pacific area, cess,» explained Sonia Bonfiglioli, market shares keep going up, driv- On the other hand, Gianluigi promoting its growing energetic de- leader of her namesake group, sum- ing the turnover as well – it has Angelantoni, president of his mand,» said Antonio Cammisecra, ming up her 20-year experience in recently surpassed the 100 million Perugia-based namesake group, Enel GP number one (see interview the region. Through its three seg- euros,» Mrs. Bonfiglioli said to MF seems less optimistic on the Indian at the top). «India offers some great ments – industrial, wind, and mobile International. «We’ve started to market. Mr. Angelantoni, together opportunities. Finding the right key- – her company is about to reach a leave the safe space of the Indian with the Nobel prize winner Carlo 1-billion turno- market and have our exports reach Rubbia, developed an innovative The climb of the solar ver, as it totaled its neighboring countries as well. technology for photovoltaic plants 870 million eu- We expect a further growth for our – the so-called thermodynamic so- ros just last year. business in the next few years». lar energy. Probably the lukewarm The group built Mrs. Bonfiglioli, daughter of the results of its semi-experimental fa- three plants, one founder, didn’t forget to give her cility – built in Rajastan using his in Pune and two warnings on the difficulties posed trademark components – left him a in Chennai, hous- by such a market – where it is nec- bit sunburned and led him to aban- ing a total of 800 essary to invest for several years don Indian in favor of China. «We employees. India before seeing a return. Yet once were given no certainties regarding was the first over- the gears have started turning, the the government incentives for im- sea production keep going on their own, running plementing these facilities,» he said site for Bonfiglioli after different business lines. Mrs. to MF International.

55 March 2019 INTERNATIONAL BUSINESS/India tech INDIAITALY At Research’s Front Line Main Projects

Telemedicine, genetic engineering, clean energy, aerospace, as well as culture, agri-food, and mechanics – the strongest players aiding Italy in building cooperation

by Francesco Bisozzi

CT, aerospace, and clean en- pert at the New Dehli embassy, ergy technologies are all to MF International. Mr Spadoni frontliners. «India has a deep has been among the organizators Isocial stratification, and in- for having an Italian delegation novating its information and at Technology Summit as honor- communication technologies could ary guest, held last October by the help the country solve many of its Confederation of Indian Industry. problems. I’m thinking of tele- Since 2012 IFOM and inSTEM medicine, for example,» explained have been working together on an Massimo Spadoni, scientific ex- innovative project, researching and investigating molecular process- es favoring tissue regeneration in cancer treatment. IFOM is a re- search center in Milan focused on studying cancer formation and de- velopment at the molecular level, while inSTEM is a similar facility in Bengalore, specialized in stem cells and in regenerative medicine. «Tissue and whole organs regener- ation from stem cells is one of the most promising branches in bio- medical research,» Mr. Spadoni explained, «This field is opening up new possibilities for the scien- tific community, which hopes to rely on them for finding a cure to selective cell death diseases – as Parkinson’s, heart diseases, or dia- betes». Recently, the International Center of Genetic Engineering and Technology in Trieste, operating in- side the UN framework, opened a branch in New Delhi and joined the research program. Even aerospace cooperation is well The radio observatory at Medicina, near Bologna on its way – ASI (the Italian Space (Italy), which cooperates with the Indian Agency) and its Indian counterpart Aerospatial Agency and the bionic hand made by the Istituto Sant’Anna di Pisa, recently exhibited have undersigned a MoU and have in India. Above left, Massimo Spadoni, scientific been implementing some joint in- officer at the Delhi Italian Embassy, and, right, itiatives, including the SKA radio Satyajit Mayor, general manager of InStem, the telescope for radio wave detection. Indian most advanced research center for Stem Cell Biology and Regenerative Medicine (right, «India is a leader in the field of re- and, above, the Bangalore headquarter) newable energy and is now betting

56 March 2019 BUSINESS/India tech INTERNATIONAL INDIAITALY

Testimonial/Giulio Cesareo Testimonial/Pietro Sella

Graphene Makes Jeans Cooler From Chennai to the Software War

India is way too hot to wear normal jeans». That’s why Giulio he Chennai Branch of the Sella bank, «Cesareo, Directa Plus co-founder and CEO, put its company’s Tfounded in 1996 in ex-Madras, rode expertise on graphene to use and betted on thermal fabrics. «We on current CEO Pietro Sella’s experience draw patterns with graphene, and once they’re printed inside in computer services and turned into a different fabrics, they can help regulate body straight-up software company. Today temperature,» he explained. Directa Plus the branch employs about half of all of is specialized in graphene G+ production, the group’s IT staff – about 260 people and doubled its turnover in just one year, between managers and analysts. Every registering 573 thousand Euros last June year the Indian team works with its Italian 2018. The company is listed in London’s Aim counterpart on 200 different projects, share market since 2016 and has just signed designing IT solutions for both traditional a milestone partnership agreement with Indian (core banking, credits, investments, risk giant Arvind - specialized in jeans production, management, and payment methods) and supplying brands like Levi’s, Gap, Wrangler, innovative banking services (mobile apps, and Lee of around 6 million items every year. internet banking, voice banking, chat bots, he two companies have been working AI, machine learning, and data analysis). Ttogether on a special graphene denim, Specialized teams oversee the provision using the material’s unique heat-conducting of data management services – often B2B, thus implemented in properties to create high-comfort and e-commerce systems. «When we created the group’s software back adaptable jeans items, capable of dispersing in the 90s, we were working on mainframe. Once we had to switch heat in hot climates and of evenly distributing it to a client server technology, we also had to look for the necessary in cold ones. This fabric is also bacteriostatic, expertise. At the time, choosing India was one of the most innovative meaning it needs to be washed fewer times – things to do,» Mr. Sella, 50yo, explained. The decision had the banking quite the benefit when it comes to places like group top the Italian charts of information technology, where its cutting- India, where water is scarce. «It is also scratch edge solution had it keep a firm grip on first position. Some examples resistant,» Directa Plus CEO added, «So it are Frabrick, an open financial eco-system enabling and promoting can replace expensive fabrics like kevlar». cooperation between banks, corporate, and fintech; and Platfr.io, Not to mention that graphene denim is an the first Open Banking API Platform in Italy, allowing companies and electric conductor, and can be used in data third-party start ups to have their IT platforms automatically dialogue transmission applications - Arvid has recently with their systems. Chennai’s success story grew hand in hand with worked with Levi’s and Google on launching the transformation of local economy, where the local government’s a motorcycle jacket with touchpad-integrated investments toward incubators and acceleration centers turned the cuffs, allowing riders to answer their phone country from a low-cost IT outsourcing reality to a start-up forge. from their garment. Finally, graphene circuits Banca Sella keeps drawing power from university campuses, often could also substitute wires, adding to cleaning generating the best new ideas. and maintenance ease, and allowing to gather all kinds of information. «We’ve submitted the Giulio Cesareo, Directa Pietro Sella, class Plus co-founder and fabric to all main US and European brands as of 1968, joined his CEO, put his company’s soon as we’ve finished concept proofing and family’s group in 1997 to upgrade the expertise on graphene to testing. Buyers will already be able to purchase use and betted on thermal company’s IT systems, some products by the end of the year,» Mr. fabrics. and became the CEO Cesareo stated. There are thousands of in 2004. Left, the Indians who prefer western-style clothes to reception in Chennai their traditional ones, and soon their dream to dress according to taste could be coming to life. on smart electrical grids. And Italy counting on Italy as its role mod- lion-dollar intervention for digital active in agri-food have been look- is a world leader in the sector, if el. After all, Italian companies can infrastructures – and Smart Cities, ing at the country’s recent approval its role in the Mission Innovation rely on governmental funding for hoping to promote IOT (Internet for GMO field testing with some global initiative for clean energy their industrial and scientific co- Of Things) in 100 pilot cities. «I interest, knowing that the local is anything to go by,» Mr. Spadoni operation plans. In an effort to believe that the mentioned fields government is aware of how dire is highlighted. He also noted that modernize the country, India’s cen- offer fertile ground for develop- the nation’s need for such a tech- India keeps paying great attention tral government has been pursuing ing cooperation in the very next nological improvement in fighting to technologies for the protection strong investment policies, and has future,» Mr. Spadoni said. In re- the dramatic food problem. One of and conservation of cultural assets overseen the implementation of gard to biotechnologies and the the concrete, available opportunities – a yet developing reality, but still projects like Digital India – 15-bil- genomic sector, Italian companies for market entrance is the project

57 March 2019 INTERNATIONAL BUSINESS/India tech INDIAITALY

Testimonial/Daniel Silva Testimonial/Elio Marinoni Kart, the key to Success is in the Structure Renewable Energy Conquers Tuctucs

pkarting (Innovative Products for Karting) is still pitching on traditional, We’re dealing with a local Ibut it has also started looking at electric-powered systems with a «company interested in certain interest. The company, known world-wide for its go-karting entering the Indian transport Praga chassis, is based in Salizzole, in the Verona area, but has landed market. We’ve already been in India just about now. «We signed an agreement with a local retailer, conducting some market which is already well positioned in the motorsport market and working analysis to try and assess with mono-brand projects. We if it’s possible to implement delivered our first batch of go- the project». Elio Maroni is karts with Praga chassis at the the founder and main person beginning of 2018 – 36 models in of Askoll, a Dueville-based total. Our modern and innovative (Vicenza) company specialized methods applied to design, in the production of high- development, and management efficiency electric engines for stages, as well as the know- home appliances, as well of how cultivated in our Ipkarting electric scooters and bikes. It production site, make it for the has recently reached the Indian best business card we could market, where its best move possibly hand out,» said could be pitching on tuctucs – Daniel Silva, the the local three-wheeled transport company’s system of choice. «Air pollution is CEO. Ipkarting one of India’s biggest problems, generates and much of its resolution the 80% of depends on Modi government’s its annual new policies in support of 4-million- sustainable transport,» he Elio Marinoni, 72yo, leads a 40yo group leader in euro turnover added. Askoll’s electric scooters high-efficiency electric abroad, exporting toward must compete with Chinese engines production. Now betting on electric transport thanks to its scooters China, Malaysia, Australia, Canada, USA, products – cheaper, but of (photo below) and bikes as well as in the whole of Europe. a much lower quality. The Its activity in India is just at the beginning, company can boast 40 years but it is already attracting attention. of research experience in the sector, where its work with sustainable «Negotiations with another potential solutions for products and technologies resulted in more than 800 reseller are well on track,» Mr. Silva patents. It also operates in Spain, France and in Scandinavia, and while added. Their go-karts have also been it covers 80% of the Italian demand for electric scooters, this particular Daniel Silva, CEO and founder Ralf Schumacher’s first choice for its market builds up just a little fraction of the group’s total 220-million- of the Verona-based Ipkarting own RS kart line, ever so active in that euro turnover. Yet they keep aiming very high. company, renowned for its Praga competing area. Askoll Eva is the company’s division in charge chassis. Mr. Silva exports already The key to Ipk’s success hides in the of sustainable bikes and scooters production, toward China, Malaysia, and Australia, and has recently entered materials. «When it comes to selecting and has managed to put 12 million together for the Indian market as well the materials with the highest values of investments by listing its shares on the Milan elasticity and durability, monitoring tyres types usage during different Aim stock exchange. Now it aims at swiftly competitions allow us to collect a lot of useful information,» Mr. Silva increase its turnover (5 millions in June 2018), explained. «Once that’s done, we can move on to choosing which and hopes to reach 70 million euros by 2022 material fits the use best, together with other characteristics – like – relying on the strong demand coming from pipes diameter, pace, and all other stuff we may need to develop a both Italy – +60% during 2018 first quarter - prototype to test on track». and Europe.

aiming at opening 42 new «mega half as many machines as the more ten years, the country is ex- end, with no need for finding lo- food parks», meant to attract for- advanced and more industrialized pected to invest between 40 cal partners. There are no more eign investments. The plan hopes countries do. and 60 billion dollars every year for blocks in the automotive sector as to achieve consistent improvements Such a favorable environment for urban development. The government well. This progressive liberalization in the production-distribution chain, scientific cooperation comes under has also made all rules governing should work in favor of the renew- and to support agricultural equip- the Modi government’s guidelines offshore direct investments much al of the Italian-Indian agreement on ment manufacturers – featuring a in full, fitting the investment plan simpler: foreign investors have now new investments protection – gone strong local production as well as for the development of infrastruc- access to a number of sectors – in- out of date in 2017. It is an EU pol- a 2-billion-worth export market for tures like motorways, railways, cluding the energy one – and can icy already protecting all in-place Italy. Now Indian companies use ports, and airports. During the next control their capitals from start to capitals until March 23rd, 2032.

58 nulla è per caso dal 1946

fioriomilano.com ties and more

Fiorio 273x336_Gentleman ok.indd 1 15/10/18 12:09 March 2019 INTERNATIONAL BUSINESS/AGRIFOOD INDIAITALY Innovation Leads the Field

Also the economy first anòli, , Gujarat, North-West through a merger of Montedison and The images on this page show Sikkim, a macro-sector is looking of India. Inhabitants: 576, Enichem industrial activities, led by state in Northeast India resting at the slopes according to the 2011 cen- Montedison former manager Giorgio of the Himalaya, and bordering Bhutan and ahead: bio, food Tibet. Last October the region was awarded Psus. No bus service within 5 Basile, the company has since gained its first FAO prize thanks to its 100% organic processing, crop kilometers, while the first train sta- the leadership in its section of the agriculture, ahead of 51 competitors – with protection and new tion is 10 kilometers away. Yet Panòli local market – trading in the devel- Brazil, Denmark and Quito in Ecuador is not really a no-man’s land: rath- opment, production and sale of plant ranking second. In 2003, the government flavours. Made in Italy of Sikkim launched a plan for a totally er, it is the land of pharma, a special protection products. The Panòli one, organic agriculture, benefitting 66 thousand often contributes economic zone deeply connected to purchased in 2001 for 16 million eu- farmers, and increasing both consumption the sector. And pharmaceuticals are ros from the Indian conglomerate and revenues of specialized crops – such one of new India’s strengths. Isagro RPG, is of strategic importance in the as tea – and of tourism figures among the companies op- synthesis of the those group-owned by Franco Canevesio erating in Panòli. Founded in 1993 active ingredients, as well as a hub

60 March 2019 BUSINESS/AGRIFOOD INTERNATIONAL INDIAITALY

Trend to other countries in the Middle East. Food Park for Agro 2.0 Exports make up a quarter of the 40-million-euro turnover generated pened on October 28 through a 1.2-billion-euro investment, the in India, part of the 156-million total Ohuge, agro Mangrol food park in the Surat district, Gujarat, is one revenues from 2017. 144 of the sum of the 42 structures that the Indian government has planned to spread was realized thanks to crop protec- across the country. The main objective wants to be the improvement tion, and is expected to grow to 200 of agricultural production and, above all, its conservation, bringing the million by 2020. The Indian plant produces, inter alia, the intermediate m-alcohol used for the Tetraconazole synthesis. «It’s the most important product. At Panòli we make chemi- cal synthesis and formulations, then we finish it in Italy,» explained Mr Basile. Formulations, or combi- nation of an active substance with Gianpiero Calzolari, President of Granarolo other ingredients, is a booming mar- ket. According to IBEF’s Healthcare and development methods, putting report, India is the largest exporter to good use the 15 million euros al- of formulations with 14% market located every years. «We are getting share, the 12th country in terms ready to start production two years of value, expected to grow in dou- from now. Aside from other fungi- ble figures over the next 5 years. At cides, we’re presenting an absolute the Gujarat factory, 100 profession- novelty – an organic fumigant, a new als are testing innovative research product to apply directly in the soil Il master plan del lotto base del food park di Surat, in Gujarat, progettato e costruito of greenhouses or other closed en- con l’aiuto di tedeschi, svizzeri e svedesi per ottimizzare produzione e conservazione vironments, capable of disinfecting percentage treated from the current 6% to 20%. At the same time, it and, through fumigation, of killing also hopes to attract foreign capital. For this reason, operating in the any ground worms and insects,» re- park entitles to a government grant, covering 50% of the investment, as vealed Basile. He built the fortune well as to a tax exemption policy on income during the first five years of of Isagro on the sale of products for activity – followed by a further five with reduced rates. Currently, there crop protection, a market of over are twelve fully-active operators, plus 30 more in various stages of Giorgio Brasile, of 50 billion dollars destined to keep implementation. The project aims at transferring the park’s ownership Isagro; below, Eraldo growing even if at lower rates. New e Francesco and management over to a specially-established company shared by Peccetti, of India is betting hard on agribusiness, farmers, associates or other individuals, and with business-related Colines, and as it can rely on the second largest investors subscribing the shares. The manager will be in charge of one of their area of cultivation in the world – 160 arranging and operating the base plants for energy supply, and the production million hectares in 20 different agro- sites warehouse for the foodstuff treatment, from washing, to pressing, climatic zones – and on 60% of the to storage, till the beginning of distribution. The opportunities for population employed in agricultur- Italian companies can be articulated at different levels: energy supply, al properties, 85% of which either water and waste processing, the cold chain and logistics, and, last small or micro, for an annual turno- but not least, the machines for processing vegetables, fruit, poultry, ver of 42 billion dollars. «Italy is an fish, cereals, and for packaging. The Park’s manager must also call for ideal partner to help India meet the tenders for supplies in all production segments, and for all required goals set by the government, which equipment. Clearly, the Italian companies interested in selling in India is providing funding for 160 billion should keep an eye out for these park operators. dollars in agriculture,» said Claudio Maffioletti, secretary at the Indo-

61 March 2019 INTERNATIONAL BUSINESS/AGRIFOOD INDIAITALY

Testimonial/ Gianluigi Peduzzi most quoted companies in the world the production. In the same plant we have a line in the production of machines for The Battle of Durum Wheat... dedicated to sauces and ketchup, with which the extrusion of plastic materials, we produce 500 thousand pieces a year,» said from polyethylene to flexible film In 2005, while returning from China, I made a Peduzzi, who bought that 30% back from Simest of low thickness for packaging. «stop in Delhi. It was my first time in India. As last November, and will now control together with Operative in India for over twen- I was going around the city, I found myself in a the Goyal. The Indian turnover is 3 million euros, in ty years, it works in supplying the market in the centre, and there I asked a merchant addition to the 11 million generated in Italy, mostly market with the base films used by what kind of activities were the most profitable in through export in 70 countries. «In 2020 we should large retailers in the trays for their India. He looked at me and firmly replied: pasta conclude our three-year plan with a turnover packaging. Successful company, tri- and bricks. From there on I started preparing a target of 25 million euros,» the entrepreneur pling the turnover between 2014 and project, destined to last a few years, just because revealed. Pasta consumption is growing above 2018, it gained importance in India finding the right partner was not easy». This is how all among young people, who consider it a lot thanks to technology. «Indians rec- the current president of Rustichella d’Abruzzo, ognize that our machines are Gianluigi Pedruzzi, 55yo, recounts of his arrival in Maria Stefania the most performing,» assured India. Founded in 1924, in Penne, the pasta factory and his brother Peccetti, whose customers is managed by the third generation of Peduzzi Gianluigi Peduzzi, are suppliers of big multi- grandchildren of – Gianluigi and his sister, Maria Stefania, head the founder of nationals like Henkel, Pepsi, of marketing and CEO, as well as her husband Rustichelle, and Cosa, Johnson & Johnosn, Giancarlo d’Annibale, co-CEO and production the company’s and Ferrero. The Colines ma- manager. In India, the ideal partner arrived in 2010 CEO and President chines serve plants with a respectively. The in the guise of the Goyal family, with interests in pasta factory was production capacity of 5,000 paper mills, hotels, and restaurants. In February founded in 1928 in tons a year. At the moment 2012, they inaugurated the plant in the Penne d’Abruzzo the Novara-based company industrial area of Jaipur, investing about is working on a contract for 1.5 million euros. Simest 4 machines worth 18 million. participated in 30% of the more trendy than rice. Rustichella sells in India In order to double the turnover in capital of the new company. with the Gustora brand, which was the first to India, with which they have been The three production lines start production using 100% semolina from Indian working for 20 years, Carpigiani of of durum wheat semolina durum wheat. The company offers a selection of Anzola (Bologna) decided to focus pasta, destined for the over 15 pasta formats, thus focusing on product on circular marketing. «In recent local market, churn out quality, and gained the appreciation of the many 2,500 tons per year. «This Italian restaurants spreading like wildfire in Delhi, January we launched a Mumbai, Bangalore, and Chennai. The Rustichella new line that will triple brand, on the other hand, is sold in large hotel chains, by Hyatt and FourSeason. «Gustora’s success can also be traced back to its focus on innovation,» Peduzzi highlighted. In 2014 he began producing a line of pasta for children; one year later, he added the whole wheat pasta, mindful of that 70% of vegetarians in the population. Then came the instant pasta with freeze-dried pesto, ‘arrabbiata’, and cheeses seasonings. The climb to the Bambino brand, the largest Indian producer, for most of soft wheat with some spaghetti-like format, has started.

Italian Chamber of Commerce of as Carraro (transmissions and axles the percentage of treated products. Mumbai. Along an articulated supply for tractors) and Maschio Gaspardo Currently it is below the 10%, and chain that starts from the fields and (equipment for agricultural work), as Italians sell in India for about 111 reaches the products for large-scale well as for food processing. This sec- million, a quarter of total machin- retail trade or the luxury market, tor is a quite crucial one for Indian ery. «The packaging sector is one dozens of Italian companies are busy agriculture, forced to discard most of of the most active, also thanks to trying to get ahead, often successful- the products due to the lack of effec- the government’s behest, which im- ly. One of the segments where the tive conservation facilities. posed that all the packaging must bilateral collaborations are more ac- Sales of agricultural machinery are be recyclable,» explained Francesco cented, thanks to the development going through a positive moment Peccetti who, together with his fa- of Italian technology, is that of spe- with increases of 20% per year. ther Eraldo, manages the Colines Alessandro Sità, export manager of the cialized instrumental mechanics. For food processing, the demand of Novara, 135 millions of euros family’s oil mill – having in Asia one of its biggest markets, where extra virgin It can rely on agricultural machin- is sustained by the commitment of in turnover, of which 90% from oil well meets the local taste ery or components suppliers such the central government to double abroad. Colines is among the five

62 March 2019 BUSINESS/AGRIFOOD INTERNATIONAL INDIAITALY

Testimonial/Pierluigi Garuti could be the first step in a new acquisition, ... And the Cap Revolution strengthening its position against its competitors through optimization of costs 019 is the year of India, according to control and transport times. «We want India to 2 Pierluigi Garuti, Pelliconi general become the first market where we offer plastic manager and one of the or metal caps that are no longer crown types. world’s kings in the production The State of Maharastra has already banned of bottling stoppers. «It is non-recyclable stoppers,» Garuti explained. a strategic country both The new Maharastra plant for ring pull caps for the products and for the production – meant for beverage such as market, with all the potential for pepsi, soft drinks, or coconut drinks – should beverage and closures,» he become operative midway through the year. explained. In 2017 Sace- «When fully operational, we expect a turnover Simest helped Pelliconi of 4-5 million euros,» the manager revealed, Achille Sassoli, in the acquisition «and we are ready to seize opportunities in the in charge of the development of 51% of the packaging sector». of Carpigiani, Indian Oriental The company, founded in 1939 in Bologna world leader in Containers, one of by Angelo Pelliconi and now led by the third the production the major players generation of the family, employs over 400 of ice cream makers. India is in the production of workers in plants in Italy (Ozzano Emilia registering an plastic and metal and Atessa) but also in Orlando, Florida; in increase in small capsules for the Cairo, Egypt; and in Suzhou, China. Exports ice cream shop beverage market. toward 110 countries account for 75% of numbers And there is total production. This year it is expected to the chance this produce 30 billion pieces that could generate a 200-million-euro turnover, against 154 million «In recent years Pierluigi Garuti, Pelliconi in 2017 and around 170 the year before. they opened many Managing Director small ice cream years they opened many small ice which ice cream comes out, to yo- milk producer in the world, Granarolo shops that buy our cream shops that buy our machines gurt shops and McDonald’s. succeeds in exporting its own by fo- machines to to produce premium ice creams,» «European trends exercise great at- cusing on large-scale distribution, explained Achille Sassoli, head of traction on the new generations,» selling to big hotel chains. It still produce premium market development, «And they’ve agreed Filippo Marchi, Granarolo takes into account street vendors and ice creams» been asking us to organize compe- general manager, 1.3 billion turn- small shops, as they remain a relevant titions to train new professionals. over, after the recent decision of segment of the booming market. «Our We’ve never seen anything like this pushing the accelerator in the sub- certified cowsheds for India are 250 from their habits. «Immediately im- before. In this way, we can under- continent. In December it acquired out of 699,» revealed Marchi, who ad- posing the extra virgin olive oil would stand in which direction the market the majority of Europe Food India, mits that «exporting to India is not have been a defeat at the outset,» said is going». Carpigiani is exploiting of which it had bought a 10% in particularly complicated». Sità, «educating the population about its Gelato University driving force 2016. Granarolo in India, where «It’s a very difficult country from a its use was the key to enter the mar- also in the huge Indian market. it has a turnover of about 15 mil- commercial point of view, given its ket.» The sales of the Calabrian oil The University is an international lion euros, sells packaged milk and ever-changing laws and regulations, mill are represented, for the most part, school of professional training that cheese such as the Granopera – their heavy duties, under-developed inland by refined olive oils, matching the lo- teaches homemade ice cream pro- flagship product, which key feature connections, and rampant corrup- cal taste very well, in particular as a duction techniques – employing the is being made without preservatives tion,» Alessandro Sità complained. complement for food or for frying lo- company’s machines together with and vegetable rennet, given how 50% More than once, the containers carry- cal dishes. the MyGelato App. The app was of Indians are vegetarian. ing his company’s olive oil have been With a 9-million turnover in 2018, launched in 2014 to help ice cream And now he wants to enter the fast stopped in the harbor by the customs 70% abroad, five-fold in less than makers expand their service through growing snack segment with a new officers. «We’re not the only ones in four years, and a budget of 15 mil- a website (MyGelato Shop), and ice product, the Groski. «They are 100% this situation, with documented reg- lion by 2020, the Sità is focusing cream lovers to buy ice creams – natural cheese rice cakes, and the pro- ular goods stuck in the port for over mainly on Asia, China, Singapore, even for others – via the app itself. duction process is of our own patent. a month». Giuseppe and his sons, Japan, Vietnam, Pakistan and, ob- Through its Delta Nutritives deal- The idea is to immediately produce Antonio and Alessandro, make up viously, India, where in 2017 it er, Carpigiani sells hardware and at least 20 million pieces,» the man- the fourth generation of the Sità fam- obtained financial and insurance machines to ice cream parlors, patis- ager revealed. «Indians are have ily, managing the namesake Agnana coverage for 150 thousand euros series, and restaurants using them for shown great interest in these prod- Calabra-based oil mill. They consider from Sace-Simest. That allowed it to their own production and for sales ucts, since they have only fermented India as a train not to be missed and offer Indian customers competitive toward third parties. It also sells the and yogurt-based cheeses but no hard have decided to aim for it, trying to payment extensions, insuring itself soft part, as in the typical plug from ones». Although India is the leading educate the local consumers – starting against the risk of non-payment.

63 March 2019 INTERNATIONAL BUSINESS/FASHION INDIAITALY It’s Premium Time for Malls and Online Stores Gucci, Versace, Armani, Ferragamo plus denim’s major brands, Gas and Replay, pick up the cues of a new boom and get ready for their next comeback – investing in the construction of 20 million sqm

by Milena Bello

ector insiders play the ion segment and its 700 million ing one of their own companies, weathermen and pre- euros in revenues. At this on- following the examples of some dict that «it’s about to coming «mall rain», opening up renowned brands like LVMH, Srain malls and shops». new spaces for luxury brands Hermes, or Gucci. «We’re re- JLL real estate agents expect – where Made in Italy is king cording growth in each segment most of the India’s bigger cit- – could be the release to one of of our portfolio of products, in- ies, from Delhi to some of the fashion’s stronger brakes, and cluding leathers, accessories, lower-tier ones like Hyderabad find a solution to the distribution shoes, and clothes,» pointed out and Chennai, to be hosting up problem. 70% of the clothing a representative from Gucci. to 20 million sqm of large are- market sales are currently disor- The group, owned by French as for commercial use by 2020. ganized, handled by local shops Kerig, opened four shops: two The raise in constructions could retailing mass market and lo- in Mumbai, inside the Trident correspond to a retail boom, cal products mainly, giving Hotel and the Palladium mall; hand in hand with the ex- very little action ground to one in New Delhi, inside the pansion of e-commerce. international brands. Yet DLF Emporio, and historical «Indian retail is about to the situation is about to mall; and one in Calcutta’s Quest go up one, important size,» change, also because Mall. At the moment, Versace said Darshan Mehta, first of governmental lib- has just one direct store in New on the Indian market for eralization meant to Delhi, inside the Emporio Mall. retail and Italian brand encourage foreign Number two – creating a join distribution (see next investments toward venture with a local operator, page for the interview). mono-brand retail. copying Armani, Gas, Diesel, The world of fashion, in- Now there are sever- and Canali’s strategy. As for the cluding its Made in Italy al global brands – including given example, they are all work- segment, must have H&M, Gucci, Versace ing with the Reliance brand, part sniffed the onset of some – aiming at the Indian of the Ambani group. Armani good business and have market, thus choosing has managed to open 13 local re- been answering the call of to invest on retail- tails – 8 Exchange, 4 Emporio, the wild. In 2026, less than ten ing spaces. plus a higher level one. In or- years from now, the market’s der to rent and furnish a selling value could have gone up to 115 Luxury space according to the house billion dollars, make it one of Strategy styling lines, a brand must pro- the biggest and fastest-growing Le At the vide its local partner with in the world. In particular, the moment, consistent investments, starting surge has been driven by wom- such from 6 thousand euros per smq enswear and kidswear, 13% and growth – that is how much Zegna, one 17% respectively, followed close- of the wider of Reliance’s oldest clients, pays ly by menswear (+11%). India market remains a – up to double the amount for is also the second producer of mirage, so the wrong the same area. Zegna has been footwear in the world, lining up move can still be paid dear- active in India since 2003, and just behind China, and sales in ly. Different maisons have been was one of the first global brands the sector, accounting to 9 bil- following a variety of strategies to approach the subcontinent. lion dollars in 2017 (+16%), are to approach the situation – also Currently, it sells through three expected to reach 15 billions according to their financial ca- stores, and through its relation- by 2022. Leather should grow pacity – following one of three ship with Reliance it managed as well, going up by 19% every possible lines of action. Number to acquire Raghavendra Rathore year, led on by the women fash- one – they can invest directly, us- Jodhpur – one of India’s biggest

64 March 2019 BUSINESS/fashion INTERNATIONAL INDIAITALY

Testimonial/Darshan Mehta The Italian connection is strong and is set for success uestion. What kind of Italian Q. Is this the right time to bet on Qconnection has your group created? e-commerce for high-end products as Answer. We have had some good running well? partnerships with Armani, Zegna, Renzo A. Leaving Ynap out, which is part of the Richemont Rosso, Paul& Shark, and Gas for some group anyway, Italy is not present in the sector yet. years now. We have also recently signed But there’s a lot to do for whoever wishes to open a a joint venture agreement with Canali, physical store as well, whether in India or in any other Ferragamo, Bottega Veneta, and Replay – place in the world. we’re set to open two shops for this last brand during the current year. Q. So? A. I think the best option is following Q. So the connection is still growing? Farfetch’s model – creating a virtual shop, A. I wouldn’t say it is just growing in size, as where customers can take a seat and pick the relationships we have are also very good in their preferred item, whether that’s a Bottega nature – and that’s true for anyone we opened Veneta bag or Diesel jeans, and purchase dialogue with this far, including administration it with a click. It’s the committees, events, and purchase campaigns. best-selling channel for There is a strong mutual respect with Italians, India, which we want which is fundamental to good business. That’s to exploit to offer a rich also why our Italian brands are doing so well. portfolio of all of Italy’s best brands. Q. Do you believe Italian brands Darshan Mehta is the Chairman and CEO of Reliance Brands, one exercise a particular attraction on Indian of Reliance Industries’ subsidiaries. The Indian conglomerate, Q. What kind of consumers, making them stand out from controlled by the Mukesh Ambani, is one of the 5 biggest in the advice would you countries, boasting a 65-billion-dollar turnover, a 5.4-billion net international brands like Zara and H&M? profit, and an almost 100-billion capitalization. It is India’s first give to someone retail operator, producing 10 billion dollars in turnover through its planning to 7,600 shops – 700 of which serving the luxury segment – spread approach the over 4,400 different cities. It is active in clothing, jewellery, Indian market for mass marketing and e-commerce. Its most popular brands are Reliance Digital and Digital Express, with over 5,700 shops. the first time? Mehta has recently kickstarted an home shopping program, A. TThey should targeting consumers living in the smaller cities keep in mind that it’s not just its size A. Zara and H&M have a different target. and its segments Talking menswear, or even jeans but with a diversity to make it a complicated tailor cut – thus premium or luxury – Italian market, but also the fact that it is about to products can offer something more, which experience a leap in its growth rates. So has to do with Italian style and taste. there is a certain urgency. Also, they could pay mistakes at a very high price – but that’s Q. What does this mean? true for all big markets. A. It’s the same as why rich Indians choose to get married in Florence or by the Como Q. What does this mean? lake, or to spend their holidays travelling Italy A. They need to make the right choice and enjoying good food, natural beauty, and from the start. Not to mention there is also people’s warm hearts. . something else to consider: the choice in luxury product is not guided by taste, but Q. So we could say it’s premium and rather by planning long-term. One must be luxury magic time in India as well. Is very self aware of their own interest, looking this the result of liberalization and the for a partner with no conflicts of interests, following mono-brand shop explosion? capable of sharing the same long-term A. The context has changed in size as well, approach, and offering a really fat wallet. in particular since the new administration kickstarted its liberalization program. Q. What mistakes is absolutely necessary International attitude toward India has to avoid? changed, and there are new expectations. A. Relying on someone incompetent. It was Regarding Italy, we overcame our political Valentino’s mistake, when the company decided disagreements – related to the sailors’ issue to rely on the word of mouth snaking between – so India has become a very interesting rich and bored ladies. The shop closed in less market for many operators. than two years.

65 March 2019 INTERNATIONAL BUSINESS/FASHION INDIAITALY

At the moment, Italian brands keep Matteo Sinigaglia, Replay CEO. selling their own products on the Replay will land in Delhi in the Indian market, with denim creating Maker Maxity, an almost-complet- the biggest buzz. Gas approached ed structure designed according to the Indian market in 2006 with a an innovative format – hosting a joint venture – 50% with Raymond, shopping center, a membership an Indian textile/clothing company club, management offices, and ho- – and later signed a master fran- tels. Later the brand plans to move chisee agreement with Reliance on to the eight most important cit- Brand. Since then, the Chiuppano- ies in the country, starting from based (Vicenza) brand has opened 19 monobrand stores and 30 so- called shop in shops, becoming the second most popular Italian brand in India. It comes straight af- ter Benetton, the precursor of most Made in Italy direct players present Giorgio Armani opened 13 shops, for the different brand of his maison, Exchange, Emporio, Junior and Giorgio Armani, through Reliance Brands in India, boasting 700 stores in 170 Indian cities, mostly franchisee. Gas is also riding on top of the e- luxury menswear brands, and one censing or a franchising agreement commerce wave, selling through of the first to use the Brand India with a local operator and having the six different Indian platforms. in the fashion reality. The agree- brand supply them with goods and «We’re investing in technology, as ment between a global luxury the store concept while leaving its we want to offer to our customers brand and an Indian fashion la- management to its in-house partner. omni-channel e-commerce expe- bel, signed last June, is the first rience through the whole network of its kind, and aims at develop- Assault Denimwear of our shops,» explained Barbara ing the premium segment of the It is still not clear if the Zegna op- Grotto, head of Gas marketing and local market. eration will set a new trend, as it daughter of the company’s found- Number three – signing either a li- remains the only one of its kind. er. Their goal is to have the stores communicate with each other, to a point where they could become «We’re investing in one, connected platform. The soft- technology, as we ware allows sales in shop through want to offer omni- iPads, but it also provides two other important benefits: it makes con- channel e-commerce versions easier, helping customers experience through the get products available other stores from the one they are visiting; and network of our shops» it allows usage of the shop’s inven- tory data in real time, assisting in satisfying the online platforms de- mand as well. «Right now, this is turning out to be the winning strat- egy, and we are registering a 10% growth against the previous sea- son,» said Grotto. Christian Simoni, ceo of Monnalisa, Replay’s recent debut on the the brand of childrenswear from Arezzo Indian denim stage led the brand (Tuscany). This segment is one of the top to choose Reliance Brands as part- growth in the Indian market ner as well. Together they planned for opening two flagship stores in Bangalore. «Sales performance in Delhi and in Mumbai in 2019 plus India is probably going to reflect some mono-brand and shop-in- the brand’s trends, with higher shops in the malls of some of the rates for menswear. We have high biggest cities – taking advantage hopes for denim and footwear,» of key players’ e-commerce chan- Mr. Sinigaglia said. nels present in India. «Between Childswear could also become March and April we will be open- one of next boom’s strong play- Barbara Grotto, in charge of marketing for Gas, e some models od ing a store in Delhi Gurgaon, ers. Monnalisa, one of the biggest the 2019 collection. Gas has 50 shops in the key retail destination of names for this segment of the in India and sales through 6 online the Ambience Mall,» explained high-end clothing market, is cur- platform

66 International FOCUS

A Study Chamber for Business Since its foundation in 1966 IICCI has been helping Italian businesses to enter the Indian Market. Now the General Secretary tells us about its recent turn in the tide and how it plans on pushing for the Made in Italy

uestion: What is the IICCI, the Indo-Ital- (2017) up until +92.000 Euros (2018). As of to- ian Chamber of Commerce and Industry? day, we’ve achieved a debt-free statement, and QAnswer: It’s an association gathering our activities keep growing in volume. Aside businessmen, professionals, and intermediaries, from the appreciable results, it is important to founded in 1966. It aims at supporting the devel- note the radical change in revenues and margin opment of commercial and industrial cooperation composition. In 2015, we used to generate 75% between Italy and India, so promoting the eco- of our turnover by servicing the public sector nomic interests of both. Today IICCI has more rather than private clients. In 2018 the tables have than 100 members, plus headquarters in Mumbai, turne, and we have just recently passed a finan- local offices in Bangalore, Chennai, Delhi, and cial statement with 75% of revenues and margin Kolkata, and a staff of over 30 employees and coming from the service sales to privates, while professionals. It is also opening some desks in just 25% comes to public clients – including pub- some of the more important cities for Italian busi- lic contributions. nesses (like Pune), or in other developing interest (like Hyderabad and Vijayawada). Q: What about today’s IICCI? Claudio Maffioletti, IICCI General Secretary A: It has come to be a community of people. It’s Q: Which are the main features of the associa- more than a service provider, it’s a place where tion’s more recent evolution? policies gaining ground in Italy, and the need the Italian and the Indian business communities A: Lately IICCI has been going through a deep for a change in the service model. We performed can meet and trade ideas. Our role is to service transformation process. Up until 2014 it gener- an in-depth SWOT analysis aimed at identify- institutions, companies, academies, and individu- ated the biggest fraction of its turnover working ing our strengths (the solidity of our associative als active on the Indian and subcontinental ter- for Italian and European public bodies – like the base, the regional offices network, the strong ritories. Our platform combines traditional and Chambers of Commerce, or the Regions, or For- links with regional realities), thus outlining a innovative services and aims at facilitating the eign Offices. Yet in 2015 a series of external con- strategic change plan. We tried avoiding carbon- development of commercial and/or industrial re- current factors - curtailed public contributions copying the Ita-Ice Agency services – going lations through the support of cultural, social and and reduced resources for Italian Chambers of through a transformation process as well – and scientific initiatives. In order to better promote Commerce abroad and in Italy, followed by the those offered by locally-active Italian consul- Italian companies and their products in India, we downsizing of promotion abroad activities plus tancy firms. This way we could finally cut out a believe they must be associated with the Italian the stand-by of ENIT – led to a drastic fall in space for our own services, and we are no work- values and spirit – creativity, passion for detail, revenues. For example, the EU decided to close ing with big groups or company chains to pre- taste, lifestyle, and sustainability. the European Business & Technology Center pare and facilitate their market entry. (EBTC) running in India, which provided fund- Q: Is communication important to your strat- ing for environmental, innovation, and sustaina- Q: What are your vision’s tenets? egy? bility projects. And all in just about a few months, A: We outlined the following mainstays: A: It’s fundamental. An integrated communica- leaving us with a 120-thousand-euro loss before 1) Aiming at company chains or clusters (rather tion system is the adhesive force keeping a com- we could even realize what was happening. than just single businesses); munity of people together, and that’s for two 2) An average project length of 3-5 years; reasons: first, it allows all members to keep up Q: How did you turn the tide? 3) Targeting all main Indian cities; to date with our activities; second, it also gives A: First and foremost, we borrowed some strate- 4) Keeping promotion running for a mix of tradi- them a way to know each other. We put in place gies from the business excellence management tional, digital and multimedia initiatives; three communication tools: Be In-It, an internal system. In 2015 we tried out a visioning exer- 5) Pushing on service innovation and focusing on bulletin for members to introduce themselves cise, first with the Chamber staff and then with education and certification. and to follow our events; Link In-It, a newslet- the stakeholders and the board. We tried imagin- ter reaching 30,000 contacts in India and in Italy, ing what kind of role we wanted for the Cham- Q: And the result? promoting our activities; and Easy In-It, sector- ber in 3-4 years from then – all while keeping A: In a few years we had: -120 thousand Euros specific alerts pointing out trends and business in mind the current setting, the spending review (in 2015), -65.000 Euros (2016), -6.500 Euros opportunities.

The indo-italian chamber of commerce and industry (IICCI) - Mumbai - Tel: +91 22 6772 8186 - Fax: +91 22 6772 8191 - e-mail: [email protected]

The data and information are provided by the company, which guarantees its truthfulness March 2019 INTERNATIONAL BUSINESS/FASHION INDIAITALY rently working on opening a store communication strategies. They Bruno Monti, together in Mumbai’s Palladium Mall – one work at a different speed, so every with his brother, leads the family of its 15 new shops due to start busi- single request takes longer to pro- company specialized ness this year in Europe, Turkey, cess, and needs to pass through and in shirts and USA, and the Asian-Pacific ar- higher number of players». Then he fabrics production, ea. Yet this is just a comeback for added: «Indian customers are very generating over 100 million in children’s fashion brands. «During much used to special prices. It’s turnover. Right, the last 15 years, our Indian pres- not a once-per-year thing, it’s all Laguna Clothing ence has been rather on-and-off. We the time. We should consider this headquarters, one of held a production and distribution while evaluating ideal positioning». the three sites that the group opened in license for ten years, since the end But a new-generation driven India of the 90s,» said Thoman Bessi, the demand could play as a counter- brand’s export manager. «After that weight, since younger people grew lapsed we decided to move away up in there and got used to a more from a license-driven format, as it economically and culturally open didn’t allow the company to explore reality, where social media pushes scale economies». Last January the the idea of showing off one’s nic- Arezzo-based brand came back at er clothes. full force through a master fran- chisee agreement, hoping to see Indian Fabrics the opening of seven shops in the Yet India is not just a destina- next five years. «We are aware that tion market. Its textile expertise our set goals come with some crit- is long-lasting, making the coun- ical issues. The most pressing one try into a prominent productive is finding the appropriate locations, platform, even if Italian compa- as there are not many ideal spaces nies have rarely taken advantage for affordable luxury fashion. At the of it. Benetton gave up production moment we are considering about in India a long time ago, while the sification demand, hoping to reach «We’re talking five or six high-end malls in New Tessile Monti group preferred col- a wider group of consumers. One of Delhi and Mumbai,» the manager oring out of the lines. Subholding their oversea manufacturing sites is biblical times, paired explained. Mr. Bessi also highlight- of the Monti group, the company in Czech Republic – the Tessitura up with towers of ed the cultural distance between is one of Europe’s most important Monti Cekia – while India hosts Italy and India. «Even when talk- manufacturers of woven fabrics up to three. Opened in 2003 in the paperwork, but the ing about important partners, we for shirts, with a 103-million-eu- Maharashtra federal state, Tessitura country has a much shouldn’t forget they use different ro turnover in 2017. Its operative Monti India is the only full-Italian and industrial heart beats in plant in the country, with 900 em- more stable growth Maserada sul Piave (Italy), yet ployees and a 10-million-meter to offer, keeping the it preferred to relocate produc- production per year. In addition, tion somewhere else to meet the company also runs two joint risk for industrial price targets and product diver- ventures for men’s shirts manu- bubbles away» facturing: Laguna Clothing LTD, with two plants in Bangalore and one in Mauritius, is specialized in tination market». Textile sales are integrated services – starting from mainly over-the-counter, so the fabric creative design to final prod- company developed its own in- uct large-scale manufacturing, also ternal structure for this purpose. offering formal and semi-formal There are also Made in Italy col- high-quality shirts at competi- lections sold to Indian brands. tive prices. Aurora Apparel LTD, Meanwhile, Mr. Monti decided to based in Nipani (India), looks at use the joint ventures to meet the artisan crafting and limited batch- high-volume demand coming from es. «We picked India at the end of big international players. What are an exclusion process,» explained the advantages of the Indian mar- Bruno Monti, leading the fam- ket? «India is experiencing a slow ily business with his brother, to but unstoppable change,» the busi- MF International. «Egypt and the nessman concluded. «We’re talking Mediterranean at large are at po- biblical times, paired up with tow- litical risk. China would have ers of paperwork, but the country Matteo Sinigaglia, Replay’s allowed us just a joint venture has a much more stable growth to number one, who recently decided – but we wanted our own produc- offer, keeping the risk for industri- to land the brand in India through an alliance with Reliance Brand. It is set to tion site. So we decided to invest al bubbles away and counting on a open new shops in Delhi and Mumbai in India, which is also a great des- strong legal system». this spring

68 International FOCUS

The Chamber’s Main Projects From promoting courses in Italian universities and specialization schools, to agricultural know-how transmission till the great projects for future smart cities

Minerva – The Italian Hub for Education & Training Il Frutteto - The Italian Orchard in India It pursues two main strategic objectives for increasing the Italian presence India is the second biggest country for acreage in the world - boasting in India: 160 million hectares, 20 different agroclimatic areas, an annual agri-food 1. Help our best universities, higher education institutes and vocational production for 42 billion dollars, and 60% of the population training structures land and grow in India. employed in the sector. Here, IICCI has launched a project with the 2. Build a community of young Indians trained in some of Italy’s best school following objectives: in their professional fields, equipping them of all necessary resources for 1. Creating orchards in different Indian states, using Italian know-how, easy employment in Indo-Italian companies, and having them promote expertise, technologies, products, and services in partnership with Italian style and culture in India. Italian and Indian companies and associations already working on the territory. In particular, they should focus on: • terrains, acreage, and As part of this project, the Campus built in Mumbai aims at becoming a water management and irrigation systems preparation; • plant varieties platform for all participant universities and institutes, wanting to: selection, planting, and keeping; • gathering and storage systems; • • Promote (with the support of the Chamber’s local office network) Italian processing and packaging technologies. universities and their courses in India, hoping to increase the numbers of enrolled Indian students; • Make learning spaces available in India; • 2. Developing, in partnership with Italian and Indian universities and Identify and select suitable local partners for courses provision; • Facilitate research centers, a vocational course, training operators for the enrolled students’ placement on the job market by introducing them to management and the upkeeping of the orchards. IICCI Italian and Indian member companies. IICCI has been cooperating with Regione Emilia Romagna, Unioncamere Accademia Costume e Moda (Rome), Humanitas University (Milan), Milano Emilia Romagna (UCER, a regional Italian Chamber of Commerce), and the Fashion Institute di (Milan), and Sant’Anna High School (Pisa) have already FederUnacoma (National Federation of Agriculture Machines Builders) for subscribed the project. more than five years.

Food & Wine – “Il Dolce Vino” project Italy4Cities India is developing its own status symbols associated with an Italian way In 2014 India promoted an urban regeneration policy, aiming at developing 100 of living, and wine consumption falls well within this new trend. Counting smart and sustainable cities spread across the country. now 3 million consumers and about 35 million bottles sold every year, the The Ministry of Urban Development is in charge of implementing the policy and is sector has lately experienced a steep, double-digit growth. meant to cooperate with the governments of the involved States. The realization The “Dolce Vino” project, launched in April 2017, had two main objectives: works are supported through some big public investments, allocated every year and for the whole duration of the project. 1. Developing and coordinating a network of Indian individuals and Therefore, IICCI has decided to institute the ITALY4CITIES – The Italian professionals passionate about Italy, so that they can promote the country’s Competence Center for Smart & Sustainable Cities - aiming at bringing together rich food & wine heritage. a wide range of actors thus having the new-formed cluster acquire an Indian 2. Increasing Italian food & wine products exports toward India. smart city project and see its realization through. Selected sectors include urban It took the “Dolce Vino” project a bit more than 1 year to: • build 6 Italic planning, energy, water/waste management, green building, and mobility. Wine Clubs in India (in Mumbai, Pune, Delhi, Calcutta, Chennai, and IICCI’s contribution to the project’s actualization will be: • Encouraging Italian Bangalore) counting over 250 members; • create 5 Angels of Italian businesses aggregation into a cluster; • Promoting the cluster – thus the Wines training courses, aimed at Indian operators (importers, distributors, individual businesses – in India through roadshows, seminars, workshops, videos, retailers, F&B managers) and promoting the Italian wine culture; • involve digital communication, etc.; • Building relationships with State governments, so 15 Italian wineries in the project; • organize 25 food & wine tasting dinners to present them with the Italian proposal; • Helping the cluster look for interested and master classes, totaling more than 500 participants; • lead 2 wine investors and funding, as well as putting public funds into motion if a concrete tours in Italy (in Veneto and Piemonte regions) including visits to local project were to emerge. The Chamber can also offer some pointers to some of its wineries and food & wine events; • website: www.ildolcevino.com partner industries so to create a small Italian industrial district.

The indo-italian chamber of commerce and industry (IICCI) - Mumbai - Tel: +91 22 6772 8186 - Fax: +91 22 6772 8191 - e-mail: [email protected]

The data and information are provided by the company, which guarantees its truthfulness March 2019 INTERNATIONAL BUSINESS/Cosmetics INDIAITALY The Make-Up Boom

Beauty and personal care products sales are going up by 25% every year, taking pharmacies, beauty salons, and shopping centers by storm. As well as the internet, not to miss Millennials

by Milena Bello

Over the past five years, Regi Images from all beauty sectors, skincare remains India has seen its turnover Mumbai the largest but also the least dynam- grow by 50% every year,» said Cosmoprof, Fiera ic, with a +4% per year; meanwhile, Bologna’s first «Vittoria Cicchetti, the CEO of convention in pigmented cosmetics keep growing the Cremona-based company, one of the country. Last at more than 12% per year. «India’s the top 3 in the proxy beauty busi- September, the wealth is going up, and with that is ness. And Cristina Scocchia, CEO of event gathered 107 the growth of the luxury cosmetics exhibitors from 15 Kiko Milano, one of the best-known countries market. This is particularly true for consumer brands, said: «Following bigger cities, where the richer classes the first store, opened in New Delhi are constantly on the lookout for big- in 2016, we’ve added seven more, ger international brands,» confirmed aiming for 15-20 stores in the next industry’s turnover is already of $ including hair, skin, mouth, colors, Enrico Zannini, general manager three years». Dario Ferrari, number 950 million, and is expected to grow and perfumes products – is expected of Bologna Fiere Cosmoprof. Last one of Italy’s largest manufacturer threefold and reach 2.68 billion by to reach 17 billion in 2025 following September the company started oper- Intercos, added: «Now is the time to 2021, according to the New Delhi di- a 25% annual growth rate, according ations in the Indian market through its focus on India, even if it’ll take five vision of the ICE (the Italian National to a Valueprism Consulting in-depth Cosmoprof India Preview, and during to six years to become a top play- Institute of Foreign Trade). Most oth- study. Yet the most interesting data, its first two days it gathered 107 com- er». The homeland of henna and kohl er markets struggle to even match up especially for Italian producers and panies from 15 countries in the halls is getting a booming desire for west- to the size of India’s cosmetics annual operators, comes with the premium of the Sahara Star Hotel in Mumbai. ern make-up, since most international growth rate, permanently fixed at 15- and luxury segments, representing a Altogether, the guests represented giants have finally stopped imposing 20%, twice the size of US and Europe market of € 578 million and of € 316 the entirety of the industry’s supply western beauty standards and have ones. And if we were to include all of million respectively in 2017 alone. chain: make-up, skincare and body started to value Indian women’s fea- so-called personal care products, we Both proceed on parallel lines and care, hair care, perfumes and cos- tures more. A true style revolution, would be met with even greater vol- at the same pace, growing at a 18% metics, beauticians and spas, nails, which is already translating in- umes: the entire market, accounting rate and expected to become a 2-bil- accessories, furniture and supplies to numbers. In India, the cosmetics for 5.5 billion euros in 2016 – that lion-euro business by 2022. Among for salons. «The Italian industry has

70 March 2019 BUSINESS/Cosmetics INTERNATIONAL INDIAITALY product quality and innovative servic- outlook es as its main export assets, meaning that the business opportunities open- A 17-Billion Target ing up in India are very broad and diversified,» Zannini highlight- • India has a long tradition of using ed. He also noted that, aside from cosmetics and natural beauty products the high-end sector, the demand for • Past generations have been known for mass market products is also sup- using natural, homemade ingredients ported in rural and semi-urbanized like ginger, sandal paste, lemon gel, and areas. «Thanks to partnerships with aloe in their beauty routines international suppliers, Indian manu- • Traditions have recently lost their shine facturers are improving the quality of to new products based on chemical their collections,» said Zannini. formulas In regard to the Italian beauty busi- • Early 90s liberalization of the cosmetic ness, the best opportunities are still industry, together with the growing reserved to contractors, who are also number of Indian women winning beauty the ones with the best shot at under- queens competitions, drove the sector’s standing the local reality. «India’s On the left, Vittoria Cicchetti, number growth consumer demand, formulation needs one of Regi, specialized in lip products, • The beauty and personal care market dictated by climatic conditions, and face powders, kajals and eyeliners. is expected to achieve a 17-billion-euro Above, Raffaella Pagano, CEO and local distribution system make it product manager of Wycon Cosmetics, turnover by 2025, three times higher for a very specific market,» warned co-founded with her husband than 2016 Cicchetti (Regi), working in the • The segment of premium and luxury country for ten years in the mass and products, making up Italian brands’ main masstige segments. «Mass demand focus, is expected to be worth over 2 is the biggest in the market, and this billion euros by 2022 is why we decided to open a specific • 400 million Millennials driving production unit – to remain competi- consumption with unstoppable force; tive on and responsive to the market,» yet the impact of e-commerce remains said the Regi CEO, whose company limited in India mainly manufactures long- lasting pigmented lips products, face powders, kajals, and eyeliners. «It countries in the world. Yet he added: finding other feasible ways to enter thing. «We have been studying the will still take us a long time to ap- «In India the public is more used to that market. «We are also consider- Indian market for a couple of years proach the more high-end market, make-up, so skincare has the lion’s ing direct investments, and will soon now, and India has shown great in- as it seems to be the trend. But we share. We are developing a strategy understand whether to opt for a joint terest in our range of products made can expect the mass and masstige accordingly,» he revealed. Yet Italy’s venture, for an acquisition or, more with olive oil and with organic cer- segments to remain in the frontlines approach to the Indian market is also likely, for the construction of our own tifications,» Lucio Carli told MF for the next five years,» he conclud- curbed by duties, reaching up to 30% production site from scratches,» re- International. Mr Carli is the found- ed. Dario Ferrari, Intercos owner, on imported products; India prefers vealed Ferrari. In terms of brands, er of Mediterranea, a beauty brand shares the same view. His company to favor those partners with special in addition to Kiko Milano (see in- rooted in olive oil production and in generates 671 million euros in reve- agreements, such as China, very terview on the next page) there is the historic Liguria-based company nues through its 15 production present in the mass market, Wycon, a 75-million-euro brand fo- F.lli Carli. In 1997 his company ven- plants spread across seven and South cused mixing its affordable prices tured from the kitchen table to the Korea. «Our with a great visibility, thanks to the vanity one when Lucio Carli decid- idea is to get network of 170 single-brand stores ed to use olive oil’s properties, rich our prod- spread across Italy and the rest of the in active components, for body and ucts from world. The plan is to open 50 stores skin care products. «Our main focus our plants in within the year between India and the is the prestige sector, but its growth South Korea Middle East (Egypt, Qatar, and the cannot be taken for granted,» the and in China, United Arab Emirates). entrepreneur warned. «Some inter- so becoming Despite its own specifics, the Indian national luxury brand stores selling price-compet- market is actually working to align cosmetics have already closed». itive in India,» itself with international market stand- Mediterranea boasts a dozen stores Ferrari ex- ards, with the most important being in Northern Italy and a strong online plained, even the sustainability of the sector as platform, and is looking at passing if they haven’t a whole. «The bigger internation- through the professional channel of given up on al brands experiencing the greatest beauty salons to reach India. And progress in the Indian market have if the main trend now asks for nat- Dario Ferrari, owner and number one of Intercos, the main Italian contractor hopped on the natural product plus ural products, the next one – still manufacturer active in the beauty customization trend,» explained developing but that will be of great products sector Zannini. Yet it’s not just a big ones interest for the Made in Italy – may

71 March 2019 INTERNATIONAL BUSINESS/Cosmetics INDIAITALY

involve the ever-increasing demand Testimonial/Cristina Scocchia for cosmetics for men. According to Assocham, the association of Indian Venturing the Web on a Millennials Conquest Chambers of Commerce, the men’s market has grown by 42% in the last hen Kiko Milano decided to broadband. five years, much faster than the per- Wtake it to the web, the fashion Despite the e-commerce still has a sonal care market as a whole. Indian and beauty platform Nykaa became limited importance, these numbers middle-class men have a growing their tool of choice. «We have also make it evident that it is about to interest for hair care, beard care, been considering Myntra – we are become strategic. «Online sales perfumes, spa treatments, and even negotiating a joining agreement are going up everywhere, and make-up are. It remains quite niche, just now,» said Cristina Scocchia, it’s always thanks to the younger but it is still starting to attract the at- the company’s CEO, to MF section of the population,» said tention of some big brands – even if International. Kiko Milano, part of Scocchia. In addition to the the Percassi Group, is a professional distribution strategies, Kiko has cosmetics brand with accessible also started intervening on its prices, on sale in a chain of single- core business: the company brand stores (over 900) under the is adapting its products to the company’s direct management needs of this new type of buyers. and still expanding in 21 countries «We are working with a local around the world. «We aim at Cristina Scocchia team to develop specific product exploiting such a limitless market lines for the Indian market, using for beauty to the fullest». And Myntra, part of the textures and colors designed for Indian women,» Flipkart family – the largest horizontal e-commerce the manager explained. «Adapting the product is platform on the Indian market, and owned by US very important, as it is outlining ad-hoc marketing Walmart – could be just the best way to achieve campaigns. Our strategy aims at finding a balance that. In India Kiko already has seven physical between the idea of global brand and a more local Lucio Carli, founder of Mediterranea, part of the stores in the DLF Malls, yet Scocchia’s decision image. That’s where the beauty market is going F.lli Carli group of Imperia to focus on e-commerce follows the results of her right now». The expansion plan in India, where in market analysis: the size of the country, where 2016 Kiko opened its first physical store in Noida’s «We are working with high-frequency stores are the rule, would make it DLF Mall, in New Delhi, is one of the key elements a local team to too hard for the brand to reach the tens of millions in the company’s 2018-2020 business plan. «Our develop specific Millennials making up the biggest percentage business plan focuses on the Middle and the Far of its consumers. According to a study by the East,» said Scocchia, who has worked for years product lines for the American commercial bank Morgan Stanley, the in L’Oréal Italia. The same plan predicts that a Indian market, using 400 million men and women born after 1982, third of the 90-million investment will be spent on textures and colors known as Millennials, make up a third of the Indian technological innovation. «The goal of our joint population and 46% of its workforce. It’s the same venture with DLF Brands is to offer Italian-style designed for Indian people leading the Indian smartphone revolution, quality products at affordable prices,» concluded women» with 84% of them already connected to a mobile Scocchia.

Beauty and personal care pyramid the market’s dominant theme is that of the change in distribution chan- nels, generated by the increase in demand. This far, the biggest distribu- tors for this sector have been the large retail chains, holding a 63% share of the total beauty shopping turno- ver; pharmacies are close on its tail, growing by 15% a year, followed then by shops, single or multi-brand. Finally, e-commerce remains an un- known factor, so far confined to a 2% The chart on the left shows development of the market, active through special- trends for the global ized operators and the Amazon giant beauty market. Above, – whose presence is also accelerating figures about the luxury the creation of new infrastructures. market While international retail chains keep extending through the metropolis, channeling the consumption trends of Source: Value Prism those direct consumers with greater Consulting - Data in € bn purchasing power.

72 International FOCUS

Studio Vienna and UJA, an Indo-Italian bridge

ravelling to India, meeting local partners, for corporate startups management; heading back home with some contacts and • Financial planning: financial plan identification, Ta promise to call back – it’s your any-time financial planning assistance, use of incentives in standard procedure. But landing a partnership internationalization; straight away, well... That’s really something else! • Related services: bookkeeping, tax planning, au- It’s setting the first stone to build a bridge between diting, legal advisory, international contracts ad- the two countries. visory, financial assistance.

Origins In the last few years Marina Vienna and Udyen An international outlook is quite the must-have for Jain have been overlooking the development of a present-day businesses, and when missing the drive few internationalization projects for Italian compa- or even the know-how, Mrs. Marina Vienna is the nies in India, allowing the introduction of innova- right person to ask. Business accountant and found- tive technologies on the local market. Their active er of her namesake Studio Vienna, based in Udine participation in Italy-India mission and delegation and in Milan, Mrs. Vienna has been putting her in- meetings, as well as in several SACE (the Italian ternationalization vocation to service her clients in Export Credit Agency) and Confindustria (Italian need for a development or even a restart boost. The Udyen Jain, UJA Founder, and Marina Vienna from Studio Chamber of Commerce) events as speakers, helped Vienna (Udine, Milan) range of available foreign partners is quite wide, yet them strengthen their position as management, fi- Mrs. Vienna’s recent cooperation agreement with sional and is well acknowledged by a wide range of nancial, and tax advisory leaders. Last October 30th Udyen Jain & Associates has added India in leading institutions, including the Indian corporate sector. and 31st, both Marina Vienna and Udyen Jain met position. The UJA Group, an important consulting He is also well-known for his financial and fiscal with several Indian and Italian companies during firm based in Pune and branched in Mumbai, Gur- advisory services for multinationals, and for tak- the India-Italy Technology Summit in New Delhi gaon, and Bangalore, has collaborations active in ing part at corporate events and industry forums and attended the meeting between Italian Prime several cities, and played it smart by equipping its as speaker. Minister Giuseppe Conte and Indian Premier Nar- many partners around the world with areas dedi- endra Modi. cated to India. The main objective wants to be fa- SV and UJA services cilitating all involved markets and providing ad-hoc The SV/UJA partnership puts a broad range of as- Main development and trade ar- consulting to partner companies in developing their sistance services on offer for all Italian companies eas in India plans and operations in India. The team includes interested in expanding toward India, covering the The last few years have seen Italy-India bilateral France, Germany, Italy, Spain, Japan, UAE, and Corporate Finance, Corporate Advisory, Tax Advi- relations growing at an ever-faster pace. The reg- Vietnam. So, Italy has its own India Desk, man- sory, and Restructuring & Corporate Organization istered increase in commercial and institutional aged by Studio Vienna itself in Milan; meanwhile, sectors. In particular: missions paved the way to a matching number of the Italian Desk in Pune assists Italian companies new business opportunities, covering sectors like in tackling the local market. • Strategic business analysis: market analysis, vi- renewable energy, industrial equipment, parts, au- ability planning, market penetration strategies, tomotive, infrastructures, cold chain, retail, smart Udyen Jain, UJA Founder and related business planning; technologies, ITC, and food. Now there are around Mr. Udyen Jain, tax consultant and Institute of • Advisory in feasible industrial and/or financial 650 Italian companies active in the country, made Chartered Accountants of India (ICAI) fellow, partners identification, together with joint ven- of 70% SMEs and 30% multinationals, and working founded UJA in 1996, wanting to offer support to tures and commercial/industrial partnerships through either subsidiaries, joint ventures, branch- all European and Japanese SMEs active in the coun- structuring; es, or representative bodies. The figures help get- try. Nowadays the group’s portfolio has broadened • Corporate, legal, and tax advisory services: activ- ting a concrete view of the growth, since there was considerably and has come to include start-to-end ity planning, company launching, transfer pric- half the amount of companies (around 300) just comprehensive support services, aimed at all com- ing, with further counselling in all connected fis- about ten years ago. Both Italian and the broad- panies interested in establishing their business in cal matter; er international presence in India thrived on the new markets. Dr Jain is a much-esteemed profes- • Temporary management: manager identification governmental policies implemented since 2013/14,

Studio Vienna - Via Mentana, 10 - 33100 Udine - Tel +39 0432 237994 - Via Ulrico Hoepli, 3 - 20121 Milano - Tel +39 02 49474753 [email protected] - www.studiovienna.it UJA – Udyen Jain & Associates CORPORATE OFFICE - 201, Tower S4, Phase II, - Cyber City, Magarpatta Township, Hadapsar Pune, 411013 India Tel 0091 20 2689 8860 Fax 91 20 2689 9980 - [email protected] - www.uja.in

The data and information are provided by the company, which guarantees its truthfulness March 2019 INTERNATIONAL BUSINESS/Health INDIAITALY Drugs and Equipment, Hospitals on the Look for Know-How

Italian large and medium-sized companies are doing the math on the medical sector’s prospects. The turnover is expected to triple within the next three years, with some segments more dynamic than others

by Franco Canevesio

nsiders consider it as the phar- bought the former Sandoz India plant, macy of the world. Well, India is part of the Novartis group in Mahad. indeed the biggest generic drugs This production site. 180 km south of Isupplier on global scale: there are Mumbai, covers an area of 170 thou- over 25,000 industries active in the sand sqm, and there are already some country, 1% of which controls 70% of plans on expanding for a further 35 the domestic market worth around 40 thousand. The company has in its billion dollars, according to last year’s portfolio at least 20 active ingredients, IBEF statistics. It also represents 20% with Rifa, for treating tuberculosis, of global exports, generating over 17 and Rifaximin, against gastroenteri- billion dollars in 2017, and producing tis, as two of the most important ones. more than 60 thousand brands for 60 «We managed to add new components therapeutic categories. But above all, to our current 200 APIs portfolio,» it covers 50% of the global vaccine Lucia Aleotti, president of Menarini, and Paolo Tubertini, CEO of Olon, one of the main APIs manufacturer. stressed Luca Caironi, strategy di- demand, 80% of anti-AIDS drugs, Boasting a 3.6-billion-euro turnover in 2017, Menarini is the first Italian pharmaceutical group rector. The Mahad site is one of the 40% of generic drugs in the US, largest API production facilities in and 25% of all drugs in the United Kingdom. At an annual growth rate ticals is that of active components India, and it provides a series of life- close to 22%, it is expected to reach production, stepping stones in drug- saving drugs to both the Indian health a 55-billion worth by 2020. And if we making, also known as APIs (Active system and to patients worldwide, are to look at the entire health sector, Pharmaceutical Ingredients and managing to generate a 25-million- the figures become even more impor- Intermediates). In this regard, last euro turnover in 2018 alone. tant. According to IBEF healthcare, September the Olon company, in However, India still imports 60% of worth 110 billion dollars in 2016, Rodano (Milan) – one of the ma- its required APIs from abroad, so the may be totaling a 372-billion turn- jor Italian producers and supplier of government is taking action to try and over in 2022. Meanwhile, the most some of the bigger brands, including drastically reduce the value by favor- dynamic segment in pharmaceu- Pfizer, Sandoz, Teva, Novartis – ing domestic production. And Olon

The Medanta Hospital in New Delhi, a world-class hospital; above, the Sant Nirankari Health project. With a target of 3 beds every thousand inhabitants, India needs 3 million beds by 2025, plus 200 billion invested in facilities

74 March 2019 BUSINESS/Health INTERNATIONAL INDIAITALY

Case Study Health by Italy Driven by a growing elderly population, by the low costs of surgery powering an intense medical tourism, and by medical services in general, the equipment business is among India’s most dynamic, expected to levitate from a 4.9-billion turnover in 2017 up to an outstanding 11-billion by 2022. For this reason Kos, controlled by Cir (De Benedetti group) plus a 40.4% F2i Healthcare Fund participation, had two of its core business brands, Medipass and ClearMedi Healthcare, focus on India. Medipass works with outsourcing advanced services for complex medical technologies management, including diagnostic imaging, nuclear medicine, and On the left, Giuseppe Vailati Venturi, CEO of the active in exports toward the West radiotherapy, to large hospitals – like the Kos group, and Karl-Heinz and Asia – including Sun Pharma in Shanti Hospital and the Family Healthcare Lumpi, CEO of Esaote. Kos Mumbai, 4.5 billion dollars in rev- in Delhi, and the Radiant Global Solutions works in the complete enues; Cipla in Mumbai, 2 billion Hospital in Mysore – and to 11 public and management of hospitals specialized in oncology. dollars in turnover; Serum in Pune, private health facilities. Through ClearMedi Esaote is active in the leading the vaccines sector with its Healthcare, Kos provides management for diagnostic equipment 1.3 billion doses produced and sold. diagnostic imaging service using advanced market. Above, the «This year we will be opening a tech- technology (magnetic resonance, radiology, equipment sold in India by the Fedegari group nical branch in India; the equipment ultrasounds, mammography), nuclear is becoming ever so complex, so we medicine (PET scans), and radiotherapy need to be as close as possible to our (linear accelerator), up to the complete customers if we intend to provide management of hospitals focusing on CEO Paolo Tubertini’s choice must «The Indians are not appropriate technical assistance,» oncology. Founded in 2011, ClearMedi has be interpreted against this backdrop. looking for savings, but highlighted Fedegari. A growing el- become a leader integration service provider In addition to low production costs derly population, strong medical in India in just about few years: it has 12 – 30% lower than US ones – there is for high technology. They tourism, and equipment prices reduc- high-tech medical outsourcing projects another reason pharmaceutical com- know very well that the tions make India into an ideal playing and related services, and management panies are pushing to enter the Indian field for the medical devices market, of 3 complete cancer care centers. Since market: the Made in India suffers pharma is moving to India expected to reach 11 million dollars its 9 million from 2017, its revenues had from low production standards, and and they want to be on in turnover by 2022. And Esaote is grown to 12 million by December 31st last the foreign multinational can help another Italian brand front lining the year. The Kos group, led by Giuseppe Vailati bring them up. This is confirmed by the cutting edge» sector: present in the country since Venturi, is one of the major operators in the Menarini from Tuscany, in India since 1990, the Genovese multinational social health care sector with the brands 1994 with a hundred products, 20 Price pressures appear to be less bind- has opened its Asia Pacific office in Anni Azzurri, Santo Stefano, Medipass, of which licensed, and a turnover of ing on more extended health services. Uttar Pradesh, focusing on magnet- Ospedale di Suzzara, Neomesia, Villa dei about 19 million euros. «The market is «The Indians are not looking for sav- ic resonance and ultrasound systems. Pini, Medica-Fidia-Myolab, and Clearmedi very large and growing, with an annu- ings, but for high technology. They Its ultrasound doppler color scanners Healthcare-Medipass Healthcare. In 2017 al +8% in value, but the problems are know very well that the pharma is serve the cardiology, radiology, vas- it generated 490 million euros in revenues, increasing as well,» said Pio Mei, gen- moving to India and they want to be cular, and obstetrician departments of and has over 6,500 employees. It manages eral manager of the Florence-based on the cutting edge. No matter the over a thousand structures spread over 83 facilities in Italy plus over 7,900 beds company. The main reasons identified cost,» told Giuseppe Fedegari, 55yo, 15 cities of the subcontinent. including its India and UK subsidiaries. by the manager are: the low average to MF International. Mr Fedegari’s Another Made in Italy success story revenue per package – about 58 euro namesake company, current presi- in the pharma sector is that of TBS cents, even for high quality products; dent and CEO, was founded in the India, specialized in the development ing general and specialized hospitals, and duplicates multiplication, caused 1950s, in Albuzzano di Pavia, thanks and management of integrated clini- as well as other public and private by a combination of low revenues and to his father and his uncle, two metal cal engineering services, part of the healthcare facilities. In 2015 it signed poor patents protection. «We’ll soon craftsmen. Today it is a super hi-tech Althea group, and under the direction a 5.3-million-euro contract for bi- start distributing some antibiotics for business with an almost 70-million of Alessandro Dogliani. The compa- omedical equipment in the state of hospital infections treatment in Europe turnover, world player in the field ny is headquartered in Bangalore and Andhra Pradesh, while in 2017 it won and in the Asia-Pacific region, but not of sterilizations and of environmen- has been operating in India since a second 5 years renewable contract in India. The authorities won’t agree tal contamination control. It has been 2010, counting 150 employees. TBS worth 2.5 million euro, becoming a to a fair price, and the negotiations are selling equipment for the production India manages over 50,000 medical provider of biomedical equipment normally not transparent,» revealed of sterile drugs in India for 15 years, equipment on behalf of more than 70 maintenance services in the State of Mei. working with important companies clients, including some of the lead- Meghalaya.

75 International FOCUS

Conquering in the Indian market Carlo Lombardi, a chartered accountant and business consultant in India, shares some tips on how to deal with a difficult market, however offering huge commercial opportunities

uestion: How do you deal with the ce is essential for machinery, seen as a must complexities of India? by Indian buyers. Q Answer: I think it is really important to look at India as a unique country, as it is Q. And the price/quality ratio? very different from others and has its own A. Indian entrepreneurs often request sim- business logic. pler and more affordable technologies. The long-term economic benefits must be cle- Q. For example? arly explained in order to convince an Indian A. We are used to an expansion model abro- buyer to purchase more complex and expen- ad, starting from an agreement with an im- sive products: they will not hesitate to pay porter-distributor who opens and develops a 40% premium if they are shown that they the market, and the subsequent expansion of Carlo Lombardi and his Indian partner Chetan Doshi will obtain much higher economic benefits the distribution network. This model tends to over time. give disappointing results in India. Q. So what opportunities are there? A. A systemic barrier is an opportunity and Q. Is it a good time to enter this market? Q. Why? a protection for those by passing it. An Ita- A. Yes. You can still enter the market at re- A. Its distribution is 90% “unorganised”: lian company can make a clear choice in the asonable prices today. Future development over 10 million small retailers completely field, deciding to manage a small marketing will make access more expensive and diffi- satisfy the daily needs of their customers, system in India in-house: this system is focu- cult. Here’s a concrete example: there is a each in their own limited area, with little in- sed on its own sales network and on its own lack of industrial and commercial land in In- vestment and little standardisation. Larger local warehouse, ensuring the ready availa- dia. Central and local government interven- distributors also have little capital and limi- bility of goods without having to submit to tions are helping (despite the political costs), ted scope. Distribution takes place according the importers’ capricious decisions. It is also but we can expect to see a strong increase to a “watering the roots” model: the lower- possible to combine a prompt international is these lots’ prices. Another trend is multi- level distributors collect orders (often ac- delivery system and carefully tap into multi- nationals’ and Indian corporate companies’ companied by advances) at numerous small channel marketing. The wide traditional mar- use of subcontractors (CMOs, co-packers) in shops, after which they place an order with gins are reshaped in order to self-finance the India: this strong demand creates very inte- a higher level distributor. Only then does the network and make Made in Italy appetising resting opportunities for hachieving produc- importer’s order start, often with extended to distributors, retailers, and end customers. tion in India. payments. Q. And what about B2B products? Q. What is the added value of your Q. What are the practical effects? A. A local marketing system based on re- proposal? A. Numerous distribution layers mean that lations with buyers is fundamental. We can A. I would say our pragmatism in assisting the final price of an Italian product is often gain the trust and respect of people with and acting. Assisting means taking care of priced out of the market due to the presen- very different lifestyles trough a constant and focusing on the legal, regulatory, fi- ce of low-price “substitutes”, and to the ex- and proactive business presence. A network scal, strategic, and operational aspects of the tremely price-sensitive mentality of Indian of agents or promoters works well as long project. Acting means making things work consumers. In this context, very often im- as they are trained, instructed and central- on-site as the entrepreneur-client wishes, fin- porters do not keep stock and do not push ly managed in India. Contractual commit- ding practical, simple and flexible solutions product too much; they tend to maximise ments need to be carefully defined, as Indian with Indian methods and Italian professional their profit margin, looking at the purcha- counterparts are used to demanding a lot standards. Studio Lombardi’s mission is the se price without paying much attention to from their suppliers. Collections should be success of medium and medium-large Italian quality. followed closely. Effective after-sales servi- companies in the Indian market.

Studio Lombardi Private Limited, Mumbai India – Carlo Lombardi, partner - Tel: +39 045 8 00 00 57 - Mob: +39 347 25 38 9 18 e-mail: [email protected]

The data and information are provided by the company, which guarantees its truthfulness March 2019 Guide INTERNATIONAL INDIAITALY The figures to consider The division into States, the political-institutional system, the locations of the big cities and how much their spaces cost, the income pyramid, foreign trade and that, in double-digit growth, with Italy

ndia is the seventh-largest count- 1950, consisting of almost 500 pa- ry in the world (3,287,263 km²) ges. The President of India is the head and the second most-populated of State, with tasks of mere repre- after China, with 1,361 billion in- sentation, while the executive power The States have autonomous I parliaments and governments and habitants according to a UN estimate is exercised by the Prime Minister are 29 including the Federation, updated last 3 January. According to of the government appointed by the plus 7 territories more, including the the International Monetary Fund, at President and, by convention, is the New Delhi area, the French territory the end of this year its GDP should be candidate supported by the political Pondicherry, and the Andaman Islands, each divided into districts. Districts fifth in the world with 2,957 billion party or alliance with the majority of in some of the States are also broken dollars, if calculated at current prices, seats in the lower house of parliament down into smaller divisions, working as and a per capita income of 2,188 dol- (545 members), elected every five their second administrative level. lars. At equal purchasing power with years through popular vote. The up- the international dollar, the national per house has 245 members in office The most populous State is Uttar income assessment rises to 11,413 for six years and is indirectly elected billion dollars with a per capita in- by the legislatures of the States and come of 8,443 dollars. The Republic territories in proportion to their po- is governed by a Constitution that pulations. The nextD nationalati D electionsemog eografici 2 has been in force since 26th January will take place in May.

Where are the major cities… Prezzi immobili residenziali Città Popolazione Settori principali (.000 mq) Fascia Fascia alta mediaPradesh with Capitale finanziaria, over 200 million 21.900.000 telecomunicazioni, servizi sanitari, inhabitants, followed by MUMBAI (area 8 4,5 gioielleria, infrastrutture e Maharashtra, the State of metropolitana) costruzionI Mumbai, with about 120 million 18.000.000 Capitale politica, Telecomunicazioni, inhabitants. Then come Bihar and DELHI (area 7,5 3,5 IT, Settore bancario, Media, TurismoWest Bengal, with the capital Kolkata, metropolitana) together accounting for over 200 BANGALORE 8.425.000 million3,5 inhabitants.1,2 In the North, the aeronautica e difesa, manufatturieromountainous Jammu-Kashmir is the Industria mineraria,conciaria, CALCUTTA 5.138.000 least populated2 0,8 with about 12 million meccanica, tessile. inhabitants. Automotive, industria conciaria e CHENNAI 4.680.000 4,4 1,3 tessile IT, aeronautica, industria HYDERABAD 4.100.000 7,5 5,5 farmaceutica e biotecnologie Industria tessile, automotive, AHMEDABAD 3.900.000 manufatturiero, materiali per le 7,6 5,6 costruzioni Automotive, IT, meccanica, PUNE 3.400.000 2,1 0,8 …and which are their features agroindustria Residential property price City Population Main sectors (.000 € per sq.m.) Upper range Mid-range Mumbai 21,900,900 (metropolitan area) Financial capital, telecommunications, health service, jewellery, infrastructure and 8 4.5 construction Delhi 18,000,000 (metropolitan area) Political capital, telecommunications, IT, banking sector, mass media, tourism 7.5 3.5 Bangalore 8,425,000 Indian IT capital, aviation industry 3.5 1.2 Calcutta 5,138,000 Mining industry, pharmaceutical, food industry, mechanical, textile 2 0.8 Chennai 4,680,000 Automotive, IT, health and financial services 4.4 1.3 Hyderabad 4,100,000 IT, banking sector, aviation, pharmaceutical and biotechnology industry 7.5 5.5 Ahmedabad 3,900,000 Textile, automotive, jewellery, pharmaceutical 7.6 5.6 Pune 3,400,000 Automotive, IT, mechanical 2.1 0.8

Source: The Indo-Italian Chamber of Commerce and Industry

77 March 2019 Il Consumatore Indiano INTERNATIONAL Guide INDIAITALY Number of people (% of total population) Annual Income (US$)

The Pyrami250d thousand of Wealth Il Consumatore Indiano Over 1 million (0.02%) Rich India -­ At a Glance-­ Demographic ProfileNumber of people (% of total4 millionpopulation) Annual Income (US$) Wealthy > 100,000 e < 1 million (0.3%) 250 thousand Over 1 million (018.0 2million%) Rich nd Upper Class > 50,000 e < 100,000 4 million With (1.4%), India is theWealthy 2 most Populated> 100,000 e < 1 million Country in The World 1,281,935,911 People(0.3%)

184 million3 million Upper ClassUpper-Middle Class > 50,000 e < 100,000 (1.(4%)3.3%) > 10,000 e < 50,000

43 million lives in India. 1/6 of195 million the WorldUpper-Middle Population Class Population Growth Rate: 1.17% (3.3%) > 10,000 e < 50,000 RELIGIONS (15%) Middle Class > 5,000 e < 10,000 195 million Middle Class 6(15%)91 million > 5,000 e < 10,000 Lower-Middle Class Birth Rate: 19 births/1,000 population 691 million(53%) > 2,000 e < 5,000 (53%) Lower-Middle Class > 2,000 e < 5,000 357 million 357 million Poor Poor < 2,000 US$ (27%)(27%) < 2,000 US$ Death Rate: 7.3 deaths/1,000 population

14.2% Elaboration:Elaboration: NCAER NCAER (National (National Council Council for Applied for Economics Applied Research)Economics data Research)processed by data IICCI. Averageprocessed Indian by family IICCI. size: Average 5 people Indian family size: 5 people Rural 79.8% 66.5%The number2017 of super-rich33.5% Indians, the high net worth50.0% individuals2050 (HNWS) with50.0% assets Life Expectancy (at birth): 68.8 years 2.3% exceeding one million euros, is expected to grow by 86% by 2021, and the value of their Urban 1.7% wealth will exceed 2.657 billion dollars, double the present value. The growth rate of the ♂ super-rich Indians is twice that of the world average in the segment, which is 40% and affects Population Sex Ratio: 1.08 / ♀ 2.0% 71 million people. The percentage of wealthy is also strongly growing, positioning India in tenth place in the world ranking of emerging markets. The data emerge from last November’s Population Households: 247 million research entitled India’s Quantum Leap carried by out the IIFL Wealth Management Wealth Wealth-X, two world-class research centres, based on data from 500 of the super-rich. The super-rich in India grewUrbanization by 9.4% between 2015 and Process2016 to 284,140, and their wealth by Literacy Rate: 71.2% (♂:81.3% / ♀:60.8%) Hindu Muslim Christian Sikh Other Religions 7.4%. In the last five years, the population of HNWI has grown by almost 40%, while their Betweenwealth by2017 37%. The andcategories2050 considered, the are aturban the top of areasthe pyramid,are whichexpected in turn is to stratified by the ultra-high net worth class with assets exceeding 2 billion dollars, the very- Labour Force: 487.3 million growhighby net404 worth withmillion assets ofPeople between 650 million dollars and 2 billion dollars, and the high net worth with assets between 65 and 650 million dollars. 87% of the super-rich HNWI are LANGUAGES self-made, and only 18% attributed their fortune to some form of inheritance.

InhabitantsDistribution distribution base ofd on Pop. age By Age Median Age-­ 30.9% Country comparison 40.9% 6.2% 7.5% 27.3% 00-14-­14 Yo years India 27.9 1515-24-­24 Yo years The map offers a snapshot of the displacement of the country’s main infrastructure, including 5.9% over 200 ports andBrazil 450 airports connected to each other by 5 million km of roads32 and 66,000 2525-54-­54 Yo years kilometres of railway. Overall, the transport sector contributes about 6.7% to the Indian GDP. For the 2017-18 fiscal year, the government had a 56 billion dollar investment target for 7.0% 8.1% China 37.4 7.2% 5555-64-­64 Yo years creating new infrastructure and improvements to existing ones. During the 2012-2017, the twelfth five-year plan, the planned investments amounted to 586 billion dollars, double the 41.1% amount set asideUSA in the previous plan, which was twice the investment of the 2002-200738.1 plan Hindi Bengali Telugu Marathi Tamil Others 17.9% ≥65≥ 65 Yo years India -­ Composition of GDP India byIndia Sector-­ Composition -­ Composition and Expenditure of of GDP GDP byamounting by Sector to 131 Sector billion dollars and and Expenditure Expenditure Source: Value PrismRussia Consulting 39.6 Components of Indian GDP Italy • In addition to Hindi, there are 21 official languages The strong service component is one of the 45.5 Agriculture and Fisheries, 7% 13% 13% 13% India13% has13%13% a 13% very14%13% young13% 15%13% working13% Agriculture,13% class 13% Forestry13% and Fishing13% 14% 14% 15% 15%provimentAgriculture, featuresAgriculture, of Forestry the Indian Forestry and economy Fishing and Fishing • English (spoken by 9.8% population) is widely used in population and has been strengthening in recent MinesMining &and Quarrying quarries, 18% years, despiteMining the &Mining government’s Quarrying & Quarrying strong national, political andServicescommercial communications19% 19%. 20%ServicesServices21% 21%19% 19% 19% 19% 20% 20% 21% 21% 21% 21% 21% 21% 21% 21% 21% 21%commitment to the Make in India program Manufacturing, 17.7% ManufacturingManufacturing Manufacturing and investments in infrastructure. The public 17% 18% 17% 17% 18% 18% 18% 18% administration has risen by one percentage 18% 18% 18% 18% Electricity,Electricity18% Gas,18% and utilities, Water18% Supply 13.2%18% &18% Other Utility18% Electricity,Electricity, Gas, Water Gas, Supply Water & Supply Other Utility & Other Utility 19% 19% 19%point, thus the weight of the State in the 3 10% 10% 10% 9% 9% 9% 8% 7%9% 9% 9% 9% 9% 9% 8% 8% 7% 7% economy, but the part comprising private 7% Construction,Construction 13.8% 7% 7% ConstructionConstruction 2% 2% 3% 2% 2% 3%2% 2% 3% 3% 2% 2% 3% 3% 3% 3% transport and communication services 2% 3% 2% 2% 2% has also been strengthened. The weight of 17% 17% 17% 17% 17% 17% 17% 17% 17% Trade,hotels,16% tourism, transport,16% transport communication and communications, 17% and services17% 11.7% related to hotels, transport,hotels, transport, communication communication and services and services related to related to Industry IndustryIndustry16% 17% 17% 16% 17% 17% 16% 16% broadcasting agriculturebroadcasting is insteadbroadcasting being substantially 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 2% 2% 2% Financial,Financial Real services Estate2% and and real2% Professional estate,2% 12.1% Services2% 2% reduced.2% Financial,Financial, Real Estate Real and Estate Professional and Professional Services Services Agriculture 19% 18% 19%AgricultureAgriculture18% 18%19% 19% 18%18% 18% 16%19% 19% 18% 18% 18% 18% 18% 18% 16% 16% Public Administration, administration, Defence security and and Other other Services Public Administration,Public Administration, Defence Defence and Other and Services Other Services services, 15.4% 2011-­ 12 2012-­ 13 2013-­ 14 2014-­ 15 20152011-­-­16122011 -­ 1220162012 -­-­17132012 -­ 1320172013 -­-­18142013 -­ 142014 -­ 152014 -­ 152015 -­ 162015 -­ 162016 -­ 172016 -­ 172017 -­ 182017 -­ 18 Source: Value Prism Consulting

Expenditure side composition (% of GDP) ExpenditureExpenditure side2013 composition side-­14 composition2014 (%-­ 15 of (% GDP) of2015 GDP) -­16 20162013-­1778 -­1420132017-­14 2014-­18 -­152014Trend-­152015-­162015-­162016-­172016-­17 2017-­182017-­18Trend Trend Private final consumption expenditure PrivatePrivate final consumption final57.65 consumption % expenditure58.13 expenditure % 58.79 % 59.0357.65 % %57.6558.85 % 58.13 % %58.13 %58.79 %58.79 %59.03 %59.03 % 58.85 %58.85 % Government final consumption expenditure GovernmentGovernment final10.30 consumption final % consumption 10.44 expenditure % expenditure10.37 % 10.9110.30 % %10.3011.38 % 10.44 % %10.44 %10.37 %10.37 %10.91 %10.91 % 11.38 %11.38 %

Gross fixed capital formation Gross Gross fixed capital fixed31.30 capital formation % formation30.08 % 28.47 % 28.5331.30 % %31.3028.49 % 30.08 % %30.08 %28.47 %28.47 %28.53 %28.53 % 28.49 %28.49 %

Changes in Stock ChangesChanges in Stock in 1.29 Stock % 2.51 % 1.85 % 0.661.29 % %1.29 0.64 % 2.51 % %2.51 % 1.85 %1.85 % 0.66 %0.66 % 0.64 %0.64 %

Valuables ValuablesValuables 1.44 % 1.68 % 1.47 % 1.161.44 % %1.44 1.62 % 1.68 % %1.68 % 1.47 %1.47 % 1.16 %1.16 % 1.62 %1.62 %

Exports of Goods and Services ExportsExports of Goods of 25.43 Goods and % Services and Services22.97 % 19.82 % 19.3125.43 % %25.4318.87 % 22.97 % %22.97 %19.82 %19.82 %19.31 %19.31 % 18.87 %18.87 %

Import of Goods and Services Import Import of Goods of 28.41 Goods and % Services and Services25.95 % 22.12 % 21.0328.41 % %28.4121.77 % 25.95 % %25.95 %22.12 %22.12 %21.03 %21.03 % 21.77 %21.77 %

Discrepancies DiscrepanciesDiscrepancies-­0.06 % 0.15 % 3.05 % 3.42-­0.06 % %-­0.06 3.25 % 0.15 % %0.15 % 3.05 %3.05 % 3.42 %3.42 % 3.25 %3.25 %

• Composition calculated on GDP at Factor Cost; Current Prices • Composition • •Composition Sources: calculated Reserve calculated on Bank GDP on at of GDP Factor India, at Central Cost; Factor Current Prices Statistics Cost; Current Prices Office, Ministry of Finance • Sources: • Sources: Reserve Reserve Bank of Bank India, of Central India, Statistics Central Statistics Office, Ministry of Finance Office, Ministry of Finance 6 6 6 March 2019 Guide INTERNATIONAL INDIAITALY

Major trade partners in the world Indian trades is mainly with Asian countries (56.1%), although their importance is decreasing, in particular China (11.7%) and the Emirates (8%). The importance of Europe was substantially stable (18.7%), with Germany (3%), the United Kingdom (2%) and France (2%) in first place.T he American continent is growing (15.6%) with the USA as a second business partner (9.7%). Africa (8.1%) has decreased slightly. While China is still India’s largest trading partner, trades have been limited by political frictions: in 2017 it amounted to 65 billion dollars, of which 56 billion dollars in imports. Trades with the US grew until 2014, then settling at 54 billion dollars in 2017. Russia is increasing its relevance, while remaining still low in absolute values: 7.7 billion dollars, while the countries of the European Union have traded almost 73 billion dollars in 2017, down by 4.3%

The trade with Italy After a decline in 2016 caused in particular by the reduction in imports, the TOTAL GOODS slowdown in domestic demand and the depreciation of the rupee, Italian exports to India returned to grow at a sustained pace (+9.3% in 2017) and January- September in double-digits last year, +12% in the first nine months.T he forecasts (in millions of Euro) remain positive: SACE estimates an average annual +7.7% over the period 2018-2021. Total trade in the first nine months of last year exceeded 6.5 billion (8.7 billion in the whole of 2017), of which 2.8 billion in exports and 4.3 billion in imports, thus with a negative balance for almost 1.5 billion euros. The most important segment with over 900 million in 2017, relates to the steel industry, followed by chemicals for almost 600 million euros. On the other hand, over 30% of exports are machinery, for a total of over 900 million euros in the first 9 months, with an increase of nearly 30%: it is the most important category of Italian exports, especially for the investment goods sector. Sales prospects are particularly positive for Italian companies producing instrumental mechanics, a sector involved in different industries Exports from automotive to food processing, from energy to telecommunications. Imports Data in €mn Exports Imports

Sectors and turnover (by industry) of Italian companies in India

Industrial Machinery Rubber and plastics € 204 million Automotive Services Means of transport Infrastructure & Construction Technologies € 209 million Fashion and Design

Agro-Food Industry Chemistry Furniture & Materials € 465 million (2018-2021 prevision of average annual variation and values 2017) Engineering According to SACE, the favourable trend of Italian exports Pharma & Chemicals to India will tend to grow by 7.2%, on average from 2018 Logistics to 2021, with intermediate goods having the best trend (+9.3%) thanks to the pull of chemical and pharmaceutical ICT & Technologies products (+8.5%), but also of metals and rubber and Healthcare plastic products. There will also be important business opportunities for companies that export investment goods Education (+6.5%), in particular transport means (+10.6%) and Source: Pwc e IICCI Banking & Financial Services mechanical engineering (+5.3%).

79 March 2019 INTERNATIONAL The Italian Way INDIAITALY Driving the Made in Italy from Delhi to Chennai SACE-SIMEST offers the main financial support. As for promotion and logistics, the reference points are the Chamber of Mumbai and ICE. To make business it is better to opt for a local specialised advisor

by Pier Paolo Albricci and Gabriele Ventura

anks, financial agencies, confirmed by the absence of Italian chambers of commerce, banks operating directly in the coun- consultants, small and large try, not merely with representative Bcompanies, business lawyers, offices, as has long been the case in accountants: a small army is mov- the other large Asian market of China. ing, at least virtually, from Italy to The only exception is BNL, as the the market of the moment, the Indian French group BNP Paribas of which subcontinent. The goal is to intercept it is part has been offering banking the growing amount of interest from services in India for decades and is companies of all sizes, earning from therefore also at the service of Italian a few million to billions in turnover, companies, which can therefore take towards a country that is opening its advantage of its eight branches of BNP doors to foreign investments, offering Multinational Bank in the main Indian vast opportunities from a land which cities to request assistance in open- was once considered unapproachable, ing a current account, trade finance and corporate banking transactions, loans in local currency, letters of cred- it, invoice discounts, bank guarantees, advances and buyer credit. «We also deal with more practical aspects such as tax consultancy, partner searches and due diligence on target compa- nies», specified Antonino Conti, BNL International Business Manager for Asian territo- ries. Srabani Gosh, head of the Italian desk in New Delhi, Marina Vienna, accountant in Udine and Milan, added, «BNP al- and on the right, Rajeshree Balsari, in charge so offers private of Ubi Banca in Mumbai. Standing, on the left, banking services, Angelo Bonissoni, accountant, founder of the Cba law firm, and Rosario Zaccà, lawyer at the law a further guaran- firm Gianni, Origoni, Grippo, Cappelli & Partners tee of protection and transparency for Italian clients who want to closely follow their in- with tens and tens of millions of medi- are realising that the commercial ap- example e-commerce, amplifies the vestments even when they are far from um and medium-high end consumers. proach is quite narrow, and if they risks and opportunities and increases India». One of the main obstacles in They are all convinced of this market’s want to commit to a serious challenge the need for specific preparation and facing a new market is always the dif- potential, but also of the difficulties they must engage in a long-term in- professionalism. On the other hand, ficulty of having a trusted banker, but and risks in approaching a context as vestment with returns expected after the poor seniority of the Italian econ- considering the new wave of inter- large as the socially articulated and years unless exceptional situations omy as a whole in its relations with est for the country, something is also geographically heterogeneous Indian arise. Furthermore, the possibility of India, despite the cultural affinity and moving on this front. The two main one. These risks are paradoxical- accessing sales channels which were friendship between the two countries, Italian banks Intesa and Unicredit ly increasing because entrepreneurs unimaginable until very recently, for is widely recognised as a fact: this is both have representative offices in

80 March 2019 The Italian Way INTERNATIONAL INDIAITALY

Testimonial/Cesare Saccani, president of the Indo-Italian Chamber of Commerce From education to fruit, business is done in the Chamber

uestion. In Asia, and not only, India is again the centre of part of one of the central political Qattention. How are you supporting this trend? themes in the country: the need Answer. With several new initiatives. Let me mention three: we are for the qualified training of youth. expanding the network of regional offices in the Indian cities where we are not yet present, we are forming satellite offices in neighbouring and Q. How are you proceeding strongly growing countries such as Bangladesh and Sri Lanka, and we are in this regard? working on specific projects. A. We are promoting the establishment of a high-level Q. Can you give specific examples? Italian training centre in Mumbai A. In the food and wine sector, the Frutteto Italiano [Italian Orchard] where our best universities and Cesare Saccani and Il Dolce Vino projects. We have set up six Italics Wine Clubs in as training schools can provide many cities - Mumbai, Delhi, Bangalore, Chennai, Kolkata and Pune - courses. A first group of Italian academies has already joined (Humanitas, to aggregate the Indian demand for wine, with about 500 members that Costume Moda, Italian Fashion Institute, Istituto S. Anna of Pisa), and we involve in Master Classes, dinners, training courses and wine tours. others are joining. The goal is to form an Italian-oriented business IICCI also plays a key role in the management of the «Italian Hospitality» community available to Italian companies. certification for Italian restaurants. Q. Are you also moving on the infrastructure front? Q. And the Orchard? A. In the meetings with the Prime Ministers of some Indian States, there A. It is in the State of Kashmeer. Just think, the productivity gap between was strong interest in a city built «Italian-style». The IICCI has established the harvest of an Italian fruit tree and an Indian fruit tree is 15 to 1. We a cluster called Italy4cities that groups companies, universities, research are promoting a supply chain for the Orchard through contacts with centres, investors and, above all, project managers. The goal is to present some excellent Italian nurserymen and local authorities to improve this a group of actors ready to participate in calls for tenders or negotiate performance by activating a testing laboratory and carrying out training initiatives with individual governments with the support of the institutions. activities. The Indian Ministry of Agriculture is very interested. Q. Can you tell us of one of your goals to achieve this year? Q. And besides food? A. To activate a bilateral Arbitration Chamber that offers members a A. Education is one of the strategic areas for intervention because it is service to facilitate the out of court resolution of commercial disputes.

Testimonial/Rosario Zaccà, in charge of the desk India, Gop law firm That plus of the family business

uestion. Will Italy’s love for India be a long-lasting trend or products. I am proud to hear Indian companies tell me that Italian Qis it temporary? machinery is as good as German machinery but more beautiful, Answer. I think it will be long-lasting. There is a great deal of more versatile, something extra. It is an advantage that we must expectations after the thaw, everything we imagined we would be leverage. able to do in the traditional sectors of mechanics, food processing, health care and infrastructure can finally be achieved. Italian Q. How? companies have resumed approaching India with a smile on their A. We not only need monetary investments but also those of time faces, happy to be able to get in touch with this continent and its Rosario Zaccà and human resources; it is a question of precise choices that must opportunities. be made in both directions. We have seen Indian companies make acquisitions in Italy because they are attracted by Italian know-how and style, Q. Is there a risk that India will again close to foreign investments? but have not been able to then promote effective integration. Among other A. Since the opening of the market in 1991 with the then-Finance Minister things, the family ownership of many small and medium Italian companies is Singh, India has always moved in the same direction, gaining credibility with a further element shared with potential Indian partners. foreign investors. This process underwent an important acceleration with reforms, also from a legal point of view in administrative, tax and corporate Q. Despite all these opportunities, you have not opened an office in law. India, while you are present in China. Why is that? A. It is very difficult to open an office in India, where all levels of local Q. Does the Make in India program resemble autarchy? bureaucracy are reserved for local lawyers. Our challenge in helping A. It should be considered as a policy for attracting productive investments: Italian companies in their internationalisation processes is to establish this is why the government is willing to provide aid and benefits to the solid connections with the major Indian law firms and ensure that Italian companies that want it. This matches the needs of Italian companies that companies have all the legal assistance or investments they need. must look abroad to grow. Furthermore, as Italians we have advantages. Q. Can you tell us three sectors that have strong interest for Made in Q. What are the advantages? Italy? A. Thanks to their goodness, Indians like us, they admire Made in Italy A. Food processing, agriculture, healthcare and medical devices.

81 March 2019 INTERNATIONAL The Italian Way INDIAITALY

India and are becoming more active Testimonial/Damiano Francovigh in promoting the country with their customers and offering to support Increasing incentives for those who invest in West Bengal them. Especially Intesa is working on several fronts, both supporting the op- ith the highest added-value growth rate of deductions for a period of up to seven years in tax and erations of Italian companies in India Waround 15%, almost twice the national average, insurance contributions for new hires, to discounts on and vice versa, and in the financing the State of West Bengal and its capital Kolkata, the the cost of energy and a substantial cut in stamp duties of major projects. The bank entered former Calcutta, and its 100 million inhabitants is for the purchase of land needed for new factories. the pool of companies that financed the centre of a linguistic and economic area that is the construction of the Mundra ter- much larger, stretching towards Bangladesh and the Q. Why is the Italian presence so poor? minal in Gujarat, the most important Northeast States and inhabited by a few hundred A. This part of India is still little known, despite container port of India. In addition, million people. MFI asked Damiano efforts to promote the current the bank’s management of large Francovigh, Italian consul in administration last September, customers is in contact with large Kolkata since 2016, about the also in Italy. However, Italian private groups, from Relianche to opportunities offered today in companies are present with Mittal to Tata, working on deals that terms of business in this area of productive investments in the may concern Italy, while it is also India, still little known by Italian metals sector as well as in the funding the renewable energy mar- companies with the exception of chemical, food processing and ket approach strategy of Enel Green the tanning industry. manufacturing sectors. Power. «Competition is very tough because the Indian banks have par- Question. Why can this State Q. What is the driving sector ticularly aggressive conditions», said become an attractive location for trade? Alessandro Vitale, who coordinates for Italian companies? A. Leather goods, with the Asian activities of the Milanese Answer. West Bengal has one the purchase of materials, of the best energy distribution machinery and chemicals from «West Bengal has one networks in all of India and has Italy, which in turn purchases a presence of SMEs which is finished products, in particular of the best energy similar to the Italians: almost four accessories, bags, wallets and distribution networks million companies for nine million shoes. Kolkata is currently one employed Indians. Lastly, the entire of the main hubs of the leather in all of India and is a area is a crossroads between Damiano Francovigh sector, with production equal to crossroads between the large Indian market and the around four billion euros thanks Southeast Asian nations. to the 30% concentration of all of India’s tanneries the large Indian market there and over 800 active operators. Q. What is the infrastructure like there? and the Southeast A. Large investments have been made on large Q. Is this a growing industry? Asian nations» communication infrastructures (port, road and rail), A. A large number of Indian companies in the supply as well as intangible investments, especially in higher chain are moving their production from other States technical education, as well as industrial investments. due to internal political reasons (sensitivity to the bank from Hong Kong. He added, In particular, many industrial parks and thematic activity of bovine slaughterhouses), in particular from «Our competitive skills leverage the districts are being launched which are concentrated in Uttar Pradesh, to the tanning district of Bantala in the possibility of financing large Indian various sectors. southeast of Kolkata. Strong growth is expected in the groups in strong currencies, dollars coming years. or euros». But the fact that the head Q. Are there any benefits for those who decide of activities in India is Meghraj Shah, to invest? Q. Other interesting sectors? General Manager of the Singapore A. Yes, specific measures have been launched to A. The gold industry, for which Kolkata is an important branch and where he resides, clearly increase companies’ competitiveness and facilitate production hub, wood furnishings, in light of the demonstrates how India still remains business activities, from subsidies on the cost of credit important development of housing registered in recent a secondary market for Intesa. UBI needed to start up a new industrial activity, with large years, and in the field of design and furniture. has a more domestic strategy for the market, and instead stresses its inter- est in pushing its customer companies widespread work in its branches in entrepreneurs, no more than a dozen, credit, and loans that can be activat- towards the subcontinent. «Indian Italy to stimulate companies’ atten- for targeted meetings and contacts on ed in India. banks don’t normally grant unse- tion to the market’s potential. Vitali the Indian market, prepared in collab- cured loans to subsidiaries or joint underlined, «The first steps towards oration with the Mumbai office. «We A safe front ventures. In these cases UBI can fa- a new market like India must be tak- also finance direct investments», head In financial terms, the most impor- cilitate opening an account at a local en at home. We also help companies of the MPS foreign department Enrico tant front of the Italian economy in bank with a credit guaranteed by the explore the real opportunities for Vignoli underlined, who works with India is that which is offered by the Italian headquarters», said Rajeshree their products abroad, financing them India on two fronts, that of traditional SACE-SIMEST collaboration, of the Balsari, who represents the group in from their first approaches». UBI’s trade finance which includes solutions CDP group, which has included India Mumbai. Paolo Vitali, head of the activity is also concentrated on the to support trade, the issuance of in- among Italy’s strategic export coun- international network, has set up organisation of small delegations of ternational guarantees and letters of tries in the coming years. Using the

82 March 2019 The Italian Way INTERNATIONAL INDIAITALY

Inside India push strategy (article on page 48), SACE is opening the doors of the Pune, the Indian marriage with Italian automotive Indian market to dozens of SMEs operating in the oil&gas sector and he shift whistle blows three in the large public works sector, fi- Ttimes every 24 hours six nancing purchases of Italian products days a week, marking the exit by Indian multinational groups. At of a stream of thousands of the same time, it has facilitated the workers and employees in the procedures for commercial funding, Indian Detroit that pour into the while SIMEST is financing direct private coaches that will take investments, entering the capital of them to their neighbourhoods. the companies that decide to open in In Chakam, the automotive India. This was the case in October district of Pune and the holy city with the new Aeromeccanica Stranich of Maharashtra, a green hill that plant for the production and marketing was once a vacation area for the of industrial fans and dust collectors. wealthy of Mumbai fleeing the Andrea Dell’Orto (left), executive vp of the family group that in Pune The company boasts 26 million in summer heat, the traffic makes the air unbreathable produces injection systems, and Luca Bottazzi, head of the Indian turnover and India is a priority market even in the winter months, and the daily commute is businesses of Brembo. Under, the plant of Brembo both for its size and for the massive endless for those working in the automotive industry presence of potential primary custom- of two, three and four wheeled vehicles, the queen family-run company that produces injection systems. ers: large petrochemical, energy, steel of the new industrial India. Some of the thousands They have 200 employees in their Indian plant that and pharmaceutical groups. The new in the ocean of blue and white collars work in Italian opened in 2012 with the financial help of SIMEST, plant in Hyderabad, Telangana in the companies - FCA, Brembo, Magneti Marelli, Dell’Orto, today 100% owned by dell’Orto. Starting in 2020 the south of India is a new technological Ognibene, Carraro and Graziano being the main ones new motorcycles in India, where about 22 million are development centre that has been fi- - who chose, most of them in 2008, the Pune cluster produced a year, will have to include an electronic nanced with 1.4 million euros from for their operational base, joining General Electric, injection system and for Dell’Orto, which in December the venture capital fund under the General Motors, Ford, VW, Mercedes, Renault, allied with Varroc, this will be the opportunity for an Roman financial institution. A few Hyundai and the Indian manufacturers Mahindra important new leap forward, without even considering months earlier, SACE completed two and Tata. «To reach the factory in 50 minutes, rather the company’s business related to cars. Despite transactions worth a total one mil- than an hour and a half or more, I have to leave my the fact that the daily weather report almost always lion euros to support Durst’s exports house in the centre of Pune shortly after six in the indicates air quality that is highly harmful to health, in India, a South Tyrolean company morning», admitted Luca Bottazzi, 48. Originally nothing seems to stop the race for development. that is a world leader in the production from Bergamo, he has worked in India for five years Certainly not the lack of infrastructures, above all of printing systems for super-elastic leading the activities of Brembo, the absolute market in transport but also the communication networks, fabrics in the fashion sector. «We leader for motorcycle brakes, with over 3.4 million which with evermore frequent dropped mobile calls would not have been able to operate, pieces produced in 2018 and a new factory that just indicate inexorably higher traffic volumes than the or at least not with such high risks, opened in Chennai. «I got lucky though, because my transmission capacity. Perhaps the commissioning without SACE’s guarantee», acknowl- colleagues who work in Baramati take three hours», of the metro will offer some improvement; however, edged Christoph Gamper, the CEO of Bottazzi said, admitting frenzied development. to construct it quickly, the authorities decided not to Durst. A year ago Unicredit leveraged Baramati is the other industrial district of Pune, the build an underground metro but one on pylons, thus the SACE insurance to finance the centre of the food industry where Ferrero and Bauli putting the survival of the small amount of vegetation Travaglini Group of Atessa (Chieti), have opened plants, as well as Coca Cola, and that survived the skyscrapers at risk. As for the active in the design, production and although not food-related, Piaggio has also set up expansion of the airport or the construction of a new marketing of packaging, packaging an office there. But the commute certainly won’t one because the current airport is an extension of services and logistics management. discourage the automotive and food industries, the military one and has short runways, a decision The loan guaranteed working capital which are working according to three and in some has not yet been made after five years of discussions in favour of LT Techno Solutions, the cases four production shifts, driving real estate, and two suspended projects. But the real weak point Indian start-up of the group, which is transport, infrastructure and everything else into an of the situation according to some Italian managers a supplier in the automotive sector. unprecedented economic boom. «We are growing of the companies involved are the local suppliers of very well and plan to triple our turnover in a couple of large companies, which are predominantly not aligned Independent advisors years», Andrea Dell’Orto told us, Vice President of his with the production and environmental standards The main reference point in India that are instead required of foreign groups’ factories. for those who want to start explor- «95% of our components are local and produced by ing the subcontinent or already have Indian subcontractors, but it took 10 years of efforts a plan in mind is the Italian Indian to get what we wanted», Dell’Orto said. The careful Chamber of Commerce in Mumbai, monitoring carried out by public factory inspectors on an institution in the economic capi- the functioning, emissions and purification systems tal of India that has acquired over 50 of the big brands dwindles further down the chain of years of experience (the foundation sub-supplies, which is the real environmental threat dates back to 1966), has a thousand to development, together with the indiscriminate members and a structure that has re- consumption of public land. cently freed itself from public funding

83 March 2019 INTERNATIONAL The Italian Way INDIAITALY

Testimonial/Piero Guizzetti

A normal day to advise for sale in Gujarat The following article was written for MF International by Piero Guizzetti, founder and CEO of the advisory company Value Prism Consulting of Mumbai. He discusses one of the many missions he dedicates his work to

y alarm goes off with a message on my mobile construction and furnishings. Having a guest for a Mthat Ola, India’s answer to Uber, will be at meal is always an important occasion for an Indian the door within 30 minutes, with the driver’s name, family, and even more so for those from Gujarat; if his contact info and licence plate number. A good the guest is a foreigner, it becomes a banquet for start, immediately compensated by worrying about the amount of food served. Making bonds during Alessandro Fichera, Octagona founder and CEO, traffic to the airport, which could vary the travel time a meal at the table is as important for them as it is started its business in India in 2002 from 30 to 90 minutes. The traffic is okay, and my for Italians. Sharing a meal implies the opportunity ride along the Western Express motorway brings for more pragmatic dialogue on the professional to become economically independ- me to the Mumbai airport without much hindrance, front, even if the brand-new friendship is always ent, all thanks to the efficiency of the where I get my boarding pass in five minutes without used as an excuse for an extra discount. After business model it has adopted. The exchanging words with another human being. the meal spread over 10 courses, we go for a strength of the Chamber is its network Take-off, a masala omelette on the flight, and I’m walk through the estate that provided everything spread across the federal territory, in already in Porbandar, Gujarat in just under one hour. that was served at the table, at 0 km. The details the offices in Bangalore, Chennai, The mission’s objective is a field demonstration Delhi and Kolkata, and in the desks of the efficiency of the equipment (crusher and of the highly developing cities Pune screening bucket) for excavation works made by and Hyderabad, its staff of 30 employ- an Italian company that wants to increase its sales ees and professionals, and its focus on on the Indian market. For this reason, a dozen only a few sectors: agribusiness and contractors interested in the purchase were given construction. The Chamber’s secre- an appointment at the quarry. The first thing you tary Claudio Maffioletti told MFI, notice when your feet touch the ground in Gujarat «Our governance system guarantees is the heat: it’s 38 degrees in the shade, and it rises us a strong foothold in the territo- above 40 as you approach the site of the quarry ry. Each office has local committees two hours from the airport. We arrive 30 minutes that include Italian and Indian entre- after the scheduled appointment, which is a more preneurs and managers, ensuring a than acceptable delay for national standards, but of dense network of relationships not the 12 potential customers I expected, no one has only within the business community, arrived yet and the site preparation required for the but also with local institutions and as- demo has not been carried out. In such situations Piero Guizzetti, in the middle, with his Value Prism Consulting team sociations». For those who have yet to you have to take a deep breath, grab a chai tea and approach the Indian market and lack smile: important elements for keeping calm. So we of the family’s history, their land holdings, their sit on the ground in the shadow of the excavators commercial activities are a practical example of the and begin to chat with the machinists. Once I have characteristics the Gujarati community is known Stefano answered all their questions, mainly related to the for: a strong sense of business, an enormous Boldorini, Winh fact that I have lived in India for more than ten years, ability to build wealth, all with a very humble image. (World in your hands) founder and taken some selfies, the first potential customers Despite the difficult digestion, also thanks to the and managing finally arrive. Thanks to the new friendships built abundant amount of ghee used for seasoning, we partner around sweat and chai, the machinists work hard must return to the site to finish the demonstration to help us arrange the site according to the demo to all the potential customers, 8 out of 12, which is requirements. After a few hours of the demo, one an unusually high percentage. But now comes the of the contractors invites everyone to his home for most difficult part: negotiations. The first questions a special Gujarati lunch. The house is picturesque, are about prices, payment terms, services and but simplicity is the common denominator in its related operational and commercial issues. As the

an articulated foreign commercial and and Milan is under the responsibili- with Singhania & Co. Advocates and financial structure, advisors can be ty of Rosario Zaccà, a member of the Solicitors, one of the leading Indian chosen depending on needs: either for Mumbai House Council. Alliances be- law firms in business since 1969, with legal or fiscal aspects or for industri- tween professional Indian and Italian expertise in all the main branches of al or commercial strategy. In the first fiscal and administrative studios are Indian law. On a smaller level, two case, the reference law firm to turn multiplying. CBA studio in Milan professionals of the Triveneto area, to which has the most experience on has 120 professionals (also based in Carlo Lombardi in Verona and Marina the market, especially for large deals, Germany) and has become one of Vienna in Udine, with offices in Milan is the studio Gianni Origoni, Grippo the most active studios on the Milan- as well, are increasing their activity Capelli, whose India desk in Rome Mumbai axis thanks to an alliance with India, as they are both linked to

84 March 2019 The Italian Way INTERNATIONAL INDIAITALY

A normal day to advise for sale in Gujarat The following article was written for MF International by Piero Guizzetti, founder and CEO of the advisory company Value Prism Consulting of Mumbai. He discusses one of the many missions he dedicates his work to

Images from Gujarat: a lion family in Gir Park, a touristic industry, which however is not necessarily paired «A well-designed strategy attraction of the region, and on the right, Guizzetti, at the with efficiency or fast service. I get to my room and construction site realise that the air conditioning does not work, but can bring exceptional sleep prevails. Two hours later I awake covered in results because today sweat and ask to change rooms. Half an hour later they accompany me to a new, freezing cold room. India is one of the best Fortunately I do not have to stay very long. At 4 am a taxi driver is waiting for me to begin the journey to markets in which to do the airport, as I have a flight at 8 that will take me business and invest, back to Mumbai. This time we’re not leaving early because of traffic, but because of possible works considering the growth that could close the main road. On the way to the rates and the high airport, I have to slap myself a few times to make sure I’m really looking at a pride of lions not far from number of consumers» the side of the road, in full view. The driver quiets my discussion intensifies and interests become real outburst of disbelief by telling me that it’s normal, jects, also through temporary export purchase intentions, we are invited by the owner of after all we are near Gir Park, and it’s not unusual to management; 50 companies were es- the house to move to a negotiating table near their see a pride of lions on the road near the airport. As tablished for third parties, managing office. The site’s office is a concrete slab located we approach the airport, I get the impression that the paperwork and preparation of doc- under a dense array of mango trees. The helpers we’re in the wrong place. There is no one around, umentation. 15 institutional projects are asked to quickly organise chairs in a U-shape, no traffic, and a sleepy guard opens the gate for supported the development of the as- where we are invited to sit down. Some more selfies, what is indicated as a parking lot. But everything sociated companies’ business and and a few chairs later we start talking business. is in order because only two flights fly into and facilitated the commercial and institu- Two orders are completed, with an extra discount out of Porbandar every day, the one from Mumbai tional relations between Italy and India for those who have become «brothers» from simple that I was on yesterday and the one I hope to take by creating commercial platforms in friends a few hours before. Online payments are within the next two hours to return. I am the first India and hiring local sales staff on made via smartphone and a receipt is automatically passenger of the day to enter the airport. The take- behalf of the customers. Fichera un- generated and received by the customer in less than off is on time, chicken tikka roulades and a quick derlined, «A well-designed strategy a minute. By now it is late afternoon and we have to nap. We land, and when the seat belt sign is turned can bring exceptional results because go back to the hotels, an hour and thirty minutes by off there is the usual race to see who can pull their today India is one of the best markets car because there is nothing available closer to the suitcase down from the overhead bins first. Mumbai in which to do business and invest, site. We are welcomed by the always pleasant smile welcomes me with 80% humidity in the air. What will considering the growth rates and the of the men and women working in the hospitality today have in store for me? very high number of consumers with increasing purchasing power. But the access strategy must be clear and be recent partnerships with Indian part- tailored to their needs that does not partners covering the areas of Mumbai, accompanied by a business plan that ners in which they will work together require an excessive financial com- Pune, Ahmedabad, Rajkot, Ludhiana, includes alternative scenarios and hy- to accompany and facilitate compa- mitment. One such authoritative Chandighar, Calcutta, Hyderabad and pothesises the problems that could nies that want to operate in Italy and advisor is Alessandro Fichera, born Dewas, with about twenty full-time arise because it is a complex, high- India. in 1975 and co-founder of Octagona employees. «In recent years we have ly heterogeneous, immense market». On the other hand, those seeking a lo- in Bologna. The company has been helped more than 300 clients including According to Fichera, the winning card cal advisor to bring a product to the operating on the Indian market since companies and institutions, construct- of the Italian offer at this stage is tech- market and find an industrial part- 2002, where it boasts an articulated ing different types of basic projects», nology, above all in the quality segment ner have valid but limited options if structure in direct offices in New Delhi Fichera told MFI. A large part of these, where there are less competitors. «But they want personalised assistance and Bangalore and a network of local almost 200, were export and sales pro- to be successful, the technology must

85 March 2019 INTERNATIONAL The Italian Way INDIAITALY

be adapted to the local context and de- Testimonial/Sauro Mezzetti signed for a productive approach or for on-site assembly activities», Fichera IT and innovation win in the south added, stressing that the Indian mar- ket requires a very dedicated approach s an expert in innovation and Q. And how do you see the which is not suitable for other foreign Atechnology transfer for small future? markets. and medium-sized businesses, A. Tamil Nadu is also one of the 39 year old founder and CEO of Sauro Mezzetti has lived in India poles of the IT industry, where Value Prism Consulting (VPC) Piero for years and is responsible for the however the Italian presence is not Guizzetti has been a Private Equity southern presence of the Indian significant, with the sole exception Partners representative in Mumbai Italian Chamber of Commerce in of Sella Sinergy of the Banca Sella for 12 years, where he shares respon- Chennai, the capital of Tamil Nadu, group. sibility with a team of Indians. He one of the States undergoing firmly focused his strategy on market great transformation. The Italian Q. Why is settling in this State developments, which he finally sees presence here is characterised by considered strategic for India? accelerating after years of ups and trade in the textile and clothing, A. Tamil Nadu is also a strategic downs. VPC heavily focuses on per- leather, footwear and granite Sauro Mezzetti hub for logistics and related sonalised customer support, starting sectors. services. In fact, the local with due diligence on market op- port system tends to be a reference point for the portunities and potential partners to Question. How is the local economy hinterland that also includes the regions of Bangalore start a business. He has recently im- transforming? and Hyderabad. Major investments are planned for plemented the offer with temporary Answer. It is very diversified with a strong presence interport and ground services. But the direct port and management services: initial support in the machine tool, car and renewable energy maritime connections between Italy and Southeast and management of a company’s ac- sectors. The Italian presence has consequently India are weak, if not non-existent, and transhipping tivities in India for a maximum period changed with the opening of companies in must be resorted to for supplies by sea. of 18 months, carried out directly by mechanics, electronics, energy, engineering and also the consulting firm’s professionals. in consumer goods. Q. How can this issue be dealt with? «We give customers the opportunity A. The specialised operators of both countries to calmly evaluate the market dynam- Q. Can you give us a few names? have been aware of this for years, and know that ics, avoiding the need to invest human A. Among the most significant, Bonfiglioli, Saipem, overcoming the issue could offer remarkable resources and economic resources, at Danieli, Technip, Lavazza, Fomas Group, Fumagalli opportunities considering how the entire least until decent returns arise», said Group, Leitner Group, BWE and Ansaldo. In the macro-regional configuration of Chennai-Coimbatore- Guizzetti, who is currently concen- 1980s the latter built an important phase of the Bangalore-Hyderabad has become one of the main trating on the food processing supply Nyeveli power station through Italian cooperation, centres attracting productive investments, especially chain, while in the past he actively which provides a significant share of energy in South from the big Asian economies and in particular Korea followed the retail and water treat- India. and Japan. ment sectors. From Turin, 55 year old Stefano De Napoli has a degree Presenza Imprese Italiane in India in Electronic Engineering from the Italian groups include Sunino, Fara Where the Italian enterprises are allocated Polytechnic Institute of the same city. Industriale, Sila Group, MP Filtri, He has instead focused on Bangalore, Tenax Group, Fonderie 2A, Fenco, where he has lived for 17 years work- Turbosol and Alcea. The founder and

ing at Indever Corporate Consultants, managing partner of WINH (World in Delhi NCR & Nord India a company he founded together with your hands), an internationalisation 130 Aziende (Delhi) local partners to support Italian com- consulting firm with offices in Milan, panies in direct investment projects New Delhi and Shanghai, has chosen in India, as well as industrial Indian to operate through the Indian Business Bengala Occidentale & Nord-Est companies interested in the European Forum, an association of profession- Maharashtra & India Occidentale 10 Aziende (Calcutta) market. «We are specialised in M&A, als of which he is vice president, to 200 Aziende (Mumbai and Pune)

in the establishment of joint ventures favour small businesses’ connections Karnataka & India del Sud and greenfield investments with a and networking. «It is difficult to 70 Aziende (Bangalore) Tamil Nadu & India South Est specific focus on cross-border opera- immediately understand the dynam- 50 Aziende (Chennai) Source: IIcci and Pwc tions, for which we help identify the ics of the complex and fragmented right partner and the right strategy», Indian market. The ways business is explained De Napoli. With the sup- done, timing, languages and tradi- «Doing business in India implies a of intent». PWC recently opened an port of the Bangalore offices, Indever tions change from State to State and very important emotional component. Italian desk in Delhi; as one of the operates through an international ex- make India a hostile country for those Local entrepreneurs and professionals four multinational consulting and cer- ecutive board with a network in the lacking direct experience», Boldorini place a lot of value in personal rela- tification firms, it has the advantage United States and England, and in- said; for this reason he personally ac- tionships and immediately creating an of providing Italian clients with a net- cludes Indian clients such as Lumax, companies his customers to meetings understanding with partners is as im- work of high-level fiscal and financial JBM, WPIL, IFB and KK Modi, all with potential Indian partners, provid- portant as proving you have a valid relationships with strong connections listed on the stock exchange. The ing a good network of local contacts. business project and a common vision in administration.

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March 2019 INTERNATIONAL Flight Guide INDIAITALY Challenge on Times & Fares Air Italy has joined the air carriers offering connections with Delhi and Mumbai, creating more intense competition with direct flights. But there is still a long way to go before matching other Indian airports up

by Francesco Bisozzi

to New Delhi from Milan (four times a Russian airline Aeroflot and Turkish week) and Rome (three times a week). Airlines, you save money but the jour- A round-trip economy-class ticket ney becomes much longer. But it is the for New Delhi costs 430 Euros from companies of the Persian Gulf coun- Malpensa (1,640 Euros in Business tries to guarantee the most extensive Class) and 400 Euros from Rome network of connections with Indian cit- (1,440 Euros in Business Class). The ies. For example, Oman Air covers 11 Jet Airways rates for these routes are destinations in India - Goa, Mumbai, very similar, but they do not offer di- Chennai, Kochi, Thiruvananthapuram, rect connections from Italy. However, Hyderabad, Delhi, Lucknow, the second Indian airline offers un- Bangalore, Kozhikode and Jaipur - AIR ITALY beatable prices for flights with one as well as offering very competitive MILAN MALPENSA-New DELHI Time 9H 00 MIN, Direct or two stopovers toward places like rates for the Milan-Mumbai flights. Roundtrip fare from Chennai or Pune (less than 500 Euros Emirates has an excellent business- € 1.850 Business, € 327 Economy in Economy Class). The prices double class offer of 1,300 euros, and the if you choose to fly with Air France airline also connects smaller Italian MILAN MALPENSA-MUMBAI and British Airways, with a stopover airports with most of the major Indian Time 8H 00 MIN, Direct Roundtrip fare from in London or Paris. While with the destinations via Dubai. € 1.870 Business, € 500 Economy ndia is getting closer and closer. Testimonial/Rossen Dimitrov, Air Italy CEO After connecting Malpensa to New ALITALIA York, Miami and Bangkok, last ROME-MUMBAI Why do we fly to India month Air Italy launched three new Time 9H 10 MIN, Direct I Roundtrip fare from weekly flights between Milan and New Question. Why this interest in the Indian € 1.440 Business, € 500 Economy Delhi (operational from December market? 6th) and between Milan and Mumbai AIR INDIA Answer. India offers many opportunities to foreign (from December 13th) at very attrac- MILAN-New DELHI companies in relation to the ever-increasing demand for tive prices. In order to operate these Time 7H 15 MIN, Direct air travel, especially for international destinations and connections, the Qatar Airways sub- Roundtrip fare from despite the fact that it is a very price-sensitive market. sidiary chose the Airbus A330-200, an €1.640 Business, € 430 euro Economy Q. And on the Italian side? aircraft with 24 seats in Business Class ROME-NEW DELHI A. More than 200,000 Indians live in Italy and in 2017 and 288 in Economy, offering five-star Time 7H 15 MIN, Direct over 112,000 Italians visited India, 18% more than the service standards in first class. Air Italy Roundtrip fare from previous year. thus becomes the airline with the most € 1.440 Business, € 400 Economy Q. How do you tackle the price issue? direct flights from Italy to India. The A. Everything lies in the ability to better manage fixed TURKISH AIRLINES Rossen Dimitrov fares start at 327 Euros per person MILAN-MUMBAI and operating costs without distraction, while staying for a round-trip economy-class tick- Time 10H 05 MIN, 1 step over grounded. et for New Delhi and at 340 euros for Roundtrip fare from Q. What does it mean in practice? Mumbai, while a round-trip business- € 2.040 Business, € 366 Economy A. Competitive pressure often discourages companies from lowering class ticket starts at 1,850 for New their ticket prices, fearing a loss of market share and increases in fuel Delhi and at 1,870 euros for Mumbai. costs, which is the main operating cost. But this business is highly Connections are planned with Rome the following day. It then takes off unpredictable everywhere: it is a condition that must be accepted and Fiumicino, Catania, Palermo, Naples, from New Delhi at 4.20 a.m. (local cannot deter companies from facing the Indian market. Lamezia Terme and Olbia. Alitalia also time) to land in Rome at 9 a.m. The Q. Why? returned to India in 2017. The former airline chose an Airbus A330 with 250 A. Because there is high demand and it is a competitive but healthy national airline has activated a daily seats, with three classes: business, pre- market. It must be engaged, as long as you know how to do it well. route between Rome and New Delhi, mium economy and economy. Fares Q. And what is SACE’s trump card? in order to strengthen commercial re- start at 500 euros for a round-trip econ- A. Together with the Canadians, we are the only export agency in the lations between the two countries. It omy-class ticket and reach 1,400 Euros world to offer this opportunity. From an operational point of view, we departs from Rome Fiumicino at 3 for a seat in Business Class. Then there have learned to be very effective in concluding these operations. We p.m. and arrives at 2 a.m. (local time) is Air India, which offers direct flights began negotiations with Reliance in March and signed in June.

88 March 2019 Followed Storia del più grande enologo italiano e del suo credo Testimonial/Lorenzo Angeloni - from pag. 24 nella teoria vinicola hamper direct investment? del padre dell’astronomia A. The critical issues relate to the vagueness of certain mechanisms, excessive bureaucracy, difficulty in accessing credit. But the effort to im- prove the business environment with a view to opening up foreign capital is evident. Difficulties are undeniable, but there are still many more op- portunities.

Q. Do you think that Made in/by Italy is an extra com- petitive factor against other European competitors in this phase? A. Our strength is not only exporting functional and performing products: ours are also beautiful products. Aesthetics and design are in our DNA, so we are one of the few countries in the world able to express the combina- tion of functionality and aesthetics to such a high degree.

Q. Do the notoriously price sensitive Indians valorise it? A. Indians are also sensitive to quality and beauty and recognise our pri- macy, so our production certainly has the credentials for premium positioning in India, with some caveats.

Q. What are the caveats? A. Mainly, companies that want to enter this market should pursue what I like to call a granular approach.

Q. Granular? A. In a country as large and socially heterogeneous as India, we must pragmatically focus on niches, both in terms of sector and geography, in- tercepting select opportunities at the individual state level. The valorisation of the local dimension is, on the other hand, also pursued by the central government which supports competitive cooperative federali- sm among the States of the Union, rewarding those who are most Un omaggio a Giacomo Tachis, il più importante enologo effective in attracting foreign investments and simplifying the legislative and regulatory landscape. italiano, padre dei vini icona come Sassicaia, Tignanello, Solaia, I Sodi di S. Niccolò, l’Eterno, Turriga. Un uomo di cultura, appassionato studioso di storia e di filosofia, che al Q. What are the ones to bet on? vino s’è legata nel corso dei secoli. Negli ultimi anni aveva A. From our studies, I would say West Bengal, Andhra Pradesh, Orissa approfondito le letture intorno agli studi di Galileo Galilei, e dei and Telangana. suoi discepoli, sulla luce ed i suoi effetti. Studi che trovavano proprio nell’osservazione dell’uva, della struttura degli acini, Q. So what is the recipe for success? della loro maturazione e poi nella fermentazione per diventare A. India requires constancy and dedication. Expecting returns in terms of vino, un campo d’applicazione estremamente intrigante per lui. profitability in the short term is unrealistic. The success stories come from companies that believed in India, facing the challenge with medium-long term investment plans, trying to understand local dynamics, patiently bu- NELLE MIGLIORI LIBRERIE E IN VERSIONE E–BOOK ilding a network of contacts, choosing reliable local partners for any joint su www.classabbonamenti.com e i principali store ventures. March 2019 Italian Personalities INTERNATIONAL INDIAITALY The Who’s Who of Institutions Promoting Business

Lorenzo Angeloni Fabrizio Giustarini Ambassador in New Delhi ICE Representative in Mumbai [email protected] [email protected]

◾ Class 1958, he graduated in Law ◾ Class of 1968, holding a Bachelor’s degree in from the University of Perugia. Economics, he works for ICE since 1992. After Married, with two children, he gaining experience at the agency’s headquarters, began his diplomatic career in 1985. he became Deputy From 1987 to 1990 he worked in Montevideo, and then Director in Moscow in 2004 and moved to the Frankfurt office as Consul. In 2001 he NEW DELHI has been responsible for the office took up residence in Algiers and then in Khartoum in Atlanta (USA) since 2008. He from 2003 to 2005, during the Darfur crisis. He was Kolkata went to Mumbai last June, where he Deputy General Director for the countries of Asia, focuses on following the construction, Oceania, the Pacific and Antarctica from 2008 food processing, infrastructure and to 2010, when he was appointed Ambassador of consumer goods sectors, with the specific Italy in Hanoi, Vietnam. He left Vietnam at the task of organising presentations, and participate end of 2015 to move to Delhi. at fairs in promotional events.

Stefania Costanza Claudio Maffioletti General Consul in Mumbai MUMBAI Secretary at IICCI [email protected] [email protected] ◾ Mrs. Costanza, 42, is particularly Regional ◾ Bachelor’s degree in Philosophy committed to promoting culture Committee and Conservation of Environmental and tourism. Born in Palermo, she of the Indo- Heritage from the University of moved to Mumbai in October 2017, Italian Chamber Parma and a specialisation in Arts thanks to her extensive diplomatic experience acquired in of Commerce. He and Culture Management from the three continents. She led the UN division for the Ministry, BANGALORE participated in several University of London. He began and served in the embassies of Kabul and Buenos Aires European Commission his career at IICCI in 2007, when he moved to India, first (2007-2012). CHENNAI projects in Asia, as well as General Manager, then from 2015 as Secretary General. as in five UN projects. He Last July he opened The Indo-Italian Agri Food Tech Center, Damiano Francovigh deals with technological the first platform to serve Italian companies in the agri-food Consul General in Kolkata innovation, and helped supply chain in India. [email protected] several companies to enter the ◾ Class 1966, he born in Udine, Indian market. and began his diplomatic career in Consular network 2002. He worked in the General Francesco Pensabene Bangalore (Karnataka) Directorate for Mediterranean ICE Manager, New Delhi Giuliano Micheletti Countries and the Middle East at the Foreign Ministry [email protected] Tel. +91 80 28567247-8 (Farnesina), at the Italian embassy in Damascus as First ◾ Bachelor’s degree in Law and E-mail: [email protected] Secretary, and at the Italian embassy in Hanoi from 2010 to Master’s degree in International Goa 2013. He directed the Middle East and Balkan Office at the Law, he was the International Shrinivas V. Dempo General Directorate for Development Cooperation from Cooperation Director at ICE Tel. + 91-832-2441300 E-mail: [email protected] 2013 until he was appointed in Kolkata in February 2016. in Rome after his appointment as the first Director of the legal, human resources and organization Jodhpur (Rajasthan) Roberto Nieddu Sauro Mezzetti department, managing numerous business missions Tel. +91 291 2721789 / 2720416 Honorary Consul in Chennai all over the world. Before moving to Istanbul, he also E-mail: [email protected] [email protected] worked on development in Asia and the Pacific for Varanasi (Uttar Pradesh) He lives in India since years, ICE. In addition to serving as a Coordinator for the ◾ Marco Zolli in Chennai, the capital of Tamil Agency in India, he also follows the markets of Sri Mob. +91 98 33288401 Nadu in the south of the country, Lanka, Bangladesh, Maldives, Nepal and Bhutan, Mob. Italy: +39 328 0022299 where he is Chairman of the where ICE does not yet have any permanent offices. E-mail: [email protected]

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