india goes global - telfer school of management...india goes global telfer school of management...
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INDIA GOES INDIA GOES GLOBALGLOBALTelferTelfer School of School of ManagementManagement
Peter Nesbitt, RVP, AsiaPeter Nesbitt, RVP, AsiaExport Development CanadaExport Development CanadaFebruary 19, 2009February 19, 2009OttawaOttawa
FUNDAMENTS IN TACT
• GDP growth rate of between 6.5-7.1%
• Well capitalized banking system• Youngest workforce in the world
(Median age of 25)• Per capita incomes to rise by 5.3%• Burgeoning middle-class• Political stability
CEO Optimism Survey
• Asia- Pacific 31%• Central & Eastern Europe
21%• Latin America
21%• Western Europe 15%• North America 15%
Source: PWC Annual Global Survey – representing 1,124 interviews with CEOs in 50 countries during the last quarter of 2008
Privately Held Businesses83
India’s Corporate Titans
•Confident
•Cash Rich
•Going GlobalVijay Malyaof Kingfisher
Kumar M. Birla of the Birla Group
Ratan Tata of the Tata Group
Naresh Goyalof Jet Airways
Anil and MukeshAmbani of the Reliance Groups
Sunil Mittal of the BhartiGroup
“EDC” - WHO ARE WE?• Canada’s official Export Credit
Agency (ECA);
• Crown Corporation founded in 1944
• HQ in Ottawa and representation around the world;
• Supporting 7500 customers in over 180 markets around the world;
• Achieved business volumes of
EDC IN INDIA• EDC has been doing business
in India for more than 40 years;
• On-ground presence since April 2005 – New Delhi and Mumbai;
• Corporate vs. Sovereign Risk
• Priority Sectors: Telecom, Automotive, Energy, Infrastructure.
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
Mill
ions
(CA
D)
2001 2002 2003 2004 2005 2006 2007 2008
Political Risk Insurance
Financing
Contract Insurance & Bonding
Short Term Insurance
EDC Business Volumes in India
1,175
611
376
730
267262197
$1.76bln
EDC Bus. Volumes vs. Can Exports to India (2001-2008)
740 811
1030
1,6831,030
667.1
1,765
1,175
729
376611267262
0200
400600800
100012001400
16001800
2002 2003 2004 2005 2006 2007 2008
CDN Export(CAD$M)
In 2007, EDC’s Business Volume in India represents 70% of total Cdn Exports to India
EDC BV
SOME OF OUR RELATIONSHIPS
INDIAN COMPANIESINDIAN COMPANIESGO GLOBAL FOR 5 REASONSGO GLOBAL FOR 5 REASONS
• Competitive factors• Markets• Technology• Raw Materials• Brands
Mergers & Acquisitions (M&A)
Stephen Barrett Global Chair KPMG Corporate Finance
“Indian companies may soon become the first from the emerging markets to acquire foreign companies at a greater rate than vice versa.”
Source: KPMG’s 2008 International Emerging Markets Acquisition Track
Mergers & Acquisitions (M&A)
Stephen Barrett Global Chair KPMG Corporate Finance
“We nevertheless expect Indian firms to remain the most acquisitive emerging economy players in developed economies in the near future. “
Source: KPMG’s 2008 International Emerging Markets Acquisition Tracker
CATALYSTS FOR INDIAN CATALYSTS FOR INDIAN GLOBAL M&AGLOBAL M&A
• Government Support
• Commercial economics
• Valuations
ADITYA BIRLA GROUP“Global Vision, Indian Values”
KUMAR M.BIRLA
CANADIAN ACQUISITIONS:
Novelis (Aluminum)
Minacs (BPO)
AV/Nakiwak (Pulp & Paper)
THE TATA GROUP
• Tetley Tea• Tata Steel
Tata Corus (Dutch-Anglo), Nat Steel (Singapore), Millenium (Thailand)
• Tata MotorsJaguar (UK), Landrover (UK),
Daewoo Comm Veh. (Korean)• Tata Consulting Services• Taj Hotels
The Pierre (NY)
THE ESSAR GROUP
Shashi and Ravi Ruia
Also looking for investments: Essar Oil & Gas,
ESSAR STEEL ALGOMAESSAR STEEL MINNESOTA
ESSAR T STEEL TRINIDAD
ICICI BANK
9 Branches in Canada
MUKESH AMBANI
•New 580,000 barrels-per-day refinery
•Market Cap of $40bln
•Chevron owns 5% of RPL
ATUL CHANDRA
RELIANCE INDUSTRIES
Others to watch….
EDC Team in India.. merci
Rajesh Sharma Regional Manager Mumbai
Leena Subramanian Coordinator New Delhi
Peter Nesbitt Regional VP, Asia New Delhi
Vibhav AgarwalRegional Manager New Delhi