istanbul conference 2014-november25-27
TRANSCRIPT
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Gammon India Ltd
Reconnecting Afghanistan
Istanbul November 26th 2014Pankaj Tandon
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2009-10 2010-11 2011-12 2012-13 2013-14 (9 months)
45.34 55.58 55.33 51.9731.87
71.4388.97 83.30 75.86
49.32
Turnover (in INR Billion)
2009-10 2010-11 2011-12 2012-13 2013-14(9 months)
756926 922 866
531
1190
1483 13881264
822
Turnover (in US$ Mn)
Financials
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Peace….The pre requisite ..
Business is from the heart
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Safety: Which place is this ?
Business prospers amidst confidence and trust
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Infrastructure: Which place is this ?
Infrastructure is the enabler and is also result of good Business
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Exposure to new ideas :Is this Kabul…?
Openness allows critical evaluation of choices Do we know where did first Marks and Spencer showroom
opened in Central Asia…
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Ease of movement ….Is it Kandahar …?
Safety is reality and perception as well
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World Class:…Yes….!!
It is the same country and the same people….And
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Not so colorful data Ease of doing Business…189 Countries • 1st –Singapore 183rd -Afghanistan Starting a Business -24th Paying Taxes -79th Getting Credit -89th Getting Electricity -141st Registering Property -183rd Enforcing Contracts -183rd Trading across borders -184th Perception improvement is important 85% women population yet to have formal education Life expectancy of women is 51 years
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Trading across borders: Cross section study –Rank 184th Export Import
Days Cost -USD
Days Cost-USD
Documents preparation 44 570 49 680
Customs Clearance 8 300 7 300
Ports and Internal Handling 4 175 5 200
Inland Transportation and Handling
30 4,000 30 4,500
Cumulative 86 5,045 91 5,680
Turkey-It is 13 days for Export and 14 days for Import at a corresponding cost of USD 990 AND 1235 respectively
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Business Needs in Afghanistan• Import/Export Challenges–Manpower Issues• Difficult to attract suitable talents –Incentivizing skill
development
– Land Locked Country • Material to come through Iran or Pakistan • Delay in Delivery – Documentation at various ports-IT enabled customs
clearance for speed and transparency
– Security • Bringing material from border to the destination places have
a greater risk of transit losses • Use of /GPS /RFID on shipments
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Business Needs in Afghanistan
• Import/Export Challenges– Financial Transaction• Limitations in banking capacity– High Value BGs are difficult to be issued locally
• Limits on Banks to keep foreign Currency Accounts• High Transactions Cost of LC/BG• Low Currency Acceptance – Apprehension in taking payment in Afghani
International Business community has the responsibility to create Trust and credibility
International business community to invest in Skill, Talent and Technology
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Business Needs in Afghanistan• Customs– Capacity Development• Duty on Duty (Duty deducted on DDP price rather than
CIF prices)• Comprehensive Training and up to date international
exposure
– Infrastructure development • Improvement of IT infrastructure – Remote operations to be enabled with higher use of
technology-Supply Chain, Logistics and Project Monitoring
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Business Needs in Afghanistan: As experienced • Visa, Business License and Permits– Visa • Minimum 15-20 days for the whole process• Delay the man movement and hence impact the
business interest• Business and Investment may be allowed long term
multiple entry from the Embassy itself
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Business Needs in Afghanistan
– General Apprehension about the business/security environment• Communication and brand building of “Afghanistan”
– Funding • A large proportion still dependent on external agencies• Manufacturing /Processing must be incentivized with Insurance and
Assurance
– Infrastructure• Non Reliable Power supply• Lack of Medical and Education Facilities • Road Infrastructure more to be done
– Volatile Policy framework• Change in the banking regulations recently making foreign banks to
close their office in the country (PNB Closed its office in Afghanistan)
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Strong and self sufficient Afghanistan….
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A Proud and Victorious Afghanistan..
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Projects of Gammon…
Chennai Metro Rail Project
INR. 19.90 Bn / US$ 332 Mn
AIIMS- Digha elevated road
INR. 7.17 Bn / US$ 120 Mn
Nathani Heights Mumbai
INR. 3.46 Bn / US$ 57 Mn
Bajoli Holi HEP
INR. 8.3 Bn / US$ 138 Mn
Mayapur ISKCON temple
INR. 1.37 Bn / US$ 23 Mn
Godavari Bridge
INR. 7 Bn / US$ 116 Mn
MbPT Offshore Container TerminalINR. 5.5 Bn / US$ 92 Mn
Signature Bridge
INR 6.32 Bn/ US$ 105 Mn
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THANK YOU
“Micro competitiveness”….Examples of Bangladesh
Focus on few sectors to build economy around it…..
Fruit and Food processing
Mining
Credits….World Bank sites, Web-search and my colleagues