Not crazily many but over the last thirty years, I have seen a fair number of fresh/greenfield investments happening into Indian states. Allow me to share a few personal examples:
1990s
It started when my father wanted to set up a business in the early 90s and he had to run around meeting different state corporations to sell his idea. The location was not the issue (other than being close to a port) so much as the terms and conditions he got were. There was hardly any push or no interest from the states and the entire initiative was his.
2000s
Being associated with food processing and packaging from 2003 onwards, I realised that India needs to have beverage cans production. I reached out to several companies on an individual level and faced rejections from many companies for my proposal. Finally in 2006, there was some breakthrough. I travelled to the US & Poland to meet technology suppliers and investors. It worked. The company appointed me as their MD for India. From 2007-17, I was instrumental in bringing almost Rs 1600 cr investment into the country. The difference now from earlier was that the choice of the state (Maharashtra) and city (CSN/Aurangabad)was made based on the demand scenario.
I had no access to the political class at the state level and I had an overbearing strict boss and investors who were not willing to yield to anyone and thought that they could have in India whatever/however they wanted. This was also the expectation I had to somewhat create for this investment to happen. I hit many fairly massive roadblocks (land agreement, pollution, power, gas, panchayat, farmers..) and weird rules/regulations. However, I was lucky and able to make some local friends and well-wishers, adding to that some dogged persistence, hard work and creativity, I ended up being a fairly good interface between my parent company and the Indian authorities. From the start of the idea of the investment to about 6 months into the investment, I was the lone employee of this company working out of a nondescript hotel room and a taxi, whose driver invited me several times to his home for dinner as he saw me battling this out alone. I have been used to working in constraints and never sought limelight, so this part was hardly a problem. This whole effort paid off, but I think that this is always not possible. I was fortunate for things to fall into place without having almost any local support system. My conclusion was that notwithstanding the potential of the country and will of the individual, something was amiss for smooth industrial investment.
2010s
The Modi Government took charge of the country. I generally found more push, more presence, more panache. Bodies such as Invest India came up led by progressive energetic people and constituting young teams having good pedigree. India began showcasing itself at global forums with consistency. But something was still missing. I thought that the hunger, the thirst, the burning desire had to move from an individual level and/or polity level to a group of people who had the wherewithal to unify and synchronise a region and offer that experience for large investors into the districts of Bharat. This unification cannot come from an individual level, it needs a hungry thirsty passionate complimenting team which is well versed not only with their region, but also the leaders of the region, the polity, the bureaucracy, the history, the press, the academia, the hospitals, the hotels…. and so much more. They need to know all this very pragmatically to convey to those who have to decide about their investments dispassionately.
Who would be such a team? Where can you find such a group? Will individuals just come forward (without self interest) and do this? This understanding requires deep knowledge not only about business but also about the region which you represent. It requires connections, it requires communication, it requires creativity. And it requires humility, determination and rising above individual interests. Quite a demand, isn’t it?
2020s
I could not search for these answers. Then one fine day I saw the TKM (Toyota Kirloskar Motors) $3bn as well as the Ather ($250mn) investment news in the city and digging deeper I found the team of the local chamber (Chamber of Marathwada Industries & Agriculture or CMIA) of my city being primarily instrumental in bringing this large ticket industrial investment in the city. They left no stone unturned, in terms of applying themselves with their might & resources and making personal sacrifices in the process.
But then the chamber had existed for 5+ decades. What changed? And here is the tipping point. Before two years, the chamber was passed on from the first-generation entrepreneurs who have led it very successfully, to the second generation. The first generation built the base for industry, put forward a united front to the Government to help industry with the labyrinth of problems, rules and regulations, emerging time and again. They were responsible for the first phase of industrialization in the region which was the start of Bajaj Auto Ltd in this city. That investment led to the development of a strong vendor base in the city. (Refer TEJAS Episode 2). The region kept moving ahead – there were investments in beer, pharma, seeds, packaging, but this was not at a breakneck speed. The boredom was yawning.
In 2022, the leadership team at the local chamber was lock, stock and barrel replaced by an entirely young generation. This was a visionary approach by the stalwarts of the Chamber. This second generation, who studied abroad and came back to manage their businesses, were also just like their parents united by a larger purpose – their city. But the opportunities and challenges were different now in terms of scale and complexity. And there was a lot of competition between states not only on quality of infrastructure, but also on incentives. Not only on offerings of entertainment and leisure but also health care. Name it and every state has been putting their best foot forward for industrial investments.
This is when this team put everything perceivable under their umbrella and agreed to also absorb all what they could not perceive as they tread their way. Their fire in the belly to capitalise on Bharat’s growing dominance has been flaming with clarity that a prosperous Bharat is not what will make Marathwada as prosperous, but it is a prosperous Marathwada that will make Bharat prosperous. They understood that their approach must be bottom up. They gave it all. Two years of unfailing follow ups with investors, countless meetings in a number of cities, meeting a variety of senior executives and expatriates and touring the city with them over and over, tying up all departments of the Government together, being the cause of political expediency for the region, all of this permeated by their energy and conviction.
Let me share that when TKM and Ather announced their plans to invest before about two years, Maharashtra, forget Marathwada, was not even on their radar. This team did what is otherwise impossible. They have sown the seeds of a tree which will benefit the region, the state and the country for a very long period. The Juggernaut, they are.
This is the way to investment magnetism. No, this is the only way to investment magnetism. I named this team UDAAN for it comprises five primary individuals who saw this dream and worked to convert into a reality - UTSAV Machchar, DUSHYANT Patil, ARPIT Save, ATHARVESH Nandawat, NITIN Gupta – this is the team I call UDAAN.
Image Courtesy: Aisha Fatima & Riddhi Kataria, Students at NSBT
After the anchor investment of Bajaj Auto Ltd in 1982, TKM is the biggest investment in this city and will usher into a new phase of solid development for the city. CMIA has probably set the benchmark of how chambers should work and they have done it with a huge lead.
Irasshaimase TKM and a big Arigatou gozaimasu! Namaste Ather!
There are many enquiries and thoughts one can have about this but then this big enterprising UDAAN journey with the personified UDAAN will be captured in detail in NSBT’s TEJAS podcast. Coming soooon….
Closing with a tribute to CMIA:
Creators of Value
Masters of Vision
Inspiring Leadership
Ambassadors of Development
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