Indian Business going global

Bystander · Telugu Teja Joined: 13 Oct 2004 Posts: 438

Is the rapid development being witnessed in Indian Industry, evident in all major cities, including Hyderabad, reaching all? I mean the common man.
Is it making only a top more rich and leaving the majority in the same conditions. In the recent months, Indian FDI outflow has exceeded inflow. Indian Business is going places. Is it carrying the comman man with it, or is it expanding only for the benefit of those expanding overseas.
Most countries wilt large overseas expansions mostly from Western countries also have and flex their muslces (even) when (not) called for. As most analysts agree some kind of very strong economic interests have predominated in US direct intervension in Iraq, than mere terrorism. Saddam was planning to shift the crude trade to Euro from dollar. Whoever attempted to go away from dollar had met with same fate.
So, this kind of expansion oversseas, India will need to come out more strongly on combat capability or piggy ride with US military might, giving into some of their interests. Nuclear capability has added to Indian strength considerably.
Sudden spurt of Indian companies going on overseas acquisitions is alarming, hope planners are taking note.
Options are not too many, if we do not get aggressive and build strength, we can not achive our ambitions of being a major global player. Energy wars are getting louder between US and Chinese interests. India is in fray too, though not at levels uncomfortable to US, but soon would be.
While all this fine, one thing that intrigues me, why Mukesh had to seek for 1700 visas for brining in Chinese Engineers to bulit the pipe line to take AP gas to Gujarat? Are indian pipe laying companies so incapable or more expensive? Sivego any thoughts on RIL?

statesman · Posted: Sat Oct 14, 2006 11:05 am Post subject:

greetings bye stander, i have seen your post for a long time, hope every thing is OK, RIL is a marwadi company, they have executed RIL jamnagar works in the following fashion.

Dheerubhai called a handfull indian companies to participate in construction of refinery viz. L&T, GDC, GR, Gammon, Bridge&roof, etc and awarded contracts like cost plus. cost plus means entire cost of contract is monitered by RIL and 21-26% is paid over and above cost of project to companies and without any work order indicating value of contract, for example you executed a contract for 300 crores in RIL, you will have only a cost plus agreement and work orders to the tune of 10-25 lakhs will be issued on day to day basis and continue the same against progress. This made several companies left with no prequalification criteria for using RIL experiance else where. People are not at all interetsed now to work with RIL for their cranky actions earliar and still want to continue the same tricks.

This might be the reason one other might be RIL purchased a pipe company in china with stocks, this follows import of pipes like Essar vizag and call the same fellow to execute the work. These people are capable of duping any body in the world.
_________________
STATESMAN

Bystander · Telugu Teja Joined: 13 Oct 2004 Posts: 438

Hi Stateman, thanks a lot for greetings, same to you. In these busy days it is difficult to find time for frequent discussions. Also I notice many guys seem to have disappeared from this forum, or just lost interest.
GOI has cleared the 1700 Chinese Engineers in principle for RIL. It is dishortening to know RIL is acting like small Marwadi Company, while dealing with its contrator's. All te MBA education, talk of professinalism have no meaning, if mega corporations act like this cost plus profit basis. It robs the contractors of any initiative / innovations, as any thing that they may develop would have to be revealed or laid open to RIL, which may be leaked to competetors in that cost plus profit module. Pathetic.
Wonder if one should cheer Tata's acquisition of Corus at $8 billion. A large capital out flow, not to the extent of $8 billion, but in all cash buy out, Tata Sons will have pump in large capital from their internal resources. However such acquisitions add to the reach and strength. Now Tatas lead the Indian Industry in Steel, Software, Auto sectors. LN Mittal, the Steel tycoon, though Indian origin pays tax in UK, as their citizen. Tatas acquisition truely Indian Inc. achievement. - Cheers

ved · Telugu Veera Joined: 26 Feb 2006 Posts: 2029

I wonder whether Tatas made this deal out of desperation to counter Mittals. The all cash deal adds more credibility to this thinking. I also read that based on the machanics of the deal, the next chairman of Tata steel would be the one from corus. That begs the question whether Tata acquired corus or corus acquired Tatas. I hope they have strong economics behind the move, otherwise they will be in big trouble. I still think steel is a cyclical industry and when world economy goes to slump they will have some hard decisions to make. Or I should say when Chinese economy slows down, all of them will feel the pinch. Once again irrational exuberance took over.