India-Argentina Bilateral Relations - LB Associates

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special reportresearch services employing 70 Argentinestaff and has plans to expand. This is thefirst third-party KPO in Argentina• Copal Partners, an Indian FinancialResearch company has established anoffice in Buenos Aires in the second halfof 2010.This is the sixth global officeof Copal which has centres in US, UK,Dubai, India, and Mauritius. Copal has1200 employees in these six centres andserves 40 clients• HCL has opened a Centre in Buenos Airesin June 2009• Global Sourcing Solutions has openeda Centre in Buenos Aires since January2010. It has started off with 250 staff andhas plans to expand• Cellent, a Mumbai-based IT company, hasbought an Argentine start-up company“Net People” which specialises in softwarefor mobile phones• Aaliptha Software Company of Mysorehas got a seven million dollar sub-contractin 2008 to provide banking solutions toArgentine Credit Cooperative Bank• Flatworld Solutions has opened a Centrein Buenos Aires in January 2010. It hasstarted off with 100 staff and has plans toexpand• Aegis, a part of Essar group acquiredArgentine BPO company Actionline inOctober 2010• United Phosphorus Ltd (UPL) of Mumbaihas acquired two Argentine agrochemicalcompanies and a seed company andoperates four manufacturing units anda R&D unit employing 200 Argentines.UPL exports agrochemicals from itsplants in Argentina. The turnover of UPLArgentina is about $70 million and isexpected to increase• Punjab Chemicals and Crop ProtectionLtd (PCCPL) has acquired two Argentinecompany “Síntesis quimica” and operatestwo factories in Argentina producing andexporting agro chemicals. Their turnoveris about $25 million• Glenmark has acquired an Argentinepharma company “Servycal SA” whichspecialises in oncological products.They are setting up a new plant (to beinaugurated in end 2009) which willbecome the global centre of oncologicalproducts for the company. They arealready exporting to about 30 countries• Godrej has acquired two Argentinecompanies: Issue Group which is a leaderin hair colour and Argencos a cosmeticsbusiness in Argentina. The combinedturnover of $45 million. The Group has amanufacturing plant in Buenos Aires• Indian mining company, Indo BoraxChemicals Ltd has acquired small Boraxmine in Argentina in 2009• Reliance has formed a joint venture withan Argentine oil company Pluspetrol(The consortium includes Woodside ofAustralia) and they have won a concessionin Peru for oil and gas exploration• Srishti Group of Kolkota has signed(in 2009) a MoU with the provincialgovernment of Missiones to build a “VedicHotel” in the tourist resort of Iguazu• Ashok Leyland has signed a MoU withPlaza Group of Argentina for joint venturein production of buses and trucks• Tata Motors is exploring possibilities ofjoint ventures in vehicle production inArgentina• Sonalika Tractors has signed a MoU withan Argentine company for tractors andagricultural machinery• ONGC (OVL) has signed a MoU withENARSA, their Argentine counterpart forpossible joint ventures in Argentina for oilexploration• IFFCO is exploring the possibility ofsetting up a Urea plant in La pampa regionof ArgentinaNon-Resident Indian Companies inArgentina• ArcelorMittal has acquired the Argentinesteel company Acindar and steeldistribution company Majadalani forover $600 million• Sterling Group of India (owned by NRISivasankaran) has acquired a 1700 hectareolive farm in Catamarca Province ofArgentina• “Olam”, a NRI company with headquartersin Singapore has started farming inArgentina growing peanuts. They arediversifying into other crops such assoya and wheat. They have leased 17,000hectares of land and acquired two peanutprocessing plants• There are some Indians who are in textilesbusiness (imports, wholesale and retail) inBuenos AiresArgentinean companies in India• IMPSA, the Argentine engineeringcompany, specialising in hydroelectricprojects and energy, has opened anoffice in Gurgaon. They are exploringopportunities for projects as well as supplyof power generation equipments such asturbines. They source wind energy partsfrom India and outsource engineeringdesigns to Indian Companies• Biosidus, an Argentine pharma companyhas a proposal to invest $20 million ina new plant in India for production ofbiotech pharmaceuticals for Indian andAsian markets. They are already exportingover $3 million a year to India• BAGO, the leading Argentine pharmacompany has an office in Hyderabad.They have a joint venture operationwith Ranbaxy to market their productsin Thailand. Some Argentine companieshave shown interest in investment andjoint ventures in India in food processingand auto partsSources: Business.gov.in; Ministry of External Affairs,Government of India; Embassy of India in Argentina;76THE EXTRAORDINARY AND PLENIPOTENTIARY DIPLOMATIST • March 2013
special reportBusiness Opportunities in IndiaIndia’s unique and vast geography,endowed with diverse topography,has made it one of the most attractiveinvestment destinations in the world. It isthe world’s largest democracy with stablepolicy environment, law and order as wellas responsive administrative set-up. Ithas become a global resource for variousmanufacturing and services industry. It isa land of abundant natural resources likecoal, iron ore, manganese ore, mica, bauxite,petroleum, titanium ore, chromite, naturalgas, limestone, dolomite, kaolin, gypsum,apatite, phosphorite, steatite, fluorite, etc. Itslarge area is covered by lush green forestsproducing wide variety of products of highquality like timber. It is a home to rich andvaried vegetations endowed with differentclimatic conditions. It is rich in flora andfauna.The diverse economy of Indiaencompasses traditional village farming,modern agriculture, handicrafts, a widerange of modern industries and a multitudeof services. With the largest area of arableland, India is one of the world’s biggestfood producers. It is the largest producer ofmilk, sugarcane and tea as well as the secondlargest producer of rice, fruit and vegetables.India’s pool of technical manpower basewith an increasing disposable income andits burgeoning market have all combined toenable India emerge as a viable partner toglobal industry. It is the preferred hotspotfor organisations keen to outsource theirR&D activities, software developmentwork, customer contact centres or IT enabledbusiness processes. The top sectors attractinghighest Foreign Direct Investment (FDI)inflows into the country are: electricalequipments, services sector (financial and nonfinancial), telecommunications, transportationindustry, fuels, chemicals, constructionactivities, drugs and pharmaceuticals, foodprocessing, cement and gypsum products.Huge investment potential exists in theupcoming Knowledge Process Outsourcing(KPO) sector and the real estate industry.The Government of India is making allefforts to supplement all such advantagesof the country. It has made infrastructuredevelopment as one of the key area offocus. Sound and effective connectivity viarail, road, ports and air, between the IndianStates and with the rest of the world, is anecessity. Along with this, efficient powersupply and excellent telecommunicationnetwork plays a very important role in thecountry’s development. Accordingly, thegovernment has undertaken several policymeasures and incentives to attract investorsinto the country and provide a good qualityof life to the people.Thus, India is one of the few markets inthe world which offers high prospects forgrowth and earning potential in practicallyall areas of business, particularly in tourism,information technology (IT) and agriculturalsector. There exists immense investmentopportunities both at the national level andthe State level.Opportunities for ArgentineInvestors in IndiaAutomotive Sector• The country offers several advantages tointernational manufacturers who wish tomake the country their production hub. Itoffers expertise, low production costs andmillions of potential customers• The scale, quality and diversity of growingtalent pool in India offers significantopportunities to a global enterprise whichknows how to leverage this talent to globaladvantage• Government initiatives in the form oftax reductions on the development andproduction of hybrid vehicles are likely toprovide more opportunities to the globalplayers to foray the Indian automotivemarket• Steady growth is expected in the ruralmarket, which provides an opportunityfor players to increase their penetrationlevelsBiotechnology• Biosimilars: The use of biologics in varioustherapeutic areas such as cancer andauto-immune diseases is increasing andtheir genericisation is expected to bring anumber of opportunities for Indian playersin this space• Stem cell therapy: Stem cell therapy holdspotential for the treatment of diseasessuch as Parkinson’s disease, Alzheimer’sdisease, etc. The government and a numberTHE EXTRAORDINARY AND PLENIPOTENTIARY DIPLOMATIST • March 2013 77
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