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TATA – BiMBA “Sino-Indian Economic and Trade Collaboration Workshop”

Apr 18-2013   



 

By Lee Su 

 

On December 24th 2010, TATA – BiMBA “Sino-Indian Economic and Trade Collaboration Workshop”was hold at Langrunyuan. Prof. John Yang and the head of Career Development Maria Chai attended the workshop. The guests include, the President of TATA China, James Zhang, Vice President of TATA China, Frank Li, official from Indian Embassy Mr. Nagaraj Naidu and E.B Rajesh, Chief representative of Confederation of Indian Industry in China. 

The workshop broke down to 7 sections. After Prof. Yang’s welcome speech to TATA Group and other guests, Mr. Nagaraj Naidu, the official from Indian Embassy gave a speech on the current situation and prospect of Sino- Indian Economic and trade collaboration. “Two countries are on the move”, said Mr. Naidu. Both India and China have high rate of economical growth, and are recognized as the future superpowers. Currently, China has 50 billion of trade with India, and India is the second biggest market for Huawei. Mr. Naidu recognized the differences in developing history between China and India. “India leaped through manufacture to service industry from agriculture directly”, said Mr. Naidu. As a result, Indian’s IT industry, pharmaceutical and biotech industries are competitive worldwide. However, its telecommunication, road and construction industries are lacking behind. China on the other hand is on a more advantageous position, for example, China’s high speed railroad system and construction industry are much better off than other countries. Mr. Naidu stressed the need for Chinese companies to enter Indian market in areas that Indian is lacking behind. Vise versa, Mr. Naidu also indicated that more co-operations between India and China are necessary. 

 


Mr. E.B Rajesh, the Chief Representative of Confederation of India Industry (CII) in China, gave a presentation on CII and the opportunities and future challenges for Indian companies in China. 

CII is a non-governmental and non profit Indian organization. “CII’s sole purpose is to develop relationship with Chinese companies and looking for investment opportunities”, said Mr. Rajesh. Currently, only Indian Manufacturing, IT, Banking and trading companies are present in China. CII is trying to help more Indian companies in different industries to enter Chinese market. Though every body says China is a huge market, the reasons and motives behind this market development are still blurring. Mr. Rajesh provided some reasons and motives. 

1. Cost reduction; 
2. Offer local presence to international and domestic customers; 
3. Alternative sourcing base; 
4. Tap the largest domestic market; 
5. Satisfy the need of Indian OEMs which are present in China. 

Mr. Rajesh further listed current challenges for Indian companies in China. With tariff and non tariff barriers, close consumer loops, local content requirement and indigenous innovation, Indian companies are more or less facing the same challenges as other foreign entities. Therefore, in order to survive and compete in China, Indian companies need to target on potential growth sectors where Indian companies are in dominances, for example, IT, Pharmaceutical and auto components. 

Mr. James Zhang, the President of Tata Group China, Introduced Tata Group. “Last year, Tata Group’s total revenue was $67 billion”, said Mr. Zhang with pride. Today, Tata Group controls a total of 29 companies including TCS, Teleservice, Tata Motors and Tata steel. 2/3 of Tata’s shares are owned by charitable organizations, 10% are owned by founding family and the rest are owned by investors. Mr. Zhang said that Tata’s shareholding structure makes Tata different from other Indian companies. The unique diversified company culture and exceptional revenue set the example for companies that wanting to go overseas. Prof. Yang discussed more on how Chinese companies can learn from Indian companies like Tata Group. 

“Lots of Chinese companies are planning to go overseas. Some of them are successful, some may not be so lucky”, said Prof. Yang. Chinese companies are very much influenced by Chinese culture and value, but there isn’t a clear company value and vision within the organization. Without a clear vision, Chinese companies are incapable of developing their core competitiveness to compete at the global market. “Chinese companies need to learn from Indian companies,” said Prof. Yang. Indian companies set clear goals, for example, Tata Group’s goal is to compete with IBM. With a clear vision, companies are able to attract more international talents to better represent themselves. Prof. Yang said, “Many Chinese private enterprises’ international representatives have none or little international exposure. Therefore, those Chinese companies fail to understand the different way of thinking.” 

The last part of the workshop was panel discussion and Q&A session. The topic was what are the opportunities and challenges in both China and India. After an enthusiastic discussion from all panelists, they came up with a conclusion that India and China need to know each other better. Some students raised question that whether Indian companies are capable of compete against Western companies. Mr. Nagaraj Naidu said, “Indian companies are global, but they act locally.” He gave an example of Tata. “Tata Group hires Chinese for their businesses in China, as you can see James Zhang is a native Chinese”, said Mr. Naidu. At the end of the Q&A session, Prof. Yang commended on the entire workshop. “If Chinese companies want to go overseas, then they have to be open and transparent in term of international mentality”, said Prof. Yang. There are many things that Chinese can learn from Indian. In a global market, Chinese must adapt a global mindset, and walk out the traditional Chinese culture, for example, saving face and modesty. So that more Chinese companies can be ranked in the Fortune 500 list.

TATA – BiMBA “Sino-Indian Economic and Trade Collaboration Workshop”

Apr 18-2013   



 

By Lee Su 

 

On December 24th 2010, TATA – BiMBA “Sino-Indian Economic and Trade Collaboration Workshop”was hold at Langrunyuan. Prof. John Yang and the head of Career Development Maria Chai attended the workshop. The guests include, the President of TATA China, James Zhang, Vice President of TATA China, Frank Li, official from Indian Embassy Mr. Nagaraj Naidu and E.B Rajesh, Chief representative of Confederation of Indian Industry in China. 

The workshop broke down to 7 sections. After Prof. Yang’s welcome speech to TATA Group and other guests, Mr. Nagaraj Naidu, the official from Indian Embassy gave a speech on the current situation and prospect of Sino- Indian Economic and trade collaboration. “Two countries are on the move”, said Mr. Naidu. Both India and China have high rate of economical growth, and are recognized as the future superpowers. Currently, China has 50 billion of trade with India, and India is the second biggest market for Huawei. Mr. Naidu recognized the differences in developing history between China and India. “India leaped through manufacture to service industry from agriculture directly”, said Mr. Naidu. As a result, Indian’s IT industry, pharmaceutical and biotech industries are competitive worldwide. However, its telecommunication, road and construction industries are lacking behind. China on the other hand is on a more advantageous position, for example, China’s high speed railroad system and construction industry are much better off than other countries. Mr. Naidu stressed the need for Chinese companies to enter Indian market in areas that Indian is lacking behind. Vise versa, Mr. Naidu also indicated that more co-operations between India and China are necessary. 

 


Mr. E.B Rajesh, the Chief Representative of Confederation of India Industry (CII) in China, gave a presentation on CII and the opportunities and future challenges for Indian companies in China. 

CII is a non-governmental and non profit Indian organization. “CII’s sole purpose is to develop relationship with Chinese companies and looking for investment opportunities”, said Mr. Rajesh. Currently, only Indian Manufacturing, IT, Banking and trading companies are present in China. CII is trying to help more Indian companies in different industries to enter Chinese market. Though every body says China is a huge market, the reasons and motives behind this market development are still blurring. Mr. Rajesh provided some reasons and motives. 

1. Cost reduction; 
2. Offer local presence to international and domestic customers; 
3. Alternative sourcing base; 
4. Tap the largest domestic market; 
5. Satisfy the need of Indian OEMs which are present in China. 

Mr. Rajesh further listed current challenges for Indian companies in China. With tariff and non tariff barriers, close consumer loops, local content requirement and indigenous innovation, Indian companies are more or less facing the same challenges as other foreign entities. Therefore, in order to survive and compete in China, Indian companies need to target on potential growth sectors where Indian companies are in dominances, for example, IT, Pharmaceutical and auto components. 

Mr. James Zhang, the President of Tata Group China, Introduced Tata Group. “Last year, Tata Group’s total revenue was $67 billion”, said Mr. Zhang with pride. Today, Tata Group controls a total of 29 companies including TCS, Teleservice, Tata Motors and Tata steel. 2/3 of Tata’s shares are owned by charitable organizations, 10% are owned by founding family and the rest are owned by investors. Mr. Zhang said that Tata’s shareholding structure makes Tata different from other Indian companies. The unique diversified company culture and exceptional revenue set the example for companies that wanting to go overseas. Prof. Yang discussed more on how Chinese companies can learn from Indian companies like Tata Group. 

“Lots of Chinese companies are planning to go overseas. Some of them are successful, some may not be so lucky”, said Prof. Yang. Chinese companies are very much influenced by Chinese culture and value, but there isn’t a clear company value and vision within the organization. Without a clear vision, Chinese companies are incapable of developing their core competitiveness to compete at the global market. “Chinese companies need to learn from Indian companies,” said Prof. Yang. Indian companies set clear goals, for example, Tata Group’s goal is to compete with IBM. With a clear vision, companies are able to attract more international talents to better represent themselves. Prof. Yang said, “Many Chinese private enterprises’ international representatives have none or little international exposure. Therefore, those Chinese companies fail to understand the different way of thinking.” 

The last part of the workshop was panel discussion and Q&A session. The topic was what are the opportunities and challenges in both China and India. After an enthusiastic discussion from all panelists, they came up with a conclusion that India and China need to know each other better. Some students raised question that whether Indian companies are capable of compete against Western companies. Mr. Nagaraj Naidu said, “Indian companies are global, but they act locally.” He gave an example of Tata. “Tata Group hires Chinese for their businesses in China, as you can see James Zhang is a native Chinese”, said Mr. Naidu. At the end of the Q&A session, Prof. Yang commended on the entire workshop. “If Chinese companies want to go overseas, then they have to be open and transparent in term of international mentality”, said Prof. Yang. There are many things that Chinese can learn from Indian. In a global market, Chinese must adapt a global mindset, and walk out the traditional Chinese culture, for example, saving face and modesty. So that more Chinese companies can be ranked in the Fortune 500 list.