UK India Business Exchange 02 - Andhra Pradesh: Taking Off

View from Hyderabad When the Mayor was “lost for words”

UKTI’s new SME portal One-stop vision moves into cyberspace

E-hospital venture BT driving innovative ICT strategy

BUSINESS EXCHANGE Promoting bilateral trade & investment between THE UK & India Issue 02

www.ukibc.com

A n d hra Pr adesh

T aking Off

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Business Exchange Issue 02 www.ukibc.com

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Contents Mission Statement

Business Exchange UKIBC Business Exchange is the UK India Business Council’s new flagship publication, which highlights business opportunities between both countries, predicts trends, profiles success stories, offers tips and practical advice, and carries in-depth interviews and analysis with business leaders and policy makers.

Published each quarter, the magazine is aimed at business people interested in bilateral trade opportunities between India and the UK.

The UK India Business Council is a business-led organisation promoting business links between the two countries. Our mission is to facilitate an increase in trade through business-to-business dialogue. We inform UK Plc of the opportunities in India and, more importantly, how they can capture them.

Through our partnership with UKTI, and with an extensive network of influential corporate members, we provide the resource, knowledge and infrastructure support vital for UK companies to capitalise on the opportunities in India. For more information please see www.ukibc.com

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Foreword

Editors: Adam Pollard, Pavel Choudhury & Ian Halstead

Andhra Pradesh Facts Production: Open Box (ob-mc.co.uk) For magazine enquiries please contact comms@ukibc.com

View from Hyderabad

Contact Details:

Take-off for Catapult

UK India Business Council HEAD OFFICE 12th Floor, Millbank Tower The Jaivel story 21-24 Millbank London SW1P 4QP United Kingdom View from the Top t: +44 (0) 207 592 3040 e: enquiries@ukibc.com w: www.ukibc.com Indian Business News Advertising enquiries: Open Box Regent Court 68 Caroline Street Jewellery Quarter Birmingham B3 1UG United Kingdom t: +44 (0)121 200 7820 e: inside@ob-mc.co.uk w: www.ob-mc.co.uk

UKIBC news & events

Andhra Pradesh culture

New SME e-portal

25 26 28 30 31 32 34 35

E-governance

ICT healthcare

Ingrid’s journey

College goes global

Need to know - IMM

CEO profile

Point of View - IP

UKIBC Advisory Council forms

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How to - On a delegation

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Business Exchange Issue 02 www.ukibc.com

Foreword

Welcome, Many UK businesses first enter Andhra Pradesh via Rajiv Gandhi International Airport (RGIA) in Hyderabad.

Designed as a three phase project, construction began in September 2005; phase 1 of RGIA was opened just over two years later. On opening, it was named amongst the world’s top five in the annual Airport Service Quality passenger survey along with Seoul, Singapore, Hong Kong and Beijing.

RGIA highlights the focus within Andhra Pradesh of getting the basic things right within a structured plan and is just one of the reasons why it is a favoured destination for a growing number of UK businesses.

In many ways, the airport exemplifies the increasing positives within the 28 states and seven Union territories.

Already, Terminal 1 is being expanded to an area of 300,000 m² (3,200,000 sq ft) to cater to the growing demand. A low cost terminal is also being expanded to its full capacity of 18 million passengers per annum.

The total developed area at the end of the third phase will bring the total built-up area to 960,000m² (10,300,000 sq ft), with capacity for 40 million passengers per annum.

The airport is located approximately 30 km (19 miles) from central Hyderabad and has excellent connectivity to the city centre. At the same time, the Hyderabad Metropolitan Development Authority has developed a hotel corridor, called Regal Broadway, to cater to an estimated five million visitors to the city.

All of this detail demonstrates the logic with which the Andhra Pradesh authorities pursue their not insignificant ambitions. This is illustrated in other areas – the number of SEZs (Special Economic Zones), the

In partnership with:

business friendly environment and the state Authority’s public embrace of e-governance. In January 2012, I was present when the Chief Minister announced that a raft of licenses and permits could be applied for online.

Andhra Pradesh is a vast state and one which benefits from a rich multicultural heritage. It is also a state which has recognised that attracting inbound investment is critical to a sustainable development.

It has an agenda and an ability to roll it out.

Andhra Pradesh is also a state benefitting from an upgrade of the UK’s presence to that of Deputy High Commission. Staffed by motivated and keen personnel it is a resource which should be used by incoming companies.

My colleagues and I were delighted by the reaction to the October issue of this magazine. Mind you, not wishing to rest on our laurels, we did sit down immediately afterwards and wrap cold towels around our heads to try to see which elements we could improve. We want more constructive recommendations for assistance for market entry and greater insight into the sectors and industry. Both of these, we would like to achieve without losing the critical entry level knowledge.

Rajiv Gandhi International Airport, Hyderabad

This edition is packed with useful information, from our ‘How to’ on delegations, advice on protecting your intellectual property in India, and a feature on how to make the most of UKTI’s new service Open to Export.

I hope you can see and appreciate the ‘tweaks’ we have made and that you find the articles and features insightful, but more importantly useful.

Yours sincerely, Richard Heald Chief Executive, UKIBC

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View from India

UKIBC Partners with Vibrant Gujarat Summit

By Kevin McCole

With over six million visitors across five days and a stellar line up of India’s top business figures, Vibrant Gujarat was clearly the place to be from 8-13th January.

Gujarat is one of the fastest growing and most developed states in India. Its strategic location on the western coast of the country and the state Government’s emphasis on transparent, progressive and empowered governance and infrastructure-led development have helped it rapidly become a preferred choice for both domestic and international investors.

UK business was up in lights at Vibrant Gujarat, with a 70-strong business delegation, led by British High Commissioner to India, Sir James Bevan KCMG, and UKIBC Chair, Patricia Hewitt. The group was as diverse as it was large and had representatives from advanced engineering, skills and education, food processing, the professional services, and creative industries. Equally, the delegation comprised of large multi-nationals, as well as innovative SMEs. With UKIBC and UKTI bringing businesses from the UK and from across India, the UK made a huge impact at the summit, including two UKIBCrun seminars: one on skills and education and one on innovation in technology collaboration. The companies addressing the audiences were City and Guilds, A4e, Learn Direct, AgustaWestland, Jaivel and Delcam.

Both Sir James Bevan, and Patricia Hewitt addressed the inaugural session, where speakers included Ratan Tata, Chairman Emeritus of Tata Group, and Mukesh Dhirubhai Ambani, the Chairman and CEO of Reliance Industries Limited.

Sir James won loud applause when he described himself as a son of Gujarat - referring to his birthplace, Leicester, which, of course, has more Gujaratis than any city outside Gujarat itself.

And Patricia Hewitt wowed the delegates - and TV and YouTube audiences - by opening her speech in Gujarati.

Patrica with Modi

Patricia’s message was simple, and firmly hit the spot with the 15,000 strong audience and millions more watching live on TV. She spoke of how “we all know the importance of B2B and B2C connections, but we look beyond them. We want B2G and G2B connections Britain to Gujarat and Gujarat to Britain.”

In subsequent meetings with the Chief Minister, Narendra Modi, the UKIBC and its delegates agreed to work on two main areas of opportunity with the state of Gujarat. Firstly, on healthcare, including infrastructure, training, and technology. With a second area of co-operation on skills development where it was agreed to work with Gujarati employers, training providers, and the nascent Gujarat Skills Development Corporation to bring UK experience to the state.

The Chief Minister explained that new initiatives will lead to a creation of more than three million additional jobs, and stated that despite the global slowdown, the growth rate was not adversely affected in the State of Gujarat.

Previously, UKIBC Chair, Rt Hon Patricia Hewitt came to Ahmedabad as Secretary of State for Trade and Industry in 2001 to open the British Trade Office – the first overseas trade office in the State. Speaking about the changes in Gujarat since then, Patricia Hewitt said: “We saw the potential, but never dreamt it would grow so fast, becoming India’s No.1 business-friendly state or grow faster than China.”

“The more we trade and invest together, the more we will create growth and jobs for all our people, in both India and Britain,” she added.

HOW TO JOIN A DELEGATION: Delegations can be a great way to see the Indian market. Business missions to India will introduce you to Indian contacts and potential partners.

If your business requires officiallevel engagement such as with Indian state and central governments, then contact the UKIBC or UKTI. This route is far more effective than attempting to seek these contacts independently.

Get in touch to find out more Direct: +44 (0)20 7592 3040 Email: events@ukibc.com

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Business Exchange Issue 02 www.ukibc.com

State Fact Sheet: Andhra Pradesh

By Richard Hyde British Deputy High Commissioner – Hyderabad

Andhra Pradesh is a great place to do business, and has a very investor-friendly attitude, so I really would urge British companies to look closely at what the state has to offer regardless of their size or sector.

I’ve seen businesses employing just a handful of people succeed here, just as often as corporations employing thousands of staff.

Hyderabad may be a global centre for giant quoted corporations including Google, Facebook and Microsoft - but it’s also home to many family owned businesses, led by dynamic entrepreneurs looking to establish partnerships with their UK peers.

The most enjoyable aspect of my job is seeing such relationships develop from fledgling ventures into productive and two-way commercial enterprises.

There are lots of brilliant ideas coming forward in India, which may not be viable for the domestic market, but would work well in the UK - and vice versa.

Recently, we had a perfect example of such a knowledge flow, when discussing how Andhra Pradesh’s coastline, which is almost 1,000 km long, might suit desalination projects.

A colleague knew of a UK start-up, which could produce pure water at half the usual cost of desalinated water. We put the two parties in touch, to get this venture off the ground. Equally, many new partnerships lie outside traditional business sectors.

In the last few years, I’ve seen many British universities, like Oxford, Cambridge, the LSE, Queen’s, Belfast, London Imperial College, Cranfield and Loughborough, who now have established relationships across India.

However, my key message to them is the same for British businesses in all sectors: there are lots of opportunities; come and speak with us, we can help you find them.

We have a bright, young and enthusiastic team: Including Arun Pillai (Pillai) and his UK Trade & Investment team, we have experts who can help companies understand the political context, uncover renewable and low-carbon opportunities and access the abundant talent of the region.

They can plug you into a wide range of contacts and help to guide you toward India - and hopefully, toward Hyderabad and Andhra Pradesh.

India is a large and sometimes complicated place, judged from any perspective. So do contact us, use us and let us help you shape your market-entry strategy. It will be worth it. I promise.

Area:

275,045km² - 11% bigger than UK; New Zealand is 268,021km²

Population:

84,655,533 – 26% bigger than the UK and slightly bigger than Egypt.

How to get there:

Jet Airways > London Heathrow – Mumbai Hyderabad, Hyderabad International Airport

Capital:

Hyderabad (approximately 7 million people, similar size to Hong Kong)

Climate:

Summer > March – June 20-40oC. July – September brings tropical rain.

Winter > October – February 13-30oC.

Language:

Telugu, Urdu and English

Ports:

Vishakhapatnam and Kakinada.

Road Network: 4472km

SH 1 > Hyderabad – Karimnagar Ramagundam SH 7 > Devarapalli – West Godavari – Tallada – Khammam SH 2 > Narkatpally – Miryalguda – Piduguralla & Addanki – Mederametla SH 188 > Chittoor – Yadamari – Gudiyattam – Pernambut

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If you need assistance with your business...

Main Business Centres:

Hyderabad, Visakhapatnam, Vijayawada, Guntur, Warangal and Nellore.

Arun Pillai Deputy Head of Mission and Head of Trade and Investment British Deputy High Commission 2nd Floor Taj Deccan Hotel, Road No. 1, Banjara Hills, Hyderabad 500034

Andhra Pradesh is known as the ‘Rice Bowl of India’.

Agriculture is the driving force for the State’s economy.

Hyderabad is known as Cyberabad due to its IT industry - expanding at a rate of 52.3% every year.

Andhra Pradesh is second in India in terms of mineral wealth. The state has about one-third of India’s limestone reserves, estimated at 30 billion tonnes.

Ranked first nationwide in hydroelectricity generation with national market share of over 11%.

Investor profile – Government 48.7%, Foreign 21.2% and Indian 30.1%.

The Telugu film industry is the second-largest in India.

Tel. +91 40 66669147 Fax: +91 22 22833928 / 66502328 Email: uktihyderabad@fco.gov.uk

Chamber of Commerce:

Andhra Chamber of Commerce T.G. Venkatesh Bhavan, 602 & 603, 6th Floor, Chenoy Trade Centre, 116, Park Lane, P.B.No.1716, Secunderabad - 500 003.

Andhra Pradesh Andhra Chamber of Commerce Door No.43-19-30, Venkataraju Nagar, Dondaparthy, Near TSN Colony, Visakhapatnam - 530 016.

Andhra Pradesh Secretary: Shri P.Nandagopal T: +91 40 24315278 F: +91 40 24315279 E: andhrachamber@airtelmail.in

WARANGAL

VISAKHAPATNAM

Growth rate:

HYDERABAD

6.81% KAKINADA VIJAYAWADA

GUNTUR

NELLORE

GDP per capita: $1,316

GDP:

$122.600billion > Belgium ($413billion), Spain ($1.4trillion) and UK ($2.3trillion).

SEZ incentives (from APSEZ.co.in)

Exemptions from Customs duty on imports.

Exemptions from Central Excise duty on procurement from domestic market.

Reimbursement of Central Sales Tax paid on domestic purchase.

100% Income Tax exemption for Block of 5 years, 50% tax exemption for 2 years and up to 50% of the profits ploughed back for next 3 years.

Exemption from payment of VAT. Exemption from payment of Royalties & Cess on construction materials.

Exemption from Sales Tax. Exemption from Stamps Duty & Registration Charges.

Register with Overseas Business Risk:

(http://www.ukti.gov.uk/export/ countries/asiapacific/southasia/ india/overseasbusinessrisk.html) if your business faces issues such as cyber risks, bribery and corruption. Overseas Business Risk is brought together by UKTI and FCO to give you access to strategic information on the issues and risks related to business security in a wide selection of markets.

Register with LOCATE before you travel.

Special Economic Zones (SEZs): 152 (Operational + Approved).

These SEZs include Pharmaceuticals, Textiles, Gems & Jewellery The country’s first aerospace and precision engineering SEZ is taking shape at a location close to Rajiv Gandhi International Airport, Hyderabad. This emerging aerospace manufacturing cluster at Adibatla will focus on defence equipment, commercial aircraft components, testing and calibration labs, a commercial MRO and flying training hub. It will also include design and development of satellites.

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Business Exchange Issue 02 www.ukibc.com

Andhra Pradesh

The day Boris was too surprised to speak...

Boris (left) hears the Hyderabad story from Richard Hyde, Deputy High Commissioner

British Deputy High Commissioner, Richard Hyde, tells Ian Halstead why Andhra Pradesh is the place to be for UK corporates - big or small.

Rarely is London’s flamboyant mayor, Boris Johnson, stuck for words, but even he was taken aback on his recent whirlwind visit to Hyderabad.

“He was very impressed by the idea of a new style of urban community, focused around an airport and its infrastructure, which is being delivered in Hyderabad,” says Richard, who accompanied and advised the mayor.

“GMR, which built and operates Hyderabad’s Rajiv Gandhi International Airport and Delhi’s impressive new airport, worked with the urban designer, Professor John Kasada, who coined the ‘aerotropolis‘ tag, which really seemed to catch Boris’ attention.”

“However, what really made him stop was when we took his team to Infotech, an engineering services company here in Hyderabad, which is developing advanced signalling software for the main train station in Reading. We’ve also helped Infotech invest in the UK.

Companies with HQs in the state - including GMR, GVK, IVRCL and Lanco - control four major airports, a third of India’s power projects, and half its active road construction schemes.

“We sat Boris down with an engineer working on the project, and he was lost for words. Not for long, of course, but you could see he was genuinely surprised by the breadth of business opportunities, and the global nature of companies based here.”

Even the country’s self-styled economic powerhouse, Gujarat, needs a helping hand, with much of the investment in its sustainable energy sector coming from companies based in Andhra Pradesh.

The scale, and economic power, of Andhra Pradesh’s business community is underlined by even the merest glance at the major players in India’s infrastructure sector.

Richard Hyde reels off impressive statistics to support his case, that British companies - whether blue-chips, mid-sized corporates or SMEs - really should take a closer look at opportunities in the state.

“We sat Boris down with an engineer working on the project, and he was lost for words.”

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CONTACT: S Kannan Director Confederation of Indian Industry Andhra Pradesh H. No. 1-11-252/9 Plot No.7, Regal House Motilal Nehru Nagar, Begumpet Hyderabad - 500 016 T: +91 40 27765964/67/33 F: +91 40 2776616 E: s.kannan@cii.in

CONTACT: Akhilesh Mahurkar Director, FICCI Andhra Pradesh 8-2-601, Plot #13 4th Floor, NNR Arcade Above South Indian Bank Road Number 10, Banjara Hills Hyderabad - 500 034 T: +91 40 2339527576 / 40 64548848 F: +91 40 2339527576 E: akhilesh. mahurkar@ficci.com

Although Gujarat has much to offer, Andhra Pradesh has a higher per capita GDP, significantly more universities, and more than twice the number of Special Economic Zones. (SEZs).

partnership with Sarah, and she’s now on board as an investor and advisor, and they are sharing best practice, enhancing their curricula, and focusing on new parent support mechanisms.”

“Wherever you go in India, and I have travelled widely in the past five years, you hear about what SEZs are going to do. In most places, they are just plans, but here there are more than 30 operational zones, which are real, doing well and growing all the time,” says Richard, with visible pride.

The third instance of how links between Britain and Andhra Pradesh are generating gains for both economies comes from the high-profile Indian pharmaceutical business, Dr Reddy’s Laboratories, which is headquartered in Hyderabad.

“The largest - APSEZ - covers almost 10,000 acres, and has excellent links to ports, the railway and an airport, because if one thing sets this state apart, it’s the ability to deliver properly planned infrastructure.

“For British companies looking here, infrastructure provision should be a major focus, along with oil & gas, advanced engineering, sustainable energy - especially solar and land-based wind power, education, ICT, creative industries and biopharma. ”It’s relatively easy for foreign companies to come in, and to establish themselves in the SEZs, because Andhra Pradesh is eager to establish business clusters in its target sectors, and it’s long been a businessfriendly environment.”

The partnership route has proved the most productive for UK-India hook-ups, and Richard cites a trio of very different relationships, which have blossomed recently in the state for which he makes such a powerful advocate.

“Quantum Clothing is a great example of how innovative business models can work. A UK company that came here because they liked the ‘can do‘ mindset, set up a large production plant and then took on 2,400 young ladies,” he says “They trained all their employees, upskilled those who didn’t have the correct skill-set, and now their clothes are being worn across Britain by customers of Marks & Spencer.”

At the opposite end of the corporate scale, Richard and his team helped bring together a local company, and an SME based in rural Oxfordshire - The Old Station Nursery Group.

“I’ll be honest, when the group MD, Sarah Steel, first got in touch, saying her business model could transfer to India, and she’d like to engage with a local provider of ‘Early Years education, it seemed just too left-field, but we tried as best we could on her behalf,” he recalls.

“She was right though. In 2012, Sunshine Preschools and Daycare signed a strategic

“They built their business in the bulk generic drug area, because that’s what the Indian market required,” says Richard.

“However, as their international presence grew, they looked to invest much more in R&D, and in highervalue products. We helped them set up relationships, especially with Cambridge University, and they now have three manufacturing plants, and an R&D centre, in the UK. “I was talking to the CEO of Dr Reddy’s in November, and they now have something like 50 PhDs driving their R&D in the UK. There is a real flow of information and data between the two countries and Dr Reddy’s has now built a zero emissions centre here, using that knowledge.

“The three sectors - fashion, nursery education and biopharma - couldn’t be more different, which underlines the breadth of opportunities to be found here.

“In my five years in India I don’t recall a UK venture failing. Of course I’ve told some UK companies that this market isn’t right for them. But someone with a good idea or product, who is prepared to put in the time and effort to build relationships can’t go too far wrong. And of course, we are here to help them succeed.”

What Next?

CONTACT: Arun Pillai Deputy Head of Mission British Deputy High Commission Hotel Taj Deccan Road No 1 Banjara Hills Hyderabad - 500 034 M: +91 98660 16747 E: arun.pillai@fco.gov.uk

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Business Exchange Issue 02 www.ukibc.com

Advanced Engineering & Manufacturing

Catapult concept on the runway Two years of intensive research and planning to create new relationships between Britain’s aerospace sector and its Indian counterparts, look set to pay off during 2013.

An innovative collaboration model will see Indian companies invest directly into the UK’s worldclass manufacturing R&D centres in the Catapult programme, and British companies embedded into India’s aerospace supply chains.

The new relationship has been informed, throughout its gradual evolution, by regular high-level dialogues between leading companies from the aerospace, defence and security sectors in both countries, facilitated by the UKIBC. The last event, at Farnborough last summer, attracted such major players as Mahindra Aerospace, HCL, HAL, Reliance, Rolls-Royce, EADS, BAe Systems, AgustaWestland and Airbus, and another meeting will be held in India, most likely in the next three months.

The round tables are an essential element of the new bilateral relationships, as key issues - supply chain development, capability gaps, the formation of joint ventures, R&D collaborations and the enhancement of manufacturing skills - can be discussed informally and at a senior level.

What Next?

CONTACT: Paul Calver UKTI Sector Specialist Advanced Manufacturing Strategic Trade Group T: +44 (0)207 215 8000 E: Paul.Calver@uktispecialist.com

“These large projects, which involve global primes like ourselves, offer the best opportunities for our international supply chains to partner with Indian industry.

“The recent updates to the Indian offset policy are greatly welcomed, and should make it easier for our supply chains to help meet our offset obligations.

“Not only is it easier now for suppliers to qualify for offset, when subcontracting to primes, the new rules allow greater scope for technology transfer, and investment in joint ventures.”

The ambitious strategy - now being driven forward

by UK Trade and Investment (UKTI) and the UK Department for Business, Innovation & Skills (BIS) - will support Britain’s ’primes’, as they look to win increasingly valuable work from Indian partners.

Paul Calver - UKTI, Sector Specialist, Advanced Manufacturing Strategic Trade Group - is tasked with helping UK companies become embedded in Indian supply chains, supporting the ambitions of the primes, such as BAe Systems and AgustaWestland, via his work with the JETCO (UK-India Joint Economic & Trade Committee) initiatives.

“India is a key market for us, because the government has so many large defence projects planned for the next few years,” says Michael Christie, a senior vice-president (India) with the military, air and information arm of BAe Systems

After almost 30 years in the aerospace industry - including senior management experience with Cobham plc, following time with BAe Systems, and as a successful entrepreneur - he’s ideally placed to bring the new approach forward.

“India has the financial resources to buy huge amounts of technology, but they don’t have the decades of supply chain management expertise which we have acquired.”

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The Red Arrows at the Farnborough International Airshow

“The manufacturing sub-group of JETCO has four core aims; to improve supply chain efficiencies, stimulate technological collaborations, increase skills and training levels in manufacturing, and to introduce clean and energy efficient production,” says Paul.

“At the last meeting, the focus was how the UK can collectively help India to develop the eco-system of its aerospace industry, which is a key element of its economic strategy.

“India has the financial resources to buy huge amounts of technology, but they don’t have the decades of supply chain management expertise which we have acquired, or the many years of experience in driving, managing and delivering high-quality products for aerospace. ”India knows that it needs knowledge and capability to achieve its aims, and we are looking to exchange that in return for market access, so everyone wins.”

Paul says India also faces significant challenges in training the required middle management and factoryfloor staff to work within its aerospace companies.

“At the moment, it doesn’t really have this tier of

workforce. The technology institutes are certainly there, as are the PSUs (Public Sector Undertakings), but the links between them aren’t yet in place,” he says.

“However, we have our technology strategy board, and the seven high-value manufacturing Catapult centres, which are driving collaborations between the primes, SMEs and academia, and India likes that approach.

“A Catapult centre could be set up in India, to demonstrate how the concept works, and to look at various funding models. At the same time, we’d also like individual Indian companies to invest directly into our centres.

“In October we held a supply chain event in the UK which we intend to follow up with a Supply Chain Partnering mission to Aero Indian in February” says Paul.

“We are also planning a possible further mission in March 2013 that may focus on bringing KTPs (Knowledge Transfer Partnerships) forward.”

“Even after two years, we’re still evolving and finetuning our efforts, together with UKIBC, and we expect to see significant progress as we move through 2013.”

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Business Exchange Issue 02 www.ukibc.com

Advanced Engineering & Manufacturing

Jaivel gets Bloodhound on the right trail All visuals from the Bloodhound SSC project.

Credit: Curventa & Siemens.

Ian Halstead catches up with entrepreneur Vipul Vachhani, to learn how his organisation, Jaivel, made the journey from India to the UK. Jaivel is now solidly established on the European aerospace scene, working with primes and OEMs (Original Equipment Manufacturer), and on such high-profile platforms as the A350XWB, the A380 and the Trent family of power-plants.

Its ability to conceptualise and develop intelligent systems, processes and engineering solutions, using engineers and business experts at its centres in India and the UK, is driving significant efficiencies into Britain’s aerospace component manufacturers.

Put simply, Jaivel helps advanced engineering companies to make more from less - allowing them to underpin their growth strategies, by becoming more profitable and sustainable.

Its four centres - Bangalore, Mumbai, Rajkot and Mansfield - all contain a mix of product designers, process specialists, software/CNC programmers and project managers, allowing collaborative two-way working between the UK and India.

The client list at Jaivel’s East Midlands HQ is packed with OEMs and Tier One suppliers from the global aerospace community, and it’s just won its first pilot project from Germany, for the Eurocopter consortium.

Talks are also underway with three similar organisations in Germany and France, and Jaivel is hoping to establish a base in mainland Europe.

At the purely corporate level, it’s an impressive raft of achievements, especially given that its first foray into the European market came just eight years ago.

However, the real story about Jaivel’s success is about entrepreneurial zeal - and a whole lot of effort.

Jaivel’s founder and CEO is Vipul Vachhani, a softlyspoken individual who qualified as a mechanical engineer, before completing his degree studies in Bangalore, and then spending a year working in the United States.

Back home in India, he founded Jaivel in 1998 creating its unusual name from the initials of his father and grandfather - and once the business was running smoothly, his attention turned to Western Europe.

“We were exploring opportunities in both the UK and the US, but didn’t have a physical presence outside India, so it was mainly through researching on the internet, although we‘d also met some people from Western Europe in India, on outward trade missions,” says Vipul.

“Typically, we were dealing with Tier Two suppliers, and telling them we could make their production more efficient, that we could design manufacturing processes to save them money, and that we could redesign their components to reduce their raw material costs.

“We were also telling them that we could select more efficient machine tools and jigs, and that we could improve the throughput of their manufacturing operations. It wasn’t easy, especially as we were so far away, but eventually we had successes in France, Norway and Sweden.

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“At that stage, we realised we needed to be closer to our clients, and so during 2004, we began looking at a market-entry strategy for the UK.” Given the strength of the aerospace community in the East Midlands, it was an obvious starting point, and Vipul pays tribute to the assistance of the nowabolished regional development agency, emda.

“They really were great for us. They came up with a list of potential locations, and we went to the innovation centre at Loughborough University,” he says. “Right from the start, we presented ourselves as a technology company, not an outsourcing company.

“Then we had to attract clients in the aerospace supply chain, so we just started contacting them - as we had done in Europe. It was quite an aggressive approach for a company of our size, but we believed in what we had to offer, and so it was all about opening doors.

“For the first 18 months or so, it was really tough, but then we got our first positive responses, and were given trial projects by two companies. I remember the feeling, it was so exciting, and it made all the hard work worthwhile.

VIPUL’S TIP:

“Encourage collaborative working between your UK and Indian operations, and reap the rewards.”

What Next?

CONTACT: Prasenjit Dhar UKIBC Aerospace Specialist T: + 44 (0) 207 592 3844 E: prasenjit.dhar@ukibc.com

“By the time our lease at Loughborough expired, we were winning work, mainly from Tier One suppliers based between Derby and Hucknall (in Nottinghamshire). It made sense to move to an office along that corridor, and as two of our key employees came from Mansfield, we came here.

“Everything has been just brilliant. We now employ 14 people here, and 75 back in India, and they’re all full-time, so we have the firepower to really deliver for clients.

“We’ve always been keen to develop collaborative working, so our engineers in the UK often devise solutions with their colleagues in Bangalore, Mumbai and Rajkot for clients here, and vice-versa. It’s a form of technology transfer, but at the intellectual and virtual level.”

However, there is nothing remotely virtual about the most intriguing element in Jaivel’s portfolio; the UK’s Bloodhound SSC project, which aims to leave the present world land-speed record in tatters by setting a new high of 1,000 mph, using a vehicle powered by jets and rockets.

In the medium-term, the venture is about identifying a suitable desert site for the speed attempt, perfecting its rocket technology, and then spending two or three ’seasons’ building up to the final target.

Vipul and his Jaivel team are product sponsors, providing manufacturing and engineering services to the Bloodhound team, which achieved a major milestone in October 2012, when its hybrid power system was successfully tested off the Cornish coast.

However, Bloodhound SSC is also about inspiring a new generation of scientists, engineers and mathematicians to realise the endless possibilities which technology offers.

“For me, life is about pushing the boundaries, then having the energy and the desire to reach them, and the tremendous work which the Bloodhound people are doing in schools and universities is stimulating youngsters to consider their own career paths,” says Vipul.

“The industrial revolution changed, forever, the way mankind made things. Centuries were spent developing manufacturing skills and optimising techniques, until the arrival of the computer.

“The late 20th century saw the evolution of continuous improvement techniques, which in many cases pushed manufacturing to near perfection, Today, the concept of ‘disruptive innovations’ in technology, and their integration into manufacturing, is changing it all-over again.”

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Business Exchange Issue 02 www.ukibc.com

View from the Top

Fashion brands turn their eyes to India Foreign direct investment (FDI) will transform India’s retail scenario. Ian Halstead caught up with Bombay Realty’s Pritti Ravindra to hear her thoughts on the subject.

It only takes moments in her effervescent presence to understand why Pritti has become her company’s global brand ambassador, as it looks to deliver India’s first luxury shopping destination - in the heart of Mumbai.

Headed by the visionary Jeh Wadia, Bombay Realty is the real estate and development vehicle of the Wadia family, one of India’s most successful entrepreneurial dynasties, which proudly traces its trading history back to 1736.

Its high-end retail mall - The Plaza - will open during 2013, as the first phase of its upmarket Wadia International Center mixed-use scheme, on a 25-acre location in Worli, Mumbai.

So if British brands are looking for an insider’s view of the Indian market, there‘s no better place to start than Pritti, as she dispenses corporate wisdom a-plenty on a whistle-stop visit to London to address a UKIBC event.

“There are a lot of opportunities for new retailers, but not just - as some people seem to believe for Burberry and other luxury brands. Demand for casual-wear (what we call ‘street-wear‘) and children’s products and apparel is also huge, and largely unsatisfied,” she says.

“There are perceptions about India such as the market is ready only for luxury brands, that there are maybe only ten major potential partners - such as Reliance or Tata - and that the target audience is only the middle class, but those are just myths.

“Smaller brands also have lots of scope to enter in India. There may be something like 16 million households classed as ’rich’, and another 350 million you could call middle-class, but there are also another 150 million aspiring to be middle-class which cannot be ignored.”

The crucial issue though, says Pritti, is that British retailers must take time to research the market, identify their target audience and potential partners.

“Doing your homework is vital, and you also need a presence on the ground. It may be expensive, but it will cost you much more if you get it wrong,” she counsels.

Bombay Realty’s upmarket retail mall - The Plaza

Pritti’s TIP:

“Take time to research your potential India partner. It won’t be wasted.”

“We saw in the past, when Western food firms came into India too quickly and set up partnerships with industrial conglomerates which did not necessarily have the same vision. Then they realised their strategy wasn’t working, they were losing money and they pulled out.

“So before you enter India, you must decide if you need a partner, and if yes, is it to provide finance, or to carry out distribution, or to help establish your presence on the ‘High Street’. You can’t just dive in, because you’re blinded by the scale of the opportunities.” ”If the arrival of FDI in retail makes brands consider India, they need to be looking 18 months, or even two years, down the line.

“India is truly the land of opportunities, and a wellplanned entry is a formula for success, so find the right partner, with the same values, the same mindset and the same strategy, however long it takes.”

What Next?

CONTACT: Pritti Ravindra General Manager Retail, Bombay Realty T: +91 22610 10040 M: +91 98203 66681 E: pritti.ravindra@ bombayrealty.in

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Business Exchange Issue 02 www.ukibc.com

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Indian Business News

UK SUCCESS STORIES from India General India and the United Kingdom are on course to hit the target of doubling trade by 2015, the visiting UK Foreign Secretary of State for Foreign and Commonwealth Affairs, William Hague, said in November. Image courtesy of Foreign & Commonwealth Office.

Skills and Education Serco Group Plc’s BPO business has grown by over 20% in India in 2012, and added a new centre in Baroda with over 40 centres now employing over 40,000. They recently signed new contracts with SBI and Tata Tele, whilst expanding existing client relationships such as Google.

Advanced Engineering and Manufacturing

A4e is implementing its pilot project in India, ‘Skills for Work’, in collaboration with the Ministry of Rural Development to train 8,360 BPL (Below the Poverty Live) youths across 6 states into entry-level jobs.

David Wootton, Lord Mayor of the City of London, visited India to meet top government and Reserve Bank of India (RBI) officials. He promoted primarily business between India and the UK (London in particular) in both directions.

The delegation included lawyers, real estate chartered surveyors, accountants, publishers, and the UKIBC. Trade between India and the UK has grown by almost 30 per cent in the last 12 months. The bilateral trade crossed $16 billion last year. Of the 1,200 Indian businesses in the EU, more than 700 are in the UK.

Digital Innovation Since Astute’s first venture into India in 2011, they have secured business from six new customers and opened trading accounts with four others in Bangalore, Chennai and Mumbai.

Professional Services Working alongside leading Indian firm Amarchand & Mangaldas, Herbert Smith Freehills acted for United Breweries on the investment by Diageo in United Spirits for £1.285 billion.

Clasis Law has expanded its footprint in India with a move to new offices in Mumbai and New Delhi.

Ashurst LLP has recently been mandated on some noteworthy ventures in India, including acting for Aditya Birla Group, GVK and Vedanta Resources.

Standard Chartered signed an agreement to mark the acquisition of a portfolio of mortgage and personal loans of Barclays India. The transaction will increase the Bank’s India Consumer Banking loan book by around 7%.

AgustaWestland will deliver the first of 12 AW101 VVIP helicopters to the Indian Air Force. They are also supporting the Indian Navy by responding to an RFP for 56 Naval Utility Helicopters to enhance the Navy’s operational capability.

JCB has made its single biggest investment of £57m to set up a manufacturing plant in Mahindra World City (SEZ) in Jaipur. The plant is expected to start production by the end of 2013.

Life Sciences and Healthcare UK company Med-Co Global Exchange has set up its first Indian elective program for UK medical students. The company is an offshoot of clinical services provider Med-Co Group and provides temporary staffing solutions to GP surgeries across the UK. The company has also diversified to run specialist GP-led medical services.

Follow us:

If you would like to get more information on these companies or would like to send us your success stories, please contact BusinessExchange@UKIBC.com

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Retail, Lifestyle and Logistics Booker Wholesale India has launched a range of private labels under the name of Happy Shopper for independent retailers in India.

Pavers England became the first retail company in the world to have 100% FDI in single-brand retail approved by the Indian Government. They also achieved a like for like sales increase of 19% over the Diwali period.

Infrastructure Benoy have seen continued interest in India from developers and have recently been instructed on a number of high profile schemes such as Supernova in Noida, as well as having both retail and residential schemes currently being constructed.

Mott MacDonald Group were appointed

by Larsen & Toubro in September to design six interchange and special stations for Hyderabad Metro.

Serco Group plc has signed a six-year contract from January 2013 to operate and maintain a dedicated 11.3km bus rapid transit system corridor in Indore. Serco will operate and maintain a fleet of 50 low-floor and air conditioned buses, besides managing the operations control centre and a dedicated depot for the corridor.

Technology from Cyan in Cambridge is driving a high profile smart grid project in a region dubbed as ‘The French Riviera of the East’ – India’s Puducherry on the Bay of Bengal. The UK company specialises in mesh-based flexible wireless solutions for utility metering and lighting control. The project involves installing an Advanced Metering Infrastructure (AMI) solution in houses throughout Puducherry to support the electricity department’s objective to save power.

Gleeds India has opened its fourth office in New Delhi, complementing existing offices in Bangalore, Mumbai and Pune.

Virgin Atlantic has resumed its flights from London Heathrow to Mumbai.

Flights are now operated daily, with the airline’s 266-seat A330-300 aircraft.

The move will also create 140 new jobs across India and the UK. One million people fly between Mumbai and the UK each year, with the market increasing by 10 per cent in the last two years alone.

The key market for the airline will be business and leisure travellers which represent 80% of the 30-million plus passengers the British airline will initially carry each year to and from India.

Reliance Brands has opened the first Superdry store in India at Palladium mall, Lower Parel, Mumbai. SuperGroup and Reliance Brands entered a long-term franchise agreement this year in July to bring the British fashion brand Superdry to India. SuperGroup, which employs over 2,000 staff, owns the Superdry brand.

Cadbury India is investing in a cold chain for its premium chocolate portfolio to make sure there are enough visi-coolers.

Budget hotel chain Premier Inn plans to set up 90 hotels in India through a mix of owned, part-owned and managed properties over the next 10 years. In Pune, they will open their property within India, a 109-room hotel will launch in April 2013. This hotel will also mark the installation of pre-fabricated, preengineered (Pod) bathrooms for the first time in India.

The supply chain unit of Deutsche Post DHL will spend €100 million building eight warehouses in India and upgrading its transport fleet to meet increasing customer demand. The new facilities in Mumbai, Gurgaon, Delhi, Bangalore, Nagpur, Chennai, Kolkata and Ahmedabad will add an additional 5 million sq. ft of warehousing space.

Dedicated service for SMEs

Sector Subscription The UKIBC offers a Sector Subscription- tailor made for SMEs looking to enter India or are new to India. We all know that entering new markets is never an easy option but the case for export is equally compelling. According to the UKTI, firms that export increase their productivity by 35 per cent in the first year alone; they achieve stronger financial performance and are more likely to stay in business.

The UK India Business Council’s Sector Subscription service helps SMEs understand the India opportunity and how to access it. Companies receive market intelligence, including monthly sector views, quarter reports, free access to sector events, and access to delegations. For more information or to subscribe please telephone 020 7592 3040 or contact membership@ukibc.com

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Business Exchange Issue 02 www.ukibc.com

UKIBC News Roundup Indian Aerospace and Defence Supply Chain Opportunities

Trade and Aid featuring Dr Vince Cable

Opportunities in Urban Regeneration and Development in West Bengal

October 2012: The UKIBC held a panel discussion with UKTI, ADS, PwC and AgustaWestland on opportunities in the Indian civil aerospace market.

October 2012: The UKIBC and Jeevika Trust held a corporate reception with Dr Vince Cable where he considered the relationship between trade and aid.

November 2012: A report on opportunities for UK urban development was launched by Greg Barker, Minister of State for Energy and Climate Change and Firhad Hakim, West Bengal Minister of Urban Development.

The panel analysed the recent change in aviation regulations and the continued investment in India’s airports.

The event highlighted the important role UK aid played in addressing the poverty of village India, the need and opportunity which rural India presents to business, and the emerging historic consumer opportunity.

Opportunities

Roundtable with Dr Amit Mitra, Hon’ble Finance Minister, State of West Bengal

Vince Cable said: “The UK government is working hard to finalise the EU-India Free Trade Agreement which will grow trade in both directions.”

Urban Development roundtable with Shri Kamal Nath, Minister of Urban Development

November 2012: The UKIBC hosted a West Bengal delegation led by Dr Mitra, Finance Minister of West Bengal. The delegation included Pritha Sarkar, Managing Director for West Bengal Tourism Development Corporation and YK Modi, Chairman & CEO for Great Eastern Energy Corporation Ltd. A roundtable discussion explored opportunities within the industrial and tourism sectors of West Bengal, in particular medical, hospitality and industrial infrastructure projects.

The authors Stephen McKenna (Mott MacDonald) and Ruchi Chakravarty (HOK) spent three months in Kolkata analysing the potential, detailed their findings.

The Indian government is projecting investment of £600 billion over the next five years, with major investment planned in urban infrastructure and regeneration projects, including water supply, sewerage, waste management, urban transport systems, and low cost affordable housing.

UKIBC enters partnership with West Bengal December 2012: A UK-West Bengal Task Force was established at a meeting between West Bengal Chief Minister, Mamata Banarjee, British Deputy High Commissioner, Sanjay Wadvani, and UKIBC CEO, Richard Heald.

November 2012: A roundtable in London led by Shri Kamal Nath, discussed UKIndia urban planning partnerships with Aecom, Arup Group, Mott MacDonald Group and experts from the public sector, including Clive Dutton, Executive Director for Regeneration and Inward Investment for London Borough of Newham.

The Task Force will co-ordinate, drive and expand the range of commercial initiatives between the UK and the State. Key sectors will be healthcare, education, technology and infrastructure.

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Tuning in to India’s Media and Entertainment Growth

UKIBC Delegation to ‘Vibrant Gujarat’ Events UKIBC Delegation: Access Opportunities in Western India 10 – 17th January, Ahmedabad, Mumbai and Pune NGN: CSR in your Business Plan 29 January, London

November 2012: The UKIBC held a seminar and networking event with BT and KPMG to enable companies in the UK Media & Entertainment industry to connect with Indian opportunities in this sector. The excellent speaker line-up included: Clive Selley, BT’s CIO, Sanjay Gupta, Star India’s COO, and Jehil Thakkar, Head of Media & Entertainment, KPMG in India.

Industry experts in broadcasting, print, radio, television, film, music, sports entertainment and internet/new media to name a few were present.

Patricia Hewitt, UKIBC Chair said: “There has been an explosion of digital media in India in the 100-years since Bollywood’s first film, Raja Harishchandra. It was a silent film costing half a million Rs whereas the recent Arbaaz Khan blockbuster Dabangg 2 cost Rs 1.25 billion. It’s absolutely extraordinary.”

The next step for participating businesses is to attend the FICCI Frames conference in Mumbai in March 2013. For more information please contact Radhika.

Pandey@ukibc.com

January 2013: The UKIBC led a successful delegation headed by UKIBC Chair, Patricia Hewitt to the business-friendly state of Gujarat, in addition to Mumbai and Pune.

Delegates were able to get access to Vibrant Gujarat, of which the UKIBC were partners, and engaged in 1 to 1 meetings.

There were a number of interactive and networking sessions with Ahmedabad University, the British Business Groups and Association of British scholars in Mumbai and Pune, and various large corporates operating in India.

Kevin McCole, UKIBC COO said: “The highlights were the education and technology transfers seminars we held at Vibrant Gujarat. Great speakers and an excellent, engaged and highly impressed audience.”

UKIBC and IMM to provide “Turn-key” Solution for UK companies entering India December 2012: The UKIBC and IMM announced a partnership to provide UK companies with a unique bespoke market entry solution to India. This service effectively gives UK companies a turn-key solution with a controllable budget for market entry and expansion.

Richard Heald, UKIBC CEO said: “I am delighted to have entered into this partnership with IMM because I believe that with the right help, many UK companies are well positioned to reap huge rewards from the Indian market.”

Insight India Roundtable: Advanced Engineering 19th February, London Insight India Roundtable: Infrastructure 21st February, London The Indian Consumer: Retail Opportunities for UK brands 26th February, London NGN Report Launch: UK India Partnership in 2030 19th March, London

New MemberS & SUBSCRIBERS AECOM Ahh...Arts Igniting Minds Banma Group Catermix Limited Construction Gateway Ltd Diabetes-cutmyrisks.co.uk Direct Wines Gower College Swansea Landecon McGraw Hill Millennium & Copthorne Hotels MSBC Group Outside Looking In R & D Vehicle Systems Ltd Superact Terravac UK Ltd The Long Run Venture UK Renewable Fuels Ltd Unipart

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Business Exchange Issue 02 www.ukibc.com

Culture

The state which tells the story of India The Charminar, Hyderabad

By Pavel Choudhury

Andhra Pradesh and Hyderabad have been at the centre of the evolution of the story that is India today. It has a unique history.

It acted as the gateway to the Deccan - the central high lands of India - the entry point through which all invaders looked to pacify the South of India. This coupled with the extravagant wealth gleaned from beneath its earth meant that it was a prize to be desired and fought over.

In many ways, its history mirrors that of the subcontinent itself. It is a State rich in culture, subtlety and diversity, shaped in large part by the Muslim rulers who contributed much to its character. Yet it is intensely secular and forward looking, and immensely proud of its heritage and traditions.

History tells us that Muhammad Quli Qutb Shah, the fifth Sultan of the Qutb Shahi dynasty (the ruling family of the Golconda Sultanate) founded the city of Hyderabad on the banks of the Musi River in 1591.

The Qutb Shahi dynasty controlled the region for around two hundred years from the early part of the 16th century to the end of the 17th century, and was largely independent from the rest of India.

During this time, Shah ordered the construction of the prestigious Charminar, translating to ‘Four Towers’. Even to this day it remains a staggering monument – erected to commemorate the elimination of a plague epidemic from the city – acting as a beacon at the centre of the Old Town.

A beautiful mosque is located at the western end of the open roof of the Charminar and the remaining part of the roof served as a court during the Qutb Shahi times.

The famous markets of Laad Bazaar and Pather Gatti are nearby, favoured by tourists for bangles. Nearby is the Makkah Masjid, built with bricks made with soil from Mecca as requested by Shah.

Indeed, within Hyderabad’s environs, there is architecture unlike any other city in India. The

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forbidding fortress of Golconda is one hour from the centre. For years it was the diamond vault of the rulers of Hyderabad. Lodged within its treasuries at one time was the Koh-i-Noor, ‘Mountain of Light’ in Persian. It is a 105.6 metric carats diamond, weighing 21.6 grams in the most recent cut state. It was gifted to Babur, the first Mogul Emperor, in gratitude to raising his siege.

Subsequently, the diamond has belonged to various rulers who fought bitterly and seized it as a spoil of war time and time again. It is currently set into the crown of Queen Elizabeth and is on display at the Tower of London.

View from Taj Falaknuma Palace

Richard’s TIP:

“Whilst in Hyderabad, sample its signature dish, the aromatic Hyderabadi Biryani.

Prepared with rice and mixed with vegetables, pulses or non-vegetarian ingredients - chicken, mutton and fish.

There are three types: the Kachay (raw) Biryani, the Jappu (raw) Biryani and the Pakki Biryani.

Where to Stay

Check UKIBC CEO, Richard Heald’s recipe at: www.ukibc. com/biryani

T: +91 40 6666 3939

Overlooking a private lake the Taj Banjara Hyderabad offers peaceful relaxation, spacious comfort and fantastic amenities.

T: +91 40 6666 9999 The Taj Krishna has become a landmark in Hyderabad, nestled in picturesque landscaped gardens above the city in Banjara Hills.

T: +91 40 6666 2323 Taj Deccan, Hyderabad, also in the Banjara Hills, offers guests elegance and a welcome respite.

Taj Falaknuma Palace, Hyderabad is located 2000 feet above Hyderabad, boasting large Venetian chandeliers, grand marble staircases, priceless statues, as well as a worldclass collection of crystal.

The Palace Library includes rare manuscripts and one of the most acclaimed collections of the Holy Quran in the country.

T: +91 40 6629 8585 www.tajhotels.com

Taj Falaknuma Palace

Latterly, from the 18th century under the rule of the Nizams of Hyderabad, the State became the most powerful and richest among India’s princely states.

The Nizams brought cultural and economic growth to Hyderabad. The Nizams ruled Hyderabad for more than two centuries, in a subsidiary alliance with the British Raj. To get an insight into the regal lifestyle of the Nizams, visit the majestic Chowmahalla Palace – their official residence.

Indeed, the last ruler, Mir Osman Ali Khan amassed tremendous wealth and was reputed to be one of the richest men in the world in 1937, affecting the region greater independence than others. According to Forbes’ All-Time Wealthiest List of 2008 (adjusted for inflation), he was the fifth richest man ever, with an estimated worth of US$210.8 billion.

Hyderabad is known as the ‘City of Pearls’ on account of its role in the pearl trade. Even now it is regarded as a centre of the pearl trade. Until the 18th century, the city was the only global trading centre for large diamonds. Many traditional and historical bazaars are located in the city and are well worth seeking out.

Visit the Nizam Museum in Hyderabad, where Mogul art and jewels are showcased.

Falaknuma Palace is one of the finest palaces in India, constructed in 1884, the same year Sir VicarUl-Umra became Prime Minister of Hyderabad State. Completed in 1893, this magnificent palace became a sight of opulence and luxury. Since its opening, Falaknuma Palace has had many masters, from Nizam Mahboob Ali Pasha to Mir Osman Ali Khan. In 2010, Falaknuma Palace joined the Taj Luxury Hotels’ segment, restoring its grandeur including its dining hall which could seat 100 guests at its table.

Another tourist attraction is the famous Borra Caves, which are said to be a million years old, and are associated with many a legend.

Andhra Pradesh has historically accumulated wealth and was the centre for trade under the Nizams. The attraction still remains.

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Business Exchange Issue 02 www.ukibc.com

Digital Innovation

Call to arms for Britain’s hi-tech SMEs

By Ian Halstead

Creating partnerships between innovative and tech-savvy SMEs from Western economies, and their ambitious and resourcerich peers from fast-growing overseas markets, is a Nirvana of global trade - especially in these uncertain times.

It’s often been predicted that such relationships would blossom between the UK and India, not least because the former offers such an attractive investment environment.

Surprisingly though, there has been only a handful of examples where Britain’s technological innovations have been successfully matched to India’s needs, to create significant commercial success in the Indian market.

However, an ambitious programme is underway to find a better way of establishing partnerships between hi-tech UK firms and successful Indian businesses.

If successful, it will create and pilot more effective ways for UK technology firms to enter - and scale up in - the Indian market in collaboration with Indian partners, reflecting today’s world of global value chains, pervasive technology and the narrowing relevance of sector and geography labels.

In the process, it will also open up possible opportunities for Indian investment into Britain‘s most innovative SMEs.

The initiative was devised as a collaboration between UKTI, the UKIBC and the Federation of Indian Chambers of Commerce & Industry (FICCI) - supported by HM Treasury and the Indian Department of Science and Technology.

It has already made significant progress in its preparation and research phase, and has now moved to the second phase in which the first set of UK and Indian companies are being connected.

“Indian business is seeking new and innovative answers, and targeting UK technology SMEs”

Driving the process are UKTI’s global technology adviser Was Rahman, UKIBC CEO Richard Heald and FICCI Director Nirankar Saxena.

Was is a passionate believer in the transformational power of technology, and an entrepreneur with a 20-year track record of success - including leadership roles with Infosys and Accenture, UKTI he is helping UK technology SMEs to enter the international business arena.

“The successes of India-UK partnerships have been impressive, there simply haven’t been enough, but we believe that is starting to change. We aim to create a steady flow of ideas, opportunities and knowledge, stimulating long-term alliances,” he says.

India is replete with opportunities to apply both cutting-edge and established technology to a host of new and emerging needs - although the solution can be uniquely ‘Indian’.

“The most common digital data communication in India is still text messaging. We see farmers checking prices before they leave for market, and fishermen exchanging catch and price information before reaching shore,” says Was.

CONTACT: FICCI Federation House Tansen Marg New Delhi - 110 001 India T: +91 11 23738760/70 F: +91 11 23320714 +91 11 23721504 E: ficci@ficci.com

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Was’S TIP:

“The UK’s hi-tech SMEs must increase their India focus in 2013.”

“So one of the first lessons to absorb - especially by UK SMEs that may not be familiar with India - is that the flow of expertise and ingenuity for applying technology innovation is likely to flow in both directions” As part of the research phase, a FICCI survey confirmed the potential, assessing Indian company demand for new technology, and the UK’s potential role in meeting this demand.

More than 70% of respondents were looking to expand, with 37% seeing requirements for new technology - with the UK as a potential source - and 75% having the necessary funds to invest in new technology.

Was Rahman, Adviser - Global Technology Industry at UKTI Below: Image courtesy of the Technology Strategy Board’s marketing agency

Was sees another lesson from past technology industry work with India acknowledged in the programme; moving away from a work structure which ‘pushes’ ICT (information and communication technology) industry sub-sectors, such as electronics, and shifting towards a ‘pull’ from sectors enabled by the technology, such as renewable power.

“ICT sub-sectors have often proved not to be particularly helpful labels when it comes to business discussions, at times even misleading,” he says.

“Instead, our programme concentrates on the role of such technologies as enablers of other industries, segmenting our work around themes reflecting the underlying business problems the technology is trying to address.”

While this could sound superficial, Was believes it has changed the day-to-day work of the programme.

“We are now led by specific issues where Indian business is seeking new and innovative answers, and targeting UK technology SMEs who can demonstrate world-class capabilities,” he says.

“Our broad themes are areas of long-term transformation and growth for India that represent significant, scaleable market opportunities - and specific needs where Indian firms are exploring new technologies and approaches.”

The themes are Digitising Society, Accessible Healthcare, Renewable/Reliable Power, Smart Cities/ Smart Living, Enabling Innovation Ecosystems, and Evolution of IT Services.

“For example, under Accessible Healthcare, UK SMEs have technology for remote monitoring and diagnosis of patient conditions, which could play a major role in the evolution of tele-medicine for rural India,” says Was. “Similarly, some of the SME technology innovations trialled within the NHS could underpin new, better

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Business Exchange Issue 02 www.ukibc.com

Digital Innovation ways of delivering primary healthcare to low-income households in urban India.”

“The need to reduce India’s dependency on diesel fuels, in areas such as off-grid mobile phone towers, is clear from any Indian mobile operator’s financial reports, and the rapid rollout of metro systems is an ideal time for India to leapfrog a generation of intelligent transport technologies.

“Meanwhile after the heady post-Y2K days of 50%+ growth, India’s IT services sector is responding to its slow-down by looking seriously at innovative productoriented solutions, whilst investing to further increase its efficiency.

“We identified our first wave of UK technology SMEs from these areas, and an initial set of Indian organisations which may offer potential partnerships with them to develop new solutions.

“There are examples in every area of UK tech SMEs that have good answers to India’s potential questions on how to address these issues. The trick now is to make sure they are among the companies being asked.”

The third quarter of 2012 saw a significant step forward, as the initiative shifted from its planning and research phase to ‘match-making’ between potential partners in the UK and India.

The programme is also being integrated into the UKTI operational schedule for its India technology work, to make good use of the organisation’s wider trade development activities, such as trade missions.

The first example of match-making took place in October, when Sir Richard Branson took a wide business delegation to India to mark his airline’s re-launch of its London-Mumbai service, and the delegation included seven hi-tech British SMEs identified by the programme.

The intensive three-day event included a matchmaking session at the British High Commission, at which the UK tech SMEs were able to meet representatives from 45 potential Indian partners.

“It went extremely well, we had excellent contributions from technology business leaders in the corporate, start-up and investor communities, including PwC, Ameyatel, Tata Elixsi and Citrix Systems. From these conversations and the feedback since, everyone gained a great deal from being there,” says Was. “We all felt a sense of achievement that we were connecting companies who wanted to speak to each other with purpose and enthusiasm, and a genuine desire to work together for the long term.

“The first wave of SMEs is now progressing from their early-stage meetings, and we’re now very keen to hear from companies in both countries, who would like to be involved in future waves.”

The next event comes in mid-February, when 20 leading UK technology companies, in the digital, wireless and mobile software sectors, are being brought to Bangalore and New Delhi by the Technology Strategy Board (TSB) in a new-style visit known as a Web Mission - http://webmission.com/ “Essentially, this is about entrepreneurs leading entrepreneurs, and it‘s rather different from what people may have experienced on more traditional trade missions,” says Was.

“We are dependent on the quality of the SMEs who get involved, and need them to start looking seriously at India - now.”

“The aim is to help UK entrepreneurs, and earlystage companies, assess and accelerate overseas business opportunities, and the TSB selects who attends through a competitive process.

“It’s the first time this very successful model has been used outside the US. Six previous missions there attracted strong media coverage and generated plenty of relationships for SMEs, including investors, so we’re very optimistic.”

“However, everyone must realise that the world’s other technology leaders - including the US, Germany, Japan and South Korea - are also pushing in the Indian market to establish similar partnerships.

“There is a window of opportunity to get involved in the opening phase of the game, when the basic pieces are being laid out and the landscape is being re-set, especially given our historic relationship with India.

“Fairly soon though, we will have shifted to the next stage, when India and its leading firms will have decided where they expect to find the new set of technology leaders, and relationships will be in place.

“We want to ensure the UK is a significant part of that picture, but we are dependent on the quality of the SMEs who get involved, and need them to start looking seriously at India - now.

“Some have seen this as a call to action for the best UK technology firms. Others have described it as more of a ‘call to arms’, because they see international trade as a battleground.

“Whatever your perspective, what’s clear is that the potential rewards are massive, but equally that those who lack commitment and courage will not succeed.”

CONTACT: Radhika Pandey UKIBC Digital Innovation Specialist T: +44 (0)20 7592 3842 E: radhika.pandey@ ukibc.com

What Next?

CONTACT: Was Rahman Adviser - Global Technology Industry UK Trade & Investment E: was.rahman@ UKTISpecialist.com

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Digital Innovation

e-Governance offers the answer

by Bhudeb Chakravarti

One of India’s top e-government experts explains how digital innovation is helping cut red tape and reduce corruption. Historically, government departments and organisations in India have been hard to navigate.

Rules and regulations were numerous and complex.

Similarly, in the procurement process, changes were introduced to make it more transparent and accountable and bring confidence and efficiency in government spending.

All information regarding procurement is available online and bidders are asked to submit bid responses online, which helps companies in other geographic locations to bid through a standardised process.

Efficiency increased by eliminating non-value added activities, and automating the standard steps, which also allows the government department to use e-auctions to get better prices, if necessary.

It was important to know the right people, in the right places, to get your work done, even if it was as basic as getting one’s due entitlement, which made it confusing for international companies to do business in India.

E-procurement provides a level-playing field and a competitive platform for all bidders interested in government projects. The complete process is monitored online and necessary controls are used to make the process efficient and effective.

The problem was not only in the procurement space, but also in the service delivery mechanism.

The government initiated various administrative and economic reforms during the nineties, then launched the National e-Governance Plan (NeGP) in 2004.

Another concept introduced in the government procurement process is the Quality-cum-Cost Based Selection (QCBS). Traditionally government used to procure through the least cost method, so the bidder who quoted the lowest price would get the order with no regard for quality.

The widespread use of IT helped government to bring in transparency, reduce discretionary power (by introducing rule-based workflows) and make information widely available.

Citizen-centricity was the key criteria; and making it easier for citizens and businesses to interact with the government. Online services helped, and the processes in various government departments were re-engineered to improve transparency.

Now, the quality of the goods/service is evaluated and marks are given to each bidder. A weightage of 70% is given to quality and 30% is given on the quoted cost. The weightage given to the quality of solution depends on the type of the procurement and technical importance of the solution. All these process re-engineering initiatives provide a corruption-free, transparent and efficient platform to companies.

Another important step was the introduction of single delivery channels for various government services. Some were operated by private parties and other non-governmental agencies, reducing corruption at departmental level.

Not only do all UK companies benefit from this improved efficiency and transparency, but IT companies from the UK can create awareness of their e-governance solutions and bid to participate in projects - independently or, more likely, by partnering with a company in India.

Use of ICT in various government departments helped in creating centralised databases with information readily available to the citizens and businesses. In the past, due to lack of access to information, manipulation of data was rampant.

Such companies can also use consultants to gather information on their interested domains and prepare themselves accordingly. Creating a golden opportunity for UK companies to tap the public sector market in India, and try to introduce their products and services.

National Online services Directory of online Government services www.india.gov.in IP registration in India ipr.icegate.gov.in E-commerce portal of Central Board of Excise and Customs www.icegate.gov.in Andhra Pradesh Online services www.aponline.gov.in online services for businesses operating or investing in Andhra Pradesh www.apinvest.co.in contact the Government of Andhra Pradesh about investing in the state The UKIBC is not responsible for the content on these external websites they are included for reference only

What Next?

CONTACT: Bhudeb Chakravarti Senior General Manager and Region Head with the Hyderabad-based National Institute for Smart Government E: bhudebc@ieee.org

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Business Exchange Issue 02 www.ukibc.com

Life Sciences & Healthcare

BT brings e-hospital concept to India BT is targeting the fastgrowing global market for ICT healthcare. Ian Halstead finds out about its plans for India.

Clinical director Janette Bennett is driving BT Health’s ambitious expansion strategy across the sprawling Asia-Pacific region, and she most certainly makes a passionate and informed ambassador for the cause.

If you want insight into the fast-changing world of ICT-enabled healthcare delivery, then Janette is a one-stop shop on the subject. So, it’s understandable that she is much in demand from the organisers of conferences and academic events.

“It might surprise some, but our involvement with ICT in healthcare goes back more than 60 years,” she says. “In 1948, engineers from the GPO (the forerunner of British Telecom) worked with the National Health Service on early models of hearing aids.

“In recent years, we were involved again with the NHS on the development of the National Spine Framework, which handled three trillion transactions a year, and is one of the world‘s largest healthcare data platforms.

“We‘re now looking at that project in terms of business analytics, because we have six years of verifiable data, and are one of the very few UK institutions to have so much information.

“Our partnership with the NHS also gave us a great deal of understanding about what customers were looking for, and how the public and private sectors can work together efficiently. ”BT has acquired such a breadth of expertise and knowledge in healthcare and ICT that we are now providing services in more than 170 countries, and Asia-Pacific is a core region for our growth strategy. ”In India, we’re looking to establish partnerships, with architects, construction companies and healthcare providers, so that ICT can really influence the way they design their hospitals, medical centres and research institutions of the future.

”It might well be that we form relationships with individual suppliers, but at the moment, we’re trying to be agnostic about how the new business models will evolve.

“At the moment, it’s more likely that we’ll establish partnerships with the big ICT brands, such as Microsoft, Intel and HP, but we certainly will not adopt a ‘one size fits all’ strategy.”

BT’s health practice team in Asia-Pacific includes experts in clinical design assurance, clinical safety management, technical architecture and major programme practice, which offers a powerful and comprehensive delivery capability.

Demand for ICT-enabled healthcare is driven largely by demographics. Ageing populations suffer an ever-increasing burden from chronic diseases and illness, and innovative medical and drug treatments are expensive.

However, the market across Asia-Pacific is growing particularly quickly, despite the continued global downturn, and BT calculates that regional healthcare demand will swell from £1.3 billion in the current financial year to £1.6bn in 2014-2015.

“In India, we’re looking at the concept of delivering a new kind of healthcare, which we call an e-hospital,” said Janette.

“Advanced ICT would be used right from the earliest design stages, with the architects, then tele-care would be at the heart of the medical provision and the follow-up management of patients, probably across multiple sites.

“The system would collate and store patient data, automate credit records and allow payment management. An e-hospital would also be used to release skills from the physical healthcare facilities into the wider community, so patients could access doctors using remote connections.

“It might well be that we form relationships with individual suppliers, but at the moment, we’re trying to be agnostic about how the new business models will evolve.”

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”Healthcare providers would benefit from cheaper delivery at the point of care, and from more efficient use of their resources. Patients would be integrated more effectively into the healthcare system, and would therefore receive more consistent standards of care.

Janette’s TIP:

“Never underestimate the speed at which India can progress - in any sector.”

”The new generation of e-hospitals would also be able to share information with institutions all round the world, but with the certainty of data security, which would really help research programmes, and in turn, lead to innovations in treatment and medicine. ”India already has significant expertise in the software sector, and ICT-enabled healthcare could deliver significant benefits for its domestic healthcare industry, as well as health tourism providers who would be catering for both people from India and overseas.”

Janette sees significant scope for health tourists to use Indian hospitals as the savings for hip replacements and other in-demand operations range from 25% to 50% of the charges, which would be levied in the US. “Some people are critical of the idea of ‘health tourists’, but if it’s done properly and formally, I really don’t see the issue. Many Western people in their 50s and 60s will have health needs, so why shouldn’t they be allowed to spend their own money by seeking cheaper provision overseas?

“With the right ICT systems in place, healthcare providers would be able to aggregate their data to show the outcomes, which would again be very useful for patients, and for medical researchers.

“Right now, India isn’t a major market for health tourism, but it’s always been a country where things can move very quickly indeed when ideas take hold, and healthcare and ICT are major issues here in their different ways.

What Next?

CONTACTS: BT Healthcare Carson Dalton Head - Corporate Communications BT Asia Pacific T: + 44 (0)207 592 3040 E: carson.dalton@bt.com Radhika Pandey UKIBC Life Sciences & Healthcare Specialist e: radhika.pandey@ukibc.com Janette Bennett, BT Clinical Director, Asia Pacific

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Business Exchange Issue 02 www.ukibc.com

Retail, Lifestyle & Logistics

From Nottinghamshir To The Himalayas India can be a tough market to crack - but glass-maker Ingrid Pears picked up orders on her first visit. Ian Halstead finds out how.

Talent allied to tenacity will take you far, but Ingrid’s remarkable journey, from the rural hinterland of Nottinghamshire to the foothills of the Himalayas, has been underpinned by her softer skills.

Mandy Rait, the UKTI international trade officer who ushered Ingrid onto the global business stage, from her hot-glass studio in the East Midlands, recalls her first steps.

“I spent years saying India is a long-term market, where you must spend time on research and identify the right partners, and even then, you can run into red tape and unexpected hurdles.

“Then Ingrid came to Mumbai, went to a reception at the British High Commission, and just wowed people through her personality.

“It isn’t only about creativity and commitment, Ingrid is a real ’people person’, and everyone buys into her.

It was awesome. We fly back, and she’d already won orders, and been invited to make the awards for the Bollywood film industry. ”Whoever she has met out there since - the British High Commissioner, the Duke of York, entrepreneurs, or pilgrims in the Himalayas - she treats them all the same. Everyone just takes to her.

“When we met twelve years ago, Ingrid didn’t sell overseas, but in 2012, she received the MBE for services to exports, which shows just how far she has come.”

It is a remarkable achievement, although Mandy had an inkling that Ingrid wasn’t one to let opportunities pass.

“She signed up for UKTI’s Passport to Export Programme, attended the workshop and listened to everything very diligently. But she also managed to sell her glassware to other people at the event.”

As for Ingrid herself - it’s easy to be impressed, as she recounts her journey from undergraduate studies to a brand ambassador for British business, with a beguiling blend of honesty and passion.

“I wanted to be a dentist, but took a year out, went to art college and was introduced to glassware. When I first saw molten glass, it was like golden syrup and I was absolutely captivated,” she admits.

“I changed my course, and studied 3D design specialising in glass. People might think it’s an art, but there’s a lot of science involved. If you want to make the process work properly, for example, you have to know about the co-efficiencies of expansion.”

A subsequent scholarship from London’s Worshipful Company of Glass-Sellers, followed by successful post-grad research at the International Glass Centre, in the Black Country, underlined the merit of Ingrid’s decision.

Her innovative output was noted by Dartington Crystal, who offered a chunky corporate package, which would surely have tempted many.

However, Ingrid rejected the offer of a full-time position, but offered to create glassware on commission basis.

“They didn’t usually work that way, but two weeks later, they agreed. I still supply designs, they are all branded as Ingrid Pears by Dartington, so it helps build my business, and I get royalties, which is great because Dartington sell to almost 60 countries,” says Ingrid.

The support of her family was also critical; at the practical, and at the more instinctive and entrepreneurial level.

“Dad had always run his own companies, as has my mum, and my brother. When I was at university, I did my dad’s books, so I learnt about accounts and marketing. I owe a lot to them, especially when I wanted to set up my own studio.

“Dad was an engineer and knew about metal technology. He gave me lots of advice and helped me build stacks of equipment and furnaces, as I did my

“In 2013, I’d like to get the furnace working, and set up artistsin-residence exchanges between UK and Indian artists. I have also been offered the chance to run an exchange in Bangalore, at the historic site of Hampi, where I will be demonstrating glass techniques.”

What Next?

CONTACT: Tara Panjwani UKIBC Retail Specialist T: + 44 (0) 207 592 3841 E: tara.panjwani@ ukibc.com

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re

post-grad in furnace technology. My brother also built special canopies to take the heat away, and even my workshop benches were made by my family.”

Ingrid’s TIP:

“You must get the right advice before taking on India.”

For the last decade, Ingrid has been based at Thoresby Park; home to the Pierrepont family for more than four centuries, but which now also houses a range of enterprises, including a hotel, wedding venue, craft workshop and heritage centre.

“I work from the estate’s former coach-house, inside an old courtyard, and it’s great because people can watch their own pieces being created.

“You also get a lot of visitors to the hotel and the park, and I’m very happy there, so I’ve just signed a new 10-year lease. I make everything in my studio and ship items worldwide, although we do have 45 UK galleries,” says Ingrid.

However, her thoughts are often back in India. “I’ve been travelling with a British doctor for over ten years in Himalaya, who has a resting-place for pilgrims in the foothills of the mountains,” says Ingrid.

“He’s taken a disused goat shack and brought it back to life as the pilgrim resting place it once was, and in a rich colonial style. The idea is to build a glass-making furnace close by there. The rarified atmosphere is one challenge, but my dad’s created special nymonic burners.

“I’d like to be the first person to make glass in Himalaya, we’ll also be training local people in craft skills, and we’re getting sponsored crucibles which have been designed in the US. “In 2013, I’d like to get the furnace working, and set up artists-in-residence exchanges between UK and Indian artists. I have also been offered the chance to run an exchange in Bangalore, at the historic site of Hampi, where I will be demonstrating glass techniques.”

Not that she restricts herself to India; field trips to seek new sources of inspiration have taken Ingrid from the arctic wilderness of Lapland to the urban streetscapes of Cape Town. However, India is her major export market, accounting for some 40% of sales.

Ingrid’s latest work is most definitely not for the mantelpiece though …

“I’ve started several large-scale sculptural pieces combining stainless steel and glass, but one client has asked for a seven-storey glass sculpture which would go outside his office building,” she says.

Ingrid Pears at work

“We don’t know how quickly that will progress, but they’re studying CGIs of how it would look, so hopefully we’ll get the go-ahead early this year.”

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Business Exchange Issue 02 www.ukibc.com

Practical Advice

New route for going global Anthony’s TIP:

“This portal is designed for you so do tell us what you think.”

It’s 20 years since Michael Heseltine - as President of the Board of Trade - conceived the idea of a ‘one-stop shop for business’.

The reality of BusinessLink never quite matched the theory, but the veteran Tory grandee would most certainly be impressed by Open to Export (OtE) - www.opentoexport.com - UKTI’s new portal which aims to usher Britain’s SMEs towards new overseas markets.

It only went live in late-October, so it remains a work in progress, but it’s already the most promising presence to enter the UK’s online business community for years.

It’s been devised and delivered by UKTI and digital services provider hibu, formerly known as Yell Group, which has been pioneering efficient communications between merchants and consumers for some 40 years.

Anthony Cooper, the OtE team leader within UKTI’s trade development group, says the site offers information on legislation, company registration, finance, market research, product development, transport and logistics, upcoming events, seminars and trade missions.

Crucial contact info is also there in abundance; from HMRC and the Intellectual Property Office, to the Institute of Export and the British International Freight Association, and many more.

“The idea came from an influential UKTI business advisory group. We took the idea on board, ran a competition for a delivery partner, and hibu was selected,” he recalls.

“What can be seen now is just the beginning, but already we can see SMEs, advisers, entrepreneurs and UKTI officers - here and overseas - using the site, along with the wider business community.

“We’re hoping companies looking to access new markets will post questions, and that the platform will offer a short-cut to the advice and guidance they need, so they can get assistance almost in real-time.”

Anthony Cooper, UKTI Team Leader Open to Export

One of the first users was Mike Roberts, the MD of London-based bed manufacturer, Purely Beds, who is looking to garner knowledge about the Indian market.

“I know India quite well - as a tourist - and think it offers significant potential for a company like ours, which makes quality products. However, we need to understand such crucial issues as pricing and distribution, and to know more about how we might tackle the market,” he says.

“I’ve had some very helpful responses, particularly from UKTI staff, here and in India. Kiraan Sharma, in the Delhi team, has been very good, and is doing market research for us.

“We’re aiming at the higher end of the market, so we need to learn about margins and pricing. I also heard from a shipping agent, so it’s all good information, which gives me a good flavour of what to expect.”

Anthony says: “Mike’s is justthe kind of market entry inquiry we expected, and the way other users have helped him is exactly how we hope the portal will work,” says Anthony.

“Big corporates have the resources to tackle global markets, but most SMEs are run by small management teams who just don’t have time to do all the research they need, but they are able to interact with a virtual community like OtE.”

What Next?

CONTACT: Anthony Cooper UKTI - Team Leader Open to Export T: (0) 207 215 8542 E: Anthony.Cooper @ukti.gsi.gov.uk W: opentoexport.com

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Need to know

PizzaExpress gets a slice of the action

by Ian Halstead

Given the sub-continent’s love of flat breads, dairy and tomatoes, there is something so right about pizza and India.

However, the journey from theory to reality proved challenging over the years, and not simply because local taste-buds initially preferred pickled ginger and paneer to the pepperoni and peppers beloved in the West.

Now though, PizzaExpress is about to open its first company-owned restaurant in India with the help of London-based market entry specialists, International Market Management (IMM).

The organisation is a very modern mix of the virtual and the permanent, offering an efficient and effective delivery structure, but without a prohibitive cost-base.

In London, IMM has a central team of analysts, researchers and administrators supporting a group of experienced operators based in various locations.

The latter are all veterans of the South-East Asian corporate scene with such blue-chip brands as Dresdner Kleinwort, Jardine Matheson, the Swire Group and Cathay Pacific on their CVs, providing decades of nous, implementation experience, and contact books the thickness of phone directories.

Day-to-day activity is driven by Jasper Reid, who began his career with Swire, setting up a Mumbaibased outsourcing business for Cathay Pacific, and he later built a services firm for Macquarie Capital, before joining IMM, and leading the PizzaExpress project, as he explains.

“A group of us, with lots of international experience, came together because we knew there were lots of possibilities in India and other growth markets and lots of UK-based brands which deserved to be there.

“Basically, we work with medium-to-large corporates or their investors who want to enter new markets but just don’t have the time or the expertise to do so.

“We met Harvey Smyth, the CEO of Gondola Holdings (which operates PizzaExpress), because he wanted to get into India, but on an equity basis, as opposed to the traditional franchise route.

“Working with Harvey’s team we built a business case for India, connected with the Bharti family, who are hugely successful entrepreneurs, and who liked the idea of a joint venture with Gondola.

“We managed the CEO-hiring process, then built and project-managed the launch plan, with Neil Wickers, the MD of PizzaExpress International. We also found and secured the real estate.”

TIP: India is a very complex market, so make sure you have experienced advisors

The PizzaExpress opening in Mumbai underlines the success of the IMM approach and, Jasper says, the Gondola work has fine-tuned the template for future projects.

“You also need to know how to assemble and lead a team, so we selected and essentially choreographed a coalition of advisers; lawyers (Amarchand Mangaldas), tax advisers (Deloitte) and suppliers of industry data (Grant Thornton and White Rivers Capital).

“Then you all have to play to your strengths. We wouldn’t send our team to tell clients about their core business, but we certainly know how to operate in India, and we save months of management cost and stress.”

On a field trip to Delhi (L-R) Jasper Reid, Harvey Smyth and Neil Wickers - MD of PizzaExpress International.

What Next?

CONTACT: PizzaExpress has a successful international business (50 sites across 11 countries) but for large and complex markets they required specific expertise. To enter India, they worked with Jasper Reid and IMM, who also worked with other key advisors to ensure the market-entry process was delivered on time and within budget. PizzaExpress now has a 50-50 joint venture with the Bharti Group, is poised to open its first two restaurants in India and has hired an Indian team to oversee future operations and expansion.

Jasper Reid Managing Director IMM Associates T: 0207-208-1484 E: enquiries@ immassociates.com W: www. immassociates.com

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Business Exchange Issue 02 www.ukibc.com

Special Feature

A man for all seasons... especially in England Our chief executive, Richard Heald, talks to Ian Halstead; about his life, his love of India, and his vision for the UKIBC. It’s always instructive to ask business folk what occupies pride of place on their book-shelf. Many claim their work spares no time for such activity, some suggest it’s the latest offering from an MBA guru - in Kindle form, of course - whilst others struggle to recall any book.

However, Richard’s current favourite is Diana Eck’s India: A Sacred Geography, by the Harvard professor who sees India as a religious, rather than a geographic, entity.

It’s a magisterial opus; and the foot-notes and bibliography alone could form a novella, so 550 densely-crafted pages require serious staying power.

It is evident that Richard’s choice highlights the driving forces of intellectual curiosity and patience, which have shaped his life since reaching Oxford 40 years ago; studying law - but already having second thoughts.

“I would have far preferred to have read history, which I adore, because although law trains your mind, it’s rather dry academically,” he admits.

“At the end of my second year, I applied for work experience at a merchant bank, and from then, I only wanted to work in the City.”

It was a judicious decision, as Richard’s subsequent 34-year career, with three historic institutions Brown Shipley, Samuel Montagu and NM Rothschild - underlines.

“I never had the slightest regret,” he says. “Merchant banks are run by larger-than-life personalities, and because they are relatively small organisations, you received exposure to major companies early in your career. It was a very exciting time.”

Richard joined Rothschild just as countries outside Britain saw the merit of raising significant tranches of cash, by selling state-owned assets to the public and the institutions.

“It was about exporting the skills which we had acquired,” he recalls. “We took techniques and models from here, then refined and adapted them for local environments.

“There are parallels with what UKIBC is doing, because Britain is sharing its expertise in such sectors as urban regeneration, healthcare, aerospace and digital technology with India. But now the knowledge flows in both directions.”

However, of the countless places he visited, only one cast a spell which envelops him still - India.

“I started going regularly in 2000, and five years later, Rothschild asked me to become vice-chairman for South and South-East Asia,” he says.

“I’d go several times a month, and could not have been happier. I love the people, the culture, the history, and it really is the place to be as the global economy evolves.”

However, two years ago, Richard decided to become Chief Executive of the UKIBC. “I missed England, and especially the evolution of the seasons,” he confesses.

“I still enjoy going out to India just as much as always, but it is nice to be back home.”

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Left: Richard Heald’s childhood home of Isle of Mull Below Centre: Richard Heald at Mt. Rawla Narlai, Rajasthan

“I love the people, the culture, the history. and it really is the place to be as the global economy evolves.”

“Each state government has a different mindset, their economies have a different mix, and the sheer size can be overwhelming. Unless you operate on a global scale, your approach has to be very specific and tailored, or you will fail.”

Richard sees UKIBC’s role as two-fold; raising awareness about commercial opportunities in both India and the UK, then stimulating and developing those fledgling links into productive partnerships.

“Awareness comes at various levels. It could be demographics, GDP growth, wireless technology, or new government strategies,” he says.

“We gather data from states, their eco-systems and individual cities. India has a dozen urban clusters which contain 55% of the population. Focusing on a cluster exponentially increases your chances of success.”

“It’s also about identifying sectors where British companies can add significant value. Much of what we do is research, planning and analysis, but it’s also about bringing the right people together, and at the right time.”

For more information on

Meticulous research was a core skill throughout Richard’s career, though he learned the merit of planning and precision much earlier.

T: +44 (0)207 592 3040 E: enquiries@ukibc.com

Growing up on the Isle of Mull certainly placed those qualities at a premium, with the closest house five miles away - and the nearest shop four times that distance.

“I did have concerns about gaining the same highlevel access, without the cachet of a calling card from Rothschild, but I’m finding people are even more open.”

Richard recently toured seven Indian cities; meeting politicians, business leaders, analysts, financiers and entrepreneurs.

“One day I met a guy running a clean energy fund out of Chennai, then I sat down with the head of Burberry in Delhi, and then I met the head of a leading primary healthcare provider, and a start-up business in Mumbai,” he says.

“I go out regularly to recharge my knowledge batteries, visit our stakeholders, and keep in touch with UKTI people, but also to visit Indian companies who want to reach out.

“Much of what we do is about reflecting to the British business community the opportunities which India offers, but it’s also about highlighting the differences, and making people aware that India is not a homogenous country.”

His instinctive love of precision is equally evident, when asked about the delightful pieces of English porcelain which adorn his home.

“I collect pieces from between 1740 and 1770. Until 1709, porcelain was only manufactured in China, but the secret escaped, and the first English factories were set up in the 1740s,” he says.

“It was 30 years before mechanisation, so the pieces from that era are hand-made, which to me gives them a quirky and individual feel.”

The subject must return to business though, and it’s intriguing to discover how Richard sees the UKIBC evolving.

“I have a clear vision of where I would like to be, not in terms of milestones and numbers, but in terms of how we operate and what help we can offer UK businesses.

“In line with this, we are looking to roll out a number of new services in 2013, including in-country support, training courses on how to succeed in India, and the launch of a ‘Doing Business in India’ helpline.”

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Business Exchange Issue 02 www.ukibc.com

Point of View: Intellectual Property

Keeping your secrets safe

by Anshika Jha

Anshika Jha has been the UK Intellectual Property Office’s (UK IPO) Attaché in India based at the British High Commission in New Delhi, since May 2012.

She is a dual qualified lawyer - a solicitor in England and Wales, and an advocate in India.

Having practiced law in India and worked at a leading law firm in London, Anshika has sound legal knowledge of Indian intellectual property (IP) issues and practical knowledge of British companies’ IP concerns.

Since her appointment, Anshika has had contact with many British businesses exporting to or operating in India through her outreach work and through individual meetings.

Some of these companies are seeking remedies for alleged IP infringements and others are planning ahead to mitigate such risks.

The most common questions companies raise are how to protect their IP in India and how to navigate its IP enforcement systems.

Anshika works closely with her UK Trade & Investment (UKTI) colleagues to provide practical advice to help UK businesses address such concerns.

Her key tips for UK businesses are: Beware that IP protection is jurisdiction-specific, which means IP rights (including copyright) must be registered in India even if they are protected in the UK. Registration of patents, trade marks, designs and copyright could take several months, owing to considerable backlogs at the IP registries, so businesses should plan their registration well ahead.

If faced with infringement or piracy, appoint a good legal practitioner who understands the local context and has the necessary experience to initiate civil or criminal proceedings on the best grounds.

Use the Indian Customs’ online portal to help ensure pirate or counterfeit goods are seized at the Indian borders. The portal (Automated Recordation & Targeting system) is available at http://ipr.icegate.gov.in/IPR/index.jsp British companies exporting to or operating and investing in India are also keen to understand developments in the Indian government’s IP policies, the Indian enforcement system and of any key IP legal cases.

Anshika Jha

These concerns also form a key aspect of Anshika’s work as she engages on behalf of the UK IPO to build relationships with Indian IP policy-makers and key stakeholders.

Through these relationships, Anshika follows relevant changes for UK interests and also ensures that the UK position is understood by Indian policy-makers and key stakeholders.

The UK IPO’s International Strategy for IP has one overarching aim: to promote an efficient, respected international IP system that encourages innovation and creativity while enabling the economy and society to benefit from knowledge and ideas.

It includes the goal to promote the non-discriminatory and transparent application of IP rules within national regimes overseas to provide level playing fields for protection and enforcement of IP. The strategy is to achieve this by seeking more effective and consistent enforcement of IP laws and by providing practical support to British business by establishing a network of IP Attachés to work with UKTI and the Foreign Commonwealth Office in key overseas markets.

WHAT NEXT? CONTACT: Anshika Jha Senior Intellectual Property Liaison Officer UK Intellectual Property Office T: +91 11 2419 2166 E: anshika.jha@ fco.gov.uk A: Intellectual Property Office British High Commission Shantipath New Delhi 110021 India

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UK India Business Council announces Advisory Council The UKIBC is launching an Advisory Council, comprised of senior business leaders from both India and the UK to advise on the fast growing and complex trade and investment relationship, including innovation, and on unlocking the potential within priority sectors and in leading Indian states.

Our Chair, Patricia Hewitt said: “We share the Prime Minister’s desire to grow business with India. While exports between both countries will remain important – in services as well as goods – we believe there needs to be a much stronger emphasis on supporting business partnerships focused on investment, intellectual property and innovation.”

To provide a renewed emphasis and deeper understanding of the dynamics between the UK and India, we have brought together key business figures from both markets to form an Advisory Council.

Starting from June, the Advisory Council will meet twice a year, once in the United Kingdom and once in India.

Lucy Armstrong, Chair of the national Small Business Forum, CBI Graham Cartledge, Chairman, Benoy Prof. Sir Michael Gregory, Head, Institute for Manufacturing, University of Cambridge Gerry Grimstone, Chairman, Standard Life Ajit Gulabchand, Chairman & Managing Director, HCC Terry Hill, Chairman, Arup Sir Richard Lambert, Chancellor, University of Warwick T V Mohandas Pai, Chairperson, Manipal Global Learning Stuart Paver, Managing Director, Pavers Ltd Analjit Singh, Founder & Chairman, Max India Limited Sir Martin Sorrell, Chief Executive, WPP Noel Tata, Vice Chairman, Trent Ltd Sunil Kant Munjal, Joint Managing Director, Hero Group Mr A Vellayan, Executive Chairman, Murugappa Group

Skills & Education

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Business Exchange Issue 02 www.ukibc.com

Skills & Education

HOW TO...

ON A DELEGATION Nicole takes the partnership route Westminster Kingsway College became a global education brand, with support from UKIBC. Assistant Principal for International Partnerships and Enterprise, Nicole Barber traces their journey.

When we looked to evolve our international skills strategy, we very quickly identified that India offered us scope to build relationships with colleges, agents and ultimately, students.

We knew a little about entering new markets, developing our brand and tweaking our curriculum for overseas requirements, but India was on such a different scale that we needed strategic support, and guidance from experienced professionals.

The Association of Colleges (AoC) worked with UKIBC to take a mission to India, so it seemed sensible to go. It allowed us to get a feel for the market to judge if our curriculum might fit and to identify the potential for possible partners.

Our head of marketing, Ijeoma Akigwe, came with me. I considered this very important because if we were going to develop our brand in India, she would play a crucial role in understanding how this would develop, the resource needs and the marketing methods to maximise the return on our investment.

Having the support of UKIBC, before and during our mission, was also very important because they were able to get us in-front of the right people, and to the right meetings. Doors opened, and contacts were made, which wouldn’t have happened had we been there independently. We’d done our research, and been given the right guidance, to make the best possible use of our time.

We only had a short time in Delhi, but met leading figures from some of India’s trade associations for business, education institutions and skills training providers. This wasn’t just about exchanging pleasantries and business cards, but the first steps to genuine and productive relationships.

The biggest lesson we took from our experiences was that if you aren’t prepared to give maximum commitment, then don’t get involved. If you are not prepared to be flexible, enthusiastic and to work collaboratively when entering new markets, the road will be much more difficult.

Nicole Barber

It’s also vital to ensure your senior management are 100% supportive. It makes such a difference when you meet people overseas, and can be certain that every commitment you make will be honoured, and the UKIBC’s guidance and support provided reassurance for our executive team.

We saw immediate benefits from our relationship, hosted several high-profile events during WorldSkills 2011 in London. Subsequently, enabling our college to swiftly make its name in the global education market.

The missions to India went so well that the AoC decided to co-ordinate an opportunity for FE colleges to establish a joint office in Delhi, which will be a great resource.

We also benefit from our relationship with the UKIBC’s representative in Delhi, Neeru Sood, who seems to know everyone there is to know.

To enhance our presence in India, we joined the UKIBC’s healthcare mission to Hyderabad and Delhi last autumn. I will always endeavour to prioritise joining UKIBC’s missions. It is the best way we’ve found to create business opportunities and maximize the return on our investment.

What Next?

CONTACT: Nicole Barber Assistant Principal Employer Training Solutions Westminster Kingsway College T: +44 (0) 870 060 9801 E: nicole.barber@ westking.ac.uk W: www.westking.ac.uk/ international

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Business Exchange Issue 02 www.ukibc.com

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