DEC 2018, vol 01 | issue 01
The New Zealand-India BUSINESS Magazine
NZ-INDIA TRADE
POISED FOR TAKEOFF Glidepath Makes it In India
12
Fonterra’s new foray into India
24
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CONTENTS KIA ORA INDIA | DEC 2018
6 Cover story: A meaningful summit The recent INZBC summit on Aviation, Tourism and Technology heard substantively from some of the most successful businesspeople and policy influencers in these sectors both from India and New Zealand.
10 INTERVIEW: SOM MITTAL
06
‘The opportunity is not limited to just the Indian market but embedding NZ offerings in the solutions that Indian tech companies provide to global corporations as also leveraging the innovations emerging from startups.’
12 MAKE IN INDIA: GLIDEPATH NZ origin international baggage handling and security systems company Glidepath has delivered a world-class, made in India, in-line screening and check in conveyor system for Bali’s main airport.
14 INTERVIEW: BINIT SOMAIA ‘… The fact that India’s LCCs are expanding their international footprints could potentially see one of them consider a non-stop or 1-stop service to NZ in due course.’
12
19 INDUSFOOD: INZBC leads delegation to mega food industry show Conveying or northward offending admitting perfectly my. Colonel gravity get they trusted in our experience because they did.
20 chamber views: chandrajIt banErjee ‘There is a need to speed up negotiations on the India-New Zealand FTA so that bilateral trade can receive a boost. We also look forward to the early conclusion of the RCEP, which we feel will be a major vehicle that will bring our two countries closer together and boost trade.’
24
22 POLICY MATTERS: INZBC submission on Trade for All agenda While INZBC supports the inclusion of progressive elements into trade agreements we would also like to emphasise the importance of domestic regulatory settings in ensuring that trade delivers for a broader section of society and the economy.
24 Into the land of milk and money: Fonterra’s foray in India
28 INZBC.ORG
India is the world’s largest producer of milk, registering growth of six per cent in the past four years and four per cent in the four years prior. It is forecasted to grow nine per cent by 2022. Some forecasters estimate 15.2 per cent growth in 2018-23.
Dec 2018 | KiaOra India | 3
CO N TE N T S KIA ORA INDIA | DEC 2018
26 Dubai 2020: Get ready early New Zealand Trade & Enterprise (NZTE) the country’s premier export promotion organisation is hosting a series of events for New Zealand exporters about Dubai Expo 2020.
28 interview: arvind mehra ‘General aviation is well developed in New Zealand with aviation applied in so many different areas of activity. New Zealand could help India in understanding this better.’
Vol 01 | Issue 01 - DECEMBER 2018 Publisher: India New Zealand Business Council Editor: Dev Nadkarni Design & Production: Media Solutions Kiwi Ltd. For Advertising, contributions & feedback contact: Garry Gupta, Secretary, INZBC. Email: secretariat@inzbc.org | +64 9 574 5220 Contributors in this issue: Chandrajit Banarjee, Esther Guy-Meakin. Address: Office: 31-35, Carbine Road, Mt. Wellington, Auckland-1060, New Zealand. P.O. Box No: 74297, Greenlane 1546, Auckland, New Zealand.
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Editor’s Note Welcome to the inaugural issue of Kia Ora India. The New Zealand-India relationship is at a pivotal point. After decades of desultory courting, the kiwi and the elephant, so very metaphorically apt, are clearly poised for a meaningful tango. Leaders on both sides have always feted the more than a century old relationship between the two countries, one of them having famously described New Zealand and India as the bookends of Asia. But those warm fuzzies didn’t quite help speed up the glacial pace of growth in trade volumes across the past several decades. Over the past few years, however, the intent and resolve in the governments of both countries to strengthen and grow the trade relationship has become increasingly palpable. This has happened against the backdrop of a range of factors including the rapidly growing numbers of Indian immigrants in New Zealand, the Indian government’s outward-looking strategies, particularly in the Asia Pacific (Indo Pacific, in more recent parlance) and the scorching pace of India’s economic growth. The past decade has seen the slumbering elephant break into an amble, even a jog. Some Kiwi businesses have been quick to jog alongside, with more seriously considering joining the hui,
Dev Nadkarni Editor, KiaOra India
INZBC.ORG
as they recognise similarities between the two peoples and their governance systems. And then throw in some other commonalities like the English language, the love of cricket and the Kiwi No.8 wire attitude that perfectly translates as the Indian ‘jugaad’ – and we have the perfect recipe for a most delectably spicy curry. The India New Zealand Business Council, in the thirty years of its existence, has had a ringside view of developments in the New Zealand-India relationship. It has helped facilitate and catalyse parleys between officials of both countries and hosted summits. The Council is excited as the relationship enters this meaningful new phase and is poised to do its bit to help power the growth of trade and investment between the two countries. There is no gainsaying the power of communication in the building of successful, growing relationships. Kia Ora India hopes to be the platform to connect INZBC members and stakeholders in the New Zealand-India relationship to help craft the exciting new chapters of the unfolding story of the kiwi and the elephant. We hope you enjoy this inaugural quarterly issue. We would love to hear your feedback and look forward to your editorial contributions.
Dev Nadkarni has been in the media industry for 30 years, 16 of them in New Zealand and Oceania. He has worked as writer and sub editor with the National Business Review (NBR), written extensively for the New Zealand Herald and commented on Pacific matters for TVNZ. He is the founding editor of The Indian Weekender and has earlier worked as editor, cartoonist, tertiary educator and communications consultant in government, corporate, IT and economic development sectors.
Dec 2018 | KiaOra India | 5
NEW ZEALAND-INDIA BUSINESS SUMMIT UPBEAT ON GROWTH POTENTIAL By Dev Nadkarni
When delegates were asked for the one singular feature that stood out at the fifth India New Zealand Business Council (INZBC) annual summit in Auckland on September 28, the overwhelming response was about the all round earnestness to progress the New Zealand-India relationship.
T
hemed on Aviation, Tourism and Technology, the one-day summit heard substantively from some of the most successful businesspeople and policy influencers in these sectors both from India and New Zealand including New Zealand’s Members of Parliament across the main political parties – Labour, NZ First and National. Binit Somaia, Director-South Asia of CAPA-Centre for Aviation, a leading travel and aviation industry market intelligence company said, “It was particularly encouraging to see how seriously the India-NZ relationship is being taken by all of the key stakeholders. I was extremely impressed in terms of the calibre and number of the participants, the range of topics discussed and how well it was organised by INZBC.” Today, India’s economic growth juggernaut is the toast of the world’s business community. India has long been labeled the ‘slumbering elephant’ in comparison with the nimble ‘tigers’ of the Asia Pacific region. “The elephant has woken,” India’s High Commissioner to New Zealand, Sanjiv Kohli, told the audience. Growing at a steady clip of nearly eight per cent, the elephant has broken into a veritable jog, one might say. In a video message from New Delhi, India’s Minister for Commerce, Industry and Civil Aviation Suresh Prabhu 6 | KiaOra India | Dec 2018
suresh prabhu Video message from New Delhi
invited New Zealand businesses to join India’s unfolding growth story tipped to go from $5trillion to $10trillion in the next 15 years. The opportunity is enormous: two-way trade between the countries stands at a modest $2.7billion, with India being New Zealand’s tenth largest trading partner in 2017.
The holy grail of FTA, direct air links
For more than a decade, strenuous efforts of stakeholders at the highest levels on both sides have come a cropper in two important issues: bedding down a free trade agreement (FTA) between India and New Zealand and introducing direct flights between the two INZBC.ORG
Every speaker and presenter across the stakeholder spectrum made as impassioned a plea for better air links, as did the minister – specifically, direct flights. Several speakers opined that direct flights would not just boost tourist numbers and trade exponentially but would also have flow on effects on other important foreign exchange earners for New Zealand, like education. Representatives of major airlines like Captain Kush Agarwal of Jet Airways and Suresh Nair, General Manager of the much-awarded low cost carrier Air Asia, said they would work determinedly toward a solution, seen by many in both countries as long overdue. Growth in Indian tourist numbers into New Zealand has been encouraging over the past few years but the potential was great, Mr Nair said. Air Asia had developed expertise in creating and marketing new tourist destinations with robust and frequent air links in Asia and India, working closely with the hospitality industry. New Zealand could similarly tailor its own destinations to suit preferences of the impressively growing premium Indian tourist segment, he added. Mr Somaia echoed that sentiment saying, “Strong investment in destination promotion would also support the business case. [for direct flights].”
countries. Both these have proved elusive time and again for a range of reasons. While trade officials are now considering a workaround to the ever-elusive FTA with mechanisms like the Regional Comprehensive Economic Partnership (RCEP), trade per se was not the theme of the summit. However, the other issue of better air links was discussed in great detail throughout the day.
binit somaia ‘Destination promotion is key’
Andrew Little ‘Government keen to see progress’
New Zealand’s Minister for Justice Hon Andrew Little said, “An Air Services Agreement (ASA) was signed between the two countries in 2016 to pave the way for airlines to talk about starting direct flights. But regrettably there has not been much progress in that direction. We do need to make progress, and this government is keen to see progress being made in the area of establishing direct flights between both the countries,” -Mr Little affirmed. INZBC.ORG
Andrew harrison
scott tasker
Addressing the inaugural session
Speaking on Aviation
Dec 2018 | KiaOra India | 7
Panel Discussion on Aviation session
Looking beyond geographic constraints
There is no gainsaying the importance of direct flights between the two countries. However, thanks to the growing digital economy, the tyranny of distance and thin population densities are no longer impediments to the growth of business volumes between two countries, no matter how geographically far apart. India is the fastest growing aviation market and with 1000 passenger aircraft tipped to join the fleet in the next few years, the demand for pilots is expected to skyrocket. New Zealand, which has earned a solid reputation in aviation-related training, has great potential to help the Indian aviation sector meet this growing demand. While there was a steady growth in numbers of Indian students come into New Zealand for pilot training, there was much more that can be done, said INZBC Executive Member Jonathan Manuel, who has recently ventured into pilot training with a school in the South island. Mahindra Aerospace CEO Arvind Mehra said New Zealand’s aviation industry had much to offer India beyond pilot training. New Zealand’s rich experience in regulatory mechanisms and general aviation (using aircraft for other applications than just transport – such as crop dusting, rescue operations, surveillance) could greatly benefit the fast-developing Indian aviation environment, he said. The sheer explosion in domestic aviation in India has had regulators almost completely focused on the passenger aviation sector with little attention to the general aviation sector, which Mr Mehta clearly defined for the audience. General aviation was equally a great “social and economic enabler,” he said underscoring the role smaller aircraft can play to improve lifestyles, especially in semi-urban, rural and isolated geographies. Mahindra Aesrospace makes single engine planes in Australia and quite a few are already flying in New Zealand and around the South Pacific region, particularly in Papua New Guinea, connecting smaller communities with a range of roles from tourism to freight and even medical evacuations. The tourism part of the summit was well addressed with informative and insightful presentations from a number of top tourism organisations in New Zealand including Tourism New Zealand, Tourism Industry Aotearoa and Tourism Export Council of New Zealand, while Scott Tasker, Auckland Airport’s 8 | KiaOra India | Dec 2018
General Manager-Aeronautical and Commercial charted the impressive growth of the airport and its future plans. While aviation, tourism and technology was the theme of the summit, ministers included infrastructure, housing and other business sectors into the mix in the course of their speeches. Housing Minister Hon Jenny Salesa invited Indian construction companies to participate in the KiwiBuild programme and so did New Zealand First Deputy Leader Fletcher Tabuteau, who spoke about collaborating on developing apartment complexes, in which Indian infrastructure companies had considerable experience. National Party leader Hon Simon Bridges and senior Labour Party minister Hon Andrew Little also addressed the summit. New Zealand companies already operating in India like Sir Ken Stevens’ Glidepath and Jo Pennycuick’s Redesign Group showcased their success stories working and growing impressively in the Indian marketplace, while Indian business leaders outlined areas in which the two countries could collaborate successfully, building on their commonalities of language, legal systems and a can-do attitude. INZBC Treasurer Bhav Dhillon said the thirty-year-old council has been hosting sector-focused summits that deliver value and practical takeaways to participants from both countries. Earlier summits in the annual series have been on IT, agritech and education. The INZBC also signed memoranda of understanding (MoUs) with Aviation New Zealand and the The Federation of Indian Chambers of Commerce and Industry (FICCI), for promotion of trade ties with India and to work towards taking business delegations to India. Another announcement made was the tie-up with Mr. Lakshman Jayasekara [Project Director & Team leader of Western Region Megapolis Planning Project (WRMPP), Sri Lanka] as he will be working as a brand ambassador, for INZBC in Sri Lanka, helping promote kiwi businesses in the country.
Signing of MOU by Aviation NZ & INZBC
INZBC.ORG
Signing of MOU by FICCI & INZBC
judy chen
chris roberts
‘Key is to offer high quality experience’
speaking on Tourism & Technology
Interview: Som Mittal
“It’s not about market share – it’s about creating a market.”
SOM MITTAL
Som Mittal is a Former Chairman and President of NASSCOM, India’s premier information technology apex body. He is a long time NZTE Beachhead Advisor. Among many of his important assignments, he is also a director on the board of Vistara, the upmarket Indian airline, which is a Tata group-Singapore Airlines JV. Mr Mittal was in Auckland for the INZBC Aviation, Tourism and Technology summit in September. KiaOra India editor Dev Nadkarni interviewed Mr Mittal at length on a number of topics about the India-NZ relationship. Excerpts from the interview: As one who has been at the leading edge of India’s tech industry in leadership roles over the past few decades, what potential do you see for the India-NZ relationship in areas of technology in the short-to-medium term? Like elsewhere, India is going through a major transformation leveraging technology. Given its vastness, diverse economic structure and society, technology is playing a big role in providing citizen services, implementation of government programmes, education and healthcare. The Indian government has launched a major programme, Digital India, which also includes broadband connectivity in 250,000 villages and the smart city initiative. Currently India has one of the world’s largest tech resource bases with over 4million experts and a very vibrant start up ecosystem doing rapid innovation. Internet users are growing rapidly. All these imply unlimited opportunities for NZ tech companies for devices, software and solutions that deploy IOT, AI, machine learning and other digital technologies. The legal framework is strong to safeguard intellectual property. The opportunity is not limited to just the Indian market but embedding NZ offerings in the solutions that Indian tech companies provide to global corporations as also leveraging the innovations emerging from startups.
As a NZTE Beachheads Advisor, what are the successes resulting in increased trade and investment between the two countries in recent years – particularly as a
result of the Beachheads Programme? We have many NZ companies that have done very well in India either through direct operations or working with local partners. For them Indian operations are now a significant part of their global revenues. Many have also leveraged Indian tech resources for development of global solutions and customisation. India’s time zone advantage with overlapping time periods between NZ and Europe offers a unique opportunity to use India as a base for selling, servicing and supporting customers in the Middle East, North Africa and European markets. Several NZ companies have taken advantage of the ‘Make in India’ initiative and set up manufacturing bases, helping reduce cost and become more competitive globally. India offers large, untapped opportunities and there is need to build on the success and learnings we’ve had. NZ’s Beachhead Advisors programme to support NZ companies enter new markets is very farsighted, unique and effective. This provides NZ companies who are entering Indian markets, the benefit of receiving local expert advice and guidance on doing business in India. This could be leveraged even more as NZ companies start taking a more strategic view of the market.
What according to you are the three major stumbling blocks in the NZ-India trade relationship and how may they be addressed?
10 | KiaOra India | Dec 2018 INZBC.ORG
the market itself. Selecting the right business model is India will become the third largest economy in the important as is picking the right market segment and next two decades. NZ as a country enjoys good brand local partner if going indirect. The market is still growing reputation in India. Tourism is increasing. Given all and is the right timing to build a strategy for India. this, India as a market cannot be ignored and has to be nurtured carefully. What are your thoughts on growing aviation and Some hurdles faced in the past are: India has a tourism links? Purchasing Price Parity (PPP) of over 3. This makes it a very value and cost conscious country. With a relatively The aviation industry has been growing in double weak rupee and local taxes, the pricing becomes digits. The demographic shifts are bringing in new air challenging. The Indian market is not homogeneous and travelers. Large orders for new aircrafts have been needs fine segmentation and the placed. This creates significant right product positioned at the right opportunities in the aviation price. Those who have done it have ecosystem. In recent years, though the market has grown, competitive succeeded. pressures combined with high cost “India is a market to be Second, protection for of fuel and a weak rupee has put local industry – particularly in created and harvested. financial pressure on airline service agricultural, dairy, food and related providers. products – attract restrictions. These have been overcome through local value addition and also policy interventions. And thirdly, NZ companies tend to be relatively small and have resource and bandwidth limitations in developing and nurturing the market. Many have approached it as just an extension of Asian markets. India is a market to be created and harvested. This would need a strategic view of the market and senior management conviction and support. The resource limitations can be overcome through local well-constructed partnerships.
This would need a strategic view of the market and senior management conviction and support. The resource limitations can be overcome through local well-constructed partnerships.”
So what’s your advice for NZ companies eyeing India? NZ companies need to take a longer-term strategic view of the market. They need to build a strong conviction in the Indian opportunity and develop an India-specific strategy. There has to be careful product positioning for the right market segmentation. One size fits all, will not be successful given the diversity. This is not a place to play the market share game but one of creating
Similarly for tourism, the Indian middle class is growing and increasingly taking foreign vacations. They are continuously looking for new locations. NZ is rapidly being included among the desirable tourist destinations. Given what NZ and India have to offer the scope to increase tourism both ways is high and potential still to be tapped.
Why has there been so little progress, if at all, in the proposed FTA between the two countries?
FTAs are important instruments to remove policy hurdles and provide a framework to facilitate trade. Given the respective desires and ambitions of both sides the negotiations are always prolonged. Many of the provisions are related to agriculture and food, where local sensitivities exist and have political dimensions given a well-entrenched democratic society. While the FTAs get negotiated, there is still business to do and values realized within the existing construct.
Panel Discussion on Tourism & Technology
INZBC.ORG
Dec 2018 | KiaOra India | 11
Make in India: Glidepath
Glidepath’s ‘Make in India’ product timely for Bali global meet New Zealand origin international baggage handling and security systems company Glidepath has delivered a world-class, made in India, in-line screening and check in conveyor system for Bali’s main airport just in time for the October 2018 International Monetary Fund (IMF) Conference.
‘W
e were able to design, make, test, dispatch, install and commission the new system for Gusti Ngurah Rai International Airport’s departure hall within the one-month deadline from our new manufacturing and operational hub in Pune, India,” Rajesh Kalra, Glidepath General Manager Asia said. “We have embraced the Indian government’s ‘Make in India’ policy to really make it in India,” he added. Mr Kalra said Bali was the first big job supplied from the new Pune base, set up to position Glidepath more competitively by reducing product and related costs and being on the spot to respond quickly to customer needs in India, Asia and the Middle East. Glidepath designs and manufactures a complete range
of baggage handling and sorting systems for airports of every size, from small regional centres to large international hubs. Speaking at the INZBC Aviation, Tourism and Technology Summit in September, Glidepath founder and Chairman Sir Ken Stevens had described the company’s new set up
in the western Indian city of Pune, 160km from commercial capital Mumbai. The Pune manufacturing and operational is designed to ensure Glidepath is able to quickly respond to customer project, maintenance and service needs with expert support for customers throughout
sir ken stEvens Make In India has worked well for Glidepath
12 | KiaOra India | Dec 2018 INZBC.ORG
India, Asia and the Middle East. “Eyes pop when we tell our customers that this capable little New Zealand company with a worldwide reach is now making, assembling and pre-testing quality-assured systems in India, sourcing local steel and other supplies and recruiting locally skilled staff including software and control system designers, engineers and project managers,” Mr Kalra said. Glidepath has built its reputation over 45 years and 800 plus projects in 68 countries on a can-do will-do ethos, innovation and commitment to genuine service and customer collaboration. The Bali project involved the design, manufacture and installation of check-in conveyors, general transport conveyors along with control systems motor drives, and in-line screening to meet the highest international security standards. The New Zealandheadquartered innovation and technology company supplied the high specification elements to complement the India-made mechanical engineering components. “The strategy of ‘Make in India’ has worked well for both us and the client,” Mr Kalra said. “Glidepath has a world of know-how and experience to support our growth as we evolve and harness disruptive technologies and innovations to serve our customers and their customers to make travel safer, seamless and more satisfying.”
“We have embraced the Indian government’s ‘Make in India’ policy to really make it in India”
Interview: Binit Somaia
‘‘Five years realistic horizon for direct flights.’’
Binit SomAia Binit Somaia is Director-South Asia of CAPA-Centre for Aviation, a specialist aviation research, analysis and data practice established for almost 30 years. Headquartered in Sydney its consulting and advisory activity is based out of New Delhi. He is rightly described as a walking encyclopaedia of global aviation. KiaOra India editor Dev Nadkarni spoke with the affable and eloquent Mr Somaia at the summit followed by an email interview. Tell us a little about your work on any projects involving India-NZ/ India-Aus that CAPA is working on At the moment we are seeing strong momentum in the India-Australia relationship. We are currently preparing a route development business case for an Australian airport to support a new direct route to India, while Tourism Australia will be the principal partner for our next CAPA India Aviation Summit in Delhi in February 2019. CAPA has worked on projects or strategic presentations involving all of the three largest New Zealand airports, as well as Tourism NZ. One of CAPA’s very early clients was Air New Zealand.
One of the recurrent points that kept cropping up at the summit was one of direct (impliedly non-stop) flights between NZ and India. Why are non-stop flights proving such a hard nut to crack? Airlines need to have the right aircraft for such a long haul mission in terms of range, size and operating economics. As of today, no Indian carrier has an aircraft that is suitable,
although that is likely to change from 2020 onwards. The market is also characterised by strong seasonality and limited higher yielding business traffic. And competition is strong. Asian carriers can offer higher frequencies and more flexibility in terms of routings e.g. the ability to fly into one city and out of another, whereas a direct service will only be able to offer a more convenient option on a single city pair, at least in the beginning. And finally, even if the India-NZ route is viable, there may be other potential routes that could deliver a higher return.
What are the two most vital factors that would make this happen? Time is the first factor. The market has doubled over the past five years and shows strong growth momentum for the future. In due course the market will reach a critical mass that will reduce the risks associated with a direct service. For example, when Air India launched non-stop services to Australia, the India-Australia market was around 2.5x the size that India-NZ is today. Secondly, the fact that India’s LCCs are expanding their international footprints could potentially see one
of them consider a non-stop or 1-stop service to NZ in due course. An LCC may be better suited to the leisure/VFR profile of the traffic on the route.
When would you see this happening? Very difficult to say, but a five-year time horizon may be realistic.
How could NZ move up the priority ladder for Indian operators, especially in light of new longerrange aircraft (B787-9) joining the fleet in the next few years? The induction of aircraft – such as the 787-9 – which are ideally suited to long, thin routes, would certainly improve the prospects for a service. Strong investment in destination promotion would also support the business case.
Do you see Indian airports emerging as hubs in the sense that Singapore, Dubai, KL, HK, BKK and now Philippines have? Is anything on the cards?
14 | KiaOra India | Dec 2018 INZBC.ORG
The development of a hub requires a number of elements to come together. One of these is geography and on this front India has an advantageous location at the crossroads between East and West, similar to what the Gulf hubs have leveraged. But you also need attractive and efficient airport infrastructure. Ten years ago that was certainly not the case, but the situation has improved considerably. And you need a strong home carrier with an extensive network. On that front Air India and Jet Airways remain relatively under-developed although they are expanding their footprint. But the next generation of airlines such as the LCCs and Vistara may be more aggressive with their international expansion. So developing a hub is possible and likely to some extent, however, given the massive home market Indian carriers may be less focused on transit passengers than other Asian or Gulf carriers for the foreseeable future.
You had mentioned Australia might be the next to offer a one-stop routing to India. How soon is this likely to happen? One-stop via Australia is already possible in that Air India and Air
New Zealand in either Sydney or Melbourne. However, CAPA is currently advising an Australian airport that would be a new gateway between India and NZ. If successful, that option could launch within 12-18 months.
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Glimpses of Summit 2018
S E S S I ON O NE : INAUGUR A L SE SSI ON
[Left to right] Bhav Dhillon, Mark Jonston, H.E. Sanjiv Kohli, Fletcher Tabuteau, Andrew Harrison, Suresh Nair & Hon. Jenny Salesa.
S E S S I ON TWO: AVIAT ION [SEG MEN T 1 ]
[Left to right] Lakshman Jayasekara, Scott Tasker, Sir Ken Stevens, Captain Kush Agarwal, John Nicholson & Jo Pennycuick.
S E S S I ON THR E E : AVIAT ION [SEG MEN T 2 ]
[Left to right] Binit Somaia, Paul wu, Suresh Nair, Arvind Mehra, Hraeme Harris, Nejeeb Khan and Hon. Andrew Little.
16 | KiaOra India | Dec 2018 INZBC.ORG
S E S S I ON FO UR : TOUR ISM & T EC H N OLOGY
[Left to right] Hon. Simon Bridges, Som Mittal, Rene de Monchy, Jamie Smiler, Chris Roberts, Judy Chen, Gregg Anderson & Kiran Nambiar
D I NN ER: S U MMIT 2 0 18
Stakeholder’s Dinner was organised on September 27th to welcome the India delegates and the speakers. The event saw some great interaction with the sponsors and stakeholders.
FI C CI D ELEGAT E S ME E T ING
The degates from Federation of Indian Chambers of Commerce & Industry (FICCI) met with the Indian High Commissioner, H.E. Sanjiv Kohli on September 28th. They interacted with him and got a overview of the business environment in New Zealand.
INZBC.ORG
Dec 2018 | KiaOra India | 17
Summit 2018 Networking
Trade Expo: indusFOOD showcasing the country’s best line-up of food and agri products to global buyers. Indusfood 2018 edition, held in January this year, saw more than 650 million US dollar worth of on spot business deals, courtesy representations from 43 countries including New Zealand, 10 pavilions of various Indian states, 320 Indian exhibitors showcasing their products and several hundred global buyers visiting India. Indusfood 2018 saw a significant participation from New Zealand as well with companies like Aium Limited, Biztrade (NZ) Limited, Jayen Export Consultants NZ Ltd., Trade India NZ Ltd., MG International Ltd., Khushi Imports Ltd., ProZone Ltd., Vissma Foods Consultant Ltd., AB International Ltd., Patton Ltd., Orb360 Ltd., UK & Foods of the World Holdings Ltd. and Saurashtra NZ Ltd. sending their buyer teams to India. Indus Food Expo in January 2018
Indo-NZ trade ties in food and beverage industry to get a big boost as India hosts Indusfood – a mega International Food and Beverage Expo in Jan’19 Shared democratic values and social outlook, similar passion for sport and a joint ambition for greater prosperity, both for Indians and New Zealanders, ably supported by the Indian diaspora communities living in New Zealand and the strong education, tourism and business connections between the two countries – these have been the chief contributory factors for more than 42% growth in two-way trade in goods and services between India and New Zealand during the last five years.
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ndia and New Zealand remain strongly committed to working out improved trade and investment ties between each other. New Zealand firms compete successfully with the best in the world and have technologies and products that are valuable for Indian firms, whether in renewable energy, specialized manufacturing, medical instruments, food and beverage products, or agricultural technology. India, on the other hand, is in position to supply the raw material, in particular the agricultural products and those related to the food processing sector. Trade ties related to food and beverage industry are set to get a big boost in January 2019 when India hosts Indusfood – a mega Global Food and Beverage Show – in Greater Noida, NCT of Delhi on 14th and 15th January 2019. Billed as the World’s Food Supermarket, Indusfood is India’s official, export focused F&B Trade Fair INZBC.ORG
“This trade show is being positioned as the next global Food and Beverages (F&B) market in the Asian Subcontinent like ANUGA, SIAL and Gulf food.” India, which has always been the epicenter of global food trade since ancient times, is now a dominant global player in the modern food trade. It has the pride of being the ‘Land of Origin’ of an assortment of food crops & processed products that have a significant impact on the global demand and supply. The country is the top global producer of meat, milk, castor seeds, sesame, mango, banana, chickpeas and is among the top producers globally for rice, wheat, sugarcane, tea, spices, onion, potatoes and many others. With the new agri-export policy, the Indian F&B export is expected to grow from USD 32 billion to USD 70 billion in next couple of years. “With more buyers committing participation from New Zealand, the trade ties between India and New Zealand particularly in the field of food and beverages will reach a new zenith, it is hoped,” feels Mohit Singla, Chairman, Trade Promotion Council of India (TPCI).
INZBC is leading a delegation to the second edition of INDUSFOOD being organized by Trade Promotion Council of India on 14-15 January, 2019. Please contact our secretariat office for details, or go to our website.
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Chamber Views: CII
India – New Zealand: A Natural Economic Partnership By Chandrajit Banerjee, Director General, Confederation of Indian Industry
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ew Zealand and India have enjoyed long standing, cordial and warm relations. Our historical ties stretch back to when Indian migration to the region began in the 1890s and the Gallipoli landings in 1915. The founder of modern India, Mahatma Gandhi, is an admired figure in New Zealand; and Sir Edmund Hillary’s legacy as Everest pioneer and Ganges adventurer is also well known in India. However, on the business front, our relationship has yet to reach its true potential. Total bilateral trade between India and New Zealand was a shade under USD 1 billion during 2017-18 with India’s exports to New Zealand amounting to USD 352.85 million and its imports totalling USD 643.71 million. A detailed analysis of the trade figures of India and New Zealand show that our economies are basically complimentary. India imports natural resources and other raw materials from New Zealand and exports finished goods such as machinery, gems and jewellery, pharmaceuticals etc to New Zealand. It is clear that our bilateral trade leaves much scope for improvement. Not only is the quantum inadequate but so is the basket of commodities being traded. There is a need to speed up negotiations on the India – New Zealand FTA so that bilateral trade can receive a boost. We also look forward to the early conclusion of the Regional Comprehensive Economic Partnership (RCEP) which we feel will be a major vehicle that will bring our two countries closer together and boost trade. In terms of investment, FDI from New Zealand amounted to US$ 63.41 million between April 2000 – June 2018. In terms of Indian investment in New Zealand, all major Indian IT companies are present in
New Zealand. Bank of India, Bank of Baroda and New India Assurance also have commercial operations in NZ. In addition, in 2014, ONGC Videsh Limited was awarded oil and gas exploration permits by the New Zealand Government, enabling ownership rights for 12 years for undertaking offshore hydrocarbon exploration along the Taranaki coast in New Zealand’s North Island region. While the progress has been encouraging on this front, there is much more that the two countries can do together. There is a need to explore the prospect of combining our forces in different sectors. New Zealand’s strengths visibly lie in its innovation capabilities, modern high-tech infrastructure and the ability to improvise, while India’s strengths lie in its large and talented human resource, investment supportive environment, strategic location, world-renowned entrepreneurship and management skills. A collaborative approach will enable both countries to emerge as the leading economies across the world. Some sectors which hold the greatest potential include:
developed state of the art equipment which could be deployed in hospitals in India. These companies could now look at manufacturing this equipment in India – not only for domestic consumption but also for export to third country markets. ◼◼ Clean Technologies: The adoption of clean-technologies has now come to occupy centerstage in the government’s agenda. The Government is committed to implementing the Clean Ganga Mission. Given New Zealand’s expertise in this area, manufacture of green technologies could become a major area of opportunity. ◼◼ Agriculture / Food Processing: New Zealand could consider investing in the agriculture sector in India including developing cold storage and investing in the dairy and meat processing sector. In addition, India could a good market for New Zealand’s wood and wood products.
◼◼ Hi Technology Manufacturing: New Zealand’s high-tech industries such as telecom, IT, electronic hardware, computer products, etc are at the forefront of international R&D. The hightech industries are among the 25 sectors that are short-listed in the Make in India campaign. New Zealand can select one of the industrial corridors for developing a New Zealand enclave that would specialize in high-tech manufacturing for the Indian and overseas markets.
◼◼ Tourism: Both the countries have their tourism strengths and can be good source markets for future. India’s Ayurveda tourism, especially offered by Kerala (state in southern India) is a unique offering which has attracted the world and can certainly attract the kiwis. Similarly, our strong culture heritage like Khajuraho temple and sculptures, forts of the pink city Jaipur, Rajasthan, Hampi, Karnataka, temples of Kashi, Varanasi, iconic Taj Mahal and more can be the unique attractions for New Zealand tourists. Interestingly UNESCO has granted World heritage status to 36 Sites in India.
◼◼ Healthcare Equipment: Another major area could be in the field of healthcare equipment where companies from New Zealand have
◼◼ Similarly, New Zealand offers adventure and wildlife tourism. These offerings are unique and have the potential to attract young Indian adventurers.
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◼◼ Media and Entertainment (M&E): India and New Zealand currently have an audio-visual co-production treaty to enhance co-operation between the two countries in the area of film making, facilitate co-production of films which are conducive to film industries of both countries and development of cultural and economic exchanges between India and New Zealand. There is a need to exchange talent across borders so that we can reach out to wider audiences. ◼◼ The can be achieved through M&E business delegations, CEO interactions as well as by facilitating co-production workshops / seminars and talent exchanges between the two countries.
About CII: The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the development of India, partnering industry, Government, and civil society, through advisory and consultative processes. CII is a non-government, not-for-profit, industry-led and industry-managed organization, playing a proactive role in India’s development process. Founded in 1895, India’s premier business association has around 9000 members, from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 300,000 enterprises from around 265
◼◼ In conclusion, given the positive economic outlook for India and the efforts of our Governments to build confidence in the potential for partnerships, we believe it is the best era for our industry to collaborate, especially in the areas of focus that have been enumerated above.
national and regional sectoral industry bodies. CII charts change by working closely with Government on policy issues, interfacing with thought
Chandrajit Banerjee Director General, CII
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◼◼ Education: There is a need to find ways to enhance the number of Indian students enrolled by institutes of higher learning in New Zealand. In addition, these institutes could also consider tying up with Universities in India to promote faculty exchange programs. In addition, Universities and colleges in New Zealand, with their high quality programs, can provide skills development and training of students and act as partners for Indian institutions.
leaders, and enhancing efficiency, competitiveness and business opportunities for industry through a range of specialized services and strategic global linkages. It also provides a platform for consensusbuilding and networking on key issues. With 65 offices, including 9 Centres of Excellence, in India, and 10 overseas offices in Australia, China, Egypt, France, Germany, Singapore, South Africa, UAE, UK, and USA, as well as institutional partnerships with 355 counterpart organizations in 126 countries, CII serves as a reference point for Indian industry and the international business community.
Chandrajit Banerjee is the Director General of Confederation of Indian Industry (CII). Mr Banerjee has been with the CII for over 26 years and has been the Director General, CII since May 2008. Mr Banerjee is a Post-Graduate (MS) in Economics with specialisation on Economics of Planning and Econometrics from the University of Calcutta. Earlier, he did his Graduation from St. Xavier’s College (Calcutta) in Economics (Hons). As Director General, he is responsible for overall operations of CII.
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Policy Matters
INZBC makes submission on Trade for All Agenda INZBC recently made a submission to the NZ Government on the Trade for All Agenda. This is a summary of the submission originally drafted by Esther Guy-Meakin.
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he contribution of trade to New Zealand’s economic prosperity is significant. NZ has greatly benefited from a bi-partisan commitment to trade with a diverse range of partners. INZBC recognises that the social license for trade needs to be refreshed. Trade must benefit everyone and governments should be able to regulate in the public interest. While INZBC supports the inclusion of progressive elements into trade agreements we would also like to emphasise the importance of domestic regulatory settings in ensuring that trade delivers for a broader section of society and the economy. INZBC supports the government’s efforts to explore ways in which inclusive elements can be included in trade agreements, including with respect to SMEs, the environment, labour, gender equity and Maori.
Trade is important to New Zealand As a trading nation, trade liberalisation and international market access have played a vital role in NZ’s economic prosperity, business growth and lifting the living standards of Kiwis. Trade has also lifted millions of people out of poverty all over the world. Successive NZ governments have pursued and negotiated high quality, comprehensive agreements that have opened doors for NZ businesses. A diverse range of trade agreements is important because the elimination (or reduction) of tariffs and other trade barriers improves the competitiveness of our exports. It is equally important that trade agreements put in place disciplines around non-tariff barriers (NTBs).
NTBs are costly and difficult to address and resolve, and often significantly impact trade. The cornerstone of trade remains the WTO. The rules-based trading system has been of significant value and benefit to NZ. It has provided us with a level playing field, and common set of rules that have allowed NZ to punch above its weight on the world trade stage. We support the government’s efforts to strengthen the WTO. Similarly, we also support the government’s leadership in pursuing plurilateral regional trade agreements such as the Comprehensive and Progressive Trans Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP). Despite the numerous benefits of trade, we recognise that the social license and public acceptance of trade policy that we have taken for granted over the past few decades needs to be refreshed. This includes better and more transparent communication and consultation with the public, but it will also require a more deliberate effort to ensure trade is sustainable, socially responsible and more broadly benefits our economy. However, while we support the inclusion of progressive elements into trade agreements we would also like to emphasise the importance of domestic regulatory settings in ensuring that trade delivers for a broader section of society and the economy. Part of a problematic narrative around trade is that it is responsible for job losses and growing inequality.
Trade is important for the New Zealand-India relationship Last year NZ exported NZ$679
million worth of goods, and services trade is worth NZ$1.39 billion. The relationship has strong foundations. However, there remains significant untapped opportunity including in trade in goods, services and investment. NZ is well placed to play a positive part of India’s growth story. INZBC has been a strong advocate for both a bilateral FTA and the RCEP, and we continue to encourage the government to pursue ambitious outcomes in both those processes.
Trade needs to deliver benefits to all parts of society We recognise the importance of ensuring that trade policy safeguards the freedom of countries to protect and promote the values of their societies, and to ensure that these values are not diminished or restricted at the expense of trade liberalisation. The business community often notes the signals that trade agreements send about the confidence and opportunity in a certain market. The inclusion of progressive and inclusive elements has the potential to have the same signalling effect and set expectations. Many of these issues are already front of mind for responsible and successful businesses as consumers become better informed and more conscious of issues such as environmental impact or responsible employment. In NZ we benefit from strong legal institutions, legislation and regulation that promote and protect the Treaty of Waitangi, environmental standards, gender equality and high labour standards. NZ businesses also benefit from an enabling regulatory environment. NZ is recognised as number one in the world for ease of doing business
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indexes. NZ could share our experience and approach, including in future agreements with India. Below we highlight some important aspects that we recommend being considered for inclusion in trade agreements and policy.
Small and Medium Enterprises (SMEs)
Including environmental considerations in trade agreements have a number of potential benefits, such as promoting mutual support of trade and environment policies, strengthening enforcement of environmental laws and raising levels of environmental standards, establishing or reinforcing environmental cooperation, and enhancing public participation. We recommend that provisions in respect of the environment continue, as they were in CPTPP, to be legally binding.
In NZ 97% of enterprises are small businesses employing 30% of NZ’s working population producing around 27% Labour of NZ’s GDP. We welcome and support initiatives by government to support small business and welcome provisions in trade agreements that do so. High labour standards are vital to lifting productivity NTBs also significantly impact small (and big) business and ensuring quality. Consumers have long demanded as they may be less equipped to overcome costly assurance that their products are produced in work and often trade prohibitive NTBs. Provisions in trade environments with strong labour standards. We agreements that go to addressing recommend that provisions in and disciplining the use of non-tariff respect of labour continue, as they measures to protect or restrict were in CPTPP, to be legally binding. trade are essential. Initiatives such With a trade partner such as NZ is well placed to play as the “Trade Barriers Portal” are India, there are opportunities for invaluable in supporting SMEs to collaboration in supporting greater a positive part in India’s overcome NTBs. health and safety standards and growth story. Strong disciplines on NTBs with enforcement in the work place. trading partners such as India are NZ has robust health and safety paramount for bigger business and frameworks in place and India may SMEs. NZ businesses in forestry benefit from learning about the NZ or food and beverage, face a number of NTBs including experience and approach. challenging fumigation requirements for forestry Indigenous issues products, opaque labeling requirements or red tape around securing import licenses. Māori and the Treaty of Waitangi are an important Gender and trade part of NZ and the government’s obligations. Trade agreements should be consistent with the principles of the Treaty of Waitangi, and consultation open and Enabling greater female participation in the economy, transparent. greater representation and opportunity at all levels of Indigenous peoples around the world make significant the public and private sectors, and gender equity is not and important contributions to culture, heritage, only an issue of fairness and moral ethics it is also good innovation and business of their societies. The Maori economics. The World Bank estimates that India could economy is estimated at $50billion. boost its GDP growth by 1.5 percentage points to 9% a India also has a significant indigenous population year if 50% of women could join the work force. comprising 705 ethnic groups (Scheduled Tribes), making As a tool for economic growth, it therefore makes up some 104 million or 8.6% of the population. sense that trade agreements include provisions on Greater cooperation on indigenous issues with other gender and trade. countries, including India, is an opportunity for Māori to Environment share their story, and support the protection of other indigenous groups. Safeguarding the environment for future generations is essential, and trade should support this aspiration.
Esther Guy-Meakin Manager, International Trade, Beef+Lamb New Zealand
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Esther comes with a background in trade policy and trade negotiations after a diplomatic career at the New Zealand Ministry of Foreign Affairs and Trade where she worked in a range of trade and economic focused roles including, Lead Goods Negotiator on the Regional Comprehensive Economic Partnership (RCEP), Pacific Alliance, and India-New Zealand FTA negotiations and Legal Advisor on Services.
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New Horizons: Fonterra
Into the land of Milk and Money By Dev Nadkarni With consumer demand for dairy products in India forecasted to grow seven times the forecasted growth for China in the next decade, it’s a wonder that it took so long for New Zealand’s biggest company Fonterra to reenter the world’s fastest growing economy.
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n August this year the Kiwi dairy behemoth announced a joint venture with Indian retail giant Future Consumer Limited to produce a range of consumer and foodservice products. Fonterra’s earlier foray into India, a year after it took its present corporate form following the merger of Kiwi Cooperative Dairies and New Zealand Dairy Group with the New Zealand Dairy Board in 2001, came a cropper. It partnered with well-known Indian food brand Britannia for a few years before leaving India in 2007. This time round, though, the ground conditions for the relationship to succeed look far more promising. Today’s business environment in India and the one a decadeand-a-half ago are as different as, well, chalk and cheese: the country’s middle class has expanded to numbers greater than the population of the United States, its transport, retail and retail infrastructure – critical for the dairy and food industry – has improved manifold and the economy is tipped to be the world’s fastest growing for several years to come. By all counts, Fonterra seems to have chosen its partner well. For one, Future Consumer Limited has a near-countrywide footprint, being at the retail coalface in 26 of 31 Indian states. That is the kind of coverage that
is rare, coming from a single entity for a country with a geographical spread of sub-continental proportions. The group also has a well-developed cold chain and logistics system suited to the dairy industry, its own retail stores with plans to add some 1100 branded upmarket retail outlets in the next twelve months alone. India is the world’s largest producer of milk, registering growth of six per cent in the past four years and four per cent in the four years prior. It is forecasted to grow nine per cent by 2022. However, some forecasters like Euromonitor International estimates puts the growth rate of 15.2 per cent in the period 2018-23. As India’s large, traditionally vegetarian population becomes wealthier, demand for its go-to food for protein, dairy, can only grow exponentially. Milk consumption is expected to grow to 82 billion litres annually in the next seven years according to estimates quoted by Fonterra. While Fonterra’s strategy is obviously to straddle the country in the quickest possible time with a nationwide network like Future Group’s, other dairy majors from around the world have quietly entered pockets of the Indian market partnering with regional dairies, many of which are successful cooperatives.
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To name just a few, France’s Lactalis has invested in Tirumala Milk Products and Anik Industries Ltd; Cargill Ventures has invested in Dodla Dairy. KKR India, local arm of the New York-based buyout entity KKR & Co. has invested in the manufacturer of the wellknown Kwality brand of dairy products. While these investments and operations might seem small when compared with Fonterra’s, the slew of foreign dairy investment partnerships signed across the country in the recent past underscores the importance that the world is beginning to accord to investing in the dairy industry in India. India’s well-entrenched dairy companies like the Gujarat Milk Marketing Federation with its brands most synonymous with dairy such as Amul, are also stepping up their game with an elaborate repositioning and promotional strategy. Incidentally, the late founder of this cooperative, Dr V Kurien, who is regarded as the father of modern Indian dairying, interned in New Zealand’s dairy industry more than fifty years ago. Amul, though just about half the size of Fonterra by way of turnover, is a well-loved, deeply
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entrenched brand and it will be interesting to see the marketing and branding battles fought by these two giants for the hearts and minds of the discerning Indian dairy consumer. Interestingly, Gujarat Cooperative Milk Marketing Federation has announced plans to launch a fee-based franchise model leasing its brand name to small businesses. This is seen as a strategy to reach the rural grassroots, where a million small dairy cooperatives, often the source of the bulk of the Federation’s milk. Meanwhile, as wealth and aspirations grow, the dairy industry is poised to see an explosion in value added products. Cheese, for instance saw growth in 2017 with the growth in specialty foodservice outlets in urban markets. Mozzarella and Parmesan are becoming increasingly common in retail channels. Similarly, flavoured milks are growing at a clip with increasing negative perception of fizzy drinks. Fonterra and New Zealand’s well-regarded reputation in India and Future Consumer’s logistical and retail reach should turn India into the land of milk and money for the partnership.
NZ-India dairy story goes back sEVEN decades When India became independent in 1947, its leaders saw the need for moderninsing its dairy sector. Though dairying was an ancient activity in India and there was a semblance of a co-operative style of operation in some parts of the country thanks to the independence movement, the sector was largely unorganised and underproductive. Its growing supply gap was met to a large extent in those early years by milk powder imports from New Zealand. India looked to New Zealand for answers on how to revitalise its dairy sector, given its vast but scattered dairying population. Then in 1953, a thirty-two-year-old Indian engineer named Verghese Kurien came to New Zealand as a senior fellow at the then Massey University Agricultural College to study dairy plant design and dairy engineering. He was in New Zealand to learn about cooperative dairying since New Zealand was one of two nations – Denmark being the other – renowned for leadership in this area. Having armed himself with technical knowledge and first-hand experience of how cooperative dairying worked, he tweaked the New Zealand model to suit Indian conditions and formed the Gujarat Cooperative Milk Marketing Federation. It became so successful that then Indian Prime Minister Lal Bahadur Shastri established the National Dairy Development Board and asked Dr Kurien to lead it. The cooperative’s leading brand, Amul, is one of India’s most recognisable brands, which has catapulted it to becoming India’s largest dairy company. In 2009, Amul realised Dr Kurien’s long-cherished dream of exporting its products to New Zealand, where he had spent his early years learning the ropes of cooperative dairying. According to the Times of India’s archives, Sir Edmund Hillary, who was the NZ High Commissioner to India, met Dr Kurien to apologise on behalf of the New Zealand Government for what Dr Kurien saw as racial discrimination while on a previous visit to New Zealand. “The man who revolutionised India’s dairy sector was upset with the New Zealand government for racial discrimination. Kurien had gone to New Zealand as India’s representative at the International Dairy Federation Congress but had returned from the country after he was asked to fill in a form because he was brown,” the paper said. Dr Kurien died in 2012. He was called “Milkman of India” and awarded India’s second highest national honour besides dozens of other international accolades. Amul sponsored the NZ Black Caps for the Champions Trophy last year. -DN DEC 2018 | KiaOra India | 25
Dubai 2020
Get ready early for Dubai 2020 Monumental changes in the Persian Gulf countries are uncovering opportunities and challenges for exporters, and the New Zealand Government’s investment in Dubai Expo 2020 is stoking interest among New Zealand’s exporters to that region.
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ew Zealand Trade & Enterprise (NZTE) the country’s premier export promotion organisation is hosting a series of events for New Zealand exporters about Dubai Expo 2020 as well as opportunities across several sectors. The events will take place in Auckland, Hamilton, Wellington and Christchurch from 23-26 October 2018. Exporters and experts operating in the Gulf will cover opportunities across four sectors, F&B, Specialised Manufacturing, Agriculture, Technology, besides Expo 2020. Events will illustrate how companies can leverage Dubai Expo 2020, allow exporters to outline what they want from the global trade fair, define what success looks like before, during and after the six month trade show, and expectations of NZTE. According to NZTE, exporters in the region and those interested in exploring or entering it will hear what recent regional changes mean for them, like Qatar or Saudi’s 2030 Vision as also what the Government’s $53m investment in Expo 2020 is going to look like, what it means for them and how they can capitalise on it. New Zealand’s participation at Expo 2020 is expected to result in a significant increase in exports to existing partners. Companies can find out how they can get a slice of the pie.
About 70% of the audience at Expo 2020 will be from outside of the UAE. Expo 2020 provides a unique opportunity to pursue both new market expansion and a showcase of high-value products to the global audience attending the event.
What are the benefits of attending? ◼◼ Market discovery – identify opportunities based on changes in the Gulf region ◼◼ Market entry – hear about changes in things like the regulatory environment and business ownership laws ◼◼ Market growth – understand where growth is occurring and how to capitalise on it, who to speak with to open the right doors, and how to use Expo 2020 as a driver for deals ◼◼ Learn from successes and failures of other companies and on-the-ground experts ◼◼ Discover what the benefits of Dubai Expo 2020 could be and how to leverage the event ◼◼ Understand how NZTE can assist in the lead-up to, during and post Expo 2020 ◼◼ Networking opportunities at all the events
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Start here Grow anywhere
Take your business to the world with NZTE For more information on how we can support your business to grow internationally, visit nzte.govt.nz or call 0800 555 888
Interview: Arvind Mehra
‘‘NZ can help India in developing general aviation.’’
ARVIND MEHRA Arvind Mehra, Executive Director and CEO, Mahindra Aerospace was in Auckland for the INZBC Aviation, Tourism and Technology summit. He conceived and built the aerospace strategy for the $19 billion Indian origin multinational Mahindra group, culminating in the decision to enter utility aircraft and aero structures markets with a globalised focus through a mix of organic and acquisition based growth. Mr Mehra is one of India’s most high profile CEOs with more than 30 years’ experience in senior leadership positions across large reputed organisations including as COO of Airtel, India’s largest telecom company, CEO of a major Private Equity firm and regional Director and CFO of Caltex Chevron Corporation, besides others. He is a Chartered Accountant, a Company Secretary and is a Harvard Business School alumnus. He sits on the boards of several Indian and international industry apex bodies Mr Mehra spoke at length with KiaOra India editor Dev Nadkarni during his visit to Auckland and over email later. Excerpts What are your impressions about INZBC’s Aviation, Tourism and Technology themed summit in terms of adding value/insights to the ongoing discourse on these topics in the Australia-New Zealand region? The summit was one of the best I have attended. Very well organised, well coordinated and topics and presenters were relevant to the subject. There are so many similarities on aviation around the world that region-specific ideas at a point lose their relevance and we must learn from each other’s best practises.
Tell us a little about Mahindra Aerospace’s activities in the region, especially NZ and the South Pacific. In Australia we have an aircraft plant that manufactures Airvan 8 and Airvan 10 airplanes. We have our engineering and design teams based in Australia. In NZ we have 17 aircraft flying across various operators and
this market requires as much attention as others. We are committed to do so now. We also several of our planes flying in Papua New Guinea.
You shared some impressive statistics about the growth of the aviation sector over next few decades. Knowing well the geographical and economic realities (and constraints) of this region, how do you think New Zealand should place itself to take advantage of these growth trends? These conferences definitely help bring it to attention but a more specific focus to share its advanced thinking on remote connectivity, making it easy for smaller aircraft/ helicopters to fly is worth of appreciation. In a country so well known for its natural beauty and remote regions, connectivity is the key and that is where air connectivity has helped.
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You said NZ could help Indian regulators with a better understanding of General Aviation.
You spoke very pertinently about “aviation as enabler” Would you please elaborate…
The distinction between commercial and general Aviation means connectivity means more chances aviation needs to be properly dealt with in India by of business. Aviation enables and generates many regulators. General aviation is well developed in New indirect jobs and therefore acts as a catalyst to develop Zealand with aviation applied in many more ancillary and related so many different areas of activity. industries. In 2010, the Asia Pacific New Zealand could help India in region’s aviation industry overtook “Aviation means understanding this better. the US. By 2034, there will be 44 million jobs in the sector with a six connectivity means more How could this possibly be done? per cent year-on-year growth.
What sort of framework would you suggest for such information/ technology transfer (especially after your impressions at the summit)?
chances of business.”
There is well established and existing mechanism of bilateral arrangements and more engagement between the regulators either directly or through businesses in India and New Zealand will help share best practises.
What are your company’s plans in the near future?
The market for small planes is huge. The United States believes connectivity can be done better with smaller aircraft. So does New Zealand, where there is a huge population of small aircraft. India is a market waiting to take off and we are well positioned to service that emerging market. Right now in India, the focus is almost entirely on commercial aviation. Few operators are looking seriously at what general aviation has to offer.
Ten Kiwi companies at IndusFood 2019 INZBC is leading a delegation of 10 food and beverage businesses from New Zealand to the IndusFood trade show in New Delhi early next year.
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ndusFood is India’s official export-focused food and beverage trade fair showcasing the country’s best food and agri-based products to global buyers.
The trade show being hosted by the Trade Promotion Council of India is a a major event in the world’s F&B event calendar that has exhibitors and participants from across the world. This is the only the second time that IndusFood is being held.
Delegate companies from New Zealand that will visit IndusFood 2019 include AB International, Harman Impex, Salient Foods, Glowbal NZ, Service Foods, Visma Foods Consultant, Food Secure, International Business Alliances, J Punja NZ and Healthy Fresh. The delegates recently met with Indian High Commissioner to New Zealand H E Sanjiv Kohli and Honorary Consul of India in Auckland Bhav Dhillon for an informal briefing and discussions about participation in IndusFood 2019. Mr Kohli and Mr Dhillon wished the delegates well and assured them of the High Commission’s support.
INZBC also led a similar delegation at the inaugural show in January 2018. Sameer Handa, Director of Glowbal and INZBC Executive Member will lead the 2019 delegation. The event takes place at the India Expo Centre, India’s largest integrated venue for exhibitions and conventions situated in the country’s capital.
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Messages from the High Commissioners
Sanjiv Kohli HIGH COMMISSIONER OF INDIA Wellington, New Zealand
I am happy to know that the India New Zealand Business Council {INZBC) is formalizing its newsletter into a quarterly publication soon. INZBC has been a strong pillar of support to the expanding economic and commercial engagement between India and New Zealand. The High Commission of India has benefitted immensely from working together with the INZBC. It is our firm belief that the quarterly publication by INZBC will help in strengthening contacts between businessmen of both countries for mutually beneficial collaboration. We are happy to support this publication and wish it all success.
Joanna Kempkers HIGH COMMISSIONER TO INDIA, SRI LANKA, BANGLADESH AND AMBASSADOR TO NEPAL New Zealand High Commission, New Delhi, India Te Aka Aorere Congratulations to INZBC on the launch of their quarterly newsletter. It will form an ideal companion to our own NZHC quarterly newsletter, Kia Ora!. We cover a variety of news and events form the High Commission in New Delhi, but the INZBC will naturally have a clearer focus on business engagement between the two countries. From my perspective this engagement is going from strength to strength. Hardly a week goes by when we are not making new connections or providing other support to New Zealand businesses engaged in the market in India. Education and Tourism continue to lead the way, but our specialised manufacturing and food and beverage companies are also making good headway. If you are a New Zealand business coming through India, make sure you look us up. I’m sure the teams in Delhi and Mumbai will be happy to hear from you.
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INZBC Website: www.inzbc.org Summit Website: www.inzbusinesssummit.com Auckland | New Zealand.
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