Singapore, Monday, 6 September 2009 - To facilitate Singapore companies' exposure to business opportunities and to foster closer business ties with the southern Indian state, the Singapore Business Federation (SBF) and the Singapore Manufacturer's Federation (SMa) jointly organized a five-day (30 Aug to 5 September 2009) business mission to the state of Tamil Nadu, India. This was SBF's second trip to the Indian state since October 2007.
Supported by the Confederation of Indian Industry (CII), Singapore Indian Chamber of Commerce & Industry (SICCI), Association of Small & Medium Enterprise (ASME) and the Singapore Polytechnic Graduates' Guild, the business mission was led by SBF International Relations Vice Chairman Mr. V K Rajan.
The business delegation which comprised eight representatives from seven companies and an executive from the Singapore Ministry of Trade and Industry engaged their India counterparts in various business meetings. The seven companies represented six business sectors - real estate, metal fabrication plant, thermal device manufacturer, heavy lifting crane manufacturer, plastic injection molding and trading companies.
One of the highlights of the business mission was the Tamil Nadu Business Know-How and Networking luncheon on 31 August, jointly organised by the Confederation of Indian Industry (CII) and SBF. It was attended by over 70 participants from the state of Tamil Nadu as well as Mr. Rajan, leader of the Singapore delegation, Mr. Ajit Singh, Singapore Consul General to Chennai; Mr. Ryan Ang, IE Singapore Centre Director to Chennai; Mr. N. Kumar, Past President, CII and Honorary Business Representative, IE Singapore; and Mrs. Gayathri Sriram, Chairman CII Chennai Zone, Managing Director, UCAL Auto Company.
During this networking session, Mr. Rajan highlighted that the ethnic Tamils form a large proportion of the ethnic Indian component of Singapore's multi-racial mix. He noted that Tamil is also one of the four official languages in Singapore; and given the common threads in historical background of Singapore and India and the fact that both countries were both former British colonies make it easier for us to do business.
He acknowledged that with the liberalisation of the Indian economy in the 1980s, trade and investments between the two countries have expanded rapidly. In 2007, Singapore's total trade with India registered S$3.3 billion (US$2 billion). Substantial investments have also flowed in both directions. Mr. Rajan also gave a strong vote of confidence on the potential of Indian economy despite the current economic slowdown. This is based on the fact that the Indian economy is still registering a respectable growth rate of 6.7% in 2009. He added that Indian businessmen could benefit from the using Singapore as the gateway to the Asean market. In return, Singapore businessmen were encouraged to set up shop in Tamil Nadu and leverage it to be the gateway to the wider pan-Indian market.
Singapore Consul General to Chennai, Mr. Ajit Singh told participants at the luncheon that there was a need for Indian and Singapore companies to leverage the "Singapore connection" in the fields of infrastructure, research and development, information technology and environment management. By tapping on the historical links and the two FTAs in place, namely, the Comprehensive Economic Cooperation Agreement (CECA) and Asean-India Free Trade Agreement (AIFTA), business transactions will be further smoothen and result in many growth opportunities.
SBF and CII also held a closed-door business networking session on 2 September attended by senior Indian executives from the city of Coimbatore. The networking session was chaired by Mr. Rajan; Mr. Ravi Sam, Chairman, CII Coimbatore Zone; and Mr. J Balamurugan, Vice Chairman, CII Coimbatore.
Indeed, the business mission proved to be fruitful for the Singapore delegation who gained insights on the business landscape of Tamil Nadu state. Three participating companies, Jenmon International, Yamari Singapore and Enerplas Pte Ltd are now in the process of establishing their branch offices in Chennai. This trip has imparted the confidence and useful contacts to kick start their business presence in India.
Based on the feedback gathered by SBF, around 35 deals (value of S$5 million) were facilitated between the Singapore and Indian companies.
Mission leader, Mr. V. K. Rajan, Senior Consultant of Chesterton Suntec International Pte. Ltd. said, "The mission to Tamil Nadu was an eye-opener. This state is on the move and there are many opportunities for Singapore businesses. Chesterton Suntec has identified a project to work on, it is worth keeping the state on our radar."
Mr. Steven Sim, Managing Director, Trends Singapore West Pte Ltd, noted, "I have benefited tremendously from participating in the Sept 09 mission trip to Tamil Nadu with SBF. I benefited from conversation exchanged with our mission leader Mr. V.K. Rajan, Mr. Oeij Ek Siang, Deputy Director from MTI, Mr. Teo Chi Howe, Senior Executive, SBF and several other participants from various industry sectors. The networking meetings and factory visits were most interesting as we get to meet people and learn how businesses were being run by the locals. Last but not least, we also understand how other foreign and Singapore investors invest in India (such as Bosch in Coimbatore and Ascendas International Tech park in Chennai). The most contacts made and ideas exchanged were during the CII Chennai networking luncheon on the 31 Aug. I would like to take this opportunity to thank SBF for organizing this trip to Tamil Nadu. I sincerely urge Singaporeans who are truly interested in starting business in India to visit the country and understand first-hand on the business environment in India. Nothing beats seeing it for yourself, India has been treating my business well."
Thrust sectors in the state of Tamil Nadu:
Heavy commercial vehicles, automobiles & auto components, power pumps, leather tanning industries, cement, paper and textiles.
Why Tamil Nadu?
- Tamil Nadu has a population of about 67 million people, its neighboring states of Kerala has about 33 million people, Karnataka has about 55 million people and Andhra Pradesh has about 80 million people. With its strong connectivity in transportation and telecommunication network, Tamil Nadu can effectively tap on a combined population of 235 million people in the four key southern Indian states. (Tamil Nadu, Kerala, Karnataka and Andhra Pradesh)
- Many heavy engineering and manufacturing-based companies are centered in and around Chennai
- Ample workforce availability (skilled and unskilled) makes the state an attractive investment destination
- Higher education is strong in the state, with 252 engineering colleges, 236 polytechnics, 661 industrial training institutes.
- Tamil Nadu is among the first states in India with 100% connectivity of rural areas with paved roads, and they have a well-established sub-urban Railway network.
- International airports at Chennai and Trichy, third largest airport in India. Domestic airports at Chennai, Coimbatore, Tuticorin and Madurai
- 7 international airlines operate 28 exclusive cargo flights per week
- Tamil Nadu has 3 major ports: Chennai, Ennore and Tuticorin, apart from 14 minor ports.
- The state is one of the few Indian states with surplus power electricity, enabling the state to sell power to neighboring states of Andhra Pradesh and Karnataka.
- Bharti-Singtel submarine cable link between Chennai and Singapore with bandwidth of 8.4 terabits per second, a second submarine cable of 5.12 terabits per second being commissioned by VSNL.
- Chennai is the second leading software exporter in India, after Bangalore.
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