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‘Recession should prompt new business models’

BANGALORE: The economic recession that has become truly global, should prompt Indian companies seriously examine new business models, TVS Motor Co Chairman and Managing Director Venu Srinivasan said here on Thursday.

Addressing the 16th quality summit of the Confederation of Indian Industry, he said, “Manufacturing in many sectors is already moving out of the developed countries. In the case of information technology, it is not a migration of people but a migration of jobs. We also see the phenomenon of China and the Middle East offering to bail out financial institutions in the U.S. and Europe.” All these pointed to a “DNA change in world economics” he added.

An example was how over the past ten years, the top ten companies listed in the New York stock exchange, according to their market cap, had changed.

In the auto scene in the West, changes placed Japanese companies right on top. “General Motors does exist but its market cap may be smaller than that of several Indian companies,” he remarked. Exim Bank of India Chairman and Managing Director T. C. Venkat Subramanian said the goal of India having a 10 per cent share of world trade might entail a long haul. It took China almost 20 years to achieve 8.8 per cent share. But, there were positive pointers; FDI, which was $ 600 million in 1994, increased to $32.4 billion last year. The Exim Bank itself had already financed 238 ventures operating in 60 countries, financing them Rs. 13,000 crore.

Sanmar Group Vice Chairman N. Kumar said the summit with the theme ‘India @75’ would see the first awards for excellence presented to small and medium enterprises.

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