058_Global12_InFocus_IndiainAfrica_V6

Global issue 12

In FocusIndia in Africa Ceneviz. The company makes tyres for both passenger and commercial vehicles from its plants in Durban and Ladysmith, and distributes several brands, including some imported from India, around Africa. India is now the world’s largest producer of generic pharmaceuticals and Africa is a natural fit for Indian companies that provide essential drugs, especially anti-retroviral and anti-malarial medication at a fraction of the cost of producers elsewhere. For example, In- dian pharmaceutical company Cipla slashed the per patient drug cost for HIV-positive Credit: © Copyright Tata Steel 2012 patients from around $10,000 to $400 per year, earning enormous goodwill in a conti- nent where HIV/AIDS is still rife. Africa ac- counts for 16 percent of total Indian pharma- ceutical exports. India’s pharmaceutical giant Ranbaxy Laboratories, which was the first to set up operations in Africa in 1977, opened its second plant near Johannesburg in 2010. Cipla has announced a $36 million upgrade Tata has the most diversified footprint in Africa to its plant in Durban and has recently formed  something similar for Africa.” ArcelorMittal South Africa has become a joint venture in Uganda. Luis Ceneviz, who runs the African op- the continent’s largest producer of liquid Africa’s large tracts of arable land are an- erations of Apollo Tyres from South Africa, steel, with a capacity of 7.8 million tonnes other attraction for Indian agribusinesses. adds, “In many ways, India–Africa is the per annum from its plants in Gauteng. Arce- Karuturi Global is now the world’s largest perfect fit. Our products, in terms of qual- lorMittal is also the largest iron ore mining exporter of roses thanks to its investments ity, specification, price and availability, are company operating in Africa, with mines in in Ethiopia and Kenya. Sai Ramakrishna just what our African customers need – and Algeria, Mauritania, Senegal, South Africa Karuturi, the founder and MD of the com- Africa is just the right market as we grow and a $1 billion project in Liberia. Essar pany said, “I was not even a fly on the wall our overseas presence.” Steel took over Zimbabwean steel producer in India, but in Ethiopia, I am the largest To date, the total value of recent Indian Zisco in 2010, and the group is also in- investor and the second largest employer investment into Africa is estimated to be after the government.” Karuturi takes its around $16.5 billion. This includes the Indian pharmaceutical corporate social responsibility seriously, record $10.7 billion that leading Indian tel- providing schools, pharmacies, housing ecommunications firm Bharti Airtel paid to company Cipla slashed and sports facilities for its employees. It buy out Middle East telecom giant Zain’s the total per patient drug even runs a professional football team in one-network operation in Africa. Bharti Ethiopia. “I got in on the ground floor, oth- now has a presence in 17 African countries cost for HIV-positive ers got in on the second floor, but there are a money transfers and Internet connectivity. patients in Africa from cycle. Africa offers us a scale we could nev-lot of floors left to go in Africa’s economic and has diversified its products to include Fierce competition with local networks has around $10,000 to er reach in India,” Karuturi says. driven down the cost of making calls to a Even beyond business, Africa offers a fraction of what it was five years ago. $400 per year lifestyle difficult to replicate elsewhere. Tata has probably the most diversi- South Africa in particular, with its first- fied footprint in Africa. It set up Tata Af- volved in several other projects, including world infrastructure, wide open spaces rica Holdings in 1994 with headquarters business process outsourcing (BPO) opera- and ‘five-star’ lifestyle, has become a ma- in Johannesburg, South Africa. It produces tions in Africa. Other large Indian investors jor draw for Indian expatriates. “I lost my 130,000 tonnes of high-carbon ferrochrome in African resources include Coal India in heart to South Africa,” said Ratan Tata. It from its plant in Richards Bay, South Af- Mozambique, Vedanta Resources in copper seems that an increasing number of Indian rica; it has a commercial vehicle assembly mining in Zambia, Varun Industries in rare entrepreneurs are losing their hearts to what plant in the Gauteng province; its Taj Ho- earth minerals in Madagascar, and Jindal Africa has to offer; in return, the Indian tel Group runs the five-star Taj Cape Town Steel and Power in Mozambique and South presence is delivering just the impetus the and Taj Pamodzi in Lusaka, Zambia, and Africa. continent needs for its own economic trans- Joekels Tea Packers, the second largest tea Six years ago, Apollo Tyres, one of In- formation. This could well be a marriage company in South Africa, forms a signifi- dia’s largest tyre manufacturers and distrib- made in heaven.● cant component of its Tata Global Bever- utors, bought out Dunlop Tyres Internation- ages group. Tata is also involved in clean al South Africa and in the process acquired power projects in Africa, while Tata Chem- Dunlop’s rights in 33 African countries. Anver Versi is Editor of London-basedAfrican icals Magadi in Kenya is Africa’s largest “We invested $80 million in upgrading and Business andAfrican Banker magazines exporter of soda ash. expanding our operations,” says CEO Luis 58 lwww.global-briefing.org fourth quarter 2012global


Global issue 12
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