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| Business Opportunities in India |
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India – South Africa business relations have witnessed tremendous growth since the resumption of trade and diplomatic ties between the two countries in 1993. The end of Apartheid in South Africa and India’s growing integration with the world economy after it embraced globalization have played a crucial rule in strengthening the economic relations between the two countries. In 2006, the total bilateral trade stood at nearly US$ 4 billion, up from US $ 573.38 million in 1995- 96.
Indian Investment in South Africa
In recent years, several Indian companies have forayed into South Africa. The Tata Steel, Tata Motors and TCS have made considerable investments in the country. Similarly, Mahindra & Mahindra, Cipla, Ranbaxy, Ashok Leyland, Apollo Tyres are some of the other Indian business houses to have established a presence in South Africa. In addition, banks like the SBI and ICICI are busy establishing their branches in the country, partly with a view to tap into the million - strong People of Indian Origin (PIOs) there. VSNL is in the process of investing US$ 200 million in the telecom sector in South Africa. In all, some 35 Indian corporations have established their presence in the country, and more are likely to join the race soon. Over the ongoing year, investment from India Inc. is expected to reach US $ 500 millions in South African economy.
South African Investment in India
If the India Inc. has been quick enough to join the South African bandwagon, the corporations from that country have amply demonstrated their faith in India growth story by investing in diverse sectors of Indian economy. Thus, the South African Breweries has acquired a majority stake in Mysore Breweries. The South African energy giant Sasol, with considerable expertise in converting coal and gas into diesel, is exploring the possibility of setting up a whopping US $ 6 billion plant in India. The successful bidding by the Airports Company of South Africa, as part of GVK Consortium, for the modernization of Bombay Airport represents a landmark in India- South Africa business ties. Besides, there are several joint ventures between the two countries. Thus, Specpharm, a South African drug company, has entered into a JV with Lupin in order to distribute TB drugs in India. Similarly, Pharmadynamics and Wockhardt Pharmaceuticals, India have established a joint venture.
Future Prospects
Whereas in the course of the last decade or so, the growth in India- South Africa business relations has been nothing less than spectacular, it represents only the beginnings of the unfolding growth scenario. The bulk of the potential is yet to be realized. The India- South Africa CEOs Forum, headed by Ratan Tata, is meant to facilitate the business ties between the two countries. In particular, South African businesses have great opportunities for investment in India in areas such as iron and steel, organic and inorganic chemicals, fertilizers, gold and diamond, etc. What is more, new vistas are opening up with each passing day. Therefore, the business relations that have developed between the two countries so far can only intensify in the foreseeable future.
Major Indian Companies
As mentioned earlier, the India Inc. is fast emerging as a significant player in South Africa and the rest of the world. Companies big and small are venturing out. Here is a list of the largest Indian Companies:
- Reliance India
- ONGC
- Bharti Airtel
- Tata Consultancy Services
- Infosys Technologies
- NTPC
- Reliance Communications
- Wipro
- ICICI Bank
- ITC
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