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Top European firms use India as base for global operations
New Delhi, Nov 30: Top European firms, with strong brands like ABN-Amro, ABB, Cadbury, Piaggio and Ericsson, are leveraging India`s resources for enhancing their worldwide operations, a Boston Consulting Group (BCG) study has said.
The other major European firms outsourcing India's resources are
Renault, Perfetti and Glaxosmithkline.
''ABN-Amro has reached significant cost savings through business
process outsourcing(BPO),'' the BCG study, done in collaboration
with CII, said.
ABN-Amro, which provides a range of banking products in the
world, has designated India as BPO hub and is positioning it to
provide integrated and seamless trade solutions for its global
clients. The centre is already serving both ABN Amro's worldwide
operations and other banks.
ABB, world leader in power and automation technologies, has set
up its first information technology centre outside the European Union
and the United States, in India. It is leveraging its Indian centre
for export of products, solutions and services to the global
market. ''I see the Indian operations playing a more pronounced
regional and global role within the group in the form of
international projects, product sourcing and as service
providers,'' Peter Smits, chairman, ABB India, was quoted in the
study.
Cadbury, which is an industry leader in the chocolates and
confectionery market, has Rs 650-crore sales in India. ''with a 70
per cent value share of the chocolate market in India, it is
exporting both finished goods and concepts to Cadbury around the
world,'' the BCG study said.
India is being leveraged for export of finished goods, as a
''superior'' destination for manufacturing best practices and for
BPO operations.
Perfetti has also created and grown segments in the confectionery
market from the ground up, especially for deposited candy. It is
clocking a 30 to 40 per cent annual growth on its turnover of Rs 350
crore.
telecom major Ericsson has collaborated with Wipro to
develop infrastructure and services for mobile networks in emerging
markets across the globe. Within India, it has supplied 50 per cent
of mobile network systems in India.
Glaxosmithkline, ranked as the number one pharma company in
India, plans to develop India as a major research and development
centre and for outsourcing data management requirements.
Two and three-wheeler Italian giant Piaggio has worked out plans
to make India a global hub for three-wheeler manufacturing and the
using the country as a launching pad for global expansion.
Another auto giant Renault has built an export business in India
for both tractors and components. ''It plans to increase exports
six-fold to 6000 units in three years,'' the BCG study pointed out.
It said that all these companies view India as a key focus area
and are willing to use opportunities beyond the product market.
''They localise parts of the value chain to obtain Indian cost and
capability benefits,'' it said.
Bureau Report