New Zealand businesses must tailor solutions to the Indian market

Ruth Le Pla reports on a recent visit of Hon Kapil Sibal, India’s Minister for Human Resource Development, to New Zealand.

Anyone thinking of selling off-the-shelf New Zealand solutions to the Indian market is on a hiding to nowhere.

That was the message from the Hon Mr Kapil Sibal, India’s Minister for Human Resource Development, during a recent visit to New Zealand.

Minister Sibal, who was talking to members of the India New Zealand Business Council (INZBC) in Auckland, warned that existing products will ‘neither be accessible nor affordable’ to Indian consumers.

“That’s not a good business proposition,” he said. “A good proposition is to be where the problem is and find a solution in the context of that problem.”

Minister Sibal outlined the ‘huge challenge and opportunity’ for New Zealand in both India’s healthcare and education sectors: both of which will need constant investment.

“The entire healthcare sector for 1.2 billion people is open for investment,” he said.

“The Indian economy will expand at eight to 10 percent over the next two or three decades and that gives enormous opportunities for the business community.”

India recently passed the Right to Education Act making it compulsory for the state to provide free education for children between the ages of six and 14.

Minister Sibal pointed to opportunities in designing teacher training programmes, distance learning and the development of a new kind of content that is attractive to children.

“But you have to go to India and do the retrofitting there,” he said.

“Do the content development and the design there. Ensure that the vehicle for transmitting that knowledge to our children is designed in India rather than here.”

The minister told Suzanne Hall, CEO and founder of New Zealand company BE Intent, that he ‘absolutely’ agrees with her approach in employing Indian nationals in her New Zealand office to provide both product content and insights into the Indian market.

BE Intent recently employed one such staff member and is in the process of interviewing two more.

BE Intent uses technology to help enhance personal wellbeing and motivation for desk-bound people.

Suzanne Hall says the company’s philosophies around spirituality and connection to nature dovetail neatly with the Indian mindset. The product is underpinned by a strong focus on hard data such as KPIs and can be used to measure deliverables such as employee engagement.

Suzanne Hall recently returned from a business trip to India where she held discussions with distributors and fielded interest from the education sector. She describes India as her company’s main offshore market.

INZBC executive director Fergus McLean reminded attendees to expect ‘advice and insights’ later this year stemming from a Victoria University project examining issues around the export of services from New Zealand to both India and China. Members of the research team recently have returned from a four-week visit to India where they held talks with local companies.

INZBC chairman Wenceslaus Anthony noted that it is critical for companies to find the right partner and do due diligence.

Minister Sibal cautioned business owners to examine their approach to markets. “In the 21st century it’s not so much about competition but about collaboration for leverage. So your mindset and your models must change.”

He advised companies to abandon any thinking around how to make a profit from their business partner.

“You should ensure that the entity makes profit by accessing [India’s] 1.2 billion people. If you can access the Indian market you can access anywhere.”

- By Ruth Le Pla

Photo 1 (from left to right):

• The Hon Mr Kapil Sibal, India’s Minister for Human Resource Development
• Wenceslaus Anthony, Chairman of the India New Zealand Business Council
• Professor Sukhadeo Thorat, Chairman, University Grants Commission
• Mr Amit Khare, Joint Secretary, Ministry of Human Resource Development

Photo 2

The Hon Mr Kapil Sibal, India’s Minister for Human Resource Development

Article uploaded: 14 April 2010