India's economy is more efficient than China's

By agencies   |   Tuesday, 21 February 2006, 20:30 IST
Printer Print Email Email

CHENNAI: India has emerged a clear winner over Redland China in the global business plans of French MNC, the $41 billion Saint-Gobain group. In order to expand its major business ? flat glass, construction products and high performance materials ? it has decided to invest more in the next five years in India. The Group Chairman and Chief Executive Officer, Jean Louis Beffa said, ?In '06, the turnover will exceed $409.09 billion. We expect a significant growth to come from expansion of glass business ($181.81 billion), GNO's abrasives and other divisions and from the integration of India Gypsum.? Recently, the Group has acquired India Gypsum, after its takeover of the U.K. major British Plaster Board (BPB) last year. The company had a turnover of $36.59 billion then. Since then, it has grown to nine entities employing 3,000 people. The figure will read 3,500, if India Gypsum were included. On India versus China, Beffa said, ?The market economy is working much more efficiently and clearly in India than in China. The market in China is not as clear as in India. The last time I visited India was in '01. I must say now there is a sense of confidence and dynamism in India, which is really encouraging. I find a new speed of growth in India.? India is set to grow at the current fantastic rate of seven-eight percent in the next five years. It can even reach the level of China if it decides to overcome infrastructure constraints and high-energy cost, he said, adding, ?Indian is a priority zone for us for investments in industrial activity in the next five years. We have made this practical decision and I have also conveyed to our Indian managers.? The group, from the very start, is comfortable in having full Indian management at the top level of all companies. Among the emerging economies, it is in India that the group has deputed lesser number of French managers, as it is able to attract talent.