The Hindu Business Line : ‘Italian cos focus more on product, less on profit’

New Delhi, April 10 Having recognised the benefits of technology transfers to India, Mr Roney Simon set up the advisory consultancy CRS Global. Over two decades, Mr Simon, who lives in Torino, has helped forge some significant joint ventures between India and Italy.

Mr Simon was recently conferred with the Order of the Star of the Italian Solidarity by the Italian Government for his contribution in promoting bilateral ties in a ceremony in New Delhi. He’s betting the slowdown will increase the position of India as a market. Which should mean more work for his team at the strategic advisory’s office in Noida. Mr Simon is also Director – Italy, FICCI, and President of the Indo-Europe Association of Fashion and Design (Associazione Indo Europea per la Moda e Design).

How was it being Cavaliere?

It is an honour bestowed upon you on behalf of the President of Italy, so it’s particularly special for me as an Indian citizen living in Italy. It’s a recognition of the work that we as a team have done over these years.

What are the advantages in doing business with Italy? Apart from our love of food and music, what binds us?

Just as many Indian businesses are family-driven, culture and origin also play an overweighing part in the thinking of Italians. Friendship, brotherhood are very important and we are both curious, hospitable people.

Italy is dotted with small and medium companies and a strong artisan population. We too are a country of people with big dreams but small pockets and would benefit from access to appropriate technology.

Why I chose Italy? Because if you’d gone to a German chocolate manufacturer he would have sold you a standard manufacturing plant of one tonne capacity a day needless of what the requirement was. Whereas Italians are willing to take a standard machine and turn it into a 30-kilo plant.

I realised that there big scope in transfer of technology. In those days, for example, there was no single manufacturer of aircraft and aircraft equipment components outside of Hindustan Aeronautics. (Simon was actively involved in the first public private sector cooperation in the Aeronautical field between the Finmeccanica subsidiary Partenaviato and Taneja Aerospace & Aviation Limited, in Bangalore.)

What’s the difference, what’s to emulate?

While Italian companies are also family owned, each family is in a business that it wants to be synonymous with, whether it’s Beretta for pistols or Trussardi in fashion. They don’t venture into an area, because there is money to be made there. Rather than being profit driven they are product driven.

And their zing for life! It’s a street smartness that they don’t teach you at Harvard. They bring romance into anything: they will sell you the Colosseum laughing, laugh while you are paying for it, and make you laugh for paid for it.

Has Italy managed to increase its share of trade? Has it wooed India persuasively enough?

Italian trade in India has grown 40-45 per cent but Indian trade in Italy hasn’t done as well.

Italians, because they have such quality products, always had markets come to them and haven’t been used to seeking out markets. Now with the economic slowdown and usual orders missing and they are forced to look at countries like India more proactively.

From India, more and more companies are looking at Italy too. Our offices there are equipped to help them crisscross Italy in a day and visit possible partners. We have also established our consultancy here and will be able to better engage with Indian Government departments and companies.

What are the areas of opportunities?

Agriculture, food processing, cold chain technology – no other country has better food and food processing technology. Consider this: when Heinz, one of the world’s largest food companies, decided to set up a tomato processing unit in India, all its equipment, technology and personnel came from Heinz Italy. Eighty per cent of the Indian food Industry buys equipment from Italian food processing companies.

Personally, I’d also like to be able to bring the concept of cluster development to India. Take Italy’s Marque Region, which we represent here. That district alone produces 36 per cent of Europe’s shoes.

What has been the most satisfying project?

Definitely, the tie-up between National Institute of Design and Pininfarina, the designers of the Lamborghini, Ferrari and Maserati. That was very original as joint venture and it engages with young Indian minds while having huge commercial benefits. (Tata has already tied up with Pininfarina to set up the first ever Indian auto centre in Pune. Its luxury sedan Prima displayed at the Geneva show has been designed by Pininfarina. The Tata Group also has a joint venture with Italy’s Finmeccanica to produce helicopters.)

More Stories on : Interview | Foreign Trade | West Bengal

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Mir township first phase ready

Surya Roshni in expansion mode

IFC to invest in Chinese firm Honiton Energy

Italy auto parts co Verlicchi in joint venture with Hema Engg

‘Italian cos focus more on product, less on profit’

‘Getting the right cost structure for Logan has been a struggle’

Ambuja Realty to go slow on planned commercial projects

Tata Steel expects to post 20% growth in output, sale

RIL’s KG basin gas to help add capacity of 1,800 MW soon

Samsung India set to cross $2 b revenue this year

Mahindra Lifespaces new President

Award for Leyland research head