Mexican visa and business delegation 7-12 september

the more exciting news first...The Mexican embassy has started issuing five year multi entry business visas. Earlier they were issuing three year visa. You all know how it was three years back.
Credit for this goes to Ambassador Rogelio, who has moved heaven and the immigration dept for this.He got a four member delegation of the Immigration Dept here to look into the visa issues. In their meeting with me on 29 August, they took me by surprise asking me "what else they could do to attract Indian business visitors and make their visit more pleasant". They are going to liberalise the sytem further and faciliate work permits specially for the IT professionals.

The Ambassador is also organising the visit of a 103 member business delegation. List in the attachment. areas of interest include IT, callcentres, food products, pharma, chemicals, construction, textiles and giftitems. Delegation will arrive in delhi on friday 7 sept evening and be in delhi till 11th morning at Hotel Taj Palace. on 10 sept they will be in the bz seminar (CII- FICCI- Assocham) from 10.30am to 3 pm followed by individual bz meetings at Maurya Sheraton. President of mexico will addrss the seminar at 1300 hrs. IT part of the delegation will be in bangalore on 11th at Leela Hotel. Rest will be in Mumbai on 11-12 at Oberoi. 12th morning seminar by Assocham. for further info and contactVidya and Gunveena at CII and Luis Gerardo ( first secy) at the mexicanembassy

Our exports to mexico in 2006 were 1125 million dollars and imports 454million. I, the optimist, expect bilateral trade to touch 5 billion by 2010.Indian cos hv already invested 3 billion dollars in mexico. Besides its ownlarge mkt, mexico is the gateway to NAFTA and central American mkts. more details in my website.

Here is the list of the delegation ( name of delegate, name of company and and their areas and products of interest in that order). bit clumsy.. please bear with me


1
Alejandro
Artifibras, S.A. de C.V.
Food Products
2
Lorenzo
Asociación Mexicana de Parques Industriales
Association/Chamber/organization
3
Aurelio
Atento México
Call Center
4
Miguel
Bicicletas y Motocicletas Mercurio
Transportation
5
Nicolas
Bimbo
Food Products
6
Juan
Cámara nacional de la Industria Tequilera
Food Products
7
Juan Carlos
Caza Trading Co., S.A. de C.V.
Medical / Medicines
8
Sergio
Centro de Agronegocios de Colima
Food Products
9
Alejandro
Cinépolis
Entertainment
10
Sergio
COESA Ingenieria y Servicio, S.A. de C.V.
Information technology
11
Alejandro
COFOCE
Govt.
12
Luis
COMCE Nacional
COMCE/ Chamber of Commerce
13
Domingo
COMCE Sur
Construction Material
14
José Arturo

Food Products
15
Alejandro
Comex
Chemicals
16
José Andrés
Consorcio DMX
Food Products/ Beverages
17
Xavier
Constructuroa DMX
Construction
18
Victor Manuel
Controladora de Negocios, S.A. de C.V.
Construction
19
Enrique
Desarrolladora Espacio 5, S.A. de C.V.
Construction
20
Ricardo
Dulces Anahuac
Processed Food
21
Ernesto José
Eficasia
Call Center
22
Mauricio
Emwa
Gift Articles
23
Sócrates Alfredo
Exe Consultores
Information technology
24
José
Explosivos Asturión, S.A. de C.V.
Metal work (manufacturing of tractors, and other machinery)
25
Mateo Daniel
Fantasías Miguel, S.A. de C.V.
Gift Articles
26
Sergio
Frutas Tropicales de México, SPR de R:L.
Food Products
27
Guillermo
FUNTEC
Technological assistance / Foundation
28
Rodrigo
Genomma Lab
Pharma
29
Joaquín
Globe-Chemicals
Chemicals, Pharma
30
Gerardo
Gomex Termoplásticos, S.A. de C.V.
Chemicals
31
Abel
Grupo Corporativo AB-HU
Others
32
Roberto
Grupo Eiffel
Construction
33
Carlos Alberto
Grupo Grisi
Cosmetics and beauty products
34
Marco Tulio
Grupo Gylsa
Chemicals, Pharma
35
José Luis
Grupo IDESA
Petrochemicals
36
Francisco
Grupo Incom
Information technology
37
Rafael
Grupo Industrial Zaga
Textile
38
Lilia Judith
Grupo Loma
Gift Articles
39
Juan Carlos
Grupo Piagui
Footwear / Gift Articles
40
Francisco
Grupo Profusa
Construction
41
Elías
Grupo Toymark
Toys
42
Rodrigo
Has-it,, S.C.
Information technology
43
Gerardo
Homex
Home Construction/real estate (like DLF in India)
44
Alberto
Icorp
Information technology
45
Alejandra
IMBC
Services / Promotion
46
Jacinto
Importaciones y Exportaciones Jazen, S.A. de C.V.
Food products
47
Raymundo
Indigo
Others
48
María Eugenia
Instituto Mexicano de Teleservicios
Call Centers / BPO
49
Miguel
Insumos Internacionales GC
Plastic
50
Jorge
Inteqsoft
Information technology
51
Gonzalo
ITSON
Information technology
52
José J.
Jacob & Jacob
Energy
53
Vicente
Johnstone & Co.
Services
54
Luis
Laboratorios Pargon
Medical / Medicines
55
Carlos
Laboratorios Senosian
Pharma
56
Patricia
M & A Oil Co.
Petrochemicals
57
Vinod Kumar
Macroproyectos Inmobiliarios FAMA
Construction /Hotels
58
Richard
Maquitex
Textile/ Plastic
59
Roberto
Marquez Alonso Abogados
Services / Consultancy
60
Mauricio
Máxima Distinción (Emwa)
Gift Articles
61
Klaus Juerguen
Mediaccess, S.A. de C.V.
Medical / Medicines
62
Eduardo
Mega Direct
Call Center
63
Guillermo
Multiservices for Food Process, S.A.deC.V.
Food products
64
Alejandro Jorge
Nissan Autotal
Spare parts
65
Pablo
Nortel de México
Telecommunications
66
Antonio
Nova Chemical
Chemicals
67
José Oscar
Novaaire, S.A.
Tourism
68
Jorge
Omnilife
Food supplements
69
Rivelino
Philip International, S.A. de C.V.
Chemicals and processed food
70
Eduardo
Plastisor
Plastic
71
Eduardo
Polidi
Plastic
72
José Antonio
Poliformas
Chemicals
73
Mario
Polímeros y Derivados
Chemicals
74
Rafael

Information technology
75
Laura Adriana
Procesadora de Jaiba de Tampico, S.A. de C.V.
Food products
76
Manuel
Prodin Transformadores, S.A. de C.V.
Electricity
77
Jacobo
Proepta, S.A. de C.V.
Consumers goods
78
Ricardo
ProMéxico
Govt.
79
Luis
Prosaco / Protermo
Textile/ Plastic
80
Cesar
Quarksoft
Information technology
81
William
Rafisacos
Textile/ Plastic
82
Miguel
Rafitek
Textile
83
Alejandro
Resinas Sintéticas Oroz
Chemicals
84
Alejandro
Revita Group
Services
85
Rudolf
RH Shipping & Chartering, S.A. de C.V.
Transportation
86
Gerardo
Satarquim, S. de R.L. M.I.
Chemicals
87
Jesús

Govt.
88
Renato

Govt.
89
Ariadne Selene
Serral, S.A.de C.V.
Chemicals, Pharma
90
José Rolando Miguel
Servicios Rotativos de Calidad, S.A. de C.V.
Metal work (manufacturing of tractors, and other machinery)
91
Gerardo
Starquim, S. de R.L. M.I.
Chemicals
92
Roberto
Taiwán Mayorista, S.A. de C.V.
Home appliances and furniture
93
Pedro Miguel
Tatung México, S.A. de C.V.
Home appliances
94
Ilangovan
Tecnológico de Monterrey
Technology
95
Higinio
Telvista
Call Center
96
Justin
Tiba
Services / Logistics
97
Jorge
Total Energy Systems
Energy
98
Héctor
Valvulas Worcester de México, S.A. de C.V.
Metal work (manufacturing of tractors, and other machinery)
99
Enrique
Vignette de México S de RL de CV
Information technology
100
José Miguel
Windsor Ciclismo, S.A. de C.V.
Transportation
101
Eugenio
Xignux
Information technology
102
Raymundo
ZacSoft
Information technology
103
Elías

Construction

Indian firms acquire agrochemical companies of Argentina

United Phosphorus Ltd (UPL) of Mumbai has acquired three Argentinian agrochem and seeds companies. The first acquisition was Reposo SA in 2005, the second was ICONA in 2007 and the third Advanta a Dutch company( 2006) which has Argentine units. With these, UPL now has four manufacturing units and a R and D unit (employing 100 Argentines). The R and D unit is bringing out a new sunflower oil branded as Nutrisun, a high-stearic oil, as an alternative to transfat edible oils.

UPL is a global crop protection,seeds and chemical company with a turnover of 408 million dollars in 2006 which is expected to go up to 561 million dollars in 2007. Market cap of the group is 2 billion dollars. It has been on acquisition spree, having acquired 20 companies from around the world including in Japan and UK. UPL ranks as the third largest generic agrochemical company in the world.

I met Rajju Shroff ( the senior) and Jai Shroff (the junior, globe-trotting and ambitious young man, typical of the go-getter, new generation of globalised Indian enterpreneurs) recently. They are upbeat about their Argentine operations. They are also doing business in Brazil, Mexico and the rest of Latin America.

Later, I met Hariharan, chief of the international operations of Excel Group from Mumbai, which is exporting agro chemicals to Argentina. This group is also planning acqusitions in Argentina.

Another company Punjab Chemicals and Crop Protection Ltd ( PCCPL) has acquired an Argentine company " Sintesis quimica " for 10 million dollars, recently.

Being an agro power, Argentina is a natural and large market for Indian cos doing business in agro inputs such as chemicals and machinery. Besides exports, Indian cos can also explore imports and tech transfer from Argentina, which is advanced technologically and commerically in agri and food processing business. Our import of soy oil from argentina was over 800 million dollars in 2006 !

Guess what is common between the three Indian companies, apart from their Argentine acquistions !
The owners of all the three companise are "Shroffs".. related by blood but competitors in business !.. Viva el mundo de Shroffs !

Indian KPO unit in Argentina

The Indian company CRISIL- IREVNA has opened a KPO ( Knowledege Process Outsourcing) unit in Buenos Aires. This unit does equity research and offers investment research services to the world's leading investment banks and financial institutions. They work with Standard and Poor and other companies.The unit is operational since June 2007.

Crisil is the leader in credit rating business in India and one of the top rated in the world. Crisil acquired IREVNA and later Standard and Poor has acquired stake in Crisil. more at http://www.irevna.com/

The unit in Buenos Aires employs 25 Argentine staff and has plans to expand the strength. It is being run by Mr Chetan Majithia.

I spoke to Chetan this week about his experience. He is there for the last one year. He is happy with the quality of Argentine professionals and the low cost of talents there. Crisil had done market research about other countries and decided to open unit in Argentina, because of the cost advantage and availability of professionals. We are not talking about spanish speaking professionals here. The KPO work is done in English.

Chetan had two problems: getting visa for Argentina (one of his colleagues was given a 15 day single entry visa! this is surprising and shocking. The government of argentina has signed an Agreement with India under which they give three year multi entry visa ) ; secondly the legal procedure for establishment of companies is complicated and time consuming.. as it was in the pre-reform days of india ! Chetan's work permit application is pending for the last four months.
These are, of course, minor and solvable problems.

It is worthwhile for other Indian IT and BPO companies to explore the opportunities for IT, BPO and KPO operations. ICICI from India has already established a BPO in Buenos Aires employing 36o staff... in my 19 July blog story

Infosys sets up subsidiary in Mexico

Infosys today announced the creation of its first Latin American subsidiary, and the opening of the development center and office for the region based in Monterrey, Mexico.
The subsidiary, Infosys Technologies S. De RL De CV, provides the company’s full range of business consulting and information technology services for clients in all industries including banking, financial services, retail, consumer packaged goods, resource, energy and utilities.

The Monterrey facility provides Infosys with the dedicated resources to service clients in North America, Latin America and Europe with bi-lingual talent.

After examining several countries in the region, Infosys chose to establish a presence in Mexico because of the broad language skills available in the region, its geographical proximity to Canada, the U.S. and Europe. Latin America is a strong emerging market and one where many of Infosys’ clients have operations already.

For the first year, Infosys Technologies S. De RL De CV will have more than 250 seats. By its third year of operation, the Monterrey facility is expected to employ nearly 1,000 employees. Local and international hires will participate in the standard Infosys training programs to ensure global consistency.

Infosys has appointed Mohit Joshi to head the new subsidiary. Joshi, formerly a group engagement manager with the company’s banking and capital markets organization, has more than 12 years of client and leadership experience. Congrats Mohit !

TCS has already inagurated a Global delivery Centre at Gudalajara.

Pidilite India acquires Pulvitec of Brazil

Pulvitec do Brasil (http://www.pulvitec.com.br/) has been acquired by Pidilite do Brasil, a subsidiary of Pidilite Industries India. Pulvitec has consistently maintained its number 2 position in Brasil market for the product segments of consumer adhesives and maintenance products catering to construction, and industrial segments. The company is operational since 1972. Pulvitec has one of the largest distribution networks in Brasil, with its products available/sold at over appx 50,000 number of sales points. The turnover of the company in 2006 was about 29 million dollars. Pulvitec has its own manufacturing plant in the city of Sao Paulo in the neighborhood of Jaguare. The company has over 180 employees. With this acquisition Pidilite now has a significant market presence in Brasil, and is in 2nd position in most of its product segments. Pulvitec will provide a launch pad for Pidilite to capture significant market share in its segment of products in entire Latin American market.

Pidlite India has a turnover of over 350 million dollars and has presence in USA, Singapore and Middle east, Russia, Indonesia and south africa.
The acquisition was completed on 3 July 2007. Credit for this goes to Satya Muley, chief of Latin American operations in Brazil, who has worked on this acquisition for the last several months.
Congrats Satya !

agribusiness opportunities in Paraguay

On sunday 5 August, there is a presentation on the agribz opportunities in Paraguay
venue- Chandigarh at Hotel Shivalik View at 7.30 pm. Presentation will be made by Mr Papalardo, Ambassador of paraguay and Dr S.Yaadav, who is developing agribz projects in Paraguay. dr Yaadav (agri scientist turned enterpreneur, mobile 9911110397) has been to paraguay 4 times since 2005. He, along with other investors is planning to buy land, grow soya and biofuel plants and process them. Land cost, according to him is about 800 dollars per hectare.

The solvent extractors association of india, which sent a delegation to paraguay recently, is also pursuing a proposal to buy 15000 hectares of soya farm for about 40 million dollars.

Paraguay is among the top ten producers of soya and the price of land and labour cost are relatively low. no restriction on foreign investment in land and farm sector.

My article on Argentina in today's Business Line

Advantage Argentina

While Indian companies in recent years have established their presence in Brazil, Mexico and other Latin American countries, Argentina, the third largest market, has missed their attention. The main reason is the negative perception after the Argentine economic crisis and debt default of 2001. However, in the last four years, the Argentine economy has recovered, stabilised and turned around remarkably. Remarkable recovery
The cumulative growth since 2003 has been over 40 per cent. The growth projection for 2007 is 7.5 per cent and for 2008 over six per cent. This growth is comprehensive and inclusive; unemployment and poverty rates have fallen.
External debt has been brought down to a manageable $113 billion in June 2007 from $171 billion in 2004. In January 2006, Argentina paid its entire $9 billion IMF debt ahead of schedule and freed itself of external policy prescriptions.
Exports have been booming, touching a record $46 billion in 2006, and are set to cross $50 billion in 2007. Since 2002, the country has been recording trade surpluses of over $10 billion annually. Foreign exchange reserves have been growing steadily; they touched $43 billionin July 2007.
The devaluation of the currency from one peso to a dollar in 2001 to 3.07 pesos to a dollar in July 2007 has made exports competitive and attracted more tourists. Inflation was contained at 9 per cent in 2006 and is likely to decline in 2007.Recovery after crisis?
This is not yet another cycle of recovery after crisis, as has happened many times in the past. This time around there seems to be a paradigm shift in mindset. Politicians, business leaders and the public seem determined to create a new future. This is evident from the new economic trends.
Since 2003, and for the first time in four decades, Argentina has posted current account and fiscal surpluses every year. Investment rate reached 23.5 per cent of GDP in 2006, a record in the country’s economic history. Also, the domestic savings rate of 26.5 per cent of GDP in 2006 was unprecedented. These are clear signs of the new discipline and determination, which have been complemented by an increasingly stable political set-up that is providing a conducive environment.Historic turning point
The 2001 crisis was a historic turning point for Argentina not only economically but also politically and culturally. It shook the fundamental psyche of the Argentines. They learnt an unforgettable lesson. No country or financial institution was willing to help them during their most difficult period. They saw the contrasting cases of Mexico, Thailand and Korea which were promptly rescued by the financial powers and institutions. The Argentines had to suffer and resolve the crisis on their own. Driven to the wall, they managed to settle the bond repayment of $80 billion , offering an audacious 30 cents to a dollar. No one expected this to succeed and many thought it was a bluff. But Argentina managed to pull it off. This has given the Argentines a new sense of achievement, pride and responsibility. And has established a solid foundation for a new future based on realism, pragmatism, discipline and self-reliance.
Indian businesses need to understand this paradigm shift and focus on the future. They should look at the opportunities offered by this large market, of 40 million people, a GDP of $290 billion and a land area of 2.7 million sq km, almost equivalent to that of India. It is an agricultural powerhouse and a large exporter of wheat, corn, soya, edible oils and meat.
Argentina is self-sufficient in energy. It has 31 billion barrels of oil reserves and produces 800,000 bpd (barrels per day), of which, 300,000 bpd is exported. It is the second largest gas producer in Latin America and exports to Chile. It is rich in mineral resources such as iron, bauxite, zinc, lead, copper, potassium, silver and gold. The manufacturing industry is relatively large and diversified and is strong in automobiles, auto parts, consumer goods, pharmaceuticals, paper, cosmetics and food processing. Besides its own market, Argentina has duty-free access to the larger market of Mercosur as a member of this customs union. India has concluded a PTA (Preferential Trade Agreement) with Mercosur for 450 items of exports and an equal number for imports.
In 2006, India’s trade with Argentina was $1,239 million, of which, $290 million constituted exports and $949 million imports. Argentina was the largest source of imports of India in Latin America in 2000, 2001 and 2003 and is now the second largest. India’s main exports are chemicals, vehicles, engineering products, textiles and traditional items. Edible oil accounts for 75 per cent of imports, and the others include paper pulp, leather, wool and minerals. Business deals
Indian companies have started exploring investment and joint venture opportunities. United Phosporous has acquired an agrochemical plant. Glenmark took over Argentine pharma company Servycal SA in November 2005. Tata Motors is in a joint venture with Fiat in Argentina for production of small cars. ICICI has a BPO in Buenos Aires and other Indian IT companies are looking at the possibility of BPO and ITES operations making use of the high literacy rate and low cost of operations.
Indian companies are pursuing mining and railway projects and are also looking at agribusiness. They can buy soya farms and produce soya oil to supply to India, which imports edible oils worth $12 billion annually. This is a good time to buy assets, factories and farms, as the prices now are half of what they were before the devaluation in 2002.

Link
http://www.thehindubusinessline.com/2007/08/02/stories/2007080250220800.htm