K.M. Birla on Thailand: A Great Investment Destination

Delivering a speech during the conference marking the start-up of investment promotion services between Thailand and India on 26 June 2013 in Mumbai, K.M. Birla, Chairman of Aditya Birla Group reiterated a close bond between Thailand and the Birla empire and endorsed Thailand as a great investment destination. Below is his speech;

H.E. Mr. Prasert Boonchaisuk, Minister of Industry of Thailand
H.E. Mr. Sachin Ahir, Minister of State for Industry, Government of Maharashtra
H.E. Mr. Pisan Manawapat, Ambassador of Thailand to India
Mr. Apurva Chandra, Principle Secretary, Ministry of Secretary of Industries, Government of Maharashtra
Ladies and gentlemen,

It is my privilege to be with you this morning on this memorable occasion of the opening ceremony of Thailand Board of Investment's Mumbai Office. I congratulate the Government of Thailand for instituting the Board of Investment of Thailand in Mumbai. I am sure this commendable step, will stimulate greater business and trade relationships, that will bond the economies of both our countries.

Thailand has always been close to my heart and to my family, and to the Aditya Birla Group. My late father Aditya Birla, is widely recognized in India, not just as one of the most successful industrialists in the history of corporate India, but also as the pioneer of globalization. He went global much before it was the order of the day. The first country that he stepped foot into in the mid 1960's, was Thailand, which, for him, became the land of opportunities. And, over the next three decades, he built a world class organization in Thailand.

Building on the strong foundation laid by him, today, more than 50% of our revenues of 40 billion dollars, comes from our ventures outside of India. Our 136,000 employees belong to 42 nationalities, working in 36 countries. In many ways, we owe this to our first experience of going global, in Thailand, which is why, Thailand, for us, is very special.

Today, we have a highly successful clutch of companies in Thailand. We have invested over 1 billion dollars in these world-class plants, anchored by a 4,000 strong committed workforce, of whom more than 90% are Thais.

Our companies enjoy a leadership position in the sectors in which they operate. We produce a swathe of products in the textile value chain, carbon black and chemicals. Our Thai companies, this year achieved revenues in excess dollars 1.6 billion. Of these, two-thirds, that is 1.1 billion dollars, is generated from exports to more than 50 countries globally. The point that I wish to drive hom is that, the products that come from our companies in Thailand, are comparable to the best in the world.

In pursuance of the Government of Thailand's policy stipulating that Thai industries invest overseas, we have made investments exceeding 300 million US dollars. Our Thai companies have ploughed money in setting up Greenfield ventures, joint ventures and acquisitions in Canada, USA, China, Egypt, Indonesia, Turkey and Laos. These investments have raised the stature of Thailand as a global investor nation.

Having said that, I am pleased to inform you that, we continue to scout for new opportunities to invest in Thailand, and we are fully committed to partner the progress of Thailand.

For us to have come so far, much credit must go to the Thai Board of Investment. Their unstinting support for all of our projects – from concept to commissioning, and beyond – has fuelled the growth of our companies.

We have immensely benefitted from the Thai Government's progressive policies, sound macro-economic fundamentals, the infrastructure, and their global mindset.

So, personally, I would definitely endorse Thailand as a great investment destination. I am hardly surprised that Thailand attracts an FDI of approximately 7 billion dollars every year, largely from Japan, Europe, Taiwan and the USA.

Guided by the Indian Government's policy of Look East an the Thai Government's policy of Look West, I understand, both the countries have been engaged in endeavours to increase the trade and investment opportunities. It augurs well that the two-way trade between Thailand and India has been growing at a healthy 15% clip year-on-year. It is currently pegged at 8.5 billion dollars. This, however, represents only 1% of India's total trade and 2% of Thailand's total trade. Undeniably, therefore, there is a far greater growth potential, which both our countries must aggressively explore. I believe, efforts in this direction are already underway. Negotiations are on to extend the limited FTA signed in 2004 between the two Governments to a full-fledged FTA. This is expected to be inked in the near future.

Besides trade and investment, there is growing interaction among various Thai and Indian agencies in diverse areas. This includes, defence, anti-terrorism, financial intelligence, entailing anti money laundering, cultural and spiritual exchange.

The setting up of the Board of Investment of Thailand in Mumbai is a great step forward. I believe, it will take the relationship between Thailand and India to a new high. I wish this new entity every success, and all the very best. We in the Aditya Birla Group will be happy to support your efforts to the hilt.

Thank you very much.