Astute kiwis win place in Indian market

Himanshu Maheshwari, of Manju Enterprises (left), and Flight-lieutenant Sanjiv Jain. Photo by...
Himanshu Maheshwari, of Manju Enterprises (left), and Flight-lieutenant Sanjiv Jain. Photo by Charmian Smith.
Building on the image of the Black Caps cricket team and pristine landscapes featured in Bollywood movies, many New Zealand companies are investing in the burgeoning Indian market. Charmian Smith investigates.

The fresh, Pacific blue and white of the decor, staff wearing black caps with silver ferns, and ice cream, sorbets and drinks with flavours like hokey pokey and boysenberry and mango ripple, almost make you think you are back in New Zealand.

However, outside it is hot and dusty, and a camel pulling a cart strides by on the pot-holed road.

This New Zealand Natural ice-cream parlour in Jaipur, India, is the 15th in a planned 33 parlours to be opened around the country by the end of the year.

New Zealand Natural is one of several New Zealand companies expanding into India, and Himanshu Maheshwari ofManju Enterprises, the master franchisee, has taken us tosee the latest parlour, owned by Flight-lieutenant Sanjiv Jain.

It is small but pristine, with the latest air-cooled freezers, water filters, automatic stand-by generators, and well-trained staff.

It is also in a new mall along with global companies like McDonalds, Pizza Hut, and numerous electronic and fashion brands, something Mr Maheshwari is proud of.

He is typical of the thriving businessmen of the new India, from a wealthy family, and, like his father and brother, educated in the United States.

Although his family had owned woollen mills and other manufacturing businesses since the 1930s, they realised manufacturing would not support the growing family in the future - in manufacturing you need to be either niche or multinational, he said.

The family firm moved into trading and services and was looking for an entry to the food industry, particularly an ice cream from New Zealand.

They had bought New Zealand wool and Nelson pine in the past and liked doing business with New Zealanders, whom they considered straightforward.

"You don't go back from a meeting and think he said this, but he could mean this or that or something else," Mr Maheshwari said.

They were looking for an innovative company with patience to invest in the market.

There is a huge potential but it takes time and money - a mantra we heard from almost everyone talking about developing markets in India.

"Ice-cream consumption per capita in India is the lowest in the world, but although spending power is increasing, price points are still important, even to luxury companies like Mercedes," Mr Maheshwari said.

Fraser Brown, of New Zealand Natural Ice Cream, a global brand with 300 franchised stores in 17 countries around the world, said they had to reformulate the ice cream for India.

It is made from non-estrogenic milk and contains no egg or animal gelatine, which enables it to be promoted as "pure" vegetarian (about a third of the Indian population is vegetarian).

India is not the easiest country in which to franchise ice cream. The infrastructure, from transport systems to erratic electricity supplies, is a major issue.

However, this is changing with new government initiatives.

There are no suitable bulk cool stores in Jaipur so fresh supplies have to be delivered from Delhi as required.

Manju Enterprises sends an employee with a refrigerated truck (which may be held up for hours) to make sure the engine, and therefore the refrigeration, is not turned off on the way.

Many New Zealand and Australian companies find it difficult to do business directly in India and the successful companies work with an Indian partner, according Mr Maheshwari.

"There's a different set of standards and you can't change them, no matter how you try, so you have to follow standard procedures to get the work done."

"There's a lot of under-the-table dealing. There are certain obligations - you hand over a box of ice cream, and 10 to 12 boxes are lost from each container, but it works.

It's simpler than China and transparent - you pay a little amount to get things done.

To do business you have to be flexible and be able to back out."

The booming economy has given Indians a confidence they did not have in the past.

"We don't care what the US thinks. We are now able to say if you don't let our products in we are not going to let yours in - something we wouldn't have dreamed of 10 years ago," he said.

 

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