Trade relations between India and Latin America are booming. For example, this year Argentina and India will set a record in their commercial exchange. In part by large corporations and commodities, but also by entrepreneurs and small businessmen who decide to invest and bet on the strengthening of this association.
Anish Narang is one of those people who dedicate his life to deepen the joint work between India and Latin America, in various sectors. He is CEO of Karavan Advisory Enterprises LLP and is specialized in international business, providing advisory and investment services focused on India, the United States, Brazil, Argentina and other emerging markets.
Karavan is an international business advisory firm specializing in internationalization and global sourcing headquartered in New Delhi, India, with its associates and partners in the United States, Brazil, Argentina, Chile, Peru, Mexico and other emerging economies.
His main projects include the entry of Argentine yerba mate to India, Indian motors in Brazil and advice to Invest in Peru.
Karavan’s mission is to support a company’s journey towards business growth, international expansion and global sourcing activities. With those goals in view, Anish attended to ReportAsia from their offices in New Delhi.
How did Karavan’s relationship with Latin America begin?
Well it started in 2014 when I visited Brazil (FGV Uni) as part of my MBA from Georgetown Uni (McDonough School of Business) and saw this great business opportunity between India and Brazil/Latin America.
I started the entity in 2014 and started operating in 2015 with a couple of my colleagues from my MBA, Arthur from Brazil and Markus from Canada, providing management consulting services to Indian companies expanding in Brazil/Latin America and vice versa.
What are the sectors in which you have worked so far?
We have worked in different fields ranging from food and agriculture, beverages, manufacturing, electric vehicles, consumer goods and others.
In which sectors do you think there is more potential for economic growth between India and Latin America?
Well, there are many sectors, but I think there is a lot of room for manufacturers from India (automotive, plastics, engineering, infrastructure, packaging) to go to Latin America. Indian IT, pharmaceutical and agrochemical companies are already big in Latin America.
And on the other hand, the food, beverage and related industries, cosmetics, sports and entertainment management, and raw materials such as lithium, iron ore, copper, lead, zinc, etc., in Latin America have a great reach in India.
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How have you chosen your partners in the different countries?
Well, that depends on the common interests and the business opportunities that we foresee in the future. And also, of inclination and association to work together.
Could you tell us about Karavan’s main projects in Latin America?
a) Evaluation of the Brazilian market for the installation of an engine manufacturing plant of a major Indian engine manufacturer.
We work with Kirloskar Oil Engine Ltd (KOEL) based in Pune and help them with a market entry strategy; feasibility analysis and execution through joint ventures to export its motors and generators to Brazil through the Semi Knockdown (SKD) and Complete Knockdown (CKD) models.
b) Evaluation of the Indian market for an herbal product for our client in Argentina.
We work with the National Institute of Yerba Mate (INYM) and help them create a marketing strategy in India. Along with this, we help them with the feasibility analysis for JVs / setting up operations in India; the creation of key partnerships in India for importing, blending and distribution; the acquisition of key licenses to operate in the Indian market and the marketing and branding activities initiated to promote the product both online and offline.
c) Evaluation of the Indian market for a food and beverage product for the Government of Peru
We did a market research analysis, we created a report for Invest in Peru for food and related products as they wanted to make an entry in the Indian market.
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What challenges does the pandemic present for projects in Latin America?
Well, the pandemic has slowed down the business interactions between the two continents, India and Latin America. In general, we see local companies looking to expand internally within the country and regionally at best. In addition, high shipping costs, rising commodity prices and limited movement due to the pandemic have reduced trade commitments. However, this is changing as things return to normal.
What differences have you noticed when working in the different Latin American markets?
Each Latin American country engages differently, given the underlying political and economic conditions in each state. Differences such as risk appetite, business culture and individual confidence can vary from country to country. Political and economic stability plays an important role in business relationships, projects and contracts.
What future projects do you have in mind for the region?
Future projects related to supply chains and global sourcing. Work on establishing and connecting trade between India and Latin America to ensure transparency, efficiency and lower prices.
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