CHENNAI: Prem Watsa, chairman and chief executive of Canadian investment group Fairfax declared on Thursday that India under Prime Minister Narendra Modi would be a growth engine going forward, primarily due to the focus on economic reform and the war against corruption. He was speaking at the 50th anniversary celebrations of Chennai-based chemical products firm, Chemplast Sanmar Ltd.
“They have weeded out corruption in the top levels and this will happen at the lower levels too. India will be a growth engine under Modi,” he said. Sanmar’s chemical businesses have received $300 million in funding from Fairfax, with the Canadian firm having an investment commitment of around $1.5 billion in the country. Watsa also stated that Fairfax does not plan to invest in any new age firms, including those in the ecommerce and digital space. “We require a track record before we commit funds in a company. But there are many promising firms that have and are coming up,” he said. “Chemplast has faced several hurdles from inception but we have always believed in integrity,” added N Sankar, chairman, Sanmar Group.
The track record of Chemplast and the integrity displayed throughout its history was one of the primary reasons for Fairfax’s backing, Watsa said. Other prominent industrialists, like TVS Motors’ chief Venu Srinivasan, also stressed on Chemplast’s track record during the event. “Chemplast also has one of the best leadership development processes in Chennai and even the entire engineering industry,” he said.
The event was also attended by chairman of the Sanmar Group N Sankar, deputy chairman Vijay Sankar, vice-chairman N Kumar and IIT-Madras director Bhaskar Ramamurthi.