Kerala means business. That will be the state’s message at the two-day Invest Kerala Global Summit, which begins in Kochi on Friday.
While the Left government may be under pressure to show concrete outcomes at the end of the investor meet on Saturday, the real difference the event aims to bring about is a change in the outside world’s perception of Kerala’s business environment.
“Basically, the Invest Kerala Global Summit is a strategic campaign to communicate that ours is an investor-friendly place. We [the state] have a past, and the past is history,” says V K Mathews, executive chairman of the IBS Group.
“We are different now, and for that, we have made changes for the better. And the summit is a platform to convey this message.”
Mathews, who founded IBS nearly three decades ago in Thiruvananthapuram with just 55 employees, has grown the company into one of the largest IT product firms in the country, with around 3,000 employees and over 200 clients worldwide. He points out hosting a grand summit alone will not draw big-ticket investment.
“Let’s not fool ourselves,” he says. “No company, including IBS, will make investments just because there’s an investment summit. IBS has invested in 11 countries, and that’s not the way we make decisions. People attend investor summits to know more about a place.”
C J George, founder of Geojit Financial Services, echoes this view. “The investor summit is a big platform for messaging. The current environment appears conducive for investment in Kerala,” he says.
“The social infrastructure is at the highest level, including the ease of doing business, irrespective of the political controversy (that followed a recent article by Congress MP Shashi Tharoor in TNIE praising Kerala).”
George, who founded the stockbroking company in Kochi in 1987, now employs over 3,000 people across the country, including about 1,000 to 1,200 in Kerala. Geojit’s success has been remarkable, considering that stockbroking is mostly operated from Mumbai.
Notably, Geojit’s key functions, such as its data centre and risk management, are located at its Kochi head office. “We get good-quality talent here. We never had any problems,” he says, declaring a strong vote of confidence in the state as an investment destination
“If you ask me to start another company, I would do so in Kerala.”
Notably, several business leaders highlight that they are “happy in Kerala” as hartals, trade union issues and strikes do not haunt them anymore. “Generally, there is a peaceful environment,” says one of them.
Another success story from the state, Paul Thomas, MD and founder of ESAF Small Finance Bank, notes “a paradigm shift” in Kerala: society’s evolving approach towards business. “In my view, there is an overall positive environment for business in Kerala. As a society, we have started celebrating entrepreneurship,” he says.
“I believe Kerala is well on its way to becoming a global hub for innovation. The state’s startup ranking is prime testimony that we are growing in the right direction. Initiatives such as Invest Kerala can help build the state into a prosperous, sustainable, and inclusive economy.”
According to Viju Jacob, managing director of Kochi-based Synthite, the world’s largest oleoresins (spice extracts) maker, the Invest Kerala summit is a “key moment” in the state’s economic development.
“I have been watching the massive drive led by (Industries Minister) P Rajeeve and his team to transform the state into a business- and industry-friendly destination,” he says.
About 80 to 90 per cent of the world’s oleoresins comes from India, and Kerala accounts for its entire production. Within this sector, the state dominates globally, with about 40 per cent of the world market held by Synthite. Other major Kerala-based players include Plant Lipids, Mane Kancor Ingredients, and Akay Group – all headquartered in Kochi.
“First, second, third, fourth, and fifth in oleoresins are all from Kerala,” Viju points out.
He adds that dwelling on the past would lead nowhere. “Everyone has a past, present, and future. Looking at the future, this government is undertaking a massive drive to increase businesses in Kerala,” he says.
“The government appears to be seeking to convey the message that the old Kerala is a thing of the past. They want to assert that this is a new Kerala, and this is our new and changed approach… that the government will support businesses and industries wholeheartedly for the state’s development and job creation. Let’s not look at the past when someone is ready to make the change.”
Will we see big-ticket announcements?
“I see that a lot of work, including the roadshows, has been done,” says George of Geojit.
“Delegations from Kerala met many business people and industrialists. They were given presentations, approvals were made easier, particularly, if the investment is of significant amount. So, there is an expectation of some announcements of new investments at the Summit.”
He believes IT, electronics, precision electronics, and industry that don’t need huge tracts of land are the sectors that could attract investments in Kerala. “Sectors that are non-polluting and environment-friendly,” he adds.
According to Mathews of IBS, the existing companies may announce their expansion plans at the summit. “In two days, we are not only seeing and interacting with the state ministers and bureaucrats, but also engaging the other potential investors,” he says.
“There will be more information sharing. Each company has their own investment strategy departments. They will study the possibilities and make the decisions.”
Viju, meanwhile, reveals that Synthite is looking to expand into supplements. “We will make that expansion in Kerala,” he says.
Green sheen
A key factor that business leaders point out is that the state is suitable for environment-friendly industries. The militant labour and environment activism that the state witnessed during the early 1980s ensured that there was little scope for polluting industries here.
Looking back, this suited the geography of the state, which has high population density. And, this proved to be a blessing in disguise. This is a point that Rajeeve always makes.
“We now have clean air, abundant supply of water,” he highlights. A message that is clearly intended at the pollution situation in Delhi, and the water crisis that Bengaluru faced recently.
“We have to showcase our success, our advantages, and we have to do a lot of campaigns to change the perception of the state,” Mathews sums up.
This is not the first time that Kerala is hosting a global investor summit. In 2003, the A K Antony government had held the Global Investor Meet. Later, the Oommen Chandy government held events such as Emerging Kerala Global Connect in 2012.
Government officials, however, are confident that this one will be different. “When you look at Kerala’s transformation five to ten years from now into a major business-friendly destination, this summit will be regarded as a major transition point,” a bureaucrat asserts.