Indian businessmen commit to expand investments in RP

NEW DELHI (Via PLDT) – Several Indian business groups have committed to expand their investments in the Philippines following a series of meetings with President Arroyo in Mumbai the other day.

The President met with Ispat Industries managing director Vinod Mittal, which acquired Global Steel Philippines, on the Indian firm’s plan to put up an integrated steel plant.

Global Steel Philippines, formerly National Steel Corp., is currently managed by Global Ispat Holdings Limited.

The proposed integrated steel plant involves investments worth a total of $1.6 billion to be carried out in two phases.

Ispat Industries Limited is one of the leading integrated steel makers and the largest private sector producer of hot rolled coils in India.

The President also met with the Hinduja Group, one of the largest diversified groups in the world, engaged in business process outsourcing and oil production.

In the Philippines, the Hinduja Group operates HTMT Global Solutions, a call center and BPO (Business Process Outsourcing) business, which the company intends to expand.

The group has already invested over $25 million in this industry and has high-growth plans to expand their presence in Philippines.

In the petroleum industry, the Hinduja Group owns Gulf Oil, which has been in the Philippines for over 10 years.

Hinduja previously entered into a joint venture with the Department of Energy for the production of compressed national gas (CNG).

Press Secretary Ignacio Bunye said that Gulf Oil is actively looking at opportunities to expand and invest.

Bunye pointed out that Hinduja will be working with the Philippine National Oil Corp. and the DOE to establish a distribution network for CNG.

Also in the BPO business in the Philippines are WNS and Sutherland Global Services, whose officials also met with Mrs. Arroyo.

WNS is India’s largest BPO company and has been in the business for the past 10 years.

Bunye noted that WNS intends to expand its presence in the Philippines by moving from the larger cities to the smaller towns, and looks forward to the government’s support in terms of physical and technological infrastructure.

The firm’s officials noted that the Philippine government is training call center employees, which has made the country an attractive destination for Indian companies in the BPO and call center industries.

WNS would like to transfer the management practices that have proven successful and train Filipino workers to take on positions of management.

In the case of Sutherland Global Services, it plans to mobilize its operations in the province of Camarines Sur and create 300 jobs there before the end of the year.

K.S. Kumar of Sutherland noted that it is also expanding its facilities in Clark with expected overall employment at 2,500 seats.

They are also looking at opening offices in Davao and Iloilo, to generate another 600 jobs.

Bunye said that Sutherland also plans to create more than 500 IT training seats and train about 500 graduates a month in seven provinces across the Philippines.

The President also met with the managing director of Praj Industries Ltd., which is engaged in the manufacture of biofuels.

Agriculture Secretary Arthur Yap said that Praj already has some exposure in the Philippines, specifically in Bago, Negros Occidental and Batangas.

Yap said that Praj intends to provide bioethanol solutions for the Philippines through the sale of equipment as well as the technology involved.

A memorandum of agreement was signed with the Philippine Agri-Business Development Corp. of the DA for the propagation of bioethanols in the Philippines through different crops, specifically sugar cane, cassava and wheat.

Earlier in the day, President Arroyo was given full state honors upon her arrival at the Indian capital.

Wearing an aquamarine colored dress, the President was greeted by her counterpart, India’s Prime Minister Manmohan Singh and President Pratibha Devisingh Patil at the Rashtrapati Bhavan (President’s House).

The President was ushered into the compound by a group of honor guards on horses, after which canons blasted to salute her on her arrival.

The President then proceeded to the Samadhi of Mahatma Gandhi or the tomb of India’s beloved political and spiritual leader.