SL stands best to gain from India’s boom, become globally competitive: Reliance

• Growing income levels in third largest economy, ready availability of all raw material, stability of demand in India are key drivers
• Reliance Consumer Products Ltd.,  CEO T. Krishnakumar shares key insights at National Visionary Summit organised by SJB-linked National Council of Professionals 
• Says right partnerships will give access and reach to vast Indian consumers; cites Reliance deals with Maliban and Ceylon Cold Stores to serve Indian market

By Nisthar Cassim

Indian business giant Reliance on Tuesday declared Sri Lanka stands best to gain from the giant neighbour’s unprecedented high growth trajectory thereby becoming globally competitive.

The future growth dynamics of India and how Sri Lanka and its businesses can benefit was shared by India’s Reliance Consumer Products Ltd.,  CEO T. Krishnakumar at the National Visionary Summit on Strategic growth vision for rebuilding the nation organised by the National Council of Professionals (NCP) linked to the Samagi Jana Balawegaya (SJB) on Tuesday at Shangri-La, Colombo. SJB leader and Presidential candidate Sajith Premadasa was the Chief Guest. “Sri Lanka is best positioned to take advantage of the India growth story,” said Krishnakumar adding both countries, given strong ties, can also benefit via greater partnerships.

“Many Indian companies have started making investments in Sri Lanka in some of the infrastructure areas, but that the potential for attracting Indian investment is pretty significant,” emphasised Reliance Consumer Chief.  

Krishnakumar said India is poised to become the third largest economy in the world and the economy is expected to grow upwards of 6% on the back of 7% in fiscal year 24. 

In 2023, India’s GDP in 2023 was an all-time high of $ 3,549 billion. According to the Reliance executive India’s retail and consumer market is projected to grow 9%.

“Just look at the size of the opportunity,” Krishnakumar told the NCP forum which was widely attended by private sector representatives and professionals including several business leaders. “This is being fuelled in India by a rapidly growing middle class which is almost the size of the entire Europe,” he added.

Reliance has a growing relationship with Maliban Group and JKH subsidiary Ceylon Cold Stores Plc, sourcing products from the latter to serve the Indian market. Krishnakumar urged other Sri Lankan companies to tap the potential in India to either export to or set up manufacturing plants in India and serve domestically. He also said Lankan companies can benefit from the stability in terms of demand in India which really makes a business quite safe in India.

“Find ways of taking advantage of this,” he stressed, adding “This really puts every company in any industry with the potential of doubling, which ultimately can have a real fantastic effect on the Sri Lankan economy.”

However he acknowledged entry into and serving India which he described as a continent as opposed to a country, can be very challenging. Noting that India has around 9 million small ‘mom and pop” stores he said it is important for Sri Lankan companies to know how they would break through this barrier. “So the right partnerships are important. If mutual relationships are made by Sri Lankan companies, with good Indian companies, can give them access to the distribution system thereby access to Indian consumers.”

Krishnakumar also said the second big opportunity of India is ready availability of all raw materials for domestic manufacturing.  Sri Lankan companies can explore prospects for joint ventures or set up their own operations as well, he added.

“We are doing both. We are partners with Maliban to really start making Maliban products in India. But at the same time, we are also trying to get Maliban products and working on methods by which we can make the products,” the Reliance executive revealed.  He pointed to the longstanding Free trade Agreement (FTA) between Sri Lanka and India which companies from both countries harness.  

Krishnakumar acknowledged that Made in Sri Lanka consumer products have comparable global quality and companies have excellent ability to innovate, good systems and practices.

“This combination of using India’s as an opportunity will also make Sri Lanka more competitive,” he emphasised.  “I truly believe partnerships can really create a very strong position for companies both in India and Sri Lanka,” the Reliance executive stressed.