TECHIE SOUTH TAKES WINGS
Shedding their cautious approach, commercial adventurers have rewritten the business matrix of the South. Bangalore’s IT revolution, Hyderabad’s core sector progress, Chennai’s strides in auto have spurred them into taking the path less trodden, writes Sriram Ramakrishnan
SOUTHERN BUSINESSES and businessmen have always been a class apart. The conservatism, prudence and low-key approach with an emphasis more on achieving results than indulging in flashy, ostentatious displays of power are qualities that have stood them in good stead. Through turbulence and triumph.
This attitude may not have won them cover pages of glossy magazines, invitations to be keynote speakers in Davos or New York or a place in the rich and famous power lists; but what it has done is to give their business, shareholders and employees a certain stability, a credibility and a solidity, not to forget growth of course.
In the years immediately following independence, the southern part of the country was probably wellknown for many things other than businesses. Linguistic nationalism, naxal riots, language issues and the surge in support for communist support dominated headlines. Business and industry were heavily concentrated in the cities of Delhi, Mumbai and to a great extent Calcutta which saw the birth of many industrial empires.
The picture has changed dramatically since then. Not only have southern businessmen and industrialists shaken off the lethargy and excessive caution but they have also built a slew of strong businesses with world-class reputation. Bangalore a decade or two ago was a garden city, a pensioner’s paradise, a charming city with lovely climate, spacious roads and beautiful gardens. Chennai was a city of Brahmins (never mind that Brahmins formed a minuscule proportion of the city’s population), loud movies and raucous politicians with a penchant for emotionalism.
What a difference a few decades has made. Bangalore is today India’s technological hub supporting a string of tech companies doing cutting edge work not done in many parts of the world. India’s silicon valley is also India’s entrepreneurial capital. Thanks to the stupendous success of people such as Narayana Murthy, Nandan Nilekani and other honchos of Infosys, many bright individuals have taken to starting their own business and have made a success of it.
The story with Chennai is also similar. It is today the third-biggest (some would say second) auto hub in India after Gurgaon and Pune. It is also a big technology hub where firms such as Nokia, Cognizant and Flextronics have a big presence. Tirupur, a big textile centre, has caught the global imagination with its export-oriented approach and the impact it has made in the global textile market.
Hyderabad is another city that has managed to exploit the opportunities thrown up by a liberalised economy. Thanks to its strong entrepreneurial culture, it has thrown up a number of successful industrialists such as Anji Reddy of Dr Reddy’s Labs and GVK Reddy of the GVK group. These individuals have not confined themselves to their state but have spread themselves to become national and international players in infrastructure and pharmaceuticals.
However, the best is yet to come. The four southern states have a number of natural advantages that can help them turn into the country’s economic powerhouses. They have a highly educated and skilled workforce, rapidly improving infrastructure, better power facilities than other parts of the country and an entrepreneurial drive and determination to make it big and succeed.
The southern governments are investing heavily in infrastructure whether it is metros (in Bangalore, Chennai and Hyderabad) or towns and building better roads and better ports. Chennai’s image as an important auto hub will be enhanced with the commissioning of Michelin’s tyre plant while Bangalore’s reputation as a centre of excellence for technology will be greatly improved by the the number of high-tech centres of multinationals. The cutting edge work done by many of these firms in Bangalore will go a long way in further burnishing its reputation.
The four southern governments should not take their eyes away from the important work ahead. That of significantly increasing their state’s economic potential, improving the prosperity and well-being of their citizens. It is an onerous task but one which will mean a lot to their country as well.
sriram.ramakrishnan@timesgroup.com
Economic Times