GES1006- SSA2214- Lecture 6

Economic relations between

Singapore and India: II
Indian Business Communities in
Singapore

Dr. Jayati Bhattacharya

South Asian Studies Programme
 Themes
• Re-cap- CECA as a framework of
Singapore-India economic ties

• Indian business communities in Singapore-

traditional entities to contemporary
enterprises

• Categories and characteristics of Indian

business ventures

• Case studies
 Some prominent Singapore GLCs in India

• Temasek Holdings
• GIC
• Ascendas
• Sembcorp
• PSA
• Capitaland
• Changi Airports International (CAI)
 Impact on the economic sector
• Indian and Singapore firms invest US$51 billion in each
other’s markets

• Singapore has emerged as the largest source of FDI inflow into India,
amounting to US$5.98 billion in 2014

• Conversely, Indian FDI into Singapore was US$25 billion in 2014

• Indian investment in Singapore has surpassed US$14.2 billion

during the same time

• Indians comprise thelargest foreign business community, numbering

around 6000 in the city-state.

http://businesstoday.intoday.in/story/india-singapore-firms-lead-
investors-in-each-other-markets/1/209262.html
 Singapore-India : Some facts…
• Singapore investments in India mainly led by Government
led Companies(GLCs)- participation mainly in technology
parks, infrastructures, telecom sector (Bharti-Singtel
JV). On the other hand, most of the Indian ventures are
private enterprises

• Collaboration in the education sector

• Mutual promotion of tourism sector

• Looking for opportunities in urban planning and

restructuring, waste treatment and water recycling
https://www.youtube.com/watch?v=lZOJRsbZqQQ

• Focus on five states –IE, 2017

https://www.iesingapore.gov.sg/Media-Centre/News/2017/3/For-
investments-into-India--focus-on-five-states--Pillai
 Foundations of Indian Business in Singapore-
Traditional Indian Companies
• Trading and financing

• Textiles and spices- main components of trade

• Prominent financiers of colonial Southeast Asia-

Chettiars (money-lending community from South India)

• Prominent Indian business communities- Chulias,

Mudaliars, Vellalars, Moplahs from South India, Bohra
Muslims, Parsis, Gujaratis, Sindhis and Punjabis from
North India

• Important names- Jumabhoys, Chanrais, Chellarams,

Gian Singh, Govindasamy Pillai, Ramasamy Nadar
 Local Indian companies in the post-
independent phase
• Challenges faced in the post-
independent phase

• Change of dynamics in trade and

investment

• Loss of homeland links Symbolic representations of trading

activities in Singapore in the past

• Some prominent names that emerged or

survived- Pars Ram Brothers, Tolarams,
Royal Brothers Group, Kewalram Chanrai
Group, Thakral group, Jothi Store and
Flower Shop (JSFS), Haniffa Shariff,
Satpal Khattar, Mustafa, to name a few Little India
Transition of biz Govt.
diaspora policies

Modification in
Mobilization of
trade &
biz entities
commerce trends
 Indian Companies Operating in Singapore

YEAR NO.OF INDIAN COMPANIES*

Late 2000 1300
2005 1600
2006 2300
2007 2800+
2008 3600
2011 4000+
2016 6000
* Approximate figures
 The present business landscape

• Trading remains an important business for the ethnic Indian

business houses with few venturing into manufacturing in
different parts of the globe.

• New immigrants flourished in the service sector especially in

the Information and Technology sectors, outsourcing
companies, knowledge generation, start-ups and innovation
enterprises.

• Three distinct sections of entrepreneurs have emerged:

a. Traditional family firms who have flourished over the

years
b. Indian companies who have acquired and invested in
Singaporean companies
c. Professionals who have turned entrepreneurs.
Different categories of Indian business ventures in Singapore

• Merger & Acquisitions (M&A)

• Collaborations and Joint ventures

• Branch offices, subsidiary companies,

representative offices

• Headquarters of Asia-Pacific region

 Some Indian Companies in Singapore
• Important Indian IT companies like TCS, Infosys,
WIPRO, HCL, Mahindra Systems, etc. have regional
operations based in Singapore

• Tata Steel had acquired Natsteel for about USD 200

million. Tata Motors invested about USD 2.5 billion in
the Singapore holding company to acquire Jaguar Land
Rover Later Tata Steel has invested USD 3.6 billion in
Singapore holding company to acquire Corus Steel

• GVK announced the plan of acquiring coal mine in

Australia routing the investments through Singapore
 Some Indian Companies…
• Punj Lloyd has taken over Sembawang Engineers &
Constructors

• Bharti Airtel has invested USD 387 million in its

subsidiary in Singapore

• GMR group setting up power plant with investment of

around USD 1 billion

• Aban Offshore has invested USD 310 million in its

subsidiary in Singapore
Different categories of Indian business ventures in Singapore

• Merger & Acquisitions (M&A)

• Collaborations and Joint ventures

• Branch offices, subsidiary companies,

representative offices

• Headquarters of Asia-Pacific region

 Some Indian Companies in Singapore
• Important Indian IT companies like TCS, Infosys,
WIPRO, HCL, Mahindra Systems, etc. have regional
operations based in Singapore

• Tata Steel had acquired Natsteel for about USD 200

million. Tata Motors invested about USD 2.5 billion in
the Singapore holding company to acquire Jaguar Land
Rover Later Tata Steel has invested USD 3.6 billion in
Singapore holding company to acquire Corus Steel

• GVK announced the plan of acquiring coal mine in

Australia routing the investments through Singapore
 Top Indian IT Companies in Singapore
• HCL Technologies Singapore Pte Ltd

• Hexaware Technologies Asia Pacific Pte Ltd

• I-Flex Solutions Pte Ltd

• Infosys Technologies Limited

• Mphasis Pte Ltd

• Polaris Software Lab Pte Ltd

• Tata Consultancy Services

• Zensar Technologies (Singapore )Pte Ltd

• Nucleus Software Solutions Pte Ltd

• NIIT Technologies Pte Ltd

• Satyam Computer Service ltd

• Birlasoft Limited
Source: http://www.scribd.com/doc/35281612/Top-Indian-IT-Companies-in-Singapore
 Different sectors of interest
• Indian enterprises and business
ventures mostly directed towards
IT and software firms, trading
companies, logistics and supply
chain, education,
pharmaceuticals, hospitality
business, start-ups, fintech
sector, innovation enterprises

• Singapore has invested largely in

IT Tech Park in India
building up of technology parks,
infrastructural facilities,
healthcare, real estate, etc.
Recent decades- skill
development, water management,
urban solutions
 Professionals turned entrepreneurs/ start-up companies
• Rejuvenation of entrepreneurial spirit amongst Indian
professionals in Singapore, encouraged by improved bi-lateral
relations between both the countries

• Favourable business environment in Singapore in terms of

company formation, corporate laws, availability of trained
manpower, access to finance etc.

• Government encouragement (IE, Spring Singapore)

• Access to the Asia-Pacific region and rest of the world

• Facilities of world-class infrastructural features, transparent

and quick legal methods and world class living conditions

• Profiles of some Indian professionals/entrepreneurs in Singapore

https://economictimes.indiatimes.com/slideshows/people/five-
successful-indian-origin-people-in-singapore/sameer-
sain/slideshow/19913812.cms
 Major Indian business organizations in Singapore
• Older associations
– Sindhi Merchant’s Association – 1921
– Indian Merchants Association – 1924
– Nattukottai Chamber of Commerce – 1928
– Singapore Gujarati Yuvak Mandal – 1956

• Singapore Indian Chambers of Commerce and Industry (SICCI)

• Serangoon Merchants Association, 1980s

• LIRA (1980)- later changed its name to IRA

• LISHA- Little India Shopkeepers & Heritage Association (2000)

• Confederation of Indian Industries (CII)- Bridge Singapore [CII-SBF

partnership]

• Federation of Indian Chambers of Commerce and Industry (FICCI) [SBF and

FICCI- agreement in 2012 to create more investment opportunities]

• The Indus Entrepreneurs (TiE), Singapore- TiE Young Entrepreneurs, Special

Interest Groups (SIGs), Tie Women’s Forum
 Networking facilities and its importance

• One of IE’s networking groups- Network India

• CII- Bridge Singapore and numerous collaborations with SICCI

• Global Entrepolis @ Singapore

• PBD held in Singapore, October, 2008- jointly held by SICCI, MOIA,

CII. Again, another ASEAN-India PBD held in January 2018 in
Singapore supported by DBS, Temasek, Tata Group, SBI, Ascendas,
GIIS, Agrocorp International

• Alumni organizations and their programmes

• SICCI appointed official representative in India in 2008

• Joint initiative of IE and Contact Singapore- Singapore Indian Business

Association (SIBA) (Chennai, India)
 Reflections
• The entrenched Indian ethnic community in Singapore and Southeast
Asia reaffirms the linkages and continuity of the sub-continent
ensuring better mobilization of policies and trends in the contemporary
context

• The ethnic Indian migrant population has been directly affected by

the course of events and policies in the Indian sub-continent and
bilateral relations

• The new rhetoric of enhanced bilateral relations combined with the

Asian resurgence has changed the paradigm of study of the Indian
Diaspora from perspectives of business opportunities and not only
through the prism of labour history

• Changes in the Indian Diaspora, which may be compared to the Chinese

Diaspora

• Improvisations to keep up the momentum of opportunities

 The road ahead
• Increasing engagement of business communities to
enhance bilateral interests

• Facilitating human mobility and people-to-people

exchanges

• Revision of CECA and its implementation- Is it

absolutely necessary?

• Effects of revised DTAA?

• Recognizing and facilitating added areas of interests

• Encouragement of platforms of networking and

intermingling
 Case studies: Past and the Present
• Kewalram Chanrai Group- a
family business group for more
than three generations

• Tata group- One of the

renowned Indian multinationals
who have made significant
acquisitions in Singapore
 Kewalram Chanrai Group
• Multinational enterprise with business group companies across Asia, Africa and Middle-
east

• Starting as a small textile shop in Hyderabad, Sindh, in 1860, the Chanrai family
business gradually expanded to wholesale and retail business in diversified products
across the globe. They ventured as pioneers in the unchartered territories of Africa,
South America and Southeast Asia

• Kewalram Singapore, the holding company of the group was established in 1976

• At present employs more than 4500 people in over 12 countries worldwide

• Olam International Limited , a company set up by the Kewalram Chanrai Group, was
incorporated as a public limited company in Singapore in 1995

• Businesses
 Supply chain management
 Environmentally friendly products
 Waste water management

• http://kewalramchanrai.com/milestones

• Group Companies
 PT Kewalram Indonesia
 Afri Ventures Group
 EcoOils Group
 The TATA Group of Companies

• JRD Tata, the pioneer of the Tata Group of Companies paid a Ratan Tata: Chairman of the
Tata Group till 2012

exploratory visit to Singapore in 1972

Remembering Jamsetji Tata

http://www.tata.com/Video/VideoPreview/Remembering-Jamsetji

• Tata Precision Industries was set up in 1972 supported by the

EDB. DBS was a major share holder. This was the first
manufacturing venture of the Tatas in Singapore. At present their
customers include Seagate Technology, Sumitomo, Wipro and GE

• The Tata Government Training Centre (TGTC), supported by the

Singapore govt. was the first training institute of its kind in
Singapore

• Tata International- set up in 1962 as the export arm of the

Tatas. Along with otherglobal footprints, TIL has a strong
presence in Singapore- recently concluded a S$50 million bond
issue, acquiring public funds.
 The TATA Group
• Among various other IT companies present
in Singapore, TCS (Tata Consultancy
Services) holds a prominent place

• TCS-SMU partnership in R&D into cloud

based IT solution for intelligent cities

• Tata Steel had acquired Natsteel for

about USD 200 million.

• Tata Motors invested about USD 2.5

billion in the Singapore holding company to
acquire Jaguar Land Rover Later Tata
Steel has invested USD 3.6 billion in
Singapore holding company to acquire
Corus Steel

• Recently, Tata Sons, the investment

holding company of the Tata Group, has
set up office in Singapore for the ASEAN
region strengthening their engagement
with stakeholders in SE Asia
 Tata Group-
global footprints
 Other information on business interactions
between Singapore and India
• https://www.dealstreetasia.com/stories/singapore-is-now-indias-
biggest-source-of-foreign-direct-investment-22482/

• https://www.sgan.sg/about/

• http://www.straitstimes.com/business/companies-markets/asias-bright-
spot

• https://www.asiabiz.sg/blog/5-reasons-indian-start-ups-heading-to-
singapore/

• https://www.guidemesingapore.com/in-the-news/2015/2015---6-
reasons-why-indian-startups-choose-to-relocate-to-singapore
 Media

• Singapore as a springboard for South Asia

http://www.youtube.com/watch?v=jL9Cgzmwuck

• Bilateral deal permits Singapore startups to pilot tech

solutions in India
http://www.ibtimes.sg/new-bilateral-deal-permits-singapore-startups-pilot-
tech-solutions-india-22854

https://www.youtube.com/watch?v=vd_WmXozGVk

https://www.youtube.com/watch?v=wzUY1pyOcLQhttps://www.youtube.c
om/watch?v=wzUY1pyOcLQ