India Primed to Invest Abroad

October 28, 2011

This picture shows the Tata Steel France Rail plant in the French northeastern town of Hayange, during the inauguration day of this rail facility on September 29, 2011.

Investments by Indian companies in foreign countries have risen sharply as they look for newer markets and resources to fuel a growing economy

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For nearly 150 years, Harrisons Malayalam has grown rubber and tea on massive plantations in the southern Indian states of Tamil Nadu and Kerala. But Managing Director Pankaj Kapoor says that despite the growing demand for both commodities, the company cannot develop new land in India.

"To get land, say 10,000 hectares of land at one place, whichever be the state, is next to impossible, it's not available," noted Kapoor.

The company now plans to invest millions of dollars to develop rubber plantations in Africa.

Kapoor says they have scouted for land in countries like Ethiopia and Ghana.

"It's good to get the land in African countries, because the governments are very keen to get the investors overseas, they have large land, unutilized," Kapoor added. "We can bring in the technology and we can bring in the money."

Harrisons Malayalam is just one of scores of Indian companies which are pushing overseas in search of resources such as land and coal, newer markets, or technology.