BUDGET 2000
SPECIALS
INTERVIEWS
COMMENTARY
GOVT&ECONOMY
Y2K: BIZ FEATURES
INDIA & THE WTO
CREDIT POLICY
BIZ IN THE USA
CARS & MOBIKES
MANAGEMENT
CASE STUDY
BIZ-QUIZ
USEFUL INFO
ARCHIVES
NEWSLINKS
SEARCH REDIFF

The Rediff Business Interview/Kerry Packer

'There are more advantages in India than in China'

It wasn't his billions, but cricket, that made Kerry Packer's name a household word in India. The Australian media magnate changed the way the game was to be played for ever, by making the 'flannelled fools' discard whites to don multi-coloured outfits. He attracted much flak from the inflexible stiff-upper lips of the cricketing world, but nothing ruffles the cool chairman of Consolidated Press Holdings Limited and director of Publishing and Broadcasting Limited which owns Channel Nine.

The 63-year-old tycoon, who runs a series of print publications in Australia, was in New Delhi to finalise his latest venture in India. In less than a month, he's sealed the deals for four joint ventures involving $ 300 million; KVP Venture, a venture capital fund worth Rs 11 billion; and a possible tie up with Subroto Roy-promoted Sahara Television.

Earlier this month, the Packers sealed one of the largest corporate deals by picking up 10 per cent stake in India's largest private telecom manufacturer Himachal Futuristic Communications or HFCL for a whopping Rs 10.39 billion. This is the largest foreign direct investment made by any company in the Indian telecom sector.

During his recent visit to India, Kerry Packer spoke to Neena Haridas on why he is bullish on India, India's enviable talent-pool, what sets it apart from other Asian nations, and the future of IT and print sectors.

Why this sudden interest in India?

I have always been interested in India. It was only a matter of time before I took business interest here. I would rather invest in India than in China.

Also, there are more advantages in India than in China. One, there is no language barrier in India: English is universal and that is of great help. Two, it has a very educated and aware population that is moving in tandem with international trends.

Were you also influenced by the 250-million strong Indian middle class?

Telecom and software are the growth drivers in the new economy and I believe Indians understand this. I am not really looking at the purchasing power of each Indian here because I am not selling a lipstick. Besides, big figures should always be taken with caution.

You are said to be interested in striking a deal with Sahara Television. Any comments?

None. My interests in India are driven by the fact that the telecom, information technology and entertainment sectors are converging. I don't wish to be left behind.

Besides, I agree completely with my son James when he says 'Internet is like electricity. The latter lights up everything, while the former lights up knowledge'. Frankly, I don't want to be left behind. In fact, I want to be here before the action starts.

Would you say that India's IT blitz is overestimated?

Not at all. The whole world has recognised India's future in knowledge-based industries. It is the new economy and India has a big role in the new global economy.

Does this mean all conventional industries will go for a toss?

No. I don't mean that. Of course, certain industries will become redundant. But if you ask, 'Will Internet wash out print media?' -- no, I don't think so. However, there will be evolution. Every industry will have to move with time and evolve accordingly.

The fact that I have entered into IT-related business is proof that businesses have to evolve and keep with time. One has to re-invent continuously.

I think in the print media, there will be no equations in terms of advertising revenue and cover price. That will be something that both newspapers and tabloids will have to work out, I guess.

Could you tell us something about your IT venture?

The joint venture expects to capitalise on the growing B2B e-commerce market in India, taking advantage of the combined strengths of HFCL and CPH. We have not yet finalised the business plans of the joint ventures for software and e-commerce.

As per the initial estimates, HFCL will invest to the tune of Rs 1 billion in each of the ventures.

And the venture capital fund?

The contributions to the fund would be made in a personal capacity to circumvent Indian regulations banning investments by foreign media companies here. Let me make it clear that my company has no intentions to control or have a majority stake in Indian media companies.

We have set up this fund after realising the fact that biotech and infotech are the real new economies.

There is a lot more young Indian entrepreneurs can do if they are given the money. They have the idea, and I would just like to help them realise it.

Packers, Kerry and James, get royal welcome in New Delhi

Interviews

Business