03: Unlocking Coumar Ananda's Insights: Expanding Your Indian Business in France
Coumar Ananda, founder of India Paris Advisory, shares three decades of experience in supporting Indian companies to expand in the French market.
In this edition, we're diving into the world of cross-border business between India and France, with a focus on practical insights from Coumar Ananda, who spent three decades facilitating business connections between the two regions.
Coumar, founder of an advisory firm based in Paris, brings a wealth of experience in assisting Indian businesses mainly SMEs looking to establish themselves in France, and vice versa
Charting Cross-Continental Success: The Coumar Ananda Story
Introducing Coumar Ananda, a seasoned professional coming from Pondicherry, India, where the influences of French culture still exist. With over three decades of experience, he matured expertise in Indo-French relations, drawing from his unique upbringing and diverse professional journey.
After completing his Baccalauréat in Pondicherry, Coumar ventured to Rennes, France, to pursue a Master's in Economics at the Université de Rennes. Following his studies, he embarked on a decade-long tenure at BNP Paribas. Seeking to enhance his skills and broaden his professional network, he later earned an MBA from ESSEC.
His expertise in the French banking sector led him to consult consulting firms like Deloitte, TCS, Accenture, LTI, and Wipro, whom he advised to bolster their presence in France. This experience ignited his entrepreneurial spirit, leading him to establish India Advisory Paris, his inaugural venture in the Indian market advisory realm.
Simultaneously, Coumar deepened his knowledge by completing a Diploma in Building Global Enterprises at Harvard Business School, further solidifying his prowess in facilitating cross-border ventures.
Something is clear:
If you are an Indian company wanting to expand in France or a French company wanting to exapnd in India, the right person to call is Coumar
Empowering Cross-Border Ventures: The Vision of India Advisory Paris
Recognizing the vital need to facilitate French companies' expansion into India, Coumar Ananda and Jérémie Sabbagh united to establish India Advisory Paris.
Jérémie is an Ex-Foreign Trade Advisor to the French Government and his work involved assisting French SMEs with their entry and business development strategies in India. A qualified attorney, Jérémie was recognized as Entrepreneur of the Year by the French Embassy in India and IFCCI.
Today, India Advisory Paris stands at the forefront of fostering connections, facilitating knowledge exchange, and providing unparalleled market expertise between these two regions.
With a steadfast commitment to propelling clients beyond their original borders, the firm is dedicated to facilitating accelerated cross-border growth and leaving a lasting impact on the global business landscape.
If you are interested in discovering India Advisory services check out their website:
https://www.indiaadvisory.fr/
Kula Connect x Coumar - how did the meeting happen?
At Kula Connect we love attending events and creating new connections
Onkar one of our team members, recently discovered events organised by the Chambre de Commerce et d'Industrie Franco Indienne and met Coumar who is part of the Advisory Board
Chambre de Commerce et d'Industrie Franco Indienne is a non-profit, member-driven organization that serves the needs of both the French and Indian business communities in France and India.
It aims to foster the relationship of the French and Indian business communities while bolstering economic, cultural, educational, and industrial ties between the two countries through:
✔ Helping French companies better understand India and its challenges.
✔ Assisting Indian companies and their communities to better establish themselves in France.
Evolution of Indo-French Business Relations: A Three-Decade Journey
India and France, bound by a shared vision and common values, have nurtured a resilient and enduring partnership over the past twenty-five years. Their strategic collaboration, which commenced in 1998, has blossomed into a remarkable alliance, transcending bilateral relations to embrace a convergence of global perspectives.
The economic synergy between India and France has flourished, laying the groundwork for expanded cooperation and mutual prosperity. Coumar illustrates this evolution using an Evolution Pyramid to elucidate the trajectory of trade between India and the EU over three decades:
In the 1990s, Indian businesses began to demonstrate interest in the European economy, establishing a solid foundation through primary trade in heavy materials crucial for industries.
From 2005 to 2018, Indian tech consulting firms experienced a surge, attracting top tech talents to address European business needs. Companies like TCS and Cognizant underwent significant expansion during this period.
Today, with increased purchasing power, more Indians can afford premium lifestyles, driving opportunities in fashion and entertainment.
Trade between the two nations has steadily grown, with bilateral trade reaching an impressive $13.4 billion in the fiscal year 2022-23, marking a notable 7.72% increase from the previous year. France has emerged as the 11th largest investor in India, with foreign direct investment totaling $10.5 billion from April 2000 to March 2023. This economic symbiosis has strengthened connections between French enterprises and the Indian economy, contributing significantly to India's vision of 'Aatmanirbhar Bharat' (self-reliant India)- Source
Additionally, French biotech companies have attracted the attention of Indian enterprises, with many pharmaceutical companies aiming for global expansion, with France serving as a preferred gateway to the EU market.
On May 23rd, 2023,as per official source, Lupin, an innovation-led transnational pharmaceutical company headquartered in Mumbai, India, acquired the entire stake in French pharma company Medisol for 18 million euros, as per an official source. Vinita Gupta, CEO of Lupin, stated that the acquisition is part of their strategy to expand their presence in the EU and accelerate their Injectables franchise in France.
Furthermore, in a Joint Statement issued during the State Visit of H.E. Mr. Emmanuel Macron, President of the French Republic, to India on January 26th, 2024, sectors such as arts and crafts, fashion, hospitality, tourism, energy, and audiovisual were identified as priority areas for discussing Memorandums of Understanding in the coming days.
Coumar emphasizes that starting in 2023, a significant era for Fashion, Biotech, and Hospitality has dawned, underscoring the evolving landscape of Indo-French business relations.
A. The desire to promote Indian fashion
Coumar observes, "As businesses transition ownership from one generation to the next, there is a shift in interests and passions. The emerging generation taking the helm craves creativity and trendsetting. One avenue through which they can manifest this vision is by expanding into the realm of fashion and luxury products. The timing is also perfect looking at the pace and TAM of India’s luxury market."
According to a report by Bain and Company, India's luxury market is expected to grow to 3.5 times its current size and reach the $85 to $90 bn mark by 2030. This growth is propelled by the rising number of UHNWIs (net assets with USD 30 million or more), growing entrepreneurship, a strong middle class, greater penetration of e-commerce, and demand from Tier 2 and Tier 3 cities.
To cater to this growing appetite of Indian consumers, Louis Vuitton has launched a limited edition of footwear priced at Rs. 75,000-Rs 1.2 lakhs (~€800- €1300) targeting the booming wedding season. Italian luxury brand Bvlgari has also launched a mangalsutra exclusively for the Indian market.- Source.
India's rich handloom traditions and diverse cultural heritage have long been celebrated. This authenticity and uniqueness have garnered global interest in products offered by Indian SMEs. For instance, Vaishali S, a luxury label based in Mumbai, founded by Vaishali Shadangule in 2001, transforms authentic Indian handlooms into wearable masterpieces.
Since its inception, Vaishali S has explored various hand-woven textiles, including Chanderi silk and Khunn, a weave native to Karnataka that Vaishali helped revive. Through its collections, the label consistently narrates culturally rich stories reflecting India's heritage. Utilizing a blend of modern fashion trends and traditional Indian textiles, Vaishali S has showcased its creations at prestigious events like New York Fashion Week, FDCI (Amazon/Wills) Fashion Week, and Lakme Fashion Week
.
What better place to celebrate this fusion of tradition and innovation than the fashion capital of the world, Paris?
Coumar opined Vaishali's remarkable showcase of Indian creativity on theme of “I am Nature” in Paris as a true homage to Indian handloom and heritage!
Paris, known for its luxury and fashion sector, attracts citizens from around the globe to fill their shopping bags. And now, even SMEs can dream about getting started globally! With Vaishali’s debut, we have an Indian business proudly showcasing home decor and art creations in the heart of Paris!
B. Bio tech - A Promising sector
In Europe, particularly in France, there exists notable expertise in the field of biotechnology, with brands like Sanofi leading the way. Meanwhile, India boasts significant technical prowess. Hence, in the realm of biotech:
Coumar rightly points out, “The combination of French expertise in bio and Indian strength in tech makes for a natural choice in Biotech.”
Moreover, sustainable growth in the pharmaceutical business hinges on having differentiators. In France, it's easier to identify small players with strong intellectual property rights (IPR), listed companies complying with stringent regulations, and readily available valuations. Once a target is shortlisted, assessing corporate fit with Indian businesses and advancing on deals becomes more efficient when all factors are in place.
According to Fortune India, "Unlike in the early part of the century where Indian pharma companies went on a mad rush to acquire big assets in the U.S. and Europe which later caused financial troubles like erstwhile Ranbaxy Laboratories and Wockhardt, now Indian pharma companies are cautious in acquiring strategic small assets and brands that fit their business growth plans without straining their balance sheet.”
One example of this growing interest for collaboration between France and India in the medical sector is the IFCPAR
The Indo-French Centre for the Promotion of Advanced Research (IFCPAR), known as CEFIPRA in French, operates as a bilateral scientific cooperation program between India and France.
This program supports two main types of projects (Source):
Collaborative research projects spanning various fields of science and technology, including medicine. These projects have a maximum duration of three years and involve at least two scientists—one from India and one from France.
Industrial research projects, lasting between 3 and 5 years, which require involvement from at least one industrial partner in either France or India and a research laboratory in the other country. These projects aim to finance the development of new processes or products, or the enhancement of existing ones, to improve the international competitiveness of the industrial partners.
C. Europe's urge to participate in India’s film bazar
As per report of PwC, India’s Entertainment & Media industry is expected to reach $73.6 bn by 2027 at 9.7% CAGR. To foster exploration of new financing and co-production opportunities, the Asia TV Forum (ATF) and Ties That Bind (TTB) have joined forces to introduce the ATF x TTB Animation Lab & Pitch, aiming to unite Asian and European producers.
Coumar notes, “France allures both Indian and global tourists, presenting vast potential for business opportunities. Additionally, India boasts the world's largest movie industry, creating further avenues for collaboration.”
The Indian Ministry of Information and Broadcasting reports that Emmanuel Lenain, the Ambassador of France to India, expressed, "India being the largest movie industry in the world, we want to work together for films and do co-production together. We will do everything possible to encourage co-production. Some of the co-produced movies include Lunchbox, Sir, and The Chhello Show, which was India's official entry to the 2023 Oscars!”
Furthermore, there is a growing trend of Indian businesses making acquisitions in the hospitality sector, aiming to achieve reasonable, risk-free returns over time.
There is an increasing investor interest in Indian hospitality sector. As per CBRE, the total investment in this space post COVID-19 (2020-2023) is beyond $400 million; further, more than $2.3 bn investments are planned. The high net-worth individual consumer loves to appreciate the iconic offerings and heritage of hotel crafted in local culture and history!
For instance, as reported by Mint, the Indian Hotels Company (IHCL) signed Taj Hotel in Frankfurt, Germany, which is set to reopen in 2025 after refurbishment.
Coumar take: Why is France the perfect fit for Indian businesses aiming to grow?
Firstly, France offers powerful Capacities within its business ecosystem:
It's the easiest entry point into Europe.
French companies effortlessly meet regulatory requirements and adhere to accepted valuations, reflecting their financial strength.
France serves as a vital bridge between Asia and the Western world.
Situated at a strategic crossroads, France opens doors to new cultures and markets.
Secondly, French companies possess impressive Capabilities:
They excel in intellectual property rights (IPR) and research and development (R&D), paving the way for rapid global expansion.
Partnering with renowned European brands like L'Oréal accelerates growth for Indian businesses.
According to Ambassador Thierry Mathou, French companies actively engage in India for research, investment, and joint ventures. - source
Bonus point: Coumar’s magic receipe to on how sell to Indian consumers and partner with Indian business
Understanding Indian consumers is key:
Indians weigh whether the price reflects the value of their money, considering factors like resale value. They tend to be conservative, investing only when they see a clear and guaranteed return over time.
Partnering with the Indian business :
Indian businesses prioritize results over marketing. They prefer accomplishing tasks quietly and efficiently rather than seeking attention. They are selective in expansion efforts, ensuring new ventures fit into their overall strategy. Meticulous due diligence is conducted to choose companies that fulfill local business needs.
Conclusion
Coumar Ananda's three-decade journey navigating Indo-French business relations offers invaluable insights for Indian companies eyeing expansion into France and vice versa. With a solid foundation in both cultures and extensive professional experience, Coumar stands as a beacon for successful cross-border ventures. His strategic advisory firm, India Advisory Paris, epitomizes the essence of fostering connections, facilitating knowledge exchange, and providing unmatched market expertise, positioning itself at the forefront of Indo-French business collaborations.
France emerges as the quintessential gateway for Indian enterprises seeking global expansion, offering a seamless entry point into the European market. With its robust business ecosystem, France provides unparalleled capacities and capabilities, making it an ideal partner for Indian businesses looking to grow internationally. Coumar's recipe for success lies in leveraging the strengths of both nations, tapping into France's intellectual property rights (IPR) and research prowess, while embracing India's entrepreneurial spirit and burgeoning consumer market. Through strategic alliances and collaborative efforts, Coumar champions the evolution of Indo-French business relations into a flourishing alliance poised for mutual prosperity in the global landscape.