Arun Firodia is the MD Of the Kinetic Group as well as the President of the Mahratta Chamber Of Commerce and Industry. In his capacity as President of MCCIA, he has brought in several far-reaching changes so that Pune appears as an attractive option for both the Information Technology and Biotechnology Industry

Poonabest spoke to Mr Firodia, and got him to express his views on a wide variety of subjects:

Q. What are the steps taken by MCCIA in the field of IT and BT?
A. In the field of Information Technology, we are promoting the city and making all attempts to project it as a prominent IT Center in the world. We conduct Seminars, Conferences, have presentations made by Global IT experts for the benefit of IT industry from this region to ensure that they become world class in their respective areas. The chamber acts as an effective link for industry interaction. The chamber is also networking with other organizations like STPI, MIDC, PMC, CSI, and NASSCOM to name a few. We have also approached the Pune Municipal Corporation and MIDC to allocate separate funds for global promotion efforts.

In the field of Bio Technology, the chamber wishes to make Pune and Maharashtra an attractive BT destination and dominant BT center. We propose to establish an International Institute for IT & BT to educate students and to equip them with entrepreneurial skills. By setting up a BT park and establishing commercial activities in this sector, we hope to promote the importance and social impact of BT agriculture and Health Care sector.

Q. Can you elaborate on the chambers IT Initiative?
As far as IT goes, we are projecting Pune's traditional strengths like quality manpower, excellent communication links and good power supply. Pune has a strong engineering industry base, which has served as a backbone of IT and R&D. Pune's engineering colleges prepare more than 500 IT professionals ever year. In addition to affordable real estate, excellent living conditions make Pune an ideal IT destination.

The chamber is making special efforts to attract major players to Pune. We are holding constant dialogue with diplomats of all major countries to promote Pune's IT Industry.

The chamber has prepared a ten year blueprint "To make Pune the Software Capital of Asia" in 1996. This report had outlined a strategic plan to ensure that Pune cashes in on its strengths and acquires a prominent place in the global IT scenario.

Q. With Bangalore also setting up a BT park and given its traditional IT strengths, how would MCCIA promote the Pune BT Park?
A. In BT, Pune has some traditional strengths and advantages. We have a strong technological base and presence of National R&D institutes such as NCL, National Institute of Virology, Agharkar Institute and a number of Pharmaceutical companies in the Mumbai-Pune corridor.

With the new highway, the distance between Pune and Mumbai has been reduced to two hours You now have a Optic Fibre Cable between the two cities so as to make it a knowledge corridor. The cornerstone of our future focus is going to encompass IT and BT to make it the city strengths.

Q. With the slowdown in America and the consequent effects on the Indian Software Industry, won’t the Pune software park extension project be hit?
A. Earlier there was a very rapid growth and now the pace of growth has slowed down, there has been no fall. There is a degree of sluggishness in the American Economy; as a result we worry that our exports to America will fall. The upside of this slowdown could be that American companies may outsource software from Indian companies. Besides, Indians are specialized in IT enabled services like Medical transcription and Call Centres. Many American companies may use Indian manpower for these services.

We may also look to increase business with Japan, Germany, and Korea. In the long run let the whole world be our market.

Q. A common complaint has been the state government has not done enough to promote the state as an Industrial Destination. Your comments?
A. The job of the government is to provide good infrastructure, good laws to attract industry. I feel the state government has provided excellent infrastructure for both the IT and BT industry.

You must know that Pune Mumbai have more software exports than Bangalore and Hyderabad. It shows that the businesses here have drawn on the natural resources of the state.

Q. Apart from the government doing its bit, what is the chamber doing to get more investment for the state?
A. Some time ago, there was a need to attract more IT investment to the state. The chamber set up a committee to do this. This committee recommended among other things, setting up of an Institute of Information Technology, establishment of a customs directorate in Pune, laws and quick clearance for all projects. The government moved fast and accepted our suggestions.

We have done the same thing with BT. We have drawn a list of dos for the government, the infrastructure the government must provide to attract top BT companies.

Q Since MCCIA is basically a regional association, what role has it played in the national arena?
A. Since its inception, MCCIA has been suggesting a regulatory framework suitable to the needs of the industry and meeting the government's revenue requirements. It has also played a proactive role in bringing to Pune region several institutions important for business. It has always worked with other Industry associations and kept in constant touch with Apex Chambers for policy initiatives and promotional activities

Q. How would the Enron imbroglio affect the foreign investment in the state?
A. We don't think the present situation regarding Enron will have any significant impact on investment in industry and the services sector, since it is a matter that concerns the MSEB, State Government, Central Government and Enron only.

Q. To digress, how do you manage two busy jobs- Chairman of the Kinetic Group and President of the Maharatta Chamber Of Commerce and Industry and do justice to both?
A. Any businessman has to look after his home and family. As far as work is concerned, when I come to the chambers, I do not think of Kinetic and when I am in Kinetic I do not think of the chambers.

Q. As chairman of the Kinetic group, how do you view the dangers posed by the Cheap Chinese Motor Cycle exports?
A. I don't think the cheap Chinese imports pose a threat to the Indian Mobike industry. India needs vehicles that are tough
enough to ply on Indian roads, given their condition.

The main requirement for Bikes in the Indian context is fuel efficiency. The Indian customer is mature. He buys a vehicle for long-term use. He considers not just the cost, but fuel efficiency maintenance costs, resale value are other crucial factors that influence his decision to buy. Another important thing is that most Chinese companies are closing down, and are hence the public may soon get wind of the reason behind the low rates.

Q. What is your success mantra?
A.  Think Big, Execute Small.

Q. How do you spend your free time?
A. I read a lot, not merely newspapers and magazines, but books too.

Q. Which is your favourite holiday spot?
A. I have no particular place in mind; in fact I have travelled all over the world except Russia.

Interview by: Rahul Surkund
Photo Courtesy: Stellar PR