Nikita Sharma with Inputs from HarnathSithamraju
In the recent years there has been an exponential increase of migrants from the Indian sub continent more specifically from India. The influx of the migrants has also brought in their entrepreneurial skills as well. There has been an increase in businesses being purchased or starting new and innovative business by the Indian migrants. And most of them are doing well to cater not only the population from the Indian sub continent but also the local population.
The spurt in the number of businesspersons from India has also given an impetus to the mushrooming of several associations. The apex body of the business associations in Australia is Australia-India Business Council (AIBC). On the eve of the visit of Prime Minister NarendraModi to Australia to attend the G20 summit in Brisbane, Indus Age met a fewentrepreneurs and asked them a few questions to gauge the mood of the Indian businesses in Australia and also their expectations from the visit of the PM. Below are the excerpts:
Mr. DD Saxena
Director, Riverina
Riverina is a premier supplier of animal feed for the agriculture industry and a leading exporter of grain and protein meals to South East Asia, the Pacific rim and other export markets.
1. Tell us about your business and when did it start?
We formulated the business plans in 2006 and in 2007, we had a full detailed Engineering and Financial Package to start. This project (Riverina Oils & Bio Energy Pty Ltd) was intended to be $75M project. However, it took us significant time to get necessary approvals and we had quite few challenges, which resulted in significant delays and cost overrun of the Project. The Equipment was ordered from the world’s best manufacturers and Technology Company in our field DesmetBallestra in Belgium/Germany in 2009 and equipment arrived in 2010. We were given Construction Permits and necessary DA Approvals by June 2011.
The commissioning of the plant happened between July 2012 and November 2012 when Trial Production started in late December 2012. We commenced steady state Commercial Production from May/June 2013. The basic business is to crush vegetable oilseed (mainly canola) and the finished products are Refined Edible Oil and Vegetable Protein Meal, which is critical component in Animal Feed.
2. Tell us about your journey, where it is now and the future of the company?
I started my career in Unilever at Senior Levels in multiple roles and had fair degree of exposure in the Food and Agro Industry both in India and In Asia. My last executive role as the Managing Director and CEO of the International Operation of
one of the largest South/East Asian Companies enabled me to establish projects and markets in Asia. This experience exposed me to the opportunities in Australia.
The Company (ROBE)/Factory operations are currently operating over 85% utilisation and selling its edible oil products to established Food Manufacturers like Mars, McCain, General Mills, Baxter and others. We also distribute to the Food Service Sector like Restaurant, Café and Caterers and Fast Food Chains. The major Animal Feed Producers like Inghams, Baida and Ridleys are the main customers. However, our products are going in large quantities to Dairy Industry and Feedlots.
We are also the only Australian Non GM Certified and Approved Manufacturers by FDA in USA. This helps us to sell to a number of Companies making Non GM products like biscuits, mayonnaise and cereal/health food products in US. This offers huge opportunity for us in Markets like Japan, Korea and others. Our Non GM products are currently sold in Korea in their school meal program, which could become nationwide. We also propose to market our products to New Zealand and Singapore/Hong Kong as exports is a major opportunity.
We are in the advanced stage of discussions with Fortune Group (Naya Bazaar) in India to market Australian Canola Oil.
Our future plans is to double our capacity within the next 2 years, which will enable us to crush upto 400,000 Tonnes Seed per year and sell nearly 160,000 Tonnes Refined Oil and 235,000 tonnes of Vegetable Protein Oil. This will generate turnover of in excess of $300 Million per year and have a huge multiplier effects to business partners like Farmers, Logistics (nearly 40,000 trucks per year will come to our factory), Service Providers, Storage and the local Community. It will in the next 5 years result in over $100 Million of value added exports and over $150 Million of import substitution.
3. What were some of the challenges you faced in establishing this business or along the way?
The main challenge initially was to get funding during Global Financial Crisis. We were largely assisted in the early phase by Indian Investors and Indian Banks like State Bank of India and AXIS Bank. There is even till today no Australian Bank Debt and limited Australian Equity.
The biggest challenge was to work with multiple agencies in silos, which was time consuming, required many consulting reports and significant costs. Even after obtaining our initial Development Approvals and EPA Clearance in late 2008, the Modified DA and Construction Permits took another 3 years (June 2011) which significantly expanded the scope of the Project at the same capacity and thereby increasing significant time and investment overruns. The final project cost including working capital nearly doubled and is currently $150Million.
During the Construction Phase, we discovered the Role of Unions, which were not very positive and resulted in many obstacles. The labour productivity compared to US and Euro was 25% lower, which was not factored by any of the Global Engineering Companies and our Technology Providers.
4. Any learning’s and message to future entrepreneurs?
The key message is to have crystal Clear Strategy of the Position in the market, test the basic assumptions on Supply Security, Market Access, Skill Sets available locally and Project Cost Assumptions. I would also recommend to budget at least 25% overruns on both time and costs. It is also important to be well capitalised and not have high levels of Debt as Market Entry and building credibility of the Customer will take time.
5. The new Indian Prime Minister, ShriNarendraModi is pro-business. What are your views?
The new Indian Prime Minister, ShriNarendraModi is obviously trying to attract investments kick start the Economy to 8-10% growth and formulating pro-Business Policies. My view is that he will reduce the bureaucracy, instil accountability and will accelerate the implementation process. He has certainly created a very positive sentiment in the Global Community and has generated both hopes and confidence in India. His priorities of creating jobs building infrastructure and Make In India Program will certainly be visible in couple of years.
6. Coming from an Indian background, do you think this was an advantage or a disadvantage in your journey?
Frankly, I don’t think the background of myself coming from India made any significant difference. The fact we were establishing a building of a very large project (largest Investment in Food and Agro Business in the last 5 years in Australia) had a huge learning curve. Since we were new players and lack the connectivity/credibility in the market place, it affected us from timely and cost efficient implementation of our project. Future expansion will certainly be much easier as we have now demonstrated our capacity and credibility in the market place.
7. How have Indian business helped in fostering relations
between India and Australia?
Our business has lots of Indian elements/components, which we believe have helped in understanding and improving relations. We did most of our Engineering from India. Over 70% of the factory was built in India. We have 30 families of India Origin (experienced Engineers with significant exposure to the Industry) residing in Wagga Wagga NSW. Their families and children are interacting and participating with local community. I do believe that the wealth creation of our factory/company and multiplier effect it has and will help in building credibility and mutual understanding and also improving economic and social relationships.
Mr. Sunil Lal
Executive Chairman, KadenBoriss
A firm with the experience and expertise to provide quality legal and strategic business advisory services anchored in a deep understanding of the Asia Pacific region, in particular the Australian and Indian subcontinent markets.
With offices in Sydney, Brisbane, Canberra and New Delhi and affiliates throughout Asia, and more than 50 Partners and staff, they have the expertise and resources to work with large multinationals, emerging companies, SMEs, private investors and Government.
1. Tell us about your business and when did it start?
As a practicing lawyer for over 20 years, I have developed a very strong corporate client following over the years. The strength we have gained as a firm is predominantly due to the support of our clients and our loyal staff.
I initially started a small firm known as LBR Legal in 2009. This firm opened its doors with 3 partners, 2 lawyers and 2 administrative staff.
Our greatest challenge was that from our competitors who were established national firms and some in existence for up to 80 years.
Our plan was to keep things simple and increase the level of personalised service to clients. Individual time recording and fee budgets were removed with greater emphases on teamwork and hence removing the individuality that many firm promote. We would be nothing without the support of our clients who helped us by being loyal and enabling us to start our journey of expansion.
Our greatest emphasis was on quality and timely service with our motto, “beyond expectations”. Simply put, whatever the client requested, we strived to beat their expectations.
Soon enough, the firm established a steady growth in client numbers and fees. This enabled us to reinvest on bringing new lawyers to the firm. Any staff who was not a fit with the firms’ ethos and culture were replaced quickly.
The first year revenue doubled.
We then embarked on establishing ties with a firm in India. By September 2010 we merged and changed our name to KadenBoriss. We are now the only law firm in Australia with a legitimate office in India with expert lawyers assisting Australian and Indian clients in the respective regions.
In addition to legal services, we have a team of non-lawyers specialising in consulting work in mining and general business and insurance. We are lawyers of choice for many large international and national companies. We assist clients identify joint venture partners in many countries where we have a foothold through either our offices or network.
In 2011, we opened our office in Canberra and were successful on the government panel. In 2013 we merged with a law firm in Brisbane and 2014 has seen our offices establish in Perth and Dubai with a partner firm in Sharjaha. Today we boast 18 partners and staff of in excess of 120 internationally.
2. Tell us about your journey, where it is now and the future of the company?
My life as a lawyer started in a small suburban law firm in 1988 and by 1990 I had my first break and joined a reputed national law firm that was number 7 in Australia. From there I developed my skills and network. By 1995 I was promoted to a partner and 1996 saw me elevated to an equity partner of that firm.
In 1999 I became the Head of the Australia- India division and by 2005 I also held the position of Head of Sydney Insurance division.
Knowledge supported with timely service was something that I have always strived for. My humble beginning and support and guidance from my parents was the cornerstone of my success. My father was a doctor and my rock. He had a strong personality and his wealth of knowledge, and he taught me to always work hard, be humble, honest and loyal to those around you. My success can be attributed to my father and my faith in God who has always guided me through the good and bad times.
The success of KadenBoriss is its people. They are a group of committed people who are always approachable and respectful to clients. We instill these qualities in all our staff and they are the true success story of the firm.
KadenBoriss has been very fortunate to develop so quickly in just 5 years. Our journey for international expansion is well underway. Our target over the next 2 years is to have established offices in London, Singapore, Vietnam, Hong Kong and Fiji. We are excited about our future and we cannot do it without the support of our clients and our people.
3. What were some of the challenges you faced in establishing this business or along the way?
The biggest single challenge in my career was in its early stages and in the early 1990’s. The legal profession was more conservative than others. My background as an Indian, and from humble beginning and attending a public school was not totally conducive to the portrait of a typical lawyer in a large national firm who in those days was predominantly a white Anglo Saxon private school from the north shore. This was no doubt a challenge as I was none of those.
With the strength drawn from my parents and their guidance, I gained confidence in my own ability and took pride to be an Indian. An Indian can do anything; it is equal if not better. That sense of self-belief enabled me to succeed in my chosen field.
The next biggest challenge I faced was the test whether the client following I had over the years were loyal to me or the firm where I worked. Fortunately, the latter prevailed and this gave me the impetus and strength to develop and expand the firm.
I believe you are as good as your people in business. At KadenBoriss, our people are simply awesome. Their knowledge is backed by their ability to connect with clients in a courteous and respectful manner, which is something, our clients always comment upon.
The art of service in many businesses has been lost and unfortunately too many CEO’s and managers put their emphasis on budgets. My challenge was to ensure that we at KadenBoriss were different to many of our competitors. The biggest differentiation has been the style of service, timeliness and respect. This has won many businesses since the inception of the firm 5 years ago.
4. Any learning’s and message to future entrepreneurs?
Focus, patience, passion, be humble, respectful, work honestly and deliver on service. If you do not have the skills to execute some level of work, let your client know. Do not hold onto them with concerns they will go to another competitor. Do not be concerned about specialising because whatever you choose to do, do it well. Your client will respect you for that and will engage you in your area of expertise.
Have a plan. Take challenges as lessons and learn from it and excel. Never give up, and work hard. There is no such thing as the perfect plan.
5. The new Indian Prime Minister, ShriNarendraModi is pro-business. What are your views?
How refreshing to see a people’s PM. India is a democracy, it is now time to join hands and progress India and as Modiji says, “make India”. It is early days, let us support, let us not be judgmental too soon, it is a long road ahead and it will take time. India, it is now time to unite and work together as you have a leader who is prepared to lead and he needs all of you to do your bit.
I see the next 5 years for India as potentially a golden age. If it can reform some long established cultures in the way business is done, India will flourish.
6. Coming from an Indian background, do you think this was an advantage or a disadvantage in your journey?
Coming to Australia in 1968, 1 year after the abolition of the white Australia policy in 1967 brought with it many challenges with the most predominant being prejudice. Schooling in the early parts of 1970’s was hard to say the least.
We Indians are generally tolerable and in many ways subdued not wishing to fight. Our culture in fact helped me survive a difficult period in my life as a new migrant starting my schooling life in a new country. My Indian teachings, and religion and our values were in true sense the pillar of strength along with my parents.
I have lived in Australia for 46 years and I am proud to call myself an Indian. I am equally proud to be assimilated in the Australian-Indian society and culture.
7. How have Indian business helped in fostering relations between India and Australia
Indians are true entrepreneurs and no matter where we go, we will hear of many success stories. We are educated, have the drive and work hard.
Those qualities have seen many successful Indians in Sydney and around Australia. We have the ability to connect with people and as we are hospitable and respectful towards others.
This ability has enabled us to connect with local businesses. Our successful Indian business people are the brand ambassadors for India. Your vision, your success, your ability to connect encourages Australian businesses to engage with Indian and Indians. With the new look Government, which encourages FDI, now is the time to move forward and rebuild India.
You are in the best seat in the house. “Just do it”.
I believe Lani my publicist and marketing manager has sent you the photograph earlier as requested.
Mr. ChandruTolani
Chandru Group of Companies
Philanthropist, award-winning businessman, hotelier and a prolific golfer. There is not much Bombay-born ChandruTolani hasn’t tried his hand at but, success he says, lies in having a burning passion for what you do and constant reinvention of opportunities will see you achieve great success and business domination.
Ambition is clearly evident when you speak to this man – a man who has tirelessly given his all to achieve a success few can only dream of.
The man is ChandruTolani. Born is Bombay, India, he migrated to Sydney in 1975 at the age of 24 after working in his family import/export and shoe and garment construction business in India.
He is now one of Australia’s leading businessmen – employing over 300 Australians – and is also the owner of a diverse range of business – from a group of hotels to a golf course and more recently, a childcare centre.
“It was my love of cricket and this idyllic lifestyle you have here in Australia that first led me to this country. I used to play cricket every single day – but that was before my life became so busy!”
Chandru, who was responsible for pioneering the two-dollar shopping concept in Australia, arrived with little less than the bag on his back and a whole lot of ambition. Initially he began supplying the Newcastle Markets with low-cost products and now continues to supply a string of value store throughout the nation with low-cost items. This resulted is his business becoming one of the largest importers and wholesalers of discount merchandise in Australia.
What had begun as a five-employee business in the ‘70s – after Chandru came to this great southern land with little more than his wife and the suitcase he was carrying – was well and truly booming by the ‘90s after diligence, hard work and ethics saw the business thrive.
Despite a minor setback, which occurred when fire ravaged the Silverwater factory in 2009, Chandru and his family were quick to rebuild and the business has continued to flourish.
But it was his first hotel – the Travel Lodge in Camperdown, Sydney purchased in 1991 – which led Chandru down a path of international success. Preceding his initial hotel purchase, he then bought the Holiday Inn at The Rocks in 2002 and third hotel not long after.
“I have a lot of good people working for me which is very important. But I still manages to find enough time to play golf three times a week,” he adds humorously.
“Passion to do different thinks so you diversify your interests is important. We have also built a Monteessouri daycare – I find as long as there are beneficial interests to both business opportunities and the community, you are doing well.”
Adding to his stable of Hotels, Chandru also acquired the Macquarie Golf and Country Club – the perfect assimilation to his love of sport.
This loving father of three daughters – one which works for the family business, the other a pharmacist and his third daughter is in year 10 – has recently added a new generation to his family the arrival of a granddaughter. “Family is extremely important to me and I like to spend as much times as I can with then.”
Another of Chandru’s passion lies in his to embrace philanthropy – supporting both the Indian and Australian communities. “We donate to many important Indian charities, this is part of giving back, “he adds. Supporting various religious charities as well as the McGrath Cancer Foundation, Chandru‘s dedication to the community is paramount.
The dedicated countryman has been active in helping the United Indian Associations in their annual Indo-Australia Friendship Fair along with fundraising, donating many of the deity statues for the establishment of both the Minto as well as Auburn Hindu temples – which are widely enjoyed by Sydney’s Indo-Australian community.
When disaster struck with the Indian earthquakes in Gujarat, Chandru and his family sent two container loads of blankets and supplies as a contribution to the relief effort. In 1999, he funded and produced a video in collaboration with former Prime Minister Bob Hawke to promote Australia to the Chinese and Japanese prior to the 2000 Olympics. And more recently,
Chandru has been encouraging his contacts in the Bollywood film industry to film their productions in Australia rather than their preferred destination of the scenic sights of New Zealand. And realising the importance of trying to assist proverty. Last year he and his wife, Kalpana, donated an aultrasound machine for a mission hospital in Rishikesh in India.
In February this year, finally.both his dedication to his business enterprises and the Indian community were recognised when Chandru won the NSW Indian Subcontinent Community Award for Trade and Industry. “This was a wonderful achievement. I am grateful to the people who voted for me. As it is an honour to be acknowledged for the work I have put in ,” he said at winning the prestigious award.
While Chandru says he has never sought the limelight and prefers not live a life of ostentatious grandeur, rather he is gracious to be acknowledged as having given to the community. “I am simply happy to receive recognition for my contribution to Australia”s trade and economy. And being the first Indian businessman to receive this acknowledgement is even better.”
White Chandru places great emphasis on a healthy balance between family, charity, work and leisure it seem life will not show down for this prolific businessman anytime soon-although he has retirement set in his foreseeable sights.
“In the future, once I retire, I want to run a charity but doing something new keeps me going. I will continue to work as long as I have the energy to do it.”
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