News: India Inc heads to south Russia

(BL 26/11/2006) New Delhi - Southern Russia seems to be a sought after destination for India Inc, which has a slew of major domestic players either starting or looking to set up operations in the region.

Attracted by the tax holidays and free trade conditions offered by the Government of the Takhtamukhai region, in the Republic of Adygeya (South Russia), several Indian companies are looking for business opportunities there.

Berger Paints has announced that it would start operations in its 6,000 kl per year manufacturing facility in the region by January 2007, for which it has already invested about $ 2.5 million. Subir Bose, Managing Director, Berger Paints, said, "We chose Russia since we have been exporting to the country for the past 10 years and have a sizeable market there. The paints produced in Russia will be sold in the local market and we plan to slowly expand our products to other parts of South Russia."

Berger Paints, which had a turnover of Rs 1,150 crore in 2005-06, is expecting an annual turnover of $ 3-4 million from the Russian plant.

Naresh Trehan of Escorts Heart Institute and Research Centre has also firmed up talks with Aslan Khuako, Governor of Takhtamukhai, to set up a medical facility in the region. "The Governor was very interested in setting up a medical facility on the lines of `Medicity'," he said.

Meanwhile, Punj Lloyd has also shown interest in the region. "The company wants to set up an oil refinery, for which formalities will be completed by January 2007," said Khuako. When contacted, Punj Lloyd declined to comment on the development.