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Innovations
Make
the Difference
- S.K.Jain, MD,
LMJ & President,
IACC
The saga of LMJ
international Limited
began with its inception
sometime in the
sixties. But its
true transformation
took place in the
early nineties when
the trading company
was upgraded to
a limited company.
In a span of 18
years, LMJ has reached
its zenith of success.
A Four-Star Export
House today, a status
given by the Ministry
of Commerce &
Industry, LMJ international
has also been conferred
with a President's
Award for its outstanding
performance as an
exporter. Under
the leadership of
Suresh Kumar Jain,
Managing Director,
the company has
been making phenomenal
progress at a 25
percent annual growth
rate through innovative
strategies. Jain
has recently become
President of Indo-American
Chamber of Commerce
(IACC). He speaks
to Amrita Chatterjee
about his future
strategies in facilitating
trade between India
and the United States,
about creating new
opportunities for
micro and small
enterprises, and
his own success
story and vision
about India.
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From the scratch
within 18 years
you have emerged
as a prominent exporter
in agro-based commodities.
How do you explain
your success?
Well, a clear sense
of vision, supported
by a genuine team
work, has contributed
to our success.
Another factor behind
our success is that
we have never compromised
with the quality.
We have stringent
quality checks and
our company guarantees
consistency of quality.
I would acknowledge
the support and
recognition I have
received from the
Government of India,
and other organizations
including my family
and friends. Bringing
new innovations
into business and
having the courage
to move on with
it, makes the difference.
This is extremely
important to be
successful.
What challenges
have you faced during
your vast experience
as an exporter and
how have you overcome
them?
Well, the challenges
were the earlier
policies of the
Government of India,
which did not support
exports; an exporter
could not look up
to any facility
from government
departments. We
had to struggle
on our own. The
income tax benefits
and different incentives
have been completely
withdrawn. Now,
things are changing.
The Government has
taken some supportive
measures to facilitate
exports, still,
it has a long way
to go. Our infrastructure
for exports is not
at all in a good
shape. Containers
can be seen waiting
for weeks or even
months at the ports,
and we have to incur
huge losses.
Despite all constraints,
I started my career
as an exporter.
I always had a clear
vision of what exactly
I wanted to do;
I had an obvious
understanding of
my country's potential
and made India my
base. I gradually
developed my expertise
in agriculture and
food processing.
India has the highest
potential in agriculture;
our produce is of
high quality which
comes at a most
competitive price.
The main impediment
was that we were
not able to process
and package it;
thus I introduced
the best of technologies
and started processing
our produce and
then exporting it
to the world market.
This year we were
about to touch a
benchmark of $200
million, but due
to the ongoing recession
we may not be able
to tough the exact
figure but we will
be surely close
to it.
With regard
to your first love
for tea where does
the company stand?
For some reasons
tea has been our
first love, perhaps
because of the fact
that the company
started its activities
with tea. Today,
we have been buying
from all six tea
auction centers
and exporting it
to various destinations.
In order to add
value to this product,
we installed a state-of-the-art
tea bag manufacturing
unit at Kolkata.
LMJ's entry into
the field of coffee
has also been equally
successful; for
past three years,
we have consistently
maintained our rank
among the top-10
coffee exporters
from India, competing
with other big coffee
exporters.
You are
based in Kolkata
and your business
functions from here.
What do you think
is the future of
West Bengal?
West Bengal is an
agrarian economy
with leading industrial
growth at the time
of Independence;
but from the top
position it declined
to the bottom, and
now due to the sincere
efforts of the State
Government, it is
again on the growth
path with huge investments
coming in. Also
the State Government
is giving a lot
of stress on the
development of micro,
small and medium
industries. It is
important to note
that the cottage
and small scale
industries play
a very significant
role in the economic
growth of the State.
The State has immensely
developed its telecommunication
facilities and availability
of power at a competitive
rate; thus all in
a cumulative way
contributes to the
economic growth
of the State. I
believe every State
has a set of given
resources but the
opportunities are
limited; only by
imagination and
implementation on
these be tapped.
There are people
to invest, but nobody
will invest if one
doesn't know what
will happen to their
money. Developing
adequate infrastructure
is a basic requisite
for accelerating
the pace of development;
as a matter of fact,
we all understand
that the State has
tremendous potential;
if all of us can
work in harmony
in perfect partnership
we can dream of
resurrecting the
past. 'Golden Renaissance'
can be a reality
again.
Your Company
is stressing on
biotechnology and
has plans to set
up food parks. Please
tell us more about
the project.
We are seriously
in the process of
developing food
parks in about five
different states
of India with an
investment of Rs150
crore. All agro-
related infrastructure
will be developed,
with a quality control
laboratory; let
me tell you Rs15
crore will be spent
on the laboratory
itself. Different
processing units
will be installed
including a water
treatment facility.
Thus, when one step
is approved, the
other processing
step starts; every
measure will be
taken to ensure
world class quality.
The Government of
India has approved
10 such parks, but
initially we are
moving ahead with
five, later more
such parks will
be developed.
As far as the Biotechnology
Park is concerned,
the major thrust
will be on agriculture
in the form of production
to facilitate the
use of right kind
of seeds, using
organic fertilizer
for better quality
of produce and encourage
the use eco-friendly
measures in agriculture.
Recently you have
become President
of IACC. Tell us
about your association
with the Chamber.
I got involved with
IACC as the Regional
Head, and now with
the support of all
members I feel honored
to become the President
of IACC. I just
look forward to
building on the
firm foundations
of good work that
has been laid by
my predecessors.
What re
your future plans
for IACC?
My focus will be
on brand building,
targeting the SME
sector, attracting
new members, and
most importantly
strengthening Indo-US
trade. This year
I propose to stress
on introduction
of new members that
too from the segment
of business that
no other chamber
has yet included-the
SME sector. I look
up to IACC as to
take the lead in
being the bridge
between the local
community and the
larger economy by
providing a platform
for the SMEs. We
can match-make tie
ups with Indian
SME's and US companies,
the prime areas
which we can target
for tie-ups are
in the fields of
Nuclear cooperation,
food, and biotechnology.
IACC acts as a catalyst
for developing bilateral
trade between India
and the US. We,
in our focused way,
shall take the lead
in sending sector-specific
delegations to the
US and also initiate
regular delegations
from the US. We
at IACC can bring
benefits of bio-technology
and better agricultural
practices from the
US to India.
The most
important development
today is the Indo-US
civil nuclear energy
deal, opening doors
for nuclear trade.
Yes, this deal will
lead to a significant
rise in bi-lateral
business with US
Government officials
predicting that
India's nuclear
trade in the energy
sector can generate
worldwide business
of $100 billion.
Once the Government
allows the entry
of private players
in the nuclear energy
sector, we, at IACC,
can identify the
possible trade opportunities
and provide a platform
for Indian companies
to become vendors
to US firms and
to supply components
to foreign N-plant
makers.
What is your take
on the newly elected
US President as
far as India's interests
are concerned?
Well, President
Obama has said that
he would build a
close strategic
partnership with
India, because India
and the US have
both experienced
major terrorists
attacks; also he
voted to approve
the U.S India Civil
Nuclear Agreement
in October 2008.
Obama is known to
be an admirer of
world's largest
democracy as well
as the Father of
the Nation, Mahatma
Gandhi. He believes
that India is a
strong democracy
and a natural strategic
partner for US in
the 21st Century.
India need not worry;
things will move
towards the positive
side and Indo-US
trade will improve.
Your vision of India
by year 2015…
India will be a
superpower! Economically
we will emerge as
the largest and
strongest, be it
technology or terms
of qualitative services
India will be on
top. By the year
2015, 70 percent
of India's population
will be in the working
age group. The way
we are progressing
and knowing that
the Government of
India is greatly
emphasizing on education,
it's definite that
we should be on
the anvil for taking
a quantum leap into
the global business
leadership.
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