The 11 Indian tycoons who want to open businesses in Greece

Last Tuesday, at number 51 Upper Brook Street, London, there was pandemonium. Through the door of the – recently renovated – Greek embassy residence walked eleven of the UK’s most powerful Indian businessmen. It was their scheduled – since last February, during Mitsotakis’ visit to India – meeting with the Greek Prime Minister. It was not a formal get-to-know-you meeting. The eleven powerful businessmen, four of them billionaires, sat down with Kyriakos Mitsotakis, the head of the Prime Minister’s Alexis Patelis, special adviser for international policy and public diplomacy Aristotelia Peloni, new diplomatic adviser Miltos Nicolaides and Ambassador Yannis Tsaousis.

The private meeting was attended by, according to absolutely secure information of protothema.gr, among others, Uday Khemka (vice chairman of SUN Group, investor in RES, businessman and philanthropist), Vindi Banga (head of UK Government Investments, experienced multinational executive, investor and brother of the chairman of World Bank Ajay Banga), Kishore Lulla (executive director of the formerly New York-listed Bollywood production company Eros Media Group), Vikram Shroff (vice chairman and co-CEO of agri-focused chemical company UPL Group). Also billionaire industrialist Sanjay Kirloskar, billionaire construction, hotel and real estate entrepreneur Surinder Arora, and a member of the powerful Hinduja family, owner of bus manufacturer British Leyland and with operations in truck manufacturing, lubricants, banking, media, etc.

What they talked about

The chef had prepared Greek food with Indian influences in an attempt to bring the two cultures together and make the guests feel at home. Thus the businessmen, philanthropists and others had the opportunity to exchange, but more importantly to listen to the Prime Minister’s views on burning issues. But also to sound out the intentions of the Greek government in a rather probing discussion, from investments they want or are thinking of making in Greece, to the economic migration of their families. Since the atmosphere was not that of the formal-based event one would expect at the embassy residence, but more of a free roundtable discussion, the guests were given a tour of the impressive embassy residence (admiring Seferis’ office, the reading room that opens to the public two Saturdays each month, and the library of Greek children’s books that is currently being built) and listened to the Greek Prime Minister’s brief introductory statement. Then the businessmen took turns to speak and bombarded him with questions.

They wanted to know Kyriakos Mitsotakis’ view on issues such as the global economy, the Draghi report, political and economic developments in Germany and France, the war fronts in Ukraine and Syria, but also on persons such as Ursula von der Leyen, Emmanuel Macron, etc. We learn that the guests, economic players with global activity, presence and influence, made no secret of their enthusiasm for the fact that the Greek Prime Minister had an informed response and opinion on every issue they opened up and that he seemed “well read”, which made the conversation drag on (it lasted a little over an hour and a half) which did not focus only on the connection of the implications with the Greek economy and diplomacy or attracting investment to the country. Some of them even stated that although they were aware that Greece is a safe country (investment-wise, as it provides a stable political, social and economic environment), they felt even more comfortable after this discussion

The… main course

Since the meeting of India’s most powerful business leaders in the UK had been planned after India’s Prime Minister Narendra Modi had consulted with Kyriakos Mitsotakis and was finalised with the help of India’s High Commissioner to the UK, the discussion could not be left to…general discussions. The representatives of the most powerful Indian businesses and families quickly turned their conversation with the Greek Prime Minister and his – very close – staff to the “details” of most interest to them.

First of all, for Indian businessmen, it is a huge problem that Great Britain – a country with which, for historical reasons, they are closest – after Brexit has denied them easy access to the European Union. They have made no secret of their interest in building a new base – from an economic point of view – within the EU to facilitate the economic activities of their businesses with the world’s largest trading bloc.

Greece is one of the candidate countries for the transfer or expansion of their commercial activities not only because it is a member of the EU and has economic and political stability, but also because of its privileged geographical position between the West and the East, as well as the friendly culture of peoples linked since ancient times. Several of the Prime Minister’s interlocutors made no secret of their exploratory interest in making Greece the base they are looking for to connect with the EU.

However, it is not only the part of trade activity with the EU that interests them. On a more personal level, as some of the Indian businessmen explained to Kyriakos Mitsotakis, by April 1, the day the new UK tax year starts, they will leave the UK, following other compatriots or foreign businessmen in general who have migrated elsewhere. The reason is the abolition by the Labour government of the favourable tax regime for non dom. This regime had a self-contained tax (as in the Greek system, up to €100,000 for income from global activities) but, crucially, provided for exemption from inheritance tax in the country of residence.

If income tax is a minor thorn to be dealt with, inheritance tax, for the dynasties, the wealthiest families of India and Britain, is simply not important. The 40%-50% inheritance tax on a huge fortune is also a reason for them to leave the country and set sail elsewhere, for obvious reasons. Besides, there is already a major trend of powerful families fleeing the UK for Monaco, Dubai and also India. Could Greece be one of the popular destinations for the migration of these dynasties who are…packing their bags?

And the “fillets”

The Greek side was not the only “well read” side as the Indian side had done their “homework” too. During the dinner, most of the participating businessmen quizzed the Greek Prime Minister on specific “fillets” of our country, which would interest them not only in the context of acquisition, but also of cooperation, either with Greek businessmen or with the state. Briefly, some of the sectors and their “fillets” that were dropped on the table included:

– Ports. The heads of commercial and construction groups openly expressed their interest in acquiring a port in Greece or a business stake in one of them. The port is a key point of interest for Indian businessmen as they intend to use it as a gateway to Europe to promote their products in the Old Continent. Inevitably, the discussion turned from the Indian businessmen to the ports of Thessaloniki (of interest to the French company Terminal Link and the group of businessman Ivan Savvidis) and Alexandroupolis (the interest of the ancient country had expressed, during a visit to the port two years ago, India’s ambassador in Athens, Armit Lugun, accompanied by his compatriot diplomats) although, according to information, months ago the Indian giant Tata Group had leaked to the Greek side its interest in acquiring a port or participation in a business scheme operating in them.

– Airports. As was evident from the discussion with Indian businessmen, they do not see investment in regional airports as a commercial opportunity, but as the starting point for developing projects around them. The airport in Kastelli, Crete, was used as an example to describe the development of hotels, conference and shopping centers and other business activities around and in conjunction with it.

– Technology companies. India is known to have the third largest high-tech ecosystem on the planet. Its recent mobility to occupy an executive position in the 4th Industrial Revolution has caught the interest of Indian technology gurus. The acquisition of Greek startups that seem to have tremendous potential and the move of Indian startups into the Greek ecosystem for easier access to the EU market are the main issues of interest.

– Food and agriculture. India, with a population of 1.42 billion people, is now the most populous country on Earth. This population, however, also has increased needs, which, combined with the population and economic expansion of India’s middle class, is becoming a food supply problem. Chipita’s entry into the country’s huge market has been a case study and the Indians are looking for Greek companies with which they could cooperate to import Greek agricultural products – popular in the country – and food in general into India. They also discussed how the Indian chemical industry and technology startups could contribute to increasing Greek agricultural production and reducing production costs.

– The migration of Indian workers to Greece “Importing” missing labour in sectors (like construction and agriculture) is something that is being discussed between the two countries. What interests the biggest Indian business groups, however, is the part that will follow them. The question, in particular, of their housing, which will mean the construction of workers’ houses where they will live with their families. And the construction of these houses will have to be undertaken by someone…

– Tourism. Investments in hotels and destinations and activities that could direct Indian tourists to Greece were considered.

– Public transport and electrification. Indian businessmen seemed to be aware of the renewal of the urban bus fleet currently underway in Athens and Thessaloniki. Some of them, owners and manufacturers of electric buses and heavy vehicles in general, even raised the possibility of setting up a factory in Greece to manufacture electric buses, so that they can be sold more easily in EU countries, since after Brexit there are post-Brexit deferrals on exports to the EU for British factories.

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