Adi Godrej, chairman of the Godrej Group, spoke with Bloomberg Television's Francine Lacqua & Matt Miller at the World Economics Forum in Davos, Switzerland. Edited excerpts:
On global growth
I would say global growth for 2013 will be better than 2012, which probably was a low point. India itself had a low growth rate in 2012 but we expect it to accelerate upwards. There are several steps they (the Indian government) have taken over the reform process which will accelerate our rate. The biggest reform, which would help growth by two percentage points, is the Goods and Services Tax reform. If that comes into play, India could be growing again at about eight-plus per cent very easily.
Outside of India, the best places to invest
We have companies in Asia. In Indonesia, we have a very large operation. Africa. And, South America. We think the developing world is clearly going to grow much faster than the developed world, so we’re concentrating on our international forays in the developing world.
On what is selling the most and how he sees the taste of the world developing
Consumer products. We make a vast array of other products. Outside India, it is consumer products. We're leaders in India, Indonesia and some other countries in household insecticides. Providing products that protect people from malaria, against mosquitoes is a high-growth industry. Also, we’re global leaders in 20 countries in hair colour products. We provide low cost solutions to young women and sometimes even men who want to change the colour of their hair.
On 70 per cent of sales within India and how that will change over the next five years
I think our sales outside india will grow but our growth in India will be strong. Our growth is about 20 per cent a year, organic and the rest inorganically. We have a 10 by 10 vision — being 10 times our size in 10 years' time.
On where to put your money
In our businesses. We are diversified enough that our portfolio gets diversified and we think that is the best place to put our money — we reinvest in our business. Even if we get dividends, for example, we have a holding company structure, so we would use the family money to buy the shares from a holding company directly into the family.
On what is the biggest economic or political force that should be discussed in Davos this week
What is going to be very important is clearly emphasising the necessity of free enterprise. Reasonable taxation to promote growth. Politicians are sometimes getting carried away in looking at higher rates of taxes, which do not necessarily lead to higher collection of taxes. Sometimes, moderate rates lead to higher collections. I think it is very important that we don't get carried away in the slowdown situation and sometimes I feel we have too many politicians and too few statesmen. I hope some of the politicians in this world change into statesmen.
On what it's like to be a billionaire in Davos
A week of travelling, by being in Davos, i meet a lot of the people I would normally travel to meet or they might travel to meet me. I think that is good. I look at it as a great learning holiday.