Business as usual for India Inc in Thailand

The military coup in Thailand may have rattled Asian financial markets today and put pressure on the baht, but it is business as usual for India Inc which has a small presence in that country.

Except for the Aditya Birla group that has manufacturing business there, no big corporate house has a presence inThailand.

A top Aditya Birla group executive, on the condition of anonymity, said: "We don't want to comment on the political climate on any particular country we are in. We believe in corporate governance. As long as we are able to function as a good corporate citizen, we have no problem."

The Bangkok branch of Bharat Overseas Bank, taken over by Indian Overseas Bank (IOB), was closed today as Bangkok declared a holiday, IOB Chairman and Managing Director T Narayanasami said. The branch with a staff strength of about 35 employees is expected to resume operations tomorrow as the Central Bank of Thailand wants banking business to continue.

Since Thailand is a major export destination for the Indian pharmaceutical industry, Indian drug exporters are keeping a close tab on developments in the country.

Dinesh B Mody, chairman, Pharmaceutical Export Promotion Council, said: "We are observing the developments in the country's regime change and related issues as the market is very important for our exporters, especially from the small and medium sector."

Sources from a leading pharmaceutical company, which has a wholly owned subsidiary in Thailand, said there might not be any serious impact on business. "Our Thailand business is relatively small and the majority of the personnel employed are locals. There is no panic," he said.

While travel to Thailand has not been affected in a major way, the industry is keenly watching the situation.

Tour operators have advised travellers to postpone their trips and are in constant touch with agents in Thailand to keep a tab on the developments there.

There have been no cancellations of flights from India except one Indian Airlines flight last night. Thai Airways' booking office in Delhi has said all flights are on schedule and there have been no spurt in cancellations.

However, Travel Agents Association of India Vice-President Rajji Rai said tourist traffic to Thailand was already down 25 per cent.