It's the dragon and the tiger for GE: CNBC
By Our Corporate Bureau | 20 Nov 2006
GE, in a way, is a proxy for the economy, because it has businesses in infrastructure, healthcare and financial services. Which of the two countries will be more important for the GE over the next 10 years — India or China? CNBC-TV18 brings you this report after speaking with the respective country heads.
As part of its 61st anniversary celebrations, GE flew down some of its international CEOs to India. The highlight of the programme was a debate on which country, India or China, will be the more important for GE over the next two decades.
GE did sales of $5 billion in China last year. It has been there for 25 years and operates though 40 joint ventures. Will it continue to grow like before?
GE India has not done too badly either. After 13 years of direct presence, it expects to end the year with sales of $1.7 billion. Over the next four years, the India operations will be the faster growing one, as the company expects to end the decade with sales of $8 billion.
China's one child policy, and its ageing population, will leave people with more disposable income, so how will GE refocus its business?
GE pioneered the call centre business in India, but with manufacturing growing at over 10 per cent now, against the past average of 6 per cent, will manufacturing take a bigger share?
As Nani Beccali, the President of GE International said, there is no "either-or" choice really, because both are large growing economies. And while providing locomotion to the world economy, they will do so for GE as well.
