The Rs 27,000-crore AV Birla group is drawing up a plan for its Chinese operations, which envisages running the entire gamut of businesses it now has in India, in that country.In a sense, the Birla group hopes that in the coming days, the Chinese operations will ‘mirror’ its Indian operations.The gameplan constitutes a rapid expansion of its Chinese operations through mergers, acquisitions and joint ventures with controlling stakes.When contacted for details, AV Birla spokespersons declined to comment on the issue, though not denying the group’s China plans.According to a senior AV Birla official, the group had, in view of the booming Chinese economy, decided that it would be pertinent to set up operations on the scale that they have in India, in China. With China’s economy and automobile industry going through a boom, the country presents a captive market. “We plan to be in China in a big way. There are a lot opportunities to be tapped in China and we want our operations there to reflect our operations in India,” the official said, adding that the group was planning to acquire, merge or form joint ventures with companies in China in all its businesses.The Birla group, till date, has only revealed its interest in acquiring Chinese carbon black major Shanghai Carbon Black. “The group is not going to blindly invest in China. We are also drawing up emergency contingency exit options, in order to safeguard our investments there from any possibilities of future political or economic instability,” the official added.The group is also looking into the possibility of entering the South African market for its textiles business, in line with its international expansions strategy.“We have also studied the South African market for a foray in textiles. The findings of that study are yet to be decided on, though all the signs seem positive,” he said.With respect to other international forays, the group is in parleys with a Venezuelan carbon black company for a buyout, through Thai Carbon Black, the group’s first carbon black company, and not through Indian Rayon.At present, the group has a joint venture called Alexandria Carbon Black in Egypt. It is looking at aluminium acquisitions in the Middle East, and has also envisaged interest in a media joint venture in Singapore.The group has roped in leading management consultancy firm PricewaterhouseCoopers to chart out the group’s global expansion plans. The Birla group has been keen on overseas expansion to East Europe, China and South Africa, and having operations in 17 countries, will not only take certain existing operations overseas but will also scout for new businesses in these countries.Of the group’s Rs 27,000-crore turnover, almost 30 per cent comes from overseas operations, most of which are in south-east Asia.
