Subsidiaries of US firms assess course of action

Our Marketing & Corporate Bureaus

New Delhi/Mumbai, Sept 17: As the magnitude of the terrorist attacks in United States slowly sinks in, Indian subsidiaries of American transnational corporates are assessing the course of action that they should take in India.

The Financial Express spoke to a cross section of these transnationals operating in India to get a first account of how their business and marketing plans will pan out.

For a number of them like Pepsi, Colgate, Citibank and Monsanto, it is business as usual. For example, Pepsi India has gone ahead with it’s sponsored tour of the Vengaboy’s music tour which was flagged off in Ahemdabad last Friday. It’s planned tour in other cities that include Chandigarh, Lucknow and Calcutta is also as per schedule. Adds Deepak Jolly, Pepsi India spokesperson, “In our business, it is difficult to maintain a low profile.”

Others like General Motors and Whirlpool Corporation have even gone ahead with their planned new product and marketing launches. For example, General Motors has just launched a new edition of it’s sports model.

For Reebok, Procter & Gamble and Addidas while it is business as normal in the country, there has been some concerns on the security and safety issues. Says Tarun Kunzru, managing director, Adidas India, “The only directive that we have received from the parent corporation is a general one regarding personal security.

In the interim, we would of course be watching the developments.” For others like Reebok India, while the Indian operations is moving ahead as per plans, it may be too early for detailed inputs from the parent corporation’s side. Says Reebok India managing director Siddharth Verma, “The parent company is too shell shocked by the developments. But the activities of Reebok India will move undisturbed.” At P&G India too, safety and security seems to be a primary concern. Says Anthony Rose, spokesperson and senior manager (public affairs), P&G India, “Security has been increased at all locations worldwide to help ensure the safety of our employees.”

At other companies like Coke India, while there are currently no change in business and marketing plans, some of the travel schedules could be affected. Says Irfan Khan, Coke India spokesperson, “From the headquarters, there have been concerns about safety. There might be slight changes in the travel plans.”
But there are some others who are waiting watching. In fact, for them, it may be too early to make a full assessment. Take the advertising industry for example. Five of the leading global advertising agencies including Ogilvy & Mather, leo Burnett, Grey Wordlwide and Lowe Lintas and Partners have their headquarters in New York.

Says Ms Nishi Suri, executive director O&M India, “Our primary concern now is about the safety of human lives. Mercifully, no one from O&M in New York have been hurt. We have not yet looked at the impact of this unfortunate event on the advertising business.”
O&M in India handles key US corporate accounts like those Mitchell and American Express which have been badly hurt in the attacks in New York. Adds Arvind Sharma managing director Leo Burnett, “I expect the impact of the event to creep on us over a period of time. If war begins, then it will certainly affect the economy which will impact the advertising business.”

The bottomline then for US-based transnationals in India: while for most, it is business as usual, it would be prudent to wait and watch, as these are early days still.