By Badri Narayan, Vice-Chancellor, Tata Institute of Social Sciences
These days, I am in India’s commercial hub. Having shifted base to Mumbai affords me a closer view of business houses—such as Tata, Birla, Adani, Ambani, and Godrej—that emerged as multinationals and have attractive, sea-facing offices here.
Recently, I attended a series of lectures by leaders of some of these corporate houses. Through them, I heard a compelling story of India, which possibly travels with them to many countries where they want to expand their presence.
Internationalising business credibility requires competing with the national narratives of their competitors, which flow with their products, while continuously adding to their credibility. For example, Swiss watches are in a league of their own in the global market, boasting a national identity that is deeply ingrained within the product. This identity contributes towards creating a brand in three ways—first, such identity stories may strengthen a brand; second, stories create as well as evoke particular memories linked to the products; and third, a story or narrative enhances the credibility of such products. Thus, businesses too need a national story that is linked with their products to earn a place in the global markets.
When the Tata Group started expanding to global markets during the neoliberal phase, the credibility which they acquired during more than 100 years of their legacy travelled with them. Legacy business houses that emerged during the freedom movement are legitimised due to their close association with it, supported by their humanitarian, philanthropic, and social activities.
Around two decades ago, I was in the Netherlands, and during the time the Tata Group was starting a venture there. Wherever I was introduced as an Indian scholar, people mentioned this venture. In fact, many Parsi businessmen who contributed towards humanitarian, philanthropic, and social efforts prior to Independence were imbued with the Indian identity.
Many new business houses emerged post-Independence as well, and they too started expanding their business in various countries during the neoliberal phase. In these marketplaces, brands interlinked with national history projected it as linked with their own, aiding their business. However, the newer Indian businessmen who had no opportunity to claim their role in the Independence movement were inclined towards evoking the pre-colonial history of pride, tested credibility, traditional knowledge, and heritage to enhance the trust, legitimacy, and credibility of their products. The stories of colonial businesses narrate how the Europeans exploited India. To counter this narrative, a pre-colonial history of trade was invoked in which Indians established businesses globally while being respectful and compassionate towards local communities.
In a recent speech, Gautam Adani argued in favour of writing and evolving our own stories. According to him, this is the era of narratives, and those who succeed in telling their own stories would be the ones to progress. He cited his own experience of short-seller Hindenburg Research crafting a story against his business, which resulted in severe losses despite the group’s progress with various business-related initiatives. Like politics, businesses must also navigate a warzone of stories, he argued. Nadir Godrej, the chairman of Godrej Industries, similarly highlighted the role of narratives within the ambit of communication in a recent lecture.
Realising the lack of a concrete narrative, Indian multinationals, through their entities like foundations, are supporting various governmental and non-governmental initiatives to explore Indian knowledge and heritage. The Vedanta Group is also placing sufficient emphasis on researching the history of Indian traditions and values; the Hinduja Group also supports various efforts to craft research-based narratives of Indian values, ethics, virtues, and morality.
Products and services within the global landscape carry their stories with them, so much so that competition involves pitting narratives against each other. Research and production have an important role in this regard. American stories of technological superiority and a modern, democratic society are always interwoven with their products. Thus, Indian corporations must compete with them in both the global and the US marketplaces. Therefore, they also need a story that combines the legacy of superior quality, craftsmanship, age-old techniques passed down through generations, and innovation while also being compassionate and humane.
One may say that businesses need stories to create a space for their products in the market. Sometimes, such stories reach the markets before the products do. They create trust and often classify products into specific niches. In the current age, stories linked to the Indian identity become paramount for Indian multinationals if they wish to carve out their space in the global marketplace.