How did your affairs with Africa begin?

Traditionally we were in the business of spices. It was all started in 1956 and we were exporting spices to Africa - Kenya, Uganda and Tanzania. This had exposed us to African market and helped us to catch hold of the dynamics of trading business there. Slowly we realized that it made a lot of sense to introduce the textile products. Since 1970s we have been exporting textiles.

What kind of products do you export?

It started with towel and bed sheet, now virtually textile of every form and kind, including readymade garments. We export products for both local African community and the European settlers. As the civil war had grappled most of African states, people of European origin left Africa and settled in Europe and the United States. But they still keep on ordering products from us. Thus, our products had slowly entered into European and US markets.

What has motivated you to venture into the African Market?

Most of the African economy is heavily import reliant. Industrialization of the economy is yet to take off. Any exporter would love to explore a virgin market. We did just that.

How do you sell products in African market?

Markets in Africa are mostly unorganized. You cannot think of a distribution channel which is perfectly tuned from all possible angle. No Internet, there is hardly any free flow of market information. You need to have hands on experience to deal with such types. Over a period of time, we have been able to establish personal contracts with trading community there. Our group has made extensive market surveys to understand mindset of the consumer there and most particularly the African products. We are banking on it.

How AGOA will help India?

Yes, it has lot of potentials. AGOA facilitates market access to the US which is duty-free and quota-free. For textile, there should be value addition to the products. I mean, the production facility should be in any of the African countries. We have our production base in Kenya.

There's no gain without pain! What's your experience in Africa?

Initially, we had problems. We had to work with a set-up which is still not organized in the proper sense of the term. One has to send consignments without any form of letter of credit. In many of the African countries, there is no proper banking system as such which is offering this facility. Imagine the tension and risk involved in dealing with such systems. Always there is an uncertainty, whether where you will get the payment back. Now we insist on advance payment. One need to be careful in doing business in Nigeria.

How do you rate India's Focus Africa programme?

Yes, our government has taken a policy. It is offering incentives for market development in Africa. Cotton yarn, fabrics and other textile items have been brought under the programme. The government is providing market development assistances. Under this, an exporter visiting Africa can avail refund of air fare to a tune of Rs 60,000 once a year. But, this is a paltry amount. You cannot create market in Africa through a single visit. I think, this requires further revision. The government may consider other mechanisms such as cash incentives on exports to Africa. These when undertaken will be of great help to the exporters.