Investment Advisory for Bangalore

The Government of Karnataka has issued a brand new Industrial Policy which promises goodies galore for the investor in terms of infrastructure, taxes, finance and other facilities. The policy, however, is silent on one crucial aspect - the product lines which can fetch the best ROI ( Return on Investment ).

Of course, there has been the usual reiteration of the "electronics, information technology, automobiles, biotechnology" mantra in the policy. But this really gives no concrete clue to the potential investor. So, if he is not careful in selecting the right product to make , the entrepreneur may find himself desperately seeking customers and end up in the long queue before the Debt Recovery Tribunal.

As a veteran Bangalore industry watcher, this correspondent can provide some guidance on this aspect. For example, the average marketing consultant will advise that since this city is bursting with high-earning software yuppies, the market for cars and two- wheelers is immense. The actual fact is that there is a bigger potential market here for walking shoes since any more vehicles on Bangalore's roads will bring traffic to a halt and people will discover that walking is faster and more convenient.

Talking about Bangalore's roads, here is a tip for prospective investors. With the number of potholes per square metre increasing in geometric progression every month, there is soon going to be a huge demand here for equipment to treat slipped discs. The doctors at Hosmat Orthopaedics Hospital will confirm this.

Yet another product line for which I see a sustained demand here is ditch digging implements. This is because excavating trenches is the most favoured activity of all sorts of agencies in Karnataka's capital - the power, water, sewerage, telephone and, of late, optical cable utilities. Very soon, the natural gas utilities will be adding their bit to this flurry of frenetic digging . And, since the agencies involved balance the quick digging by protracted filling up, one can also see a huge market building up for wooden boards as temporary bridges across the yawning trenches.

A product that should soon have a booming market is the nose clip. This is thanks to the proclivity of Bangalore's enlightened citizens to channel refuse from their homes to the streets , which is rapidly transforming the Garden City to Garbage City with the associated stink.

By incorporating some design elements to make it a fashion statement, the functional nose clip can be transformed by a clever entrepreneur to an upmarket product for raking in the money. One can even see good export possibilities for the product as most Third World cities will be following Bangalore's follies.

And then, of course, there is the "lack of power" sector. Thanks to the amazing capability of the local electricity distribution utility, KPTCL, most consumers in this high tech metropolis are used to a 180 volt , 48.5 Hertz, intermittent power supply, instead of the standard 220 volt, 50 Hertz supply. And, since the KPTCL is unable to pay its suppliers, there may soon be more on ``off'' hours than "on" hours of electricity supply to its customers. What a gold mine of opportunities for producers of voltage stabilisers, inverters, uninterrupted power supplies, solar water heaters, lanterns and, last but certainly not the least, candles !

Yes, indeed, Karnataka has tremendous industrial potential. The only caveat, as explained above, is that the product line should be judiciously chosen.

N. N. Sachitanand

in Bangalore

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