Tuesday, May 5, 2009

Balls of Steel in a Global Recession : Indian Steel Forges in U.S.

There is certainly a lot of doom and gloom over the impact of global recession; just yesterday I blogged on A Downer on Globalization, the talk by Josef Ackermann Chairman and CEO of Deutsche Bank AG. Given this landscape, it is heartening to see a few pockets holding steady to weather the storm. One such interesting example is perhaps that of India's Welspun-Gujarat Stahl Rohren Ltd. that is holding steady in its strategy of investing in the US. Per the Wall Street Journal story, - Indian Steel Forges in U.S. - the company is not just sitting still but forging ahead with its globalization plans set in motion beform the slowdown. A case in point for globalization, and walking-the-talk.

The article quotes how the new plant forged ahead despite the looming recession
"Then an encouraging email arrived from his boss in Mumbai. B.K. Goenka, chairman and managing director of Welspun-Gujarat, told Mr. Chokhani that layoffs elsewhere made it a good time to find talented workers. . . . Rather than mothball the new plant and conserve cash, Mr. Goenka decided to establish a U.S. beachhead for the Indian company and at least generate some revenue. "Everyone was talking negative," but the economy is bound to get better, he says. With about $810 million in revenue for its latest fiscal year, Welspun-Gujarat, a textile and manufacturing company, figured it could ride out the downturn. "

A real case of having Balls of Steel, if you will.

Blogs on the topic: