Learning Beyond The Great Wall: India has many takeaways from China

• Footwear Design Engineer from India, Niren Anand after his initial career in India, Singapore, Malaysia, Thailand, and Indonesia, landed up in China
• He established Evertrade Group in 2011 manufacturing footwear based at Xiamen, Fujian, China
• Niren Anand and Smita Anand were the only Indian entrepreneurs from China participated in BRICS Summit, Xiamen

Despite globalization making multinational presence easy for companies for quite some time, an Indian entrepreneur setting up a company in China is not a common sight to witness. Niren Anand, the founder of the Evertrade group made this a visibly remarkable reality by the way. A design engineer from India, Niren went through his professional sojourns in countries such as Singapore and Indonesia, before landing up in China. 

The country did not just become one of his stopovers or relocation destinations, but a country where he started an inspiring journey with Evertrade group, his entrepreneurial venture which is today one of the world’s leading footwear designing and manufacturing company. He started his company in China in 2011. He has since designed and manufactured footwear for big names in the market starting with Fila and supplied to almost all cricket brands in the world including the revered M S Dhoni. His buyers include companies like Polo, Duke, HRX by Hrithik Roshan, many more and enjoy a huge market share among the popular sports brands across the globe.

India and China have been at loggerheads on as many issues as they have been at ease with each other. The recent border dispute has only worsened the tensions, much to the chagrin of the business communities’ relationship between the two countries.  

A true Indian at heart, Niren, however, prefers to cast aside the differences and envisions a better future built on cooperation. As a business leader, Niren has been in both the countries, observed industries and governance from close quarters, and had first-hand experience. In conversation with Machine Maker, he draws up China’s industrial picture and areas where despite differences, India can learn from China.

Being in China: A Global Business Hub  

“I have never felt unwelcome in this country,” Niren says starting up the conversation. An Indian with no knowledge of the local language or a palette fit for the local food, he decided to start his own company in China. “It was the best decision I ever made,” recalls Mr. Anand when asked if he has any regrets in starting a company in China.

“Even though I am an Indian, I have not felt people staring at me or treating me differently,” Niren says when asked if there is a difference in people’s treatment of him amidst tensions between the two countries. For a country inhabiting people from different countries, a hub for medical aspirants, largely including Indian students, it is important to refrain from causing conflicts within the country.

In India, media play a huge role in influencing the daily activities of its citizen, but due to heavy censoring people in China can only see what their government wants them to see. Not just television, the entire new age media are not accessible by Chinese people, and they have a replacement for Google, Facebook, that too exclusively, censored by the Government. 

Expats can access global media through a VPN connection but again monitored by the Government. Though control or restriction on media is opposed to the very idea of democracy like India, Niren assures this has never created impediment at least for business growth and communication.

Ease of Doing Business in China

One of the key points of China’s booming economy is ‘Ease of Business’. According to Mr. Anand, it has been the bane of manufacturers’ existence here. He explains how China deals with new businesses to make the process of setting them up smooth. “It took me less than two months to set everything up,” tells Mr. Anand. 

It is a smart move for China to accept and embrace anyone who brings in business. There is no fear of foreign influence upon the Chinese people. This makes it easier for the country to accept outsiders; the people welcome them too and with an abundance of labor present in the market, it is relatively easier to set up business in the country. The government provides almost plug-n-play ready factory infrastructure to businesses. This amounts to a small investment with the possibility of manufacturing on a large scale. 

Today, the country is the leading manufacturer of the world with only two others deserving of being called rivals – the EU and the US. China’s flexibility over foreigners establishing businesses inside the country has largely affected domestic manufacturing, giving the country the benefit of imposing tariffs on goods exported. 

“The basic difference is between India and China is the idea of community and that of the individual,” remarks Mr. Anand. According to him, Indians are innovative and quite creative when it comes to solving problems but we are also divided and single-minded. The term ‘jugaad’ is often used in India to refer to small creations that cater to a few people or just an individual to save money. In China, the ‘jugaad’ is done with the whole community in mind. The emphasis on ‘working as one’ towards development creates a sense of loyalty to the community that makes the Chinese aim for the greater good.

The policy of ‘Innovative Market Economy’ that focuses on the vitality of the public sector has China to become a global giant in terms of business. Between the world’s two most populous states, India has a lot to learn from China if we aim to establish a name in the global Industry.

Technology for Everything

Technology is another important aspect of the industry in China. “There is a technology for everything here,” stresses Mr. Anand. China is the world’s largest footwear manufacturer and biggest footwear exporter with over 55% of footwear all over the world being exported from China. The factories are equipped with the latest technologies that make it easier for them to manufacture on a large scale within a limited time to meet the demand. 

When Niren started his entrepreneur journey had limited funds to put up a fully automated factory. He started with a very basic level of manufacturing set-up to manufacture the footwear. Once an Indian delegation visited his factory, and the delegation team members were amazed to see the manufacturing process set, and informed that the factory is at least 10 years ahead of an Indian factory of the same scale. “If a simple manufacturing process can bring this feedback from Indian manufacturers, you can imagine how the big players in China are getting their manufacturing automation done,” explains Mr. Anand.

Due to advanced factories and a huge number of workforce, it is easy to scale up production in the country and expect a faster turnaround than most countries. The country has taken strides to save prospective manufacturers and buyers from scams and has been successful in developing international brands and quality products over the years. 

The factories even, in general, are even 15 years ahead of the Indian factories, a striking gap between China and India. It is important to realize that China, much like India, stresses domestic production which cuts unnecessary costs.

All Work, No Play. Great Pay! 

Driving a whole country towards a single goal requires motivation. This motivation is given to workers in China in terms of above-average wages. Different regions in China are allowed to regulate minimum wages according to their economic conditions and every few years, the amount of these wages goes up. Currently, workers in China earn more than their minimum wages in many regions with workers in Shanghai earning 4 times their minimum wage as of 2019. 

The difference between India and China is workers are paid on piece rate and not on an hourly/daily basis. A factory worker with Niren working for 10 hours a day, 28 days a month earns an average of 3500 RMB. This can go high or less as per their productivity. 

Whereas in India the regime of 8 hours shift per day and one/two holidays per week is followed, China followed a different regulation. The government has regulated works in 3 shifts, 8 am to 12 pm followed by a lunch break for 2 hours, 2 pm to 6 pm followed by dinner break from 6-7 (this is the Dinner time in China for everyone), and the 3rd shift from 7 pm till 9 pm. The workers can stay in a dormitory provided by the employer, subsidized food, and save money. An average family of two can save almost 5000 RMB every month. This has added hugely to the economic prosperity both for the economy as well as for the employees. 

A strike is a criminal offense in China. Any appeal can be aired to the management and a possible solution is provided. With 400 workers, majority female, Niren has never had to face a single labor issue till today.

Monitored Society: Safe & Secure Environment

China is considered one of the safest places for women in the world. “There is no fear of safety. My wife and I can come home at any time of the night. Women workers feel safe working late hours or going home late,” says Mr. Anand. China is a heavily monitored country, where every nook and corner, every movement is watched and recorded by authorities through CCTVs. 

While there is no room for privacy and the idea is opposed to the idea of democracy, this measure helps ensuring great safety for people around, especially women. In fact, thefts, crimes, loss of properties are also solved within hours, as everything can be traced with proper systems in place. Talking about this Niren cited his own experience where one of his family members lost her purse in a taxi which could be retrieved within an hour or so due alacrity of the authorities and advanced systems at their disposal. 

With one of the lowest crime rates in the world for women, China has made a secure place for its women workforce. This has immensely helped women to go out and express their skills and even business acumen. 61% of the world’s self-made women billionaires are Chinese, a feat other countries should take notice of. 

Fostering Indo-China Socio-Cultural Bonding 

Along with making a mark as an Indian origin business entrepreneur in China, Niren has also made efforts of distinction in bringing two culturally rich countries closer by organizing or supporting Indian cultural programs in China. Among his several efforts in the field of culture, remarkable ones include performances by Sarod maestro Ustad Amjad Ali Khan in the Indian Classical Music event. The event was with close cooperation with the Consulate General of the Philippines, Thailand, and Indian Consul, Guangzhou. Niren considers it a proud moment for his company Evertrade which sponsored the event.  
 
He was also a distinguished guest for the inauguration of the Ustad Amjad Ali Khan concert which was organised in close operations with the Consulate General of India, Guangzhou, Consulate General of India Shanghai, and Chaiti Arts festival. Evertrade also sponsored an Indian Classical Music Event, the first time in Xiamen, where another Sarod legend Pandit Debojyoti Bose and his team performed. The event received wholehearted cooperation from the Minister & Chairman of China Council of Industry and Trade, Consulate Generals of Thailand and Philippines, and Indian Consuls. Evertrade provided support to the Indian Tea Promotion Seminar organized by Tea Board India, and the Indian Consulate, Guangzhou. 

Niren also takes a proactive role in bringing India’s vibrant festive vibes to the heartlands of China, be it Diwali’2018 meet on the Medical Campus of Xiamen University for Indian students or Holi celebration in a Charity Market, 2019, both of which were sponsored by Evertrade. He also provides guidance to Indian medical students, in Xiamen along with the Consul of India, Guangzhou.

The Dragon teaches perseverance

With a new focus on sustainability and reviving nature, China has started to plant more trees and has been working on new policies to focus on the green GDP of the country. “Certainly, China ranks high emission and pollution. But they are trying to give back to nature what they had taken,” explains Mr. Anand. China has acknowledged that the cost of economical rise has been catastrophic on the environment and is willing to change tactics to prevent nature from burning out.

As of now, India’s reliance on China has increased in terms of exports. In the fiscal year ending March 2020, China amounted to 14% of Indian imports. To gain supremacy over China, it is imperative that India first imbibe the best learning from China in terms of industrial development. The rhetoric of ‘Make in India’ will remain a phrase to cheer to if we don’t stop to gauge the situation, Niren thinks. As a Chinese quote says, “If you ignore the dragon, it will eat you. If you defy the dragon, it will overpower you. But if you ride the dragon, you will take advantage of its strength and power.” 

By the first quarter of 2021, Niren expects to start his Make in India venture at Orissa, an inspiration he took from the invite from Prime Minister Narendra Modi, with further engagements with Invest India, and the Government of Orissa which was hard to resist. You can reach Niren Anand at niren.anand@evertrade.me, or visit www.evertrade.me