Why Italian SMEs are investing in India

The Italian management and business consulting company Gianesin Canepari & Partners (GC&P) is planning to invest nearly 22 million Euro (Rs 150 crore) in Indian food and beverages sector over the next three years.

Its investment plan includes dairy products manufacturing, the launch of a new chain of Italian restaurants called Macchiato and launch wines under the Tere De Vinegia brand, as Alok Tiwari, chief executive of GC&P India, explained to the Economic Times of India.

GC&P is an Italian group specialized in start-up incubation and in managing and consulting services for Small and Medium Enterprises (SMEs). Believing that SMEs are the hard core of Italian and European economy and that Italy's and Europe's capacity to remain among the great economic powers of the world depends on their SMEs' ability to remain competitive, Gianesin Canepari & Partners have always supported their clients pushing them to embrace innovation for both products and technology and processes and organization. Their core strategy is indeed based on four pillars: efficiency; environmental consciousness; open-mindedness; and social responsibility, and with this approach they are now guiding Italian companies in India.

According to Mr Tiwari, India is now one of the biggest and most promising emerging markets. "Looking at how the new government is simplifying policies for investors, we expect the F&B industry in the country to grow by over 20% every year." The potential of offered by food and beverage market is huge. Indians should learn that Italian cuisine is not just about pizza and pasta, and "Macchiato will serve authentic Italian cuisine at an affordable price and the quality will be equivalent to what a five star does".

According to the original plan, Macchiato will stay open to any growth opportunity through franchise, with operations and workability remaining under the control of the major brand and new partners asked to contribute with new funds. At the moment, the company is in talks with potential partners in places like Goa, Pune, Gurgaon, Indore and Jodhpur. To make a difference in the country, the Italian group is planning to reach people living in smaller cities to leverage the potential in these areas where it is usually difficult to find these kinds of restaurants.

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