India Market

Indian Firms Have Created 30,000 Jobs in US

Indian companies, led by the Tata group, Essar and HCL Technologies, among others, have created more than 30,000 jobs and made large investments in the United States, a joint report of the Federation of Indian Chambers of Commerce and Industry (Ficci) and the US India Business Council (USIBC) said.

Indian companies have been investing in various sectors in the US, including pharmaceuticals, healthcare, travel, information technology, luxury hotels, engineering services, as well as auto parts and steel manufacturing.

The Ficci-USIBC report said the Tata group is the largest Indian investor in the US, with more than $3 billion being pumped in as investments into the world's largest economy.

In June, 2006, Tata's coffee division acquired Eight O' Clock Coffee, the fourth-largest coffee brand in the US, in a $220 million deal. Tata not only retained the 105 workers and 60 executives, but also infused investments in it.

Tata-owned Taj Hotels zeroed in on Pierre Hotel in up-market New York in 2005 in a deal worth $50 million. The hotel, when reopened in 2009, will have 300 employees, who will cater to 200 rooms, which have been renovated at a cost of $100 million.

Currently, Tata has 16 businesses and employs 19,000 people in the United States.

Indian Steel maker Essar infused $1.6 billion in Minnesota Steel Industries to upgrade the plant in 2007. Today, the company employs 7,200 employees in the US and has operations in more than 24 states, of which only 30 are Indian. In 2009, the total work strength of Essar is expected to go up to 8,500. This was achieved by rationalising costs and at the same time maintaining quality, the report said.

In the infotec space, Wipro, Satyam and HCL technologies have created 16,000 jobs in the US. HCL Technologies has been involved in Boeing's 787 Dreamliner aircraft, which is likely to be the most fuel-efficient in its class.