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Maati Paasila

The chairman of Sasken Finland (or Botnia HighTech, before Sasken Technologies, India, bought it over last August) can barely contain his typical Finnish understatement when he asks this question.

Maati Paasila’s anguish is evident. It stems from long and frustrating delays in getting permission from the Indian authorities for him and his associates to invest in India. eWorld touched a raw nerve when it asked him why he hasn’t yet invested in India. Read on:

It’s 10 months now since you sold Botnia to Sasken. Are you exploring any opportunities to invest back in India?

After the deal with Sasken, we started the process to apply for a licence to invest in India in September 2006. Till today, we have not received permission yet.

Papers have been going back and forth. But Indian authorities…. (leaves the sentence hanging). Actually, two months’ delay is on account of our own delays, but not more than that. First, we had to use a big auditing and a legal company in India, in order to be accredited. That is high cost. Then, we had to fill out stacks of papers. We used lawyers to follow given instructions to fill them out. It came back to us with the message “You need to sign on all of those papers, instead of just the last one”. Having done that, we sent it all back to them. Then they needed the birth date of the person signing. We read that nowhere in the instructions.

We have the feeling that we are not wanted as investors in India. They make it very difficult. It is very costly. We calculate that the applying process costs 10,000-12,000 euros per year. So far, we have spent 25,000 euros.

Where do you want to invest in India?

Back in Sasken. That is one option.

But Sasken could have issued shares to you if that’s what you wanted.

We understand that Sasken wanted an all-cash deal. Getting permission to issue shares takes its own time. Hence cash. The transaction itself took between 12-15 months. So Sasken did not want to delay it any further.

When you invest in Sasken, would it issue new shares to you?

No. It would be from the secondary market or from some other investors through bulk transactions.

How long does it typically take to get approval for you to invest in India?

People say it takes between four and six months. We are now in the ninth month and we still haven’t got a final word from the Foreign Investment Promotion Board (FIPB) in India. We might have taken about two months from our side to cater to all their requirements, but we delayed no more.

Any other areas you want to invest in India?

Indian infrastructure. If we get a chance, we would like to invest in that area. India needs improvements there. Its economy cannot grow without growth in real-estate, roads, railroads…

Do opportunities in China — infrastructure, technology, etc — excite you as much as in India?

Personally, I am more interested in India. I have better personal relationships in India and know Indians through different channels. China is fine but you cannot do everything, I’d rather focus on something. If I have to invest in Asia today, it’s India. - KBK

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