Q1. One of the
most important investment projects in Fiji
has been recently announced: the F$30 million
joint venture between Motibhai and Colonial,
the "Suva Central". Could you explain
to our readers what is the meaning of this
project for Suva and for Fiji?
A1. Suva Central, as the project is called,
is probably the single largest investment
ever made in the main city of Suva. In this
joint venture we are doing with Colonial,
there will be two floors of shopping, two
and a half of car-parking and the tower, 12
or 13 floors of office spaces. We embarked
on this large investment as we are primarily
traders and we want to create shops that will
house all the international companies that
we represent such as Sony, Channel, etc. As
I said at the launch of this project, we were
driven by the belief that the modern man today
does not wear historical clothes. He wears
modern clothes and therefore he needs a modern
environment. So our "Prouds store"
will be the main store and there will be 16
to 18 other stores in that complex. It is
a very well thought out design, a world-class
design project that will be outstanding not
only in Suva and Fiji but also in the South
Pacific. We are leasing out the offices to
companies, insurance institutions, high commissions
of countries present in Fiji, etc. We already
have very strong indications of various diplomatic
officers and insurance companies wanting to
occupy. There is a whole list of people wanting
to lease the building as there will also be
two floors of apartments.
Q2. Maybe some of our readers might not
be aware of what is The Motibhai Group.
From a small supermarket in 1929 to today's
multibillion dollar group…
A2. My father, Motibhai Patel, started
it long time ago. He came in 1929, worked
for two years earning 30 pounds a year. Then
he traveled for six months and built a small
shop. There were no roads then, only rail
tracks put by the CSR company. Every four
weeks the cane trucks brought his goods. Today,
we are a sizeable company employing over 650
people in a very diversified nature of business.
We have Real Estate, properties in residential,
commercial and industrial areas, this joint
venture will be the biggest one. Then we have
manufacturing, we make soft drinks under the
brand name Sprint. We have the retail chain
under the name of Prouds, our luxury stores,
and we have the airport duty free shops were
we have done a lot of innovations. We have
received various awards that show how well
recognized internationally we are. We represent
around 100 companies like Channel, Kraft,
various perfume houses, timepieces, etc. We
also represent all the major wines from New
Zealand, Australia and France and we distribute
them to all the hotels. We have been in business
in Fiji for over 70 years and I believe we
have an impeccable business history.
Q3. What is the recipe for success of Motibhai?
A3. A lot of hard work but you also need
business acumen. We have a very good family
unit. We have a very good understanding among
our family members and other members involved
in the business. I think the legacy we inherited
from the founders of the company is what drives
us. We played honest and we worked hard and
I think this is why we are having the confidence
of so many internationally recognized companies
like Nippon, Cannon, etc. To command the respect
of those people is quite something.
Q4. As the third generation running the
company, what have been your major contributions
to the growth of Motibhai?
A4. Since we joined in, one of the guiding
principles was that the fathers of the company
had a lot of trust in the new generation.
They gave us a reasonably free rein, a freedom
to bring in innovations. I think that was
a very important aspect of our growth. Many
family companies were not able to do that.
The other very important thing is that prior
to 1960 the main banks did not give out very
much funds and we have to bring it to zero
every year. So the only growth for companies
like ours came from our profits and our savings.
When Bank of Baroda came in the whole banking
system changed. I attribute the success of
a lot of companies like ours to the arrival
of Bank of Baroda. They valued us and told
us "this is your value, we will give
you an overdraft facility and you don't have
to bring it to zero at the end of the year".
That contributed a lot to the development
of the local businesses. Prior to that, we
did not have access to this facility. In the
1960s, we established a supermarket in Ba
and we invested in properties. In the 1970s,
we took over the airport duty-free, we bought
Fiji Foods in 1981 and in 1986 we bought the
"Prouds Store". We have always had
a lot of faith in this country.
Q5. Out of curiosity, Motibhai still
operates that supermarket in Ba. Why?
A5. That is our original hometown and
we come from Ba. We have so many people who
have allegiance to our company that we wanted
to keep that supermarket. We made a conscious
decision that we are distributors of consumer
goods like ghee, oil and spices and we will
not cut across the retail trade.
Q6. Mr. Patel, you are one of the leaders
of the economy in Fiji. We would like to
have your opinion on several issues: the
government says Fiji needs to increase investments
from 11% to 25% of GDP to have a sustainable
development. A very ambitious plan, right?
A6. We are contributing to it. Like the
Suva Central, and we are always expanding
our business and bringing it up to international
standards. Over the years, even after the
coup in year 2000, we kept our investment,
enlarging our factories, fine-tuning our operations,
investing in delivery systems, computerization,
etc. So, after the coup in 1987, we did not
pack up and leave. We are here for the long
haul and we have a responsibility to our employees
as well whoever has been loyal to us. |
Q7. The Government
says the National Budget 2003 offers incentives
for investors and a good environment for business.
In you opinion, how will the new policies
affect Fiji's economic situation in 2003?
A7. I think the Government has a forward
looking policy. The Government is very pro-active
in the sense that it is listening to the business
people, who are the engine for the economy.
Of course, some politicians will label that
as anti-poor. I think the 2003 Budget is a
reasonable one and I think you have to put
in some ambitious plans to drive the economy.
If you put in lower targets, you will have
lower achievements. In business, we need to
set targets and I think the Government's targets
are achievable. The hotel developments coming
up, like the Hilton or the Novotel, or the
proposed infrastructure at Natadola, are all
good indicators.
Q8. You are an active player in the Capital
Markets in Fiji, the South Pacific Stock
Exchange. Why?
A8. The stock exchange is a very new phenomenon
and the people in Fiji are not trained like
in other countries. But slowly, I think we
are all becoming aware. Our company is not
on the stock exchange but one of these days,
we might go. We will think about that. Personally,
I have invested in ATH (Amalgamated Telecom
Holdings), RB Patel and so have many of our
colleagues.
Q9. Do you planning to expand your business
further outside Fiji?
A9. We are servicing other Pacific islands
through exports but we are very committed
to Fiji. We are island people and of Indian
heritage, we are proud of our heritage and
of our roots. Our thinking and our influence
has been shaped by the environment. So even
though our persona is Indian we are island
people, more relaxed in doing business here
and we have a style of business that has been
strengthened by the environment and I think
it will be very difficult for us to start
a business in India, Australia, New Zealand
or America because of the different tempo.
We bought "Prouds" in 1985 when
it was going down. We put in a lot of effort
and it is today a very important and trusted
name in the country. That is the standard
we want to maintain.
Q10. Fiji wants to be the 'Hub of the
Pacific Rim'. There is a message in your
website: "Of the Future, we are confident".
As one of Pacific Rim's most prestigious
organizations, how confident does Motibhai
and yourself feel about Fiji and how would
you market Fiji abroad?
A10. First, there is no doubt that we
are the hub of the Pacific. Our location,
at the 180th meridian, is where the new day
begins. We have to exploit that more. Our
population is basically 100% literate, English
speaking people. We have an easy access to
America, Japan, Australia, New Zealand, etc.
We are in an ideal place for Information Technology
companies. We need to bring Information Technology
companies here because of our location and
because we are an English speaking country
and, basically, because our people are quite
intelligent. I would say that this is one
of the important focus of our future growth.
The other one is the land. It is so fertile
and so rich. In this island, Viti Levu, there
are five river systems that never dry up and
along the river there is fertile land. You
can plant anything in the ground and it grows.
The potential for agriculture is so enormous.
We are located in the Southern Hemisphere
and there are only two countries in the Southern
Hemisphere that have those opportunities:
Australia and Fiji. When the Northern Hemisphere
is in off-season, we can supply tropical fruits,
mangoes, papaya, citrus, etc. There is a huge
potential, that is why I think the Ministry
for Agriculture has one of the most exciting
challenges for the future but we really need
to go for these kind of aspects.
Q11. When the international business
community thinks of Fiji, the events 1987
or May 2000 come up. Like you say: "no
marketing, no sale". How would you
increase confidence among foreign investors?
A11. Investors just have to look at successful
local companies like ours, at international
companies like Sheraton or Shangri-La that
are doing pretty well or at the Hilton, that
is now investing here. You know that there
are many things happening worldwide so the
events of 1987 and 2000 are just a little
blink on the computer screen. The Fijian people
is very nice, they are not very angry or blood
thirsty. In these two events, there was hardly
any bloodshed. I think that we have learnt
to share the economic and the political power
as it cannot be in one hand.
Q12. The Fiji Islands is back in the
Commonwealth. There is a Commonwealth Trade
Congress next March in New Delhi. What message
would you like to send to the Commonwealth
counterparts of Fiji?
A12. That we are a tolerant country, we
have all the religious denominations recognized.
You look at Fiji and you see that we still
celebrate the "Diwali", an Indian
celebration, we celebrate the Prophet Mohammed's
birthday, we celebrate Easter holidays and
Christmas. These are the aspects that I think
a lot of people try to ignore but I think
these are very important aspects. America
doesn't celebrate Diwali and there are probably
more Indians there than here. We can see that
the Fijian people are very tolerant people.
Q13. If foreign investors want to contact
Mahendra Patel, Who are they going to find,
who is Mahendra Patel in Fiji?
A13. Well, Mahendra Patel is a very simple
person. I am the Chairman of Motibhai but
first and foremost I am a good family man.
I like to travel, contribute to the country
of our birth through various organizations
and we maintain a very good liaison with the
Government. We have a commitment to the country,
we have the local knowledge, we are financially
very strong, we have a history of business
that has been very successful and most importantly,
we are honest people and whoever we join hands
with, like the Colonial group, we have ultimate
trust in each other. Plus we have sound knowledge
of the local scene and we know who the local
people are.
Winne cannot be held responsible for
unedited transcription.
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V.I.P. INTERVIEWS
