On the sideline of the WEF's Annual Meeting at Davos, Baba Kalyani, CMD, Bharat Forge and YC Deveshwar, Chairman, ITC, speak about their key takeaways from Davos.
Here is a verbatim transcript of their exclusive interview with CNBC-TV18's Menaka Doshi. Also watch the accompanying video.
Q: What both of you gather of the global economy, especially you Mr Kalyani as you have an outward facing business, the business that has exposure on Europe and one that is a leader in the global positions? Are you more comforted by what you hear this year in terms of all the signs of recovery?
Kalyani: As far as our business is concerned, it is largely focused in Western Europe, Germany, Sweden, France and we see a fairly optimistic scenario. There are challenges with financial issues such as what happened in Greece, what is happening in Ireland. But whatever I have heard, from President Sarkozy, from other leaders, most of these companies are standing firmly behind Europe, so they are not going to allow a bake collapse.
Q: You believe that Spain and Portugal are not about to implode at least this year, it is not as much a crises situation as we were facing last year.
Kalyani: I think that is the message that we get.
Q: Does that also mean for you that there is a return in business confidence. I am not talking about Germany, because that has been the one outlier across the Europe zone, but you return in business confidence across the Euro zone and therefore that is translating both businesses pending, as well as consumers pending?
Kalyani: The most people that I have talked to connected with our industry their biggest problem is capacity.
Q: They are short of capacity?
Q: Excellent. Isn