GS chief Huh meets with CEOs in India
GS Group Chairman Huh Chang-soo urged chiefs of its key affiliates to cultivate long-term global mindsets during a two-day meeting in India.
“GS should focus on enhancing its group-wide capabilities into its long-term global strategy,” the GS chief told its top management in New Delhi, Tuesday.
In particular, he underlined the growth potential of the Indian market and called for GS executives to set business strategies by securing talented local workers.
“We need to establish thorough and localized plans to tap deeper into Asia’s next economic powerhouse,” he said.
GS has been holding the CEO meeting in non-Korean territories since 2011 as part of its bid to reduce its reliance on the local market and enhance its brand image as a global conglomerate holding affiliates in industries such as retail, oil refinery and trade.
“India is a key emerging market which enjoys an annual economic growth rate of 7 percent,” he said. “The market, in itself, comes with infinite potential for expansion. India is also expected to connect the dots for us to reach further into such regions such as Europe and the Middle East.”
Aside from the business-wise plans, Huh also called for executives to stand at the center of helping small- and medium-sized enterprises (SMEs).
“By taking advantage of GS’s global network, we need to support Korea’s SMEs in exporting their products and tightening their partnerships with overseas clients,” he said. “This is crucial, as GS can also benefit from their mutual growth strategies.”
All the key GS executives participated in the meeting. They include GS Caltex Chairman Huh Jin-soo, and CEOs from GS Energy, GS Global and GS Retail.
Driven by the global-first corporate drive, GS’s overseas sales surged to 26.3 trillion won last year, a more than three-fold growth from 7.1 trillion won in 2004 when it was established. The conglomerate operates 49 overseas branches.
The Indian government’s corporate-friendly policy also played a crucial role for GS in deciding the country would become its next major cash cow.
“By 2022, India is expected to become the world’s fourth-largest economy,” a company official said. “India is also offering a series of incentives to overseas corporations. We identify the market as our next opportunity with huge growth potential.”
GS is best-known for its retail business in Korea, running GS25 convenience stores across the nation. GS Caltex is also the conglomerate’s major revenue generator, with its Indian branch expanding rapidly by selling lubricating oil.
With the focus on Southeast Asian markets, GS has held management-level meetings in Asia’s major emerging markets since 2011, including China, Sinapore, Indonesia, Vietnam and Malaysia.
In particular, GS Energy and GS Global tapped into the Indonesian coal production industry by purchasing a 14.74-percent stake in BSSR coal mine in Indonesia.
The deal, worth $45 million, allowed GS Energy to expand its product lineups from the petroleum and oil refinery business to coal mine development.
GS Global, for its part, has been able to tighten its coal trading expertise through the contract.
GS Retail’s GS Supermarkets also opened its first Indonesian store this March and has since expanded the number to three. The firm’s convenience store chain also prepares to launch its first Vietnam store this year.