India’s tycoon has nowhere to invest

Published 7:38 pm Tuesday, December 27, 2011

MUMBAI, India — Ajay Piramal is sitting on a mountain of cash. Yet the billionaire Indian tycoon, working in one of the world’s fastest growing economies, is struggling to figure out what to do with the money.

The problem isn’t opportunity, he says. It’s India. His dilemma is a worrying sign for the country. It is mired in corruption, bureaucratic red tape and unclear and changing government policies. Many of the men who made their billions here are saying maybe it’s time to quit India.

In May last year, Piramal’s healthcare business sold its generic drug operations to U.S. pharmaceutical giant Abbott Laboratories for $3.8 billion. Piramal was eager to set that cash pile to work. He wanted to expand one of his chemical plants, but was told it would take five years.

“The same plant could be set up in China in two years,” he said. “I love India, but my customer is not going to wait.”

Associated Press