WHETHER he celebrated with a glass of nongassy Cobra, the beer he created, or a sip or two of champagne, Lord Karan Bilimoria has been decidedly effervescent in his response to the news that he is set to become the next president of the CBI, Britain’s largest and most influential employers’ organisation.
“I am humbled and honoured…deeply touched and inspired”, he tweeted after beingelected as the new vice-president of the Confederation of British Industry (CBI) in June 2019. It also means, according to CBI tradition, that he is almost certain to take over as president next year when its current head, Tesco chairman John Allan, steps down.
The elevation of this India-born, self-made millionaire to this pivotal business role – he also has 13 years’ experience as a crossbench peer – marks a departure from tradition, as previous CBI bosses have generally been FTSE 100 chairmen. It is a recognition that his dual insight into the worlds of entrepreneurship and politics can play a key role in influencing government policy on business and industry.
Lord Bilimoria, who founded Cobra Beer in 1989 and remains its chairman, has said he wanted the CBI to shift its focus from being the ‘voice of big business’ to a body that represents smaller firms too.“The CBI represents 190,000 companies and should be perceived and seen as the voice of all business. I would like to champion SMEs(small and medium-size enterprises) in particular, and to make entrepreneurship a focus”, he said.As the first member of the Lords to lead the CBI, Lord Bilimoria would bring his understanding of the parliamentary process to bear as politicians battle over the UK’s future relationship with Europe.
A staunch Remainer, he has campaigned for a second referendum while the CBI has lobbied against a no deal while stopping short of calling for a so-called people’s vote. Lord Bilimoria has described moves to suspend parliament to force through a no-deal as “really dangerous”.
He has said that Britain should either remain in the EU or secure a deal that would keep many of the existing benefits of being a member, warning that leaving without an agreement would be “disastrous” for all business. “My product travels seamlessly and frictionless between countries. We should never take for granted how wonderful the single market is,” he said.Lord Bilimoria’s first business venture was importing polo sticks to Britain from India. He founded his beer business shortly after graduating in law from Cambridge University.
Though he secured capital and backing in India for the venture, it was a classic fledgling start-up, with distribution done by himself “15 cases at a time in a battered old Citreon 2CV”, as he toured the country persuading Asian restaurant owners to try it out. He sold a 50.01 per cent share to global beer giant Molson Coors in 2009.Sales of Cobra Beer have reached an annual retail value of more than £200m, with the beverage distributed in over 45 countries. Despite its association with Indian food, Cobra boasts a number of European credentials including the use of hops from Bavaria in Germany, and manufacturing sites in Belgium and Holland as well as the UK – exposing it to a bumpy Brexit if that meant high tariffs and physical borders.
Using his platform as an independent peer, Lord Bilimoria has been a passionate spokesman for the needs of SMEs. As chair of the manufacturing commission, a parliamentary and industry-led body aimed at forging new thinking around industrial policy, he has played a prominent role this year in steering debate around new government business initiatives.
Through the commission, he has organised a series of events around the country, aimed at highlighting the needs of regional and local firms. The first was hosted by Norton Motorcycles in Leicestershire in the summer, and the second at Cummins Turbo Technologies in Huddersfield. “We are hearing from Local Enterprise Partnerships about their plans for their localities, and most importantly, we are listening to the concerns and plans of local manufacturers to ensure that what is offered meetsthe needs of those in the area. If this government is serious about its industrial strategy, it must close the productivity gap we have with our nearest neighbours. To do this, it will have to deliver for business at the local level.“The government must empower places tobuild on local strengths while also increasing appeal to inward investment.
This will only bepossible if government listens to and works in partnership with local leaders, allowing a true understanding of the complexities and differences of different localities,” he said.After receiving a CBE in 2004 for services to business and entrepreneurship, Lord Bilimoriawas made an independent peer in 2006 as Baron Bilimoria of Chelsea. Since 2007, he hasbeen a non-executive director and senior independent director of Booker Group plc, the UK’s largest wholesaler.
He is also the founder of the UK India Business Council, a key organisation at a time when Britain is looking to forge new trading relationships with non-EU countries. A Brexit sceptic, Lord Bilimoria does not believe that Britain should hold its breath over the imminent prospects of an Anglo-Indian trade deal, pointing out that India is not one of the 70-plus nations with which the EU has signed a trade agreement, and that the vexed issue of immigration and the easing of UK visa hurdles for professionals, could be a stumbling block. “What will the terms be? How long will they take? India has been trying to negotiate with the EU for over a decade.
