The tatas made a friendly overture to Orient Express that they would like to take a 10 per cent share of its equity. It rejected the overture, and gratuitously added that the Tatas’ Indian origin would be bad for Orient Express’s brand value. The Tatas were incensed at the insult and asked for an apology.

That was an uncharacteristic response from the Tatas. We all come from a country where irresponsible statements are dime a dozen. If companies took to refuting every abuse, they would only get entangled in endless controversies. So they usually decide whether the trouble-maker is important. If he is, they placate him. If he is not, they ignore him.

The Tatas are different. They do not placate trouble-makers. They generally do not react at all. So it is surprising that they allowed themselves to be upset by the rudeness of Orient Express, and that they responded on the same verbal level. For asking for apology, suing for libel, returning abuse are all responses that may give some psychological satisfaction, just like religious rituals, but seldom give any material return. If a libel is likely to change people’s opinions for the worse, there may be a point in refuting it. But Orient Express is pandering to existing opinions. There are European and American whites with race or colour prejudice; there are perhaps enough of them amongst those who travel by Orient Express for it to worry about withdrawal of their custom. They cannot be cleansed of their prejudice by being exposed to 10 per cent equity from the Tatas.

Suppose that the Tatas acquired Orient Express. Depending on their marketing strategy, the Tatas could replace racist passengers by other equally lucrative ones. They would not, however, be able to do so if they took a 10 per cent share in equity. For that sort of measly share, the Tatas would barely get a seat on the board of Orient Express, let alone meddle with its marketing strategy. So the Tatas’ was an ineffectual move in view of Orient Express’s hostility. If they had sounded out Orient Express before making it, they would have been saved the embarrassment.

But since the embarrassment occurred, it was real, and the Tatas had to deal with it. Most of us who have been to the West have encountered prejudice. Anger and indignation are natural reactions to it. Giving expression to them may give one some satisfaction; an apology may give one some more. It may make enormous difference to the insecure. But it would make no difference to someone who is self-confident and self-assured; and it would never make a difference to ground realities. The Tatas should be asking themselves how they can change the realities.

One way would be to start a competitor to Orient Express. It runs from London to Constantinople. The tourist volumes going in that direction are minute compared to the numbers travelling from north to south – from Scandinavia and Germany to Spain, Portugal, France and Italy. But most of the latter travellers fly because it is faster. There are transcontinental Euro trains from north to south. They are comfortable, but nothing special. Maybe the Tatas should think of starting one or more luxury trains from the north to the south. They would need to talk to the big tour organisers and the national railways of the involved countries. But it is a virgin market just now, and the Tata brand would gain much more by entering it than it could from a minority share in Orient Express.

Continental trains would require much coordination and string-pulling. The Tatas would need influential partners, but even if they are found, the Tatas would have to consider whether to enter the business at all. Luxury liners are a much easier business to enter because the seas belong to no one. They are not a big business in the West because all Westerners want is to lie semi-clad on a beach. But Indians have just started travelling; they are flocking to Malaysia, Singapore and Dubai. Maybe the Tatas can create a novel cruising experience for them; if successful, the experience could be ext- ended from the Indian Ocean to the Pacific and the Atlantic.

Finally, the Tatas can take their hotel expertise to new shores. I have recently visited Slovenia, and been struck by its sylvan beauty. All the ex-communist East European countries offer potential; so does Turkey, especially its Black Sea coast. Let the Europeans from old Europe stick to their colonialist race prejudices. If they do not want to be served by the Tatas, the Tatas should create something that would show them what good life is in the 21st century.

The author is Consultant Editor of Businessworld This email address is being protected from spam bots, you need Javascript enabled to view it
(Businessworld Issue 08 January - 14 January 2008)