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T H E H U N T R E P O R T
Inhouse Design
Arjun Erry chaitanya@inhousedesign.co.in
arjun.erry@hunt-partners.com
ALLIANCES
Pooja Thakker
pooja.thakker@hunt-partners.com SKP Business Consulting LLP
Talentonic
Praful Nangia
praful.nangia@hunt-partners.com MyCFO
CGN Global
Pranjal Das
BDO India
pranjal.das@hunt-partners.com
Sunit Mehra
sunit.mehra@hunt-partners.com
Suresh Raina
suresh.raina@hunt-partners.com
Vibha Agarwal
vibha.agarwal@hunt-partners.com
Fabrice Desmarescaux,
Eric Salmon & Partners (ASEAN)
Dear Reader,
We are pleased to present the tenth issue of The Hunt Report, the half-yearly
industry roundup of key trends influencing executive hiring across industries.
A kind of trend reversal is seen in traditional consumer sectors with a few sen-
ior leaders going back to their traditional-sector companies to meet demand
for professionals with some e-commerce experience. Similarly in speciality
chemicals, the growing thrust on digital technology, intelligent manufactur-
ing, data analytics, and applied research will necessitate professionals at senior
levels from other sectors.
In this report we bring to you papers showcasing more such trends from sec-
tors like healthcare, payments, e-commerce logistics, automotive engineering,
infrastructure, pharmaceuticals, energy and financial services among others.
Also look out for special insights on Vietnam Banking, Indo French Defence
and the impact of the crucial GST bill on manufacturing.
Happy Reading!
Hunt Partners
January, 2016
PG.06 CFO-HR
Harmony towards Common business goals
PG.08 GST
Impact on Manufacturing
PG.20 ASEAN
Vietnam Banking
PG.25 ENGINEERING
Hiring continues to be slow
PG.29 INFRASTRUCTURE
Investments have restarted
PG.33 PAYMENTS
Fintech industry continues to grow
PG.34 CONSUMER
Ecommerce and start-ups continue to draw talent
PG.35 E-COMMERCE
Logistics to explode along with e-commerce
PG.41 REINSURANCE
Amended law positive for foreign reinsurers
PG.44 CHEMICALS
Seeking talent in sales, distribution, M&A, and R&D
PG.45 ENERGY
Firing on full cylinders
CFO-HR Harmony towards
common business goals
Author S Venkat
The HR Head and the CFO are the respec- needs to be able to take decisions, often the CFO, the ultimate implementation of
tive leaders of the soft and hard domains with incomplete data, in a fast-changing a decision will be either effective or inef-
in a company. The former deals with peo- environment. Here is where a good CFO- fective depending on the people who are
ple, culture, and behaviour the soft side; HR Head partnership can make a big dif- implementing it, the people on whom the
the latter with data, facts, and money the ference. implementation is done, and the context
hard side. While these may look like com- of the implementation. None of these fac-
pletely divergent functions, for a compa- CFOs can provide HR-Heads tors are capable of being measured, at least
nys success, they need to be in harmony. not at a financial level. However, smart
Most crucial decisions are usually taken
the ammunition to evaluate HR Heads are very aware and focussed
collectively, often with unanimous feed- objective criteria on factors such as productivity, profit per
back from both the soft and the hard sides employee, and need for managing people
At a practical level, HR needs to work to-
of businesses. costs within the P&L and could provide
wards building measurement capability
valuable insights.
and objective criteria wherever possible.
How to derive the best from In manpower-intensive industries (for ex-
both and work towards com- ample consulting), HR often plays a criti-
Symbiosis is the best way
mon business goals cal role in utilisation and optimisation of forward
existing resources, with a direct and very
At the end of the day, there is no HR-way
The uniqueness of the role of HR Head and measurable contribution to a companys
or CFO-way of doing things there is an
the CFO is that they have a holistic view of bottom-line. The CFO needs to be able to
organisation-way of doing things in which
the company and are possibly the only two support this role through IT enablement,
both HR and CFO will play key roles. Very
roles that have some independence from which will help provide factual data, trend
rarely can decisions or actions be charac-
the CEO. They bring on the table different analysis, progress against long-term goals,
terised as purely HR or purely finance OR
perspectives, but ones that are aligned to and building common platforms for in-
can decisions be characterised as correct or
company values. teractions.
incorrect as soon as they are taken. How
HR needs to be careful not to fall into the well an organisation is able to mesh and
perception trap of dealing with emotions
HR Heads can steer CFOs in balance HR and finance views while taking
and feelings alone. The CFO, on the other the right direction through decisions and implementing actions will
hand, needs to respect that data and facts end up determining its success rate.
have their own limitations. The reality of
intuitive calls
Venkataraman.S@mycfo.in
corporate life is that no decision can be Good CFOs recognise the need to bal-
Mycfo is India's largest and fastest growing cfo services
either fully subjective or fully objective. ance data inference with a good-quality
company and a leading player in providing Finance Ef-
An organisation, like a human being, gut call. No matter how data-driven fectiveness solutions
to growth in the services sector. While de- nancially, a dramatic increase in capacity
Service industries must velopments in the e-commerce industry is likely to bring margins under pressure,
focus on productivity for are widely talked about, the growth of the if the quality of service starts dipping.
healthcare industry hasnt attracted simi-
profitable growth. lar public and media attention. Productivity improve-
The services sector currently stands at
US$ 1.1tn, nearly 57% of Indias GDP. It Sneak peek at the health- ment: Better approach to
is expected to grow by US$ 100bn+ an-
care industry invigorate scalability
nually. This is equivalent to an addition of
We believe the appropriate approach here
1.5x the size of Reliance Industries every The Indian healthcare markets current
is to focus on improving productivity of
year. During such a rapid growth phase, size is US$ 75bn with a CAGR of 15%,
existing infrastructure and human re-
every company is attempting to scale up this industry will cross the current size of
sources in tandem with scaling up. This
and capture greater market share. Howev- the IT/ITeS industry in the next 3-4 years.
route will deliver quicker capacity in-
er, substantial and sustainable profitable It is predicted that healthcare shall take
crease and ensure profitable growth. For
growth cannot occur without focus on just three years to move to US$ 115-120bn
instance, one of our clients, a healthcare
productivity improvement. from US$ 75bn while it took four years for
service provider is looking at a growth
IT/ITeS to achieve similar growth.
As of August 2015, the Purchasing Man- of 20x in five years. We are working on
agers Index (PMI) of services sector was
51.8 (measure developed by HSBC; >50
Key challenges in health- increasing the productivity of its skilled
workforce by 20-25%. This will drive a
indicates growth phase). Given current care significant increase in profitability. Taking
size of the services sector, this represents Currently, the healthcare industry is fac- into consideration growth in the industry
a significant growth potential. ing challenges such as infrastructure gaps and investments in capacity, it is likely that
(lack of hospital beds and underutilisa- the profits of the company will be more
In the last two decades, services sector
tion of existing resources) and scarcity of than 2x of its current revenue in the next
growth in India has primarily depended
skilled workforce (doctors, technicians). four years.
on IT/ ITeS. A host of factors is changing
this rising disposable income, increasing One route to overcome this is to invest So, while increasing capacity is a good
awareness due to mobile internet penetra- several healthcare companies are doing thing, and very essential in a country like
tion, cost advantages, policy support, and so. However, typical project lead times are India, productivity improvement cannot
FDI investments. Today, healthcare and of several years in duration and develop- be ignored if businesses want to generate
e-commerce are significant contributors ing a skilled doctor takes even longer. Fi- higher return on capital.
The manufacturing sector has been a major driv- beneficial as reduction in tax cascading may lead
er for developing economies across the world. to lower cost of production. The current issue of
However, Indias manufacturing performance has non-availability of tax credit of central/union tax-
been relatively stagnant for the last two decades, es over state taxes and vice versa could be elimi-
with a mere 16% share in GDP. The sector has nated by allowing unrestrictive tax credit under
been plagued by a complex tax structure, inad- GST.
equate infrastructure, and bureaucracy, thereby
Hassle-free supply of goods and export
halving its ability to perform well on a global
synergy
scale.
State-border checkpoints, which are tasked with
Despite numerous demand opportunities, man-
material scrutiny and location-based tax compli-
ufacturing in India has been difficult due to a
ance, negatively impact the overall production
complex and bureaucratic compliance structure.
and logistic time and account for roughly 60% of
A manufacturer in India must comply with reg-
a trucks transit time. These unproductive tran-
ulations such as excise and octroi in a multi-lay-
sit hours, coupled with regulatory impediments,
ered tax system. The unified indirect tax structure
reduce the efficiency of Indian manufacturers
(proposed in GST) is therefore certainly the way
compared to their international counterparts.
forward for this industry.
The new regime will assist the smooth flow of
Boards across India recognise that in its nascent goods within the country. Reduced compliance
stages, GST will compel organisations to rea- scrutiny at border checkpoints will decrease
lign their business blockages such as production transport hassles. Also, optimised supply chains
cost, production time, supply chain, compliance, and reduced cost of production will help upgrade
logistics, etc. They also understand that given the Indias standing in overall global manufacturing
gravity of this change, all major business dynam- exports by leveraging GST synergy through price
ics will have to be thoroughly analysed to assess competitiveness.
the impact of GST on their business.
Supply chain restructuring and warehouse
Reduced cost of production re-engineering
Manufacturing is a competitive industry. Reduc- The change in the indirect tax regime will require
ing the cost of production while creating incre- the management to review their supply strategies
mental value for customers poses a challenge for vis--vis the GST regime. Two specific aspects of
every business. The GST regime will be greatly GST (proposed in the draft law), namely an ad-
ity and specialist healthcare services in CDC has invested US$ 48mn in
A growing industry tier-2 and tier-3 cities. To encourage the Narayana Hrudayalaya Hospitals, a
Healthcare has become one of the largest private sector to establish hospitals in multi-speciality healthcare provid-
sectors, both in terms of revenue and em- these cities, the government has relaxed er. With this investment, Narayana
ployment. The Indian healthcare industry taxes on these hospitals for the first five Health will expand affordable treat-
is growing at a tremendous pace due to years. ment in eastern, central, and western
its strengthening coverage, services, and India.
Health insurance is gaining momentum in
increasing expenditure by public and pri-
India with gross healthcare insurance pre- Apollo Health and Lifestyle has ac-
vate players. The Indian healthcare sector
mium expanding at a CAGR of 26% over quired Nova Specialty Hospitals at an
is expected to grow at a compound annual
FY08-13. This trend is likely to continue, estimated cost of US$ 21.71-22.32mn.
growth rate (CAGR) of 17% in 2011-2020
benefitting the healthcare industry.
to touch US$ 280bn. It is expected to rank
amongst the top-three healthcare markets Investments Talent movement
in terms of incremental growth by 20201. Rising income levels, an aging population, The healthcare sector, which is often
Of the total healthcare revenues in the increasing insurance penetration and the called a recession proof industry, has
country, hospitals account for 71%, phar- demand-supply imbalance presents a big shown positive hiring trends over the past
maceuticals for 13%, and medical equip- opportunity for players to increase bed ca- year and according to experts, this trend
ment and supplies for 9%. The private sec- pacity and for further investments in the is likely to continue. With substantial in-
tor continues to emerge as a vital force in sector across the country. vestments/acquisitions, and growing scale
India's healthcare industry, lending it both of operations of day-care surgery and
Some of the recent major investments in
national and international repute. The pri- speciality clinics, we have noticed a sud-
the Indian healthcare industry are :
vate sector accounts for almost 72% of the den upswing for talent that will be able
countrys total healthcare expenditure. Sanofi-Synthelabo had invested US$ to manage the fluent operations at these
14.5mn in Apollo Sugar Clinics Ltd centres. While we saw a couple of exits at
Notable trends (ASCL), a unit of its subsidiary Apollo the leadership level in the previous years
Telemedicine is a fast-emerging sector in Health and Lifestyle. for meatier roles in the Middle East/South
India with many major hospitals (Apollo, East Asia, this year, the tide seems to have
Apollo Hospitals Enterprise (AHEL)
AIIMS, Narayana Hrudayalaya) adopting turned with leaders looking at opportuni-
plans to add another 2,000 beds over
telemedicine services and entering into ties within India, given the recent positive
the next two financial years, at a cost of
a number of public-private partnerships projections and investments in the sector.
around US$ 241mn.
(PPP). In 2012, the telemedicine market in The demand for quality talent remains
India was valued at US$ 7.5bn and is ex- Temasek Holdings has acquired the
high across sectors most of this demand
pected to grow at a CAGR of 20% to reach entire 17.74% stake of Punj Lloyd in
is from established large-scale hospital
almost US$ 19bn by 20172. Global Health, which owns and oper-
chains seeking penetration in tier-1 and
ates the Medanta super specialty hos-
There is substantial demand for high-qual- tier-2 cities. Professionals having Medical
pital.
Services and Operations roles continue to
Speed: The organization can get such a professional on board in less than
a month after it initiates a search.
For a layman, it may appear that interim manager is just a fancy word for a
management consultant. This is not the case! Some of their responsibilities do
overlap, but there are very simple yet important differences between them. You
can say that an interim manager is a management consultant, but a manage-
ment consultant is not an interim manager.
An interim manager will always try to cut costs and improve A consultant may try to push additional services or
company effectiveness to achieve organizational goals as quickly stretch out the service to increase his or her own
as possible. This will assist in building his or her reputation. They revenue or that of the agency
are focused on the companys profitability not their consul-
tancy's profitability. They are not incentivised to sell additional
services that a company does not need
Knowledge transfer they will transfer a huge amount of skill, A consultant most of the time maintains a distance
contacts, and experience to your team, which will remain long from the operating team and very little knowledge
after they have left transfer is expected
An interim manager reports directly to the employer, and not A consultant reports to his or her agency, who then
through a third-party agency. So the employer is well informed reports to you, costing valuable time and other re-
and there is no conflict of interest sources
Interim managers work with the team provided by the company A consultant works with the people he or she chooses
as it sees fit. They will roll up their sleeves when needed and also and brings them into your company instead of adapt-
deliver the strategy ing to work with the people you already have.
Interim managers are usually specialists in their particular fields. Consultants generally do not specialize in one area
Their experience is vast and relates to the particular field that you
hire them for
Clearly, interim managers are able to perform far more specialized jobs for the
company, using their own resources and reporting only to the company man-
agement. They execute a project assignment from start to finish, overseeing
current operation/tasks, developing strategies for improvement, and imple-
menting strategies.
It is a relatively new concept in India, as companies have yet to become com-
fortable with confidentiality, credibility, and accountability of interim manag-
ers. However, as the concept continues to grow, with experience, it has started
to gain acceptance.
Another factor for its success in India will come from the advantage of having
not just a consultant who can offer advice or a solution to the problem, but one
who can implement those solutions too. Globally,people consider interim man-
agement as a career option after the age of 40; in India, this figure is higher at
50 years. Interestingly, the Indian business market has a large interim resource
base that can be accessed.
In India, the interim management segment has begun to see traction in the
past few years we expect that it will continue to grow at an accelerated pace
in times ahead.
MANAGING DIRECTOR
HEAD OF PROGRAM OFFICE HEAD OF MANUFACTURING HEAD OF FINANCE HEAD OF HUMAN RESOURCES
Lead- Bid Management Lead- Systems Procurement Lead- Treasury and Forex
Vietnam, a one-party communist state, is one of joint-venture, and foreign banks. However, the bank-
South-East Asia's fastest-growing economies. It has ing system is still dominated by the state-owned com-
set its sights on becoming a developed nation by mercial banks (SOCBs), which account for more than
2020. Vietnams GDP was US$ 186bn in 2014, repre- 70% of all bank deposits.
senting 0.30% of the worlds economy. The shift from
Foreign banks operating in Vietnam include Stand-
a centrally planned economy to a market-economy
ard Chartered Bank, HSBC, and ANZ. Other foreign
over the last two decades is paying off, with an aver-
groups such Sumitomo, Mizhuo, or Commonwealth
age annual growth of 7%.
Bank of Australia have taken stakes in Vietnamese
With a population of 85mn people, Vietnam attracts banks. However, the largest players in the country re-
investors to its largely untapped market. Its strategic main state-owned banks led by Agribank and CTG.
geographical position in one of the worlds most eco-
Banking in Vietnam suffers from low public confi-
nomically dynamic regions, stable political situation,
dence, regulatory and managerial weakness, high lev-
high economic-growth, and low production costs are
els of non-performing loans, non-compliance with
seen as attractive.
Basel capital standards, and the absence of interna-
Since 1992, Vietnams banking system has consist- tional auditing. Hence, the banking sector is poised
ed of a combination of state-owned, joint-stock, for a rapid change.
The ability to attract and recruit the right talent is funda- MICHAEL KETTLE
FROM
mental to executing banks growth strategies particular- Bankwest, Australia
ly at a senior level. To fill the massive gap in capabilities, TO
Vietnam International Bank (VIB) - Ngn Hng Quc T
the best banks have adopted an array of strategies such as: WAS
Business Owner - Advanced Internal Ratings Based (AIRB) Accreditation Program
Over-hiring at the junior and mid-level: Given the IS
Chief Operating Officer - Risk Division, Vietnam
high level of attrition, it takes up to five management
MURAT YULDASHEV
associates to produce one VP-level executive. Banks
FROM
Vietnam Technological and Commercial Bank (Techcombank), Kazakhstan
must hire in excess of their current needs to ensure
TO
that they will have the middle management they re- Vietnam Technological and Commercial Bank (Techcombank), Vietnam
quire 5-8 years after an associate is hired. WAS
managing director
Hiring young graduates from foreign universities, IS
CEO
fund bright students to attend foreign universities, AYMAR DE LIEDEKERKE BEAUFORT
importing foreign executives for critical capabili- FROM
BNP Paribas, Germany
ties: Few Vietnamese executives have been properly
TO
trained in technical roles such as risk management, BNP Paribas, Vietnam
WAS
credit, treasury, wealth management, or compliance. Head of Corporate Banking Germany
For the foreseeable future, banks will need to rely on IS
Country head and CEO
foreign executives for these positions.
Tap into the potential returnees: There are executives
of Vietnamese descent in America, Europe, and Aus-
tralia. While their cultural compatibility and language
skills depend on how closely they have stayed con-
nected with the culture of their parents, at times, they
represent an acceptable middle ground and working
in Vietnam may be a career booster for them too.
Cash management is vital to the health, sur- Challenges and the acute need Cash management is a valu-
vival, and growth of businesses. Since cash is
the most frequent focus for entrepreneurs, for better cash management able skill/service
effective management of liquid funds needs While a cash-rich situation is good and sig- Multinationals are examining legitimate
a right approach. In order to balance the nifies strong financial performance with sup- ways and options to reduce cash or release
need for liquidity and align the excess cash in port for future growth ideas, holding excess and repatriate excess cash held in India. The
proper investment buckets to achieve max- cash (beyond an appropriate level) and for emphasis is on solutions that will have sus-
imum return, a study of (1) business cycle prolonged periods can be expensive. This is tainable impact over a period.
and (2) cash flow in terms of business plan due to the opportunity cost attached to it and
and strategies are required. depreciation of Indian currency. The impact Commercial decisions will focus on struc-
seems evident in terms of low return on as- turing the business model to regulate cash
The Problem of Excess Cash sets, inefficiency in putting funds to use, and flow, assessment at regular intervals, and
With local companies going international, inadequate controls on cash spending. parking or disbursing excess balances for ef-
India is increasingly occupying an important fective use. Companies can look at following
Historically, multinationals have adopted
position in the global set up. India remains options to manage funds and repatriate sur-
various measures to release cash trapped
a preferred destination for multinationals in plus funds:
in India to their overseas entities that have
view of its cutting-edge in software services,
funding requirement. To remit funds over- a. Examining global business model and
research and development, cost competitive-
seas, they generally use the following op- streamlining revenue generation for In-
ness, and human capital skills.
tions: dian affiliate in line with transfer pricing
Generally, the Indian affiliates of multina- OPTION HIGH LEVEL COMMENTS benchmarks
tionals tend to perform supporting func- Business functional analysis
tions such as software development, global Dividend Subject to profitability Value chain analysis
procurement services, and accounting and Payout b. Evaluating options for repatriation of
Attracts dividend distribution tax
finance that benefit the international oper- in the hands of the company funds that include
ations. The Indian affiliate is remunerated at
Tax efficient income-extraction strategies
arms length by adopting a cost-plus mod- Buyback Limitation on the extent of buy-
back vis--vis capital and other such as royalty or fees for technical ser-
el to cover expenses incurred along-with of shares parameters vices such that the overall tax liability is
appropriate mark-up. The setting of trans-
mitigated
fer-pricing benchmarks of 15-20% mark-up Attracts tax liability for the compa-
ny, known as `buyback tax' Capital restructuring from the perspec-
over cost (in line with Safe Harbour Rules
Tested for `deemed dividend' tive of adopting beneficial capital gain
or expectations of Indian tax authorities;
applicability to the extent of regime
commensurate with analysis of functions accumulated profits
performed and risks undertaken) has result- The effective solution to the problem of the
ed in accumulation of cash with Indian af- Capital Subject to Court process and cash trap can be reached after examining (1)
approvals the companys unique business model, (2) fi-
filiates. Cash reserves generally build up for Reduction
profitable companies in sectors that do not Tested for `deemed dividend' nancial, accounting, tax and transfer pricing
have high capital spending. In capital-inten- applicability to the extent of positions and impact, and (3) other regula-
accumulated profits
sive sectors, cash profits are usually higher tory framework as applicable to the taxpayer
against profits booked after depreciation on
As is evident, these options attract tax, are
assets. When foreign currency (say USD) is Author:
subjected to corporate and exchange control
stronger than the Indian rupee, an Indian af- Pranay Bhatia
regulations, and are time consuming. The In-
filiate would have higher operating income, Tax Partner
dian entity lending to its overseas affiliates is
resulting in higher cash. pranaybhatia@bdo.in
also ruled out because it is not permissible
Cash accumulation for corporates that do under exchange-control regulations. There-
not have growth/expansion/diversification fore, there is an acute need to efficiently Co-author: Janhavi Pandit
plans in India is voluminous and has become manage the cash inflows and look at ways to Manager - Direct Tax
acute over a period. free up the cash. janhavipandit@bdo.in
Traditional HR function is going through a across sectors and employees are welcoming the
shakeup driven by the changing nature of busi- prospect of linked growth where a manager men-
ness conduct the endeavour of this change is tors juniors to move up the corporate ladder.
to make businesses fruitful with cost-effective
Competency-based
people solutions, and to create a culture where
compensation benchmarking:
people and innovation thrive.
Rewards, including compensation benefits and
Some of the emerging trends in wellness programs historically a talent-reten-
tion tool is now a strategic tool designed to
traditional HR functions include: engage critical talent necessary for business. The
Technology and people analytics: stress is on hiring the right talent and rewarding
Organisations are recognising the need for a ded- the individual correctly. Companies are increas-
icated people-analytics function in order to pro- ingly relying on workforce analytics to harness
duce insights from complex data gathered across the power in compensation and achieve business
employee lifecycles. In a recent pulse survey, a results.
stunning 86% of organisations reported that cre- Aligning policies for a diverse population:
ating their people-analytics function is a strategic
Demographic changes in the workforce imply
priority . Insights from such data weigh heavily
that diversity is becoming a necessity rather
on creating practices in HR. While HR earli-
than an objective in todays world. A recent re-
er used many anecdotal patterns and adopted a
port from the Centre for Talent Innovation in
reactive approach, today analysis largely decides
New York identified two-dimensional diversity,
course of action and HR intervention.
which distinguishes inherent or surface-level di-
Real-time succession planning across levels: versity (gender, age, religious background, soci-
While many organisations are adequately armed oeconomic background) from acquired diversity
with succession planning at leadership levels, a (cultural fluency, social media skills, cross-func-
noticeable trend is that this is now not limited to tional knowledge, global mind set). Organisa-
CXO level, but followed across hierarchies it is tions are adapting their talent strategies for a
usually in cognizance of the employees growth diverse workforce through newer job designs to
and career aspirations and business needs. The attract and retain previously untapped sections of
mentor-mentee model is gaining acceptance the workforce.
Franck joined the 1.What was the mandate given to you Local differentiators
by the board in your role? How much of 3. How has the market evolved in the
Maersk Group in it has been achieved? last few years?
1994 and has strong Maersk Line has been servicing India since Globally, we have seen three trends these past
1921. We are here to assist Indias growth sto- years in our industry.
management experience ry through cost effective and reliable shipping
1. Lately the global trade growth has been
services. My mandate was primarily to:
in different functions low (around 4%) and traditional markets
Grow profitably with the market such as Europe and US have been on the
and locations. He took Increase footprint, both commercially lower end of the growth spectrum while
and operationally, and we have seen new markets developing
over as Managing Develop services to customers through faster.
Director, Maersk Line enhanced local differentiators
2. Oversupply is putting pressure on rates,
We are in line with our plans. We have started
and Safmarine India & calling four new ports and launched six new
which led to shipping lines looking at
controlling costs.
services that complement our traditional ones;
Sri Lanka, in early 2013. we have also opened new sales offices. We have 3. Developing local differentiators and pro-
developed our services offerings through what viding customers with better services
we call our customer charter, Care Customers becomes a bigger part of the value prop-
Programs, and our e-solutions. osition. Earlier the focus was chiefly on
transit times.
2. How do you respond to the needs of a
changing market scenario? As far as India is concerned, the growth is
stronger around 7%. At Maersk Line, we con-
Indias merchandise trade as a percentage of
sider India a strategic market. We see increas-
GDP is still below 30% this points to huge
ing trade between emerging markets. There is
untapped potential. To create a more condu-
a definite shift from purely traditional mar-
cive environment, to take advantage of the
kets (south-north) to newer potential markets
growing trade opportunities, we are concen-
(south-south). We see growth coming more
trating on three important factors
and more from hinterlands and as such, we
Proximity are developing our footprint within India by
Accessibility and reliability, and opening sales offices, ICDs (inland container
A commitment to recruiting the best talent in- Leadership means the ability to embrace a con-
volves a commitment to career-long training sult and facilitate style to improve the quality
and education. This ensures that Maersk and its of communication and decision-making, both
employees stay ahead of the marketplace. within the team and across the organisation.
Leaders should have a more holistic view of the
6. In a world full of Volatility, Uncertain-
business beyond their defined roles resulting in
ty, Complexity & Ambiguity (VUCA),
a greater involvement of discussion all round.
innovation has become one of the most
important factors in transforming a crisis As a leader, my aim is to ensure the teams are
into an opportunity. How do you promote well aligned, infuse positive stress to carry out
innovation? the company strategy efficiently, and attract and
grow talent.
Innovation can be about adapting the business
model and figuring out better ways of doing
Bulk and container industries are both HCC received an order worth `18bn
growing but the growth is slow; container from the NHAI to build the J&K high-
has grown faster than bulk. With the mining way
ban being lifted, traffic should improve slow- IL&FS Transportation won a `19bn
ly. With modernisation and new projects, road project in Maharashtra
there will be demand for skilled managers.
As global ports players expand and take over
The countrys PE inflows between April 2000 and Over the last couple of years several funds have
December 2013 were a staggering US$80bn, how- hired specialists in operating roles. These include
ever nearly 65% of these transactions are yet to L Capital, Softbank, Gaja Capital, TPG, Actis, and
offer returns. Over the years, the embedded in- IVFA (for whom it is a core strategy). Struck by the
dustry learnings across successive cycles of funds idea of enhancing and driving value-creation this
has steadily been improving. What makes for a trend has also permeated to large corporates like
bankable promoter as well as creating a suitably Cipla, Metro AG, and eCommerce firms such as
structured deal are key amongst these learnings. Flipkart and Snapdeal, who are also hiring profes-
An additional and key realisation is that managing sional from Private Equity and Management Con-
the promoter and the business from inside, is core sulting, to drive the growth agenda.
to a successful exit. Hence the need for a strong in-
Clearly, the more successful PE firms have realised
house operating team, where senior industry pro-
the value of an operating team, and their ability to
fessionals take on the role of a dedicated consultant
challenge management in the right way, thereby
to support the growth of the portfolio company.
enabling success. Henry Ford, legendary business-
The PE operating team plays a crucial role in the man and entrepreneur was known to say, If every-
relationship between the promoters and the PE one is moving forward together, then success takes
fund. Team members are often able to get closer to care of itself !
the management than the deal team because they
speak a similar business language. Most promot- PEOPLE MOVEMENT >>
ers prefer working with an operating team, given
the number of years of experience and broad in- MANAS TANDON
dustry expertise that they bring to the table. Op- FROM
TPG TO
Partners Group
erating professionals also have a working style that WAS
Director AS
MD
drives business decisions through a combination of
BEN MATHIAS
mentoring, coaching and influencing, rather than FROM TO
New Enterprise Associates (NEA) Vertex Ventures
through direct control. They are quickly able to
WAS AS
Partner, Executive Director MD& India Head
garner respect and help raise the business focus to
a larger vision, while subtly working towards the MAHESH PARASURAMAN
FROM TO
common goal of profitable exit, through relentless Carlyle India Amicus Capital
focus on mid-term value creation, and truly trans- WAS
MD AS
Co-Founder & Partner
formational agendas.
However, of late, we have also started seeing another vis- MANPREET RATIA
FROM TO
ible and interesting trend a few senior leaders are going Citibank Amazon India
back to their traditional-sector companies. As always,
WAS
Director - APAC AS
Head, Last Mile Ops
there are some people who did not enjoy the start-up SUNIL D'SOUZA
profile and the risks associated with it; they had probably FROM
PepsiCo TO
Whirlpool
taken the plunge enamoured by the activity surrounding WAS
Head- VIMAPS AS
MD
e-commerce. This lends credence to our philosophy that PALLAV PATNI
at the leadership level, it is not as much the functional FROM
PepsiCo TO
Kellogg India
skills, but rather the competencies and attributes of a per- WAS
Commercial Head AS
CFO
son to be able to deal with a start-up culture that will de- AMIT CHOUDHARY
fine their success. FROM
P&G TO
Snapdeal
WAS AS
To be fair, there is also great demand in traditional sec- Group finance - Global luxury SVP Corp Fin
tors for professionals with some online experience (some- SHANTANU KHOSLA
times even as low as three months will do). FROM
P&G TO
Crompton Greaves
WAS AS
However, this trend is still a ripple, and todays larger story MD MD
continues to be the great and continued exodus of talent SANJEEV MOHANTY
from the traditional sectors to e-commerce and start-ups. FROM
Benetton TO
Jabong
WAS AS
Managing Director CEO
The internet is going to be a marketplace for all filment centres will come up, each with an average
kind of possible future purchases, or at least a large size of 80,000-150,000 sq. ft. each. This represents
portion of them. Online retail in India is forecast an additional 6-12% of current space available in
to grow hundred-fold from its current size and organised warehousing in India.
is expected to be a US$ 18bn industry in 2018;
concurrently, e-commerce logistics is likely to see Money continues to buzz towards
scorching growth and become a US$ 2bn industry
in 2019.
the e-commerce honeypot
One of the pivotal factors in this explosive growth The trend of VC/PE investment in e-commerce is
is the growth of internet users and extensive ex- seen in the case of e-commerce logistics compa-
pansion of logistics services providers across the nies, with leading players like Delhivery, Ecomm
country. Express, GoJavas, and eKart seeing significant in-
vestment in Series C or D funding. One of the blue-
E-commerce logistics models: eyed boys of the industry, Delhivery, raised close to
US$ 85mn (`5.42bn) in its Series-D round of fund-
Emergence of hyper-efficient ing led by Tiger Global Management, pushing the
platforms company to a valuation of more than `20bn. Ecom
Express raised mammoth `8.5bn in fresh funding
With the strong emergence of e-commerce and
from an affiliate of global private equity firm War-
with competition increasing in logistics firms ca-
burg Pincus.
tering to this industry, the focus has shifted from
vanilla delivering to ever-shortening delivery time-
lines, negligible or zero delivery prices, doorstep
Incumbents keen to get into
delivery, traceability solutions, and convenient re- e-commerce logistics
verse logistics these elements have become the The growth in e-commerce and the kind of funding
most differentiating factors for providers. it has seen has attracted the interest of traditional
This explosion in e-commerce is likely to have logistics service providers into e-commerce logis-
a large spill over effect in terms of infrastructure tics players like FedEx, DHL, UPS, Gati, SafeEx-
and logistics investments, which will include more press, and TCI have stepped in. With renewed fo-
warehouses and delivery centres and higher em- cus on dedicated e-commerce logistics, all leading
ployment. Studies estimate that over the next 3-4 players are looking aggressively at high-calibre eL-
years, an additional 7.5-15.0mn sq. ft. central ful- ogistics talent with focus on technology platforms.
The real estate sector has begun the process of un- led people to explore lateral roles in related sectors
winding excess unsold inventory with a deliberate such as EPC and infrastructure as both sectors are
slowdown in new launches. There has been mixed seeing revival.
response from markets across cities to residential
Government and governance: The launch of the
and commercial sectors this year.
Smart Cities initiative has garnered massive re-
Commercial vs. residential: Plummeting project sponse from various states but Housing for All has
launches and decreasing sales volumes indicate that made slow progress. The decision to accept REITs
the residential market is striving for equilibrium a to attract investments and foster growth of RE and
corrective phase before heading towards stability. infrastructure industries holds promise. Senior
On the commercial front, demand for office space leaders with relevant skills to navigate the waters
continues to rise in select parts of all major metros in light of emerging opportunities will be in high
with booming start-ups, prospects of development demand.
in key suburban business districts, and rising IT/
ITES/BPO industries. PEOPLE MOVEMENT >>
Online on line: A tech savvy customer base has GAURAV JAIN
helped online distribution channel like Housing. FROM TO
Samyak Properties Jindal Realty Pvt. Ltd
com, 99acres, and Magicbricks to gain wider ac- & Infrastructure Pvt Ltd
ceptance. Broker exchange models like BroEx, IRX, WAS AS
Owner MD & CEO
RexProp look promising, but will have to focus on
PULKIT KAKAR
revenue strategy while building engagement plat-
FROM TO
Raheja Developers Ltd Infinia Services
forms for the community. Platforms like Apart-
and Solutions
mentAdda and Commonfloor have built significant WAS AS
Senior Vice President Finance Chief Financial Officer
presence within residential apartments. This space
VIVEK SINHA
will continue to see more action and demand for
FROM TO
both business and technology leadership talent. Kalpataru Limited Buildzar.com
WAS AS
Assistant GM- Director's Office Chief Business Officer
Talent trends: There has been churn at all levels as
GANESH V
organizations are focusing on raising funds to ex-
FROM TO
Sobha Developers Ltd. Emerald Haven Realty
ecute stalled/new projects as a result, demand
Ltd (TVS Group)
for professional across treasury/fund raising, CFO, WAS AS
CFO CFO
strategy and marketing, and project management
ABHIRAM HIMANSHU
has been rising. Lack of ample opportunities also
FROM TO
Shanta Sriram Constructions Red Fort Capital
AS AS
CFO Director
Shortage of CXOs and sub-CXO talent that has ade- PEOPLE MOVEMENT >>
quate strategic vision and an innovative people-cen-
AMIT SAGAR
tric approach.
FROM TO
Tata Motors SkodaAuto
Lack of alignment of business imperatives with tech- WAS AS
National Sales Head National Sales Head
nology during the growth phase.
SANJAY GUPTA
Attrition of quality talent to alternate industries for FROM
Hyundai Motors India TO
M3M
various reasons including stagnation and the failure WAS
Senior GM Marketing AS
CMO
to project automobiles as an industry of choice. SATINDER SINGH BAJWA
Lack of local talent for R&D and application engi- FROM
Hyundia Motors TO
Nissan Motors
neering, and inability to attract high quality. WAS
Group Head Sales AS
Vice President Sales
Network and Customer relations
VIKRAM PAWAH
FROM TO
Honda Cars India Harley Davidson India
WAS AS
Assistant Vice President Managing director
& Operating head
In keeping with the theme of development, Prime Minis- strong talent-development functions will find a method-
ter Narendra Modi launched the Make in India program ology to complete the transfer of skills from the expatri-
nationwide in 2014, which laid the foundation for India's ates to the domestic talent within 2-3 years. The risk in
new national manufacturing policy. It also rolled out the this approach is to bring in expatriates with a relevant
red carpet to both domestic and international industrial- multi-cultural mind-set to help them adopt and adapt to
ists with an aim to make India a manufacturing hub. the nuances of doing business in India.
The passage of the Insurance Laws 2. The country will benefit with the
(Amendment) Bill, 2015, in March 2015 improved risk-management, under-
paved the way for major reforms in the writing, and specialty-lines that the
insurance sector. Most importantly, the foreign reinsurers will bring to India
new act provides for enhancement of
3. There is potential for India to become
the foreign investment cap in an Indian
a reinsurance-processing hub of the
insurance company from 26% to an
world, just as the entry of informa-
explicitly composite limit of 49% with
tion technology led to India becom-
the safeguard of Indian ownership and
ing the back office of the world
control.
Foreign reinsurers have responded fa-
Reinsurance: Amended law vourably to the developments and glob-
enables foreign reinsurers al reinsurers like Munich Re, Swiss Re,
Lloyds, Hannover Re, and SCOR have
to set up branches taken the preliminary steps to enter the
The Act defines re-insurance to mean market. For example, Swiss Re is planning
the insurance of part of one insurers risk to open a branch office and has started dis-
by another insurer who accepts the risk cussions with the IRDA on its entry plan.
for a mutually acceptable premium. It They are already having discussions with
thereby excludes the possibility of 100% the Indian government and other state
ceding of risk to a re-insurer, which could governments. Hanover Re has started a
lead to companies acting as fronts for feasibility study to open a branch office
other insurers. The amended law enables in India, even as it underwrites insurance
foreign reinsurers to set up branches in business from overseas markets. Lloyds
India. It also enables Lloyds and its mem- Re, the only reinsurance marketplace, is
bers to operate in India, either through in a unique situation because of its gov-
branches or as joint-venture partners in ernance structure and operating model
an Indian insurance company within the i.e., it is a marketplace for syndicates.
49% cap. The Indian insurance regulator (IRDA)
has proposed a twotier structure, com-
This is positive for the reinsurance indus-
prising of a branch-license for Lloyds at
try in India, as:
the first tier, coupled with the syndicates/
1. Much-needed foreign capital is ex- managing agents at the second tier.
pected to enter the country
The last six months have seen steady growth, especially in specialty, con-
struction, and petro chemicals, due to demand from increased usage in PEOPLE MOVEMENT >>
construction, consumer, and automotive sectors. Basic chemicals also
K SETHURAM
benefited from low oil prices.
FROM TO
Dow Chemicals Celanese
However, speciality chemicals are coming under price pressure due to WAS AS
MD India
commoditization this can be solved by innovation for incremental ad-
JAYARAM PHILKHANA
vances targeted at new solutions and focused investment to augment ca-
FROM TO
Cargill United Phosphorus
pability. R&D for application development is becoming a focus area for
WAS AS
all major players and will provide opportunity for senior technical talent. CHRO
Companies are investing heavily in automation and information technol- SUSHMITA DATTA
FROM TO
ogy. Lanxess India i-CHESS Chemicals Pvt. Ltd
WAS AS
CEO
High-quality talent in sales and distribution will be in demand. Also
sought after will be professionals who can lead M&A activities for acquir- SUNIL KUMAR SATHYANARAYANAN
FROM TO
ing targets in the domestic market and for deals with global players. Castrol Henkel
WAS AS
Manufacturing and supply-chain leaders will play an important role in Global Marketing Manager Business Director : India &
Pakistan : Adhesives
this revitalisation exercise.
RAJASUBRAMANIAN-RAJA N
MNC companies will need to develop local sales and marketing further FROM TO
Castrol Clariant Chemicals India Ltd
along with product-support teams for market-specific product develop- WAS AS
VP - Finance CFO
ment. Employees are looking for a compelling proposition, with global
SIDDHARTHA SENGUPTA
career paths and opportunities outside India.
FROM TO
Arkema Chemicals Samskrt Natural
Areas of interest are innovation and digital technology, intelligent man- India Pvt Ltd Wellbeing Co Pvt Ltd.
ufacturing, data analytics, and applied research these will need strong WAS
President / Managing Director AS
Managing Director
professionals from other sectors at the senior leadership level to build ca- RAJESH SHRIVASTAVA
pability. FROM
Berger Paints (I) Ltd(BPD) TO
Shalimar
For the chemicals sector, the focus over the coming year would be adapting WAS
Head HR AS
GM - HR
and refining business models, identifying growth opportunities in existing SANDEEP BATRA
and new segments, and harnessing the potential of digital technologies to FROM
Pidilite Industries TO
Crompton Greaves
capitalise on the next wave of value creation. Talented professionals who Consumer Electricals
WAS AS
can lead and grow businesses along these lines will be in high demand. CFO CFO
Solar Wind
The government has approved a plan to increase 2.8GW of wind energy capacity will be added in
India's solar power capacity target five-fold to FY16. Favourable regulatory environment and
100GW by 2022. The total pipeline of over 15GW easing of credit is likely to deliver better-than-ex-
of projects is under bidding-cum-development pected capacity addition. New National Offshore
marking the year ahead as the transition year for Wind Energy policy would provide the roadmap
Indias solar sector. for development.
With the prices coming down to `4.63 per unit?, Suzlon Energy has bagged an order for
solar is now comparable to thermal energy pric- 500MW from domestic players
es are expected to come down to `4 per unit this
Sany Group has entered into a MoU with AP
year. Many foreign players (SoftBank, Google,
for investment of US$ 600mn to set up wind
PerSolar, First Solar) are setting up solar business-
projects
es in India. With several projects coming up for
bidding, there would be need for leadership talent, Gamesa has an order pipeline for 500MW
especially with domain experience in projects, fi- ReGen Powertech has bagged wind projects
nance, government affairs and technology roles. worth `16bn from Hero Future Energies and
Talent from other infrastructure sectors will move Green Infra
laterally to fill in the shortage.
Inox Wind started production at its 800MW
SoftBank, Bharti Enterprises and Foxconn, wind-turbine-blade facility in MP
plan to invest US$ 20bn in solar projects in
India Thermal
SunEdison won NTPCs 500 MW solar pro- This sector continues to see lot of churn amidst
ject with a `4.63kWh bid M&A activity as the smaller or non-core exist-
ing players are liquidating assets to raise capital.
GOI is considering a proposal to award solar
Losses are mounting as interest and establishment
transmission projects requiring investment of
costs are rising. As coal-mining gets back on track,
`500bn to PowerGrid
coal shortages will reduce. Next level of growth
Adani is implementing 648 MWs of solar is seen in the transmission sector. New projects
power units in Tamil Nadu through a SPV worth `120bn are invited. This segment is also see-
and manufacturing facilities at Mundra ing growth outside India, with Indian companies
executing projects globally.