Download - the hunt report...the hunt report ABOUT HUNT PARTNERS Hunt Partners is a leading boutique executive-search firm addressing the high-growth markets of emerging Asia. We were founded

the hunt report

Dear Reader,

We are delighted to present you the inauguralissue of The Hunt Report, a half-yearly industryupdate from Hunt Partners.

The Hunt Report seeks to provide an analysis ofthe key business issues impacting each of oursixteen industry practices. The report takes acloser look at the impact of these businesstrends on executive hiring and provides asummary of executive movements.

A project of such depth would not have beenpossible without the encouragement of ouradvisors and supporters, to whom we havemuch to thank.

We hope you find the analysis insightful andthought-provoking.

We welcome your comments at [email protected]

Happy Reading!

Arjun Erry and Sunit Mehra

Mumbai, India, December 2010

the hunt report

FOREWORD

CONTENTS I VOL I

pg.6 ASSETMANAGEMENTMutual Fundsindustry gets more JVs

pg.8 CAPITAL MARKETSCapital marketexperiences a steep growth

pg.10 CHIEF FINANCIALOFFICERThe business CFO

pg.12 CHIEFINFORMATIONOFFICERToday’s innovative CIOs

pg.14 HUMANRESOURCESMerging the gulfbetween businessand people

pg.16 INDUSTRIALHigh growth in Indian industrial sector

pg.18 INFRASTRUCTURE A deal season ininfrastructure

pg.20 INSURANCEInsurance goes thehealth way

pg.22 INVESTMENTBANKINGIB's second wind

pg.24 INFORMATIONTECHNOLOGY IT industry focuseson India

pg.26 LOGISTICSLogistics sees morecash inflow

pg.28 PRIVATE EQUITYThe fall and rise ofprivate equity

pg.30 REAL ESTATETowering times

The Hunt Report, a half-yearly update, evaluates the key

business trends in industry practices, ranging from retail

to insurance. This issue of The Hunt Report analyses the

impact of these significant business trends on the

executive hiring process and the leadership movements

in sixteen industry verticals.

IN THIS ISSUE

the hunt report

ABOUT HUNT PARTNERS

Hunt Partners is a leadingboutique executive-search firmaddressing the high-growthmarkets of emerging Asia. Wewere founded in 2004 and wemaintain principal offices inBangalore, Beijing, Hong Kong,Mumbai and Shanghai.Additionally, we have an exclusiveaffiliate relationship with Paul Lawrence Associates in the United States.

Hunt Partners is an owner-managed firm, combining in-depth local knowledge withglobal expertise.The firm hasspecific industry expertise or‘practices’, building an extensivenetwork and knowledge base inthe respective industries.

We are the only independentsearch firm to be consistentlyranked among the top tenexecutive search firms* in India.

*Source:

Survey of Executive Search Firms operating in India,

Business Today, November 6, 2005

pg.32 RETAIL ANDCONSUMER Retail and FMCGaim to penetratethe hinterland

pg.34 RETAIL FINANCIALSERVICESCautious optimismin retail financial services

pg.36 WHOLESALEBANKINGWholesale bankingset for a paradigm shift

We take a close look at some of the keybusiness challenges in the MF industrytoday and its impact on talent.

Polarisation of assetsThe big firms seem to retain their holdand also grow bigger.The top five MFcompanies (ranked by total AUM)) nowcontrol nearly 60 percent of the MFmarket, while the other players, (morethan 35), jostle to capture the remaining40 percent. Such polarisation of themarket impacts both multiplebusinesses and personnel. The existingsmall players and new entrants face asevere challenge to scale their averageAUM above Rs 100 billion – a markconsidered by most industry experts asthe threshold for profitability.

Banking joint venturesThe impetus to build captive distribution

will drive some MF players to seekbanking joint venture (JV) partners.Withthe private banks all but locked down,potential partners will comprise publicsector and regional private banks.Examples of such JVs with PSU banks areBank of Baroda - Pioneer Investments;Canara Bank - Robeco; etc. Bank of Indiahas mandated an advisor for selecting itsJV partner. However, such JVs bring intheir own set of employee managementchallenges, such as maintainingcompensation parity among theemployees of the two banks andreorienting the PSU staff along privatesector productivity norms.

DistributionThe need to leverage the sponsor’s owndistribution networks is now seen ashygiene. Further, there is a clearpreference to partner with entities with

A growing trend of private banks joining hands with PSUand regional banks has been observed in the MutualFunds industry. And the talent churn in the sector is seenalong the lines of both internal as well as externalindustry moves.

Mutual Fundsindustry getsmore JVs

The years 2009 and 2010 would probably be remembered as the seminal years in theevolution of the two-decade old Mutual Funds (MF) industry. When the worldeconomy faced the global financial crisis, the MF industry in India witnessed a

defining turning point with the market regulator, SEBI, implementing several structuralchanges in August 2009. This was followed by a bizarre public difference of opinionbetween the capital markets and insurance regulators, resulting in more uncertainty. MostMFs have had to rework their profitability plans. But these plans were hampered by thefact that their previous business assumptions were being challenged.

ASSET MANAGEMENT

BY ARJUN ERRY

pg.7

PEOPLE MOVEMENT

a large FS distribution, such as a Bank. Inthe past, some MF sponsors found it fitto partner with non-FS entities,assuming there would be synergies of distribution.

We estimate that the demand for seniordistribution professionals will remainsoft until a regulatory calm coupled withinnovative product development sets in.Several fund houses may allow the CEOto don the ‘double-hat’as the de factoHead of Distribution. A few fund housesthat are operating without a formalHead of Sales include AIG MF, Fortis MF,IDFC MF and Tata MF.

Corporate actionsIndia is still an important investmentdestination, but several international MFplayers have pushed back or delayedtheir entry into the country. For example,YTD the only new international entranthas been Daiwa (via a change of controlof Shinsei). Further, several MFs areconsidering a sales process as well.Webelieve the combination of fewerinternational entrants and consolidationwill reduce the absolute number ofexecutive positions in the industry.

TalentSales and distributionWe have observed that sales anddistribution professionals are churningat a lower rate compared to others.Thisis driven by various business challengesand the fewer number of new entrantsin the market. Such talent is ‘migrating’to other industries such as privatebanking, broking, etc. For example, theSales Head of AIG AMC moved to an

offshore private bank, and the ProductHead of Fidelity Fund Networks joinedan onshore private bank.

Investment managementInvestment professionals are churning ata higher rate than business managersand interestingly, the churn is within theindustry itself. A key reason for this trendis perhaps that the spotlight on fundperformance is even greater now. Forexample, the Head of Fixed Income atBharti AXA Investment Managers, SujoyChauhan moved to Religare AssetManagement.

We have observed equity investmentprofessionals being sought by thealternative investment community.Thisis perhaps driven by the fact that severalPE funds have increased their publicequity allocations.

● Anuradha Sahai joined Birla SunLife Asset Management as CEO, ofthe Singapore unit

● KP Singaravelu, Vice Presidentand Portfolio Manager at FranklinTempleton, moved to MCapAdvisors as Investment Directorand Head of Secondary Markets

● Krishnamurthy Vijayan,Executive Chairman at JP MorganAsset Management, moved to IDBI Asset Management asManaging Director and ChiefExecutive Officer

● Kalpen Parekh, Head of RetailSales at Birla Sun Life AssetManagement, joined IDFC AssetManagement as Deputy ChiefExecutive Officer

● Manish Mehta, Head of Sales, AIGGlobal Investment Group, hasmoved to Kotak Mahindra Bank asVice President

● Suren Kochhar, Head, Sales, FortisAsset Management (now BNPParibas Asset Management) hasresigned

● Ved Prakash Chaturvedi,Managing Director of Tata AssetManagement has resigned

● Vikaas Sachdeva, Country Head,Sales and Business Development,Bharti AXA Investment Managershas resigned

CAPITAL MARKETS

We have explored the business andhiring activities within the two fundraising sectors – Equity Capital Market(ECM) and Debt Capital Market (DCM).A close look at the various sub-marketswithin the overall corporate financespace provides useful insights into thebusiness drivers of executive hiring.Theexamples have been taken from thepublic domain.

IPO activityThe year 2010 has already seen severalIPOs, especially in the last six months.The most recent one is the IPO ofGujarat Pipavav Port in September 2010and the earlier ones like SKSMicrofinance and MakeMyTrip. IPOvolumes increased to $4.8 billion, almost2.5 times the volume in 2009, while thefollow-on volumes rose 43 percent totouch a record high of $12.5 billion. A

number of large PSU public share-issueshave either taken place or are planned,including Coal India and HindustanCopper.There were more than 20 IPOs inthe first half of the year.With the surge inthe market, the government also wantsto ride on this wave and launch the IPOsto cash in on the investor sentiment.TheIPO wave is driving several merchantbanks to strengthen their teams.

M&A advisory servicesSo far in 2010, M&As have alreadyexceeded $50 billion, registering morethan 85 percent increase over 2009, andrecording around 670 transactions.Piramal Healthcare, Airtel and Vedantaled the pack. According to ThomasReuters, the banking leader board listsRothschild, Morgan Stanley, StandardChartered Bank and Barclays as themarket leaders in this segment.

The capital market has witnessed an upsurge of severalIPOs in the recent months and many significant mergersand acquisitions too. These trends essentially drive home the fact that companies are looking at bolstering their teams.

Capital marketexperiences asteep growth

The capital market business involves providing advisory services to leading Indiancorporates, institutions and businesses which seek to mobilise capital from investorsin India and overseas. In terms of equity capital, it includes Initial Public Offerings

(IPOs), Follow-on Public Offerings (FPOs), Qualified Institutional Placements (QIPs), RightsIssues, Preferential Allotments, External Commercial Borrowings (ECBs) and ForeignCurrency Convertible Bonds (FCCBs), Global Depositary Receipts (GDRs) and Private EquityTransactions. On the debt capital front, it includes fixed income products such as bonds,loans and asset backed securities to commercial paper and hybrid capital.

BY ARJUN ERRY AND SURESH RAINA

pg.9

the hunt reportPEOPLE MOVEMENT

Eight of the ten biggest acquisitions inIndia this year were through cashtransactions, compared with only oneamongst the top ten global deals.Thisclearly underscores the need to providefinancing to win clients. StandardChartered funded the nation's twobiggest takeovers by billionaires AnilAgarwal (Vedanta and Cairn) and SunilMittal (Airtel and Zain Telecom).

ECB and FCCBWe have observed an interesting trend,wherein the cost of ECB funds hasproven to be cheaper in comparison tothe cost of rupee funds.The availabilityof these funds in the internationalmarket is huge as compared to thedomestic scenario. Even Small andMedium Enterprises (SMEs) areincreasingly opting for the ECB route toraise funds, given the present increase ininterest rates. In August 2010 itselfaround $1 billion was raised throughECB/FCCB.The Indian US dollar bondvolumes rose to a two-year high of $4.1billion this year, compared to $181million last year.The ability to tap theinternational debt market is enabled bythe availability of investment banks withglobal fund raising or distributioncapability.We witnessed that the bulgebracket banks have a distinct advantageas evident from the far greater numberof international bankers being hired.

Investment bank: ECM on anexpansion modeAfter a lull during the global financialcrisis, investment banks have resumedhiring in India as the deal formationshave made a comeback.This despite the

fact that underwriting fees remainnotoriously thin, especially ongovernment deals that will account for a sizeable chunk of the approximate $30 billion in equity issuance expectedthis year.

Indian firms, which escaped the worst ofthe global crisis, have returned to theiracquisitive measures. ECM issuancevolume in 2010 has jumped to $18.6 billion, up 54 percent from lastyear.The banks that have the willingnessand the capacity—both to advise ondeals and lend to acquirers—have anadvantage in markets like India, wherepure advisory fees can be low.Three ofthe four banks that topped the ThomsonReuters league table of completed M&Adeals this year in India are Barclays,Standard Chartered and HSBC. All thecommercial banks that have broughttheir balance sheet into Indian M&Adeals, will increase their market share.HSBC aims to increase its InstitutionalBanking team by about 20 percent overthe next year.

● Nachiket Naik moved from ABNAMRO Bank, Vice President DCM toUBS as Executive Director - FICC

● Maneesh Mathur moved fromHDFC Treasury to CA-CIB as Head DCM

● Sumit Jalan joined Credit Suisseas Head ECM. He was earlier HeadECM at Bank of America

● Indraneil Borkakoty moved fromhis role in Kotak Mahindra Bank asCapital Head of ECM to Nomura asHead of ECM, India

● Krishna PV has joined MorganStanley as Executive Director andHead of GCM. He was earlierNomura’s Executive Director - Headof ECM and Infrastructure

● Sanjay Agarwal moved fromEdelweiss as Vice President -Investment Banking to Macquarieas Head ECM - India

● A Rajgopal moved from UBS’Head ECM to Standard Charteredas Head of South Asia/SoutheastAsia ECM

CHIEF FINANCIAL OFFICER

The paradigm shift in expectations fromthe CFOs has gained significantmomentum during the past decade-and-a-half.Traditional CFOs werenumber crunchers – leveraging taxexemptions, liaising with auditors andpreparing annual accounts.Today'sPresident, Finance of any corporatehouse can easily negotiate multi-milliondollar, cross-border deals, while stillcreating tax efficient financial structures.

Apart from landmark deals like TataSteel-Corus or the more recent Vedanta-Cairn, medium sized Indian enterprisesincreasingly use the acquisition route tocreate a global footprint or increase theirtop line.Typical newspaper headlineannouncements read like this:

● Super Religare Laboratories buysPiramal Diagnostics for Rs 600 crore

● RSB Transmissions acquires 70 percentstake in Belgium-based Mechanical

Supplies International● Ankur Drugs to acquire TVC

Life Science

The past year has seen over 150 privateequity deals that has resulted in a spurtof CFO hires. Promoter-led organisationsare looking for executives who can workin an entrepreneurial environment andyet bring strong system orientation tothe early growth venture. For example,the Bessemer and Helion investedNetAmbit, hired Rajesh Pasari, a financeprofessional with 14 years of experiencein Marico and Seagram.The mandate forRajesh was to introduce strongprocesses and systems in this rapidlygrowing financial products distributionbusiness. Other skills which are requiredamong today’s CFOs include hard-corenegotiating power with a consortium ofsenior bankers, making presentations toprivate equity investors and advisinghigh powered boards.

The traditional role of a CFO liaising with auditors andpreparing annual accounts has undergone a sea changeover the last decade. Today’s CFOs are expected to takeactive part in negotiating deals and expandingbusinesses while conducting their regular tasks ofmaintaining the balance sheets.

The business CFO

One of the most critical, yet understated functions in any business, is the role of thefinance and accounts professional. In the early 1900s, the munshiji supported thesmall and medium sized businessmen by maintaining their account books. And

today, in the 21st century, hiring for this crucial function has evolved and reached adifferent level altogether, where the CFO’s contribution is expected to positively impactthe company’s performance.

BY SUNISHI GABHAWALA

pg.11


To meet this demand, we have observedan increase in the willingness by financeexecutives to accept roles in SMEs andstart-ups.Take the example of RajeshRamiah, a senior finance executive fromWipro who accepted the CFO role withREVA, the electric car company. He wasmotivated to take up the leadership rolebecause of the greater challenges andpotentially a large upside throughESOPs.Two years into this role, the riskpaid off following an equity infusion inthe company by a large Indiancorporate. More recently, a seasonedCFO with successful stints with a globalalcoholic beverages company and a $30 billion Indian diversified group,decided to join a microfinance company at a lateral compensation.He decided to make this career movebecause he was excited about buildingand growing a complex and operations-intensive business.

According to an annual survey byAmerican Express on CFOs, about 78 percent of the finance executivesfrom India expect economic growth inthe years ahead, leading to increase infunctional hiring.The hiring mindsetchange, combined with sustainedeconomic buoyancy, spells good newsfor qualified accountants who can now

expect a financially rewarding and ahigh quality career track over the nextfew years.

● Anand Kumar has joined Johnson& Johnson as Chief FinancialOfficer, Pharma. He was earlierGeneral Manager, Accounts at Vedanta

● BR Jaju has moved to WelspunGujarat Stahl Rohren as its Directorand Chief Financial Officer. Prior tothis he wasChief Financial Officer,Crompton Greaves

● Rustomjee Developers hasappointed Pushpamitra Das as itsnew Chief Financial Officer. Earlier,he was Chief Financial Officer atWadhawan Retail

● Vivek Mathur moved from hisrole as Senior Vice President,Finance to Chief Financial Officer atTata AIG Life Insurance

● Satrajit Ray, who was earlier ChiefFinancial Officer at MIRCElectronics, is now Chief FinancialOfficer of Endurance Technologies

● Akhilesh Maheshwari has beenappointed as Chief Financial Officerof Bajaj Energy. He was VicePresident, Finance at IndiabullsPower Limited

● Allied Blenders & Distillers hasappointed R Ramakrishnan as itsnew Chief Financial Officer. He wasearlier with Jubilant Energy

● Pawan Kothari is the new Chief Financial Officer, JK Tyre for its Mexico plant. He was General Manager, Finance atReliance Money

● Ashok Kumar Sonthalia has been appointed Executive Vice President and Chief FinancialOfficer of Greaves Cotton Limited.He was earlier with Tata Chemicalsserving as General Manager,Strategic Finance and Treasury

Sources

Business India, CFO India,

Financial Express,VC Circle

CHIEF INFORMATION OFFICER

The familiar themes of IT revolvingaround cost reduction, reliability andscalability are merely hygiene. The CIO today focuses on enhancingproductivity through business processre-engineering or otherwise. This isdriving an interesting trend, whereinbusiness managers are taking on themantle of CIO. For example, PravirVohra, who is the Group ChiefTechnology Officer of ICICI Bank is abanker. While Vijay Mehra, formerGroup CIO of Essar Group is aconsultant and Sumit Chowdhury,former CIO of RelianceCommunication is also a consultant.

Business imperatives like outsourcingand off-shoring have been gainingground, which in turn has reduced theneed for technology expertise among

CIOs. Today, it’s no longer about whichbusiness intelligence (BI) tool to use orwhich ERP to upgrade or to take adecision on whether to adopt cloudcomputing or not. Strategy is ofparamount importance. Fromtechnology stewardship tooutsourcing strategy, today’s CIObalances risks and costs. With complexIT projects, coupled with highinvestments in IT, another keydeliverable for the CIO is building theright governance structure that setsthe right priorities and funds thehighest value projects.

Examples of such projects includeUnified GIS Project of Bharti Airtel andInfosys Technologies' Pro-activePerformance Risk Analysis andRemediation Governance Model.

The Chief Information Officer is evolving and crafting outnew roles and responsibilities. In an era driven byinnovation, CIOs are fast donning the hat of a strategistand playing a major role in the development andexpansion of business.

Today’s innovative CIOs

The portfolio of a Chief Information Officer (CIO) is adding new dimensions. This isevident from the second largest acquisition by an Indian firm—Bharti Airtel’stakeover of Zain Telecom’s African business for $10.7 billion—where the CIO was a

key member in the M&A process. Business IT strategists are the need of the hour; and thisis driven by factors like Indian companies starting significant cross-border operations,transforming business models and several acquisitions resulting in massive business andIT integration projects. The IT department, which was once housed under finance tofacilitate MIS (the EDP Department of yesteryears) has been given its due importance byjoining the ranks of the other CXO functions in the company’s leadership.

BY ANNE PRABHU AND ARJUN ERRY

pg.13


The recession has only highlightedthe CIO’s changing priorities.According to 2010 ‘State of the CIO’Survey in the US, among the projectsthat CIOs mostly cancelled wereinfrastructure upgrades, followed byenterprise software rollouts, unifiedcommunications and networkupgrades. Projects that received funding, on the other hand, includedthose that improved end userproductivity and the quality ofproducts or helped create newofferings. It is only apt that Dr Kannanof Firstsource refers to CIO as ChiefInnovation Officer, ushering in a newera with an enhanced role.

● CN Ram, former Chief InformationOfficer of HDFC Bank, joined Essar Group as Group ChiefInformation Officer

● Sumit Chowdhury, ChiefInformation Officer of RelianceCommunications and ChiefExecutive Officer of RelianceTechnology Services, moved to IBMas Partner, Communications Sector

● Ashish Chauhan was roped in bythe Bombay Stock Exchange asChief Executive Officer. Ashish wasthe former Chief InformationOfficer of Reliance Industries and Chief Executive Officer ofMumbai Indians

● Rantnakar Nemani was broughtin as the Chief Information Officerat Himatsingka Seide. He wasformerly with VST Industries asChief Information Officer and Headof IT Projects Wing

● GG Rao, General Manager,Information Technology andAutomation was hired by HCLInfosystems as Vice President

● Vivek Khanna joined VideoconTelecommunications as ChiefInformation Officer from IBMGlobal Technology Services wherehe was Senior Vice President,Strategic Outsourcing

● Dhiren Savla moved to CRISIL asDirector, Information Technologyfrom Kuoni Travel Group

HUMAN RESOURCES

The dynamic business environmentand workforce demographics havechallenged HR professionals to findways to attract, manage and retainhuman capital to give business thatextra edge. According to HRprofessionals, evolving an effectiveorganisational structure, developinginnovative ways to ring-fenceemployees, creating an effectivecompensation structure, leadershipdevelopment, et al, are the centralthemes to keep employees contentedand achieve organisational growth and success.

Over the last few years, we haveobserved a steep growth in HR hiringamongst Indian organisations. Thisrise has been fuelled by a couple of trends:

● Indian companies in informationtechnology, manufacturing andother industrial sectors are amongstmany, which are venturing into newgeographical territories. Hence,there is a need to gain expertise inmanaging a multicultural workforce.Similarly, companies making cross-border acquisitions face a host ofchallenges when they expandbeyond their borders. According toa Mercer and Knoll Survey of seniorexecutives and PE firms, HR-relatedfinancial risks can derail a deal aseasily as cultural issues can. Hence,the need for global processes andsystems to manage a multiculturalworkforce along with a goodunderstanding of local cultures andlaws and legislations. These factorsare critical to achieve smooth

Today’s dynamic business environment and constantlychanging workforce demographics are posing achallenge to HR professionals to find new ways to attractand retain valuable human capital to give businesses the crucial edge.

Merging the gulf betweenbusiness and people

With Company Boards and CEOs grappling with the people management aspect of business, theHuman Resources (HR), as a discipline, has seen a paradigm shift in its functioning. From serving as amere back office entity, HR has today grabbed a prime seat in the corporate boardroom, and is being

increasingly leveraged for business gains. It has been witnessed that professionals, who can straddle HR andbusiness, can quickly leap into the boardroom.The examples of individuals making to this list are Ramkumar ofICICI Bank, Aashu Kalapa of Firstsource and Santrupt Misra of Aditya Birla Group. Moreover, the HR function hasgained prominence amongst non-HR professionals too. Some of them are attracted to the myriad challenges ofthe people’s business. For instance, Rajiv Dube, CEO and MD of Rallis moved to lead the HR department at theMahindra Group. CFOs like Mohandas Pai of Infosys and Milind Sarwate of Marico respectively have accepted HRroles at the board level too.

BY ANNE PRABHU

pg.15


integration of individuals withdifferent professional backgroundsand personalities.

● Ambitious promoter-ledorganisations are scaling the nextlevel of growth, fuelled by financialinvestments. Competing on abroader and bigger platformessentially implies transitioningfrom a relationship-based to aprocess-oriented culture, stayingcompliant with global standardsand bringing in transparency. In anutshell, it means ushering in HRbest practices. The mandate for HRprofessionals, in such instances, is tobalance the passion andentrepreneurial zeal in theseorganisations with strong andpragmatic systems and processes.The challenge of fostering changeson a clean slate, and bringing abouta turnaround in the businessenvironment and culture whileworking alongside the CEOs, aresome of the factors that haveattracted talent from globalcompanies to join theseorganisations.

We have seen a plethora of HRprofessionals from multinationalcompanies being roped in by Indian companies:● Patni Computer Systems brought in

Steve Correa from Vodafone UK ● Hinduja TNT hired Sanjay Sinha

from Nortel Networks Singapore● Strides Arcolab hired Balachandar

from GE Japan● Adil Malia joined Essar Group from

Coca Cola

The Hewitt Best Employer Survey2010 identifies the three definingcharacteristics that differentiate thebest employers: increased focus onemployee engagement, strong peoplealignment to business andrecognising people issues as thecritical factor of business success. Withthe ‘people factor’ occupying themind space of CEOs, HR professionals,who can squarely align themselves tobusiness and can address peoplechallenges relentlessly, will always bein high demand.

● Ameet Naik, the erstwhile GeneralManager, Human Resources atFuture Group, has moved to Maxx Mobile as Vice President,Human Resources

● Avinash Venkat, who was GeneralManager, Human Resources, AsiaTalent and OrganisationEffectiveness at WhirlpoolCorporation is now Head, HumanResources at Avery Dennison

● SAP has appointed BhuvaneswarNaik as Vice President, HumanResources, India. He was earlier VicePresident, People Processes, AsiaPacific of Capgemini

● Manmohan Kalsy has beenappointed Executive Director,Human Resources of Xerox India.Earlier he was Vice President,Human Resources of Vodafone

● Volkswagen India has brought onboard Piyush Upadhyay asExecutive Director, HumanResources. He was earlier Chief,Human Resources at TataBlueScope Steel

● Subhankar Roy Chowdhury hasbeen appointed Executive Director,Human Resources, India, MiddleEast and Africa at Lenovo. He wasearlier Nokia Corporation’s Head,Human Resources for Middle East,North Africa and Dubai

● Vikram Tandon has moved toHSBC as Head, Human ResourcesIndia. He was earlier Head, HumanResources, MESA at AIG

INDUSTRIAL

In the last five years, the industrial sectorhas picked up steam, which is primarilydue to the increase in demand by theend user industries like power,infrastructure and automobiles.Investments of about $500 billion ininfrastructure are expected to flow intoIndia, especially in power,telecommunications, roads, railways andoil pipelines, in the ongoing Five YearPlan that ends in March 2012.

Infrastructure has attracted significantfocus in the past decade as well.Theorder book of Larsen & Toubrocomprises 41 percent orders from thissegment. Moreover, the energy segmenthas also gained importance with twotimes more percentage allocation of thetotal funds in the eleventh Five Year Planto energy companies. ABB and BHELhave realised 60 percent and 75 percentof their revenues respectively from the power industry.

The next decade will continue to witnesssustained growth in the industrial sector.The Indian government plans to doubleits spending on infrastructure to $1 trillion in the twelfth Five Year Plan.

Hiring The Indian industrial sector providessignificant employment with 14 percentof the nation’s workforce employed inmanufacturing activities.While thesector is known for conservativecompensation policies (a seniorprofessional earns 20-25 percent lessthan his counterpart in a consumeroriented business), it continues toselectively attract and retain talent.The primary factors contributing to lowattrition in the sector are stability and aperfect work-life balance.

The hiring challenges in the sector arelinked to shortage of skilled technicaltalent, which is compounded by location

The Indian industrial sector has witnessed robust growth in the past few years, especially in theengineering domain. The sector is back with itsincrements, promotions and has also opened its gatesfor fresh talents after a freeze on recruitment during the recession.

High growth in Indian industrial sector

The Indian industrial sector contributes 20 percent to India’s $3.5 trillion GDPaccording to Altius Directory 2010 (based on purchasing power parity). The sectorhas overtaken the agricultural sector which contributed 17.2 percent in 2009.

Engineering, classified into heavy and light engineering, is the largest segment of theoverall Indian industrial sector, accounting for more than 25 percent of the total factoriesin India and contributing to 20 percent of India’s total exports.

BY SUNIT MEHRA AND SUNISHI GABHAWALA

pg.17


constraints. Manufacturing facilities tendto be located in remote areas with poorinfrastructure; hence employees do notprefer to work in such locations.Following the downturn in 2008,engineering companies alsoimplemented cost reduction initiativesincluding recruitment freezes, zeroincrements and restricted promotions.However, given the dearth of talent inIndia and the expectation to recoversooner than the West, this sector did notresort to drastic reduction in staff count.

An effective retention measure adoptedby industrial companies belonging to adiversified group like the Aditya BirlaGroup was the redeployment ofemployees in other businesses. Somecompanies also leveraged this ‘free’timeto train and develop the existing pool of employees.

In the past few months, the sector hasbeen cautiously picking up. Incrementsand promotions were brought in, in thepast year. For instance, Ingersoll Randgave an 8 to 12 percent hike to counterthe salary freeze in March 2010.This wasfollowed by the ‘back-to-normal’appraisals and increments in June 2010.

While the sector does not expect pre-recession growth for another 12-18months, companies have commencedselective hiring while taking care ofspecific requirements. For instance,Hindalco was looking for an aluminumsector head to consolidate its leadershipposition in the domain. Recently,Vedanta hired Ashwin Bajaj to LeadInvestor Relations and S Rajan as Head

of Corporate Finance. Both of them wererecruited from the UK.

Another sector which is booming on thecrest of the expanding automobile industryis the auto components business.Organicand inorganic growth (both domestic andinternational) have resulted in the robustgrowth of promoter driven autocomponents companies.With the top linesranging from Rs 700 to Rs 2,500 crore,thedemand for good professional talent to runoperations and support functions havespiked.For example,EnduranceTechnologies hired Satrajit Ray from MIRCElectronics as Group CFO.At Ricoh Auto,management consultant Rajiv Bajaj hasgrown with the company to overseeoperations as Executive Director.

● Kalyani Group Company Kenersyshas appointed Paulo FernandoSoares as Group Chief ExecutiveOfficer. He was earlier ChiefExecutive Officer of Suzlon China

● Ashok Jangid has joined Suzlonas Vice President CS andCompliance Officer. Previously, hewas working at Siemens asCompany Secretary

● Abhijit Chatterjee joined CentralCoalfields as Director, Finance. Hemoved on from Bharat EarthMovers, Bangalore

● Nissan Motor India has appointedSunil Rekhi as Deputy ChiefFinancial Officer. Sunil waspreviously the Chief FinancialOfficer at General Motors

● Anant Maheshwari has takenover as Managing Director atHoneywell Automation India

● Bhupendra Gupta has joinedEssar Projects as Vice President,Business Development, Doha from Sembawang where he was Manager, BusinessDevelopment, Doha

● S Sridhar has moved from L&Twhere he was Head of Operationsto join NIIT ESRI as President andChief Executive Officer

● Suresh Kumar has joined Marg as Chief Executive Officer. He wasearlier at UB Engineering as Head, Strategy and Business Development

Sources:

mospi.nic.in/iip_report.htm

http://www.altiusdirectory.com/Business/

indian-economy.php

equitymaster.com

Economic times

http://www.indiainbusiness.nic.in

INFRASTRUCTURE

The eleventh Five Year Plan envisages aninvestment of Rs 20,000 billion ($500billion) in the sector, with an increasedshare of private investment.The public-private investment ratio has seen asignificant change over the last decade,from 82:18 in 2002-03 to 65:35 in 2009-2010.This shift proves the fact thatinfrastructure has emerged as a hotfavourite for private equity (PE) players.In 2010 itself, 19 deals were being signedin the sector, with an investment of closeto Rs 5,000 crore, according to VentureIntelligence data.

We have witnessed many recentdevelopments in the overallinfrastructure sector, particularly insegments such as telecom, power,alternative energy, amongst others.

The Indian telecom sector rolled out itsfirst ever 3G spectrum auctions that willenable mobile operators to provide newand innovative services like mobile TV,high quality games and music, and alsoimprove voice quality.The state-run

mobile operator, BSNL is slated to rollout a tender for 5.5 million additionalGSM phone lines in the next fewmonths. It is expected that MobileNumber Portability (MNP) will belaunched before the end of this year,thus putting additional pressure ontelecom operators to improve theirservices.The exponential growth drivenby new investment models andtechnologies will put strain on acquiring and retaining the talent in the organisations.

The power sector witnessed heightenedactivity with the dawn of the dealseason.While BGR Energy Systemssigned two JVs with Hitachi of Japan,L&T finalised two JV companies withMitsubishi, Japan.Thermax joined handswith Babcock & Wilcox and SPX EnergyTechnologies. Some of the otherpartnerships on the anvil are BharatForge - Alstom; Ansaldo - GB Power andToshiba - JSW. A trend of talentmovement from conventional streamsinto the new thrust areas is putting

While the infrastructure sector is witnessing a steadyincrease in private sector investments, there are also agrowing number of partnerships being formed betweendomestic companies and MNCs. This essentially means a rise in the demand for sector specific talent in the near future.

A deal season in infrastructure

There are a host of key segments under the umbrella of the infrastructure sector.These include construction (airports, IT parks, roads, highways and bridges, railways,industrial plants, and townships, etc), ports, power and telecom services.

BY SURESH RAINA

pg.19


pressure on specific talent skills, primarilyproject management, design andengineering, project finance, amongseveral others.

In the alternative energy space, NationalSolar Mission was launched to create anenabling policy framework for thedeployment of 20,000 MW of solarpower by 2022. French major, Areva,announced Rs 13,300 crore plans forsolar energy. Several big companies likeTata BP, Moser Baer, KSK SuryaPhotovoltaic Ventures, Adani Power,Lanco Solar and Titan have alsoannounced their plans to invest in thesector. NTPC Vidyut Nigam has signedagreements with 16 independent solarpower producers to set up to 84 MWcapacity solar power projects.

In the roads and highways segment, theJV between Ramky Infrastructure andChinese firm Jiangsu ProvincialTransportation made news. PE firm Actis(Italy’s toll road builder), operatorAtlantia and Tata Realty andInfrastructure Limited (TRIL) formed a JVto bid for road projects. Kinetic Grouppartnered with Italian groupFGTecnopolo to provide design,architectural and detailed engineeringservices. SREI signed a JV with BNPParibas Lease Group (BPLG) while C&CConstructions signed a JV with IsoluxCorsan of Spain. Such increasingcollaboration of domestic companieswith MNCs is expected to increase therequirement for sector specific skills.Thiswill further create demand for peoplewho posses exposure to multinationalwork culture.

The government has announced plansto modernise and redevelop four metroand 35 non-metro airports andconstruction of seven greenfieldairports. Many Indian companies arebidding for airport developmentprojects in foreign markets.While GMRhas undertaken development work forthe Istanbul Airport, GVK plans to bid forairports in the Maldives. L&T is eyeingairport projects in the Middle East. AsIndian companies gain experience andscale their businesses beyond India, itwill lead to an increasing demand forcross-border hiring of talent, specialisingin specific project management skills.Jafza International, the global operationsarm of Economic Zones World of Dubai,UAE signed a JV with TRIL to developand operate a chain of business andlogistics parks across India.

● Chander Sheel Bansal, President,Transportation, Oil and Gasbusiness of Maytas Infra, isappointed as Chief ExecutiveOfficer of Rithwik Projects

● The Managing Director of GMRInfrastructure, GBS Raju resignedfrom his post and SrinivasBommidala has taken over thereins from him

● Kalyani Group company Kenersysappointed Paulo FernandoSoares as Group Chief ExecutiveOfficer. He was earlier ChiefExecutive Officer, Suzlon China

● Vimal Kaushik is appointed as theManaging Director and ChiefExecutive Officer of Maytas Infra.He was earlier Managing Directorof Punj Lloyd

● Pranab Chakraborty has movedfrom GMR Group as Vice PresidentEnergy Projects to Petron CivilEngineering as Executive Director

● S Sridhar, L&T’s Head ofOperations has moved to NIIT ESRI as President and ChiefOperating Officer

● Ashutosh Agarwala has movedfrom GMR Infra, Head CorporateFinance and Business Strategy toJindal Power as Director, Finance

● Maharshi Mehta took over asPresident at Kalpataru PowerTransmission USA

INSURANCE

However, the industry still has to addressmultiple issues – both old and new.Some of the industry highlights that we have been observing in recentmonths are:● Life insurance companies had to

introduce new products in September2010 to comply with the new IRDAguidelines, which will have asignificant impact on the industry inmultiple ways

● In the health insurance segment, thecashless facility in some hospitals wasterminated by public sectorcompanies. Some traction is achievedin setting up procedures and pricesfor medical services

● We have observed that generalinsurance companies are stilldeveloping retail general insurancestrategies.The corporate marketremains quite dynamic because of theongoing de-tariffing, and has startedto include product differentiation as well

● A public debate around commissionor fee-based remuneration of financialservices advisors affected the mutualfunds industry

● Capital management discussions,including increase in FDI to 49 percent, the allowance of hybrid capital, IPO and M&A havebeen witnessed

It has been estimated that at least seveninternational insurance companiesincluding Manulife, Allstate, CIGNA, ACEGroup,Travelers, Samsung Life and SwissRe are actively seeking to enter theIndian market.

Talent dynamicsOur research reveals that retaining talentappears to be the biggest challenge inthe industry, scoring even higher than‘sales and sales productivity’and ‘clientservices and retention.’Retention oftalent is underpinned by several CEOexits, including some of the ‘founding’

The insurance industry has witnessed a significant churnof top leadership, but high growth in health insuranceoffers attractive career opportunities. Potential newentrants are unfazed by regulatory turbulence.

Insurance goes the health way

The insurance industry grew at over 25 percent in the first five months of FY11, withhealth insurance emerging as the new growth engine registering an impressivegrowth of over 40 percent. At the same time, expense management is fast becoming

a key performance area in the industry. These trends signify that the industry is enteringits next stage of evolution.

BY YVO METZELAAR AND ARJUN ERRY

pg.21


persons in the industry moving to otherindustries. Finding a successor to the top talent has often taken more than ayear’s time.

Only a few companies in this industryhave been able to develop stable andsuccessful senior leadership teams withappropriate bench strength. Moreover,only two of the largest seven lifeinsurance companies have CEOs with over five years of experience in the industry.

Several senior leaders have moved onfrom the industry altogether. At timesthey have returned to their earlierindustries such as banking, financialservices and telecommunications. It hasbecome evident that most seniorleaders prefer other industries overinsurance having experienced the trueface of the industry and also becausethe initial attraction of being a sunriseindustry is now over.

Talent drain can also be fuelled by otherindustries, especially financial services.The industry has developed strongtalent in sales and distribution.This isespecially true for life insurancecompanies which may witness peoplemoving to the broader financial services

industry. A case in point is the intentionof one of the large financial servicescompanies, Reliance Capital, to hireabout 10,000 people in the upcoming phase.

The demand for talent is large anddiverse due to different playersdeveloping different strategies, and alsodepending on their strengths andweaknesses. It is crucial that the industryfinds ways to establish itself as anattractive employer as it was in its firstten years of operations.

Despite these challenges, there are stillmany fantastic opportunities in theindustry, and it must be realised that aten-year timeframe in insuranceparlance is actually a short-term.Only when talent is retained andexperience is gained, wisdom willemerge in the industry.

● Nitin Chopra has resigned fromhis post at Bharti AXA LifeInsurance as Chief ExecutiveOfficer. He has been replaced byGlenn Williams as the interimChief Executive Officer

● After a long search, Birla Sun LifeInsurance appointed Jayant Duaas its new Chief Executive Officer.He was a Senior Executive at theAditya Birla Group

● Mukul Gupta has accepted thepost of Chief Executive Officer atManulife International Limited

● Sandeep Bakshi took over asChief Executive Officer, ICICIPrudential Life Insurance, replacingV Vaidyanathan who has joinedFuture Capital

INVESTMENT BANKING

After a conservative 2009, corporateIndia is back on the acquisition track aswell, with companies striking over 80M&A deals in the first quarter of 2010itself. According to VC Circle's researcharm,VCCEdge, the cumulative deal valuehas touched nearly $50 billion betweenJanuary and July with a total of 411deals as compared to $16.3 billion in theentire 2009.The worldwide M&A activityhas also clearly seen an upswing withdeals adding up to $1.678 trillion, up 21percent from the previous year.The BRICcountries accounted for 18 percent ofthe M&A activity, a marked 65 percentupswing from 2009.

In some cases, stalwarts such as NipunGoel, Sonjoy Chatterjee and Ravi Kapoor

have been persuaded to cut decade-oldbanking ties.The need is explicit – toform corporate relationships, as the triobrings a combined experience of 40years in Merrill Lynch, ICICI Bank andCitibank respectively. After almost twoyears of virtually no M&A activities dueto the global liquidity crunch, money isback and businesses are keen to pick upthe pace. But it’s not just the fat cats whoare in demand. Deutsche Bank intendsto hire 1,500 people this year to supportits corporate finance and M&A advisorydivision in Asia.

As hundreds of deals and several M&As are formed inthe investment banking sector in the first half of 2010,banks are shoring up their advisory services too. Bothbig and small banks are looking at leveraging theirbusinesses and gaining from this positive market trend.

IB's second wind

After a lull during the global slowdown, investment banking has witnessed a sharpupward trend fuelled by the growing number of deals and the investmentsheading north. Some can call it zeitgeist. ICICI Securities recently set up a team

within its PE advisory practice to service the fund raising plans of early stage growthfirms. Gopa Kumar’s team will focus on deals in the $5-15 million bracket, and is hoping tohit 12-15 transactions per year. Clearly, it’s no pipe dream as the first half of 2010 has beena hotbed of PE activity. The period saw 155 deals being signed. With PE firms investing in220 companies deploying $5 billion, it’s clear why investment banks are shoring up theiradvisory services. With over ten deals exceeding the $100 million mark in 2010,investment bankers are not only playing a pivotal advisory role but also laughing all theway to the bank.

BY SUNIT MEHRA AND AMANPREET SINGH

pg.23


● Investment Banking veteran,Narayan Ramachandran has quitas the Chief Executive Officer ofMorgan Stanley India

● Bank of America Merrill Lynch hasappointed Atul Singh to head itsIndia advisory business

● Nomura appointed Nipun Goel as Head, Investment Banking.He has worked for 14 years atMerrill Lynch

● Morgan Stanley got on board PJ Naik, former Axis BankChairman as the Country Head andChief Executive Officer for India

● Pramit Jhaveri was appointed asIndia Country Officer at Citigroup

● VK Bansal came aboard MorganStanley as the Chairman ofInvestment Banking in India

● Ravi Kapoor has joined Citigroupto head its Investment Bankingdivision. He was previously withDSP Merrill for nearly a decade

● Credit Suisse hired VedikaBhandarkar and SandeepPangal to head its InvestmentBanking business. Both are JPMorgan veterans

● Karan Bhagat was appointed asthe Managing Director andCountry Head at Barclays in Indiawhile Avendus Capital got MunishRandev on board as Head ofProduct and Advisory Services

● Sanjoy Chatterjee, ICICI Bank’sboard member joined GoldmanSachs as the Co-head with Brooks Entwistle

● Asit Bhatia joined Bank ofAmerica Merrill Lynch as ManagingDirector for Corporate andInvestment Banking

● Rohit Chatterjee was appointedthe new Head of I-banking at JP Morgan

● Anshu Jain was appointed asHead of the Corporate andInvestment Banking business at Deutsche Bank. He waspreviously heading the GlobalMarkets division

● Sunil Sanghai joined HSBC asHead, Global Banking. He waspreviously with Goldman Sachs asCo-head, Investment Banking

● Citigroup has appointed RahulShukla as Head, CorporateBanking, India

● V Anantharaman returned toStandard Chartered as ManagingDirector and Head, CorporateFinance and Advisory. He hadearlier left Standard Chartered toset up Credit Suisse’s InvestmentBanking operations in India

● Citigroup appointed Pankaj Vaishas Head, Markets for India,Bangladesh and Sri Lanka. Prior tothis, he was Managing Director andHead, Equities at Nomura

● Nalin Nayyar joined ReligareCapital Markets as I-banking Head.He was previously with CitigroupGlobal Markets

● Abrar Mir has been appointed asGlobal Head, HealthcareInvestment Banking in ReligareCapital Markets. He was theManaging Partner at NBD SanaCapital in the Middle East

● Nomura brought in IndraneilBorkakoty as Head, Equity CapitalMarkets. He was previously withKotak Mahindra as Head, ECM

INFORMATION TECHNOLOGY

Domestic ITThe domestic IT spend is fuelled bysecular domestic growth, an emphasison financial inclusion and a big pushtoward e-governance. For example, theUnique Identification project is expectedto have a budget of Rs 15,000-20,000crore over the next few years, accordingto industry experts.The banking,financial services and insurance (BFSI)sector’s push for delivering products inrural areas will need an IT investment ofRs 10,000 crore. SR Rao, AdditionalSecretary, IT in the Union Ministry ofCommunications and IT announced thatprojects worth Rs 8,000 crore may go toprivate software companies this year.Likewise, global expansion andmodernisation have increased the ITspend in sectors such as manufacturing,industrial, travel and transportation, etc.

Traditionally, big companies such as IBM,TCS,Wipro and HCL dominated thedomestic IT market. However, we now

observe other tier-1 and tier-2 IT serviceproviders/ SIs increasing their focus onIndia.This is driven by two factors.Thefirst is the increase in domestic IT spend.The second factor is the need for serviceproviders to have a more balancedgeographic portfolio for mitigating risks.Recent examples of companies whichhave started, or expanded, theirdomestic operations include the likes ofInfosys, Mahindra Satyam, Patni and NIIT Technologies.

With a strong domestic demand, webelieve there will be an increaseddemand for senior talent in areas such assales – to take advantage of thedomestic opportunity and aggressivelyexpand business; solution provisioning –to architect and bid for partnerships thatare becoming increasingly complex;delivery – with larger and more complexprojects being bagged, a robust deliverymechanism will be needed; technology– with companies moving to newer

The expansion of the domestic IT industry is fuelled byincrease in government investment and the tier-1 andtier-2 companies taking interest in the growth story.The IT services sector has witnessed a rise in foreignacquisitions while outsourcing and off-shoring havecontinued to grow.

IT industry focuses on India

India in focus is the new mantra in the IT industry. The numbers tell a story – the IndianIT-BPO industry aggregated revenues worth $73.1 billion in FY10, a growth of 5.4percent over FY09. As per an annual survey conducted by the National Association of

Software and Service Companies (NASSCOM), the domestic IT and BPO industry will growat 15-17 percent, while exports will grow at 13-15 percent in the current fiscal.

BY ARJUN ERRY AND ANNE PRABHU

pg.25


models and platforms like cloudcomputing, professionals with soundtechnical knowledge would be required.

IT servicesThe economic and business slowdownhas created a need for global companiesto cut costs through several methodsincluding platform consolidation, vendormanagement and outsourcing non-coreprocesses.Therefore, outsourcing andoff-shoring of IT and processes continueto remain a specific goal for most mid tolarge enterprises in the developedmarkets. In addition, the recent financialcrisis has created demand spikes innewer areas – compliance with Basel IIImeans an increased IT spend in financialservices to a great extent.

The IT services industry is responding tochanged customer needs by buildinggreater efficiencies in service deliveryand creative business/ payment models.IT service providers are increasing theirofferings to provide complete solutions,spanning across applicationsdevelopment and maintenance, testing,infrastructure management services andmanaging business processes. Forexample, HP now offers a completerange of products and services throughits acquisitions of EDS, MphasiS andFortify Infrastructure Services.

Effective client engagement in anintensely competitive environment hasalso led to another definite trend. ITcompanies are increasing their presenceclose shore, either by setting upsubsidiaries, or through acquisitions inthe US and the UK. Examples include

TCS’acquisition of Unisys Insurance,Sonata opening an office in theNetherlands and Wipro Technologies’acquisition of Citibank’s data centre in Germany.

The IT industry remained a net-positivehirer with increased demand for talentacross sales, operations and technology.Firms are also building competenciesand acquiring talent through the M&Aroute. For example, Aegis entered the ITspace with the acquisition of AGSNetworks and MindTree acquired7Strata to strengthen its infrastructuremanagement services business.

● Wipro has brought former ForeignSecretary Shyam Saran on its Board

● Syntel appointed PrashantRanade from Siemens as ChiefExecutive Officer and President

● Quest Software named ShailenderKumar from Oracle India asManaging Director for its Indian operations

● Patni Computer Systems appointedNaresh L Lakhanpal fromDeloitte & Touche to head itsAmerican operations

● Patni Computer Systems broughtin V Mathivanan from SingaporeNetwork Services as President of itsAsia Pacific operations

● Shailendra Aragula is the newCountry Manager, India forLexmark International. He wasearlier working withSemantic Defence

● L&T got onboard Keshab Pandaas the Chief Executive Officer for itsIntegrated Engineering Servicesfrom Satyam

● Mukund Surange left IBM to join as Chief Executive Officer at eGestalt

● Cybernet-SlashSupport (CSS)appointed Nick Sharma as ChiefExecutive Officer. He was earlierleading the InfrastructureManagement Services at Satyam

● Accenture hired KennethTaromina as the ManagingDirector of its Engineering Servicesbusiness from Satyam

LOGISTICS

The excitement in the logistics sector isgrowing with the increase in dollarinflow. It is also among the top foursectors for PE investments. A notableexample in this regard is Blackstone’s$245 million investment in Gateway RailFreight. MNCs are also eyeing a share inthe logistics pie. For instance, HitachiTransport System acquired the domesticcompany, Fly Jack Logistics, to provideitself a strong foothold in India. BDPInternational, a $1.6 billion US company,has also entered a joint venture withMumbai-based UGL.

The trends observed in the logisticssector and its demand and impact ontalent have been of much interest forthe industry experts.With infrastructurebeing a huge bottleneck for the sector,there is an increased investment on

assets and infrastructure such as ports,warehouses, freight stations, cold chainscontainer logistics and inland containerdepots, etc. For example, ArshiyaInternational plans to invest Rs 25 billionto set up five Free Trade andWarehousing Zones across India. Inanother case, Gateway Distriparksexpects its unit’s terminal business todrive growth, going forward.With theneed to develop infrastructure andenable businesses, there is a demand forleaders who can develop and growoperations in an evolving marketplace.Besides industry expertise and ability toscale businesses, the ability tocollaborate with external stakeholdersand government agencies is a criticalprerequisite, too.With steep competitionamong third party logistics players,another trend that has come into the

The logistics sector is estimated to grow rapidly with theincrease in government’s investment as well as rise indollar inflow. A diversified leadership, which can fosterthe development of infrastructure and create uniquebrand value, is required to take the industry to its nextlevel of growth.

Logistics seeshigh cash inflow

The logistics industry is valued at $125 billion in 2010, and is expected to grow at aCAGR of 8 percent over the next three to five years. This growth is fuelled by thegovernment’s increasing spend on infrastructure (from its current 3-4 percent of the

GDP to 9 percent by the year 2012) coupled with robust industrial growth (Index ofIndustrial Production was at 10.3 percent in March 2010, compared to 2.8 percent in theprevious year) and streamlining tax structures. With these enablers in the right place, thesector is evolving. And this growth was much needed, considering that the logistics costin India is among the most prohibitive in the world. It is 13 to 15 percent of the GDP ascompared to around 10 percent in the developed world (Source CII).

BY ANNE PRABHU

pg.27


limelight is to provide innovative andunique value-added services forestablishing the brand’s USP. In such asituation, the leadership is expected tostrengthen services capability throughbest practices, innovation and superiortechnology. Hence, attributes such asprior experience of working in world-class organisations, with best-in-classprocesses and the ability to scale upbusiness are crucial while choosing theleadership talent.

As the logistics industry is gainingtraction, it is observed that a lot of seniorexecutives are shifting from diversesectors to the logistics sector to becomea part of this exciting space. For instance,Café Coffee Day recently appointed KushDesai as the Head of its LogisticsInfrastructure in India. He was earlier

Managing Director of SAP Labs.Yatheesh Naliyanda Govind joined RLCas General Manager, Sales, from hisprevious capacity at Microsoft, where heled the channels business for OEM sales.

● APL Logistics has namedSiddharth Adya as its ManagingDirector, South Asia. He will alsowork alongside the IndiaLinxmanagement team on thecontinued development of APLLogistics’ presence within India’srail freight network and leadcollaboration with the linerbusiness. He relocated from APL Singapore

● Samar Nath joined CEVA Logisticsas Managing Director, India andSouth Asia. He was previously theManaging Director, South Asia ofAPL Logistics

● Mukesh Shah joined Easter Cargoin the capacity of Chief ExecutiveOfficer. He was previously withCEVA Logistics

● Sanjay Rai, Vice President andHead, People Logistics andInternational Business at Mahindra Logistics has co-foundedLeeway Logistics

● Vinay Shroff, Vice President,Reliance Industries joined JSWSteel as Head, Retail and Logistics

● Anurag Chatterjee joined GatiLimited as Head, AirfreightBusiness. He was earlier Head,Business Development and Salesfor ALF Logistics

PRIVATE EQUITY

The mood is clearly upbeat in the sector,especially with CII’s Business ConfidenceIndex up 1.5 points, and this buoyancy ismirrored in the number of deals beingsigned.The year has seen at least tendeals surpassing the $100 million mark.The infrastructure sector has foundfavour with PE investors, so didmanufacturing. IT/ITeS once again ledthe volumes.

Fund-raising is on a comeback trail withboth institutions and personalities onthe fund raising spree. ICICI Ventureexpects to raise approximately $1 billionin three funds in the infrastructure, realestate and offshore space, while BTSInvestment Advisors is eyeing a $100million clean-tech fund. Meanwhile, BCPAdvisors, Peepul Capital and EverstoneCapital are also in the fund-raisingmood. 2i Capital,Tano Capital andCentrum want to constitute sectoragnostic funds, with the latter twopegged at $150 million and $200 million

respectively. In the last two years, fundsfocusing ‘exclusively on India’moppedup close to $4.2 billion in 2008 andabout $2.9 billion in 2009, making 2010a year that heralds a return of the goodtimes.The likes of Blue River Capital andIL&FS Investment Managers areconsidering the creation of a $200million and a $400 million sectoragnostic fund respectively. Meanwhile,Motilal Oswal wants to raise a $300million SME fund, whereas IDFC is keenon building a real estate fund.

Another significant trend in the privateequity sector is the marked shift frominstitutional to individual platforms,creating a new brand of GeneralPartners (GPs), who are seeking bothfunds and talent.While this evolutionclearly points towards the growingmaturity of the Indian PE market, it isalso an acid test for the ability of IndianPE professionals to create firms that canwin the confidence of global LPs.

The PE sector is upbeat with fund-raising making acomeback and several big deals being signed. The sectorhas also witnessed a sharp rise of personality-led funds.With LPs and GPs making more investments, the sector isexpected to be on a high in the upcoming months.

The fall and rise of private equity

The year 2010 has witnessed circumspect Limited Partners (LPs) loosening their purse strings once again. Fund raising is on a rebound, albeit with a caveat. LPs want to ensure exits before re-investing in the sector. In line with the appeasement

theory, the first nine months of 2010 observed 109 private equity (PE) backed exits worth $3.5 billion.

BY SUNIT MEHRA AND AMANPREET SINGH

pg.29


The sector has experienced a rise in thenumber of personality-led funds.Renuka Ramnath at Multiples AssetManagement and Ajay Relan at CXPartners have already managedcredible firsts with Multiples pegged at$350 million and CX at $500 million.Other veterans on the road include thelikes of Subbu Subramaniam’s MCapFund Advisors;Warburg Pincus’ formerManaging Director, Rajesh Khanna;CVCI’s Ex-Managing Director, PRSrinivasan with Exponentia Capital;General Atlantic’s former ManagingDirector, Raul Rai; and Aureos India’serstwhile Co-Managing Partner, NileshMehta.The former ICICI Venture trio—Jayanta Banerjee, Sunay Mathure andAnand Vyas—are also in the fund-raising mode with Pravi Capital. Apartfrom these seasoned professionals,Harsha Raghavan and Neeraj Bhargavaof Steer Capital; former LightspeedVenture Partner’s Managing Director,Sreeni Vudayagiri and former co-founder of Jumpstartup, GanapathySubramaniam with Stega Capital andMohan Lakhamraju, Managing Directorof Tiger Global have also joined theleague of promoter-led funds.

These trends are driving home the fact that emerging markets are clearlythe hotspots for PE investments as they captured 9 percent of the global PE funds raised and 26 percent of the investments.

● Bessemer Venture Partnerspromoted Vishal Gupta to thepost of Managing Director. Guptajoined BVP India from Reliance

● Mahesh Chhabria moved to Actisas a Partner. He was a Partner with3i Group

● Rajiv Shukla joined MorganStanley Investment Managementas Managing Director based inLondon from ICICI Venture, wherehe was Investment Director

● Shapoorji Pallonji hired RajeshAgarwal, former AIG Global RealEstate Head as its ManagingDirector

● Sunil Nair replaced PR Srinivasanas Head of Citi India’s PE business

● Tata Capital named Tata veteranMukund Govind Rajan asManaging Partner for its PE arm

● Dinesh Tiwari joined MultiplesAsset Management as Partner. Hewas the Executive Director of JPMorgan Private Capital Asia

● Luis Miranda is expected to stepdown as Head of IDFC PE inNovember, and will remain onboard as the Non-ExecutiveChairman of the firm

● ICICI Venture hired MannikanSangameswaran, former Head ofBabcock & Brown as President

● Nexus Venture Partners hiredAnup Gupta as ManagingDirector. Gupta was previously theChief Operating Officer of WNSHoldings

● Vindi Banga, former Member ofthe Unilever Executive Boardjoined Clayton, Dubilier & Rice asan Operating Partner in London

● Vibhav Panandiker plans to quitas Managing Director, JP MorganPrivate Capital Asia

● Former Chief Executive Officer ofGE India, Scott Bayman joinedLumis Partners

● Standard Chartered PE’s DhirajPoddar is set to join TA Associatesas Director

● KKR roped in Heramb Hajarnavisas Director. He was previously theManaging Director at GoldmanSach’s Principal Investments

Highlights● 155 deals being signed● PE firms invested in

220 companies ● PE firms made 77 exits in the

same period● Dollars deployed in Indian

companies stood at $5 billionin the first six months, morethan what the entire 2009totalled at

Source:VCCEdge

REAL ESTATE

Finance TalentWe observe that RE companies arelooking to hire business-savvyexecutives with excellent presentationskills. This is all the more acute in sectorsthat have seen strong FDI and REITinflows.These include SEZs, townships,retail and commercial properties,multiplexes and residential.The DIPPestimates these sectors attracted $8.4billion foreign direct investment (FDI)from 2000 to 2010.

Discerning investors demand in-depthanalysis and reports – this is a skill-setwhich real estate developers did notlook for as recently as five years ago.While land acquisition and constructionskills are localised, and developers preferto hire specialists familiar with theregion, finance is a fungible skill.

Examples include:● Pradumna Kanodia was wooed by

Pune-based Panchshil Realty fromSobha Developers in Bangalore for hisfund-raising and structuring skills.More recently, Pradumna moved on tojoin Phoenix Realty in Mumbai

● Deepak Singhal, CFO at Shipra Estateshas worked in the auto componentand telecommunications industries,with no prior real estate expertise

● Oberoi Realty’s marketing head washired from the IT services industry

Super TowersAnother emerging trend is linked to thenew ‘super tower’era. Examples of ‘supertower’projects launched in Mumbaiinclude:● Lodha’s marquee project at Upper

Worli – World One● Indiabulls’Sky – three distinct

high rise offerings● Oberoi Realty’s efforts to obtain

clearances to develop a super tower at Worli

Circa 2010: The real estate sector is booming in India.Every week, news headlines broadcast the launch of anew project. As per an intelligence report prepared byJones Lang LaSalle Meghraj, currently the market valueof projects under construction in India exceeds $100 billion.

Towering times

Linked to the spurt in projects, we have witnessed a spike in hiring. The CEO of one ofMumbai’s leading residential developers stated that his company has created newpositions, and the demand for talent has picked up in the last 18 months. This is

impacting compensations on both dimensions, viz new hiring and appraisal-linkedincrements. We estimate that senior managements in real estate have seen theircompensation increase 20-40 percent year-on-year.

BY SUNISHI GABHAWALA

pg.31


We anticipate that the demand forproject managers, construction expertsand technology leaders with specific‘super tower’experience will rise in linewith the number of project launches.We expect this demand to be filled withinternational/ expatriate talent from theMiddle East, South East Asia and thePeople’s Republic of China. Of these, theUAE seems to be the happy huntingground, perhaps driven by the‘international’ talent in the region andthe current economic downturn.

Examples include:● DB Realty has hired two professionals

from the London-based constructioncompany, Bovis Lend Lease to lead the 100 storey plus hospitality projectplanned at Marine Drive

● Delhi-based Shipra Estates recentlyhired the head of projects from aJapanese MNC operating in the region

● A privately-owned Mumbai developerhired two construction experts fromETA Star, a Dubai-based company

Expatriate HiringWe observe that the demand forexpatriate talent triggers someorganisational anomalies. Chief amongstthese is the compensation parity. Giventhe disparity in compensations betweenexpatriates and local professionals, realestate companies prefer employingexpatriates on fixed-term contractualagreements. This pre-empts the need torestructure compensations across theentire organisation. Another trend wehave observed is to retain internationalarchitects, in effect buying the talentdeliverables en masse.

Examples of this practice:● Tata Realty has retained US-based

architect firm, SOM, to create themaster plan for an SEZ in Chennai

● Sasaki, which developed the BeijingOlympics Village, has been retained byLodha to develop Casa Bella Gold, atownship in Dombivli, Maharashtra

● The Government of SingaporeInvestment Corporation (GIC) hasappointed Kishore Gotety,formerly Country Head at RREEFAlternative Investments

● Pradumna Kanodia joinedPhoenix Mills as Group ChiefFinancial Officer in March 2010.Prior to this, he was Chief FinancialOfficer at Panchshil Realty

● Prestige Group has appointedAnand Basal as Assistant VicePresident. Earlier, he wasdesignated as General Manager,South at K Raheja Corporation

● Shaishav Dharia joined LodhaGroup as the Head of Strategy. Hecomes from McKinsey & Companywhere he was an Associate Partner

● Deo Kumar Madhukar has beenpromoted to Head, Sales andMarketing at Indiabulls Real Estate

● Sudhir Kulkarni who was Vice President, Real Estate atRaymond has joined RahejaUniversal as Senior Vice President,Corporate Strategy

● South Asian Real Estate (SARE)appointed Arvind Pahwa as Chief Executive of India operations.Prior to SARE, Arvind headed RealEstate at JP Morgan for the India region

● Nimesh Grover joined IDFC asSenior Managing Director. Prior tothis, he was working with UBS (KRaheja Corp initiative) as ChiefInvestment Advisor, Funds

● Avnish Singh has moved out ofGE Capital Real Estate and joinedTishman Speyer as ManagingDirector and Head AcquisitionsIndia

● Bharat Dhuppar moved out ofLodha Group in May 2010 andjoined Mantri Developers as ChiefMarketing Officer

The growth forecast has boosted theconsumer confidence levels, which isevident from the upsurge in the FMCGindustry with sales growth of 14 percentyear-on-year (April 2010), the highestsales growth in the last eight months.This rise can be attributed to initiativesby companies in terms of expansion oftheir rural reach, low priced packs,consumer activation measures, et al.There is also likelihood of a recoverybased on the normal monsoons; thussupporting consumption and ruralgrowth.The domestic demand isshowing signs of strength, and is likely toremain so in the near term, which augurswell for the retail and consumer sector.

A recent survey on ‘The Best Companiesto Work for’ found that Godrej ConsumerProducts Limited has topped the list ofFMCG companies (Source:The EconomicTimes).The company has also registereda maximum volume growth.Theemployee engagement initiatives with astrong emphasis on learning and

development have helped Godrej toenergise and accelerate the learningprocess and bring about a strong senseof loyalty and belongingness among its employees.

With the increasing importance ofreaching out to the rural hinterland forsustainable future growth, a criticalleadership talent with provencapabilities to scale-up and build on theinitial growth already experienced in therural markets (or at the bottom of thepyramid) is required. Additionally, priorexposure of navigating the markets intier-2 cities, sensitivity to the needs ofconsumers in local communities (keyconsumer insights) and building highenergy teams are much valuedcompetencies in the top leadership. Andthis talent is crucial considering the factthat the next wave of growth in theretail sector is expected to emerge fromthe tier-2 towns and cities.

The retail and consumer goods sector has experienced high sales growth this year fuelled by a recoveringeconomy. To embark on the next wave of growth, whichis expected to emerge from the tier 2 and tier 3 cities,the sector requires leadership with deep insights onconsumer as well as shopper purchasing behaviour.

Retail and FMCG aim to penetrate the hinterland

The economy is showing signs of resurgence, and the market is back in positiveterritory with the BSE Sensex reaching its highest level since February 2008. TheInternational Monetary Fund (IMF) has forecasted an aggressive 9.4 percent

economic growth for India; albeit a more realistic GDP growth of 8.2 percent is predictedby Goldman Sachs.

RETAIL AND CONSUMER

BY YOGESH CHOPRA

pg.33

PEOPLE MOVEMENT

Retail giants like Future Group, MetroCash & Carry and Bharti Walmart haveentered into alliances with microfinancecompanies to sell merchandise on creditto local kirana shops.These pilot projectswill demonstrate that the big retailcompanies and the small kirana shopscan co-exist and fuel each others’growthin the yet untapped mofussil market. Ifthese experiments prove to besuccessful, it will result in thedevelopment of these markets andefficient sourcing for the small kiranashops.This will further result in lowerprices for the end consumer.

Another emerging area of competitivesustainable advantage—for bothconsumer companies as well as retailorganisations—is to gain an in-depthunderstanding of not only thecustomers (traders, distributors, retailers,etc), but also the shoppers. Gainingexposure to shoppers’buying behaviourwill help in developing an expertise inpackaging, merchandising, trademarketing and consumer activation.Thiswill further ensure a positive impact oninfluencing the ultimate purchasedecision of the shoppers.This promisesto open an entire gamut of professionalswith expertise on shopper insights.Thiswill be crucial in addressing almost 66percent of the Asian shoppers, whomake their final purchase decision in-

store.The market is dealing with a newbreed of shoppers who walk into a retailstore without any pre-determined ideasabout the categories or brands theyintend to buy (Source: Forbes).

Finally, analytics is an emerging area thatfocuses on the wealth of data availableon the retail and consumer sector. Itpresents an opportunity for the retailprofessionals to analyse these data andgain a competitive edge for influencingcritical decisions.There is also a need fortalent to establish credibility, driveutilisation of analytics and ROI metrics;and to improve efficiency in inventoryforecasting, category and branddynamics, promotion effectiveness, etc.

There is a movement of leadership talent from India to regional responsibilities. A few moves from consumer companies to the retail sector may indicate the opportunitiesfor future growth.

● Vibha Rishi, part of the internationalmarketing team at PepsiCoheadquarters, has joined the Future Group

● Rajeev Bakshi has been appointedas the Vice President and ManagingDirector of Metro Cash & Carry, India.Prior to this, he served as theChairman of PepsiCo Holdings,India before moving to the beverage giant’s Asia headquartersin Hong Kong

● Sanjay Purohit, the erstwhile AsiaPacific Head for chocolates atCadbury, has accepted an offer tobecome the Managing Director atLevi Strauss & Co, overlooking itsIndian operations. Recently, the USfood major Kraft has acquired the UKheadquartered Cadbury

● Shumone Chatterjee, ManagingDirector of Levi Strauss India, hasassumed regional responsibility asthe Marketing Head at the AsiaPacific headquarters of Levi Strauss

● K Radhakrishnan moved toPantaloon Retail to head its FarmFresh division. He had earlierestablished Food World for Spencer’sRetail and also handled thehypermarket and value retail formatat Reliance Retail

Growth across FMCG Companies

Godrej Consumer 20.4%Procter & Gamble 18.4%Nestle 14%Dabur 7.6%Tata Tea 6.8%Hindustan Unilever Limited 3.8%Marico 3.2%Growth of FMCG 14%

Source: Nielsen

RETAIL FINANCIAL SERVICES

Most players in the industry, who wereon an aggressive drive to build theirretail portfolio prior to the subprimecrisis, burnt their fingers on unbridledacquisition of unsecured assets –personal loans and credit cards. Thelessons learnt have led to cautiousoptimism, as the trends show signs ofa revival over the past six months.A mixed revival is seen in the creditcards segment. The average annualcredit card spend grew by 26 percentcompared to 18 percent in 2007-08.

However, the number of cardsdeclined steeply. In the year, 2007-08the number of credit cards wasestimated at 28.31million, while in2008-09 it came down to 18.28million. However, the base hasexpanded by over a million cardswithin a month to 19.29 million tillApril 2010.

The relative numbers are as follows:

ICICI Bank 7.0 millionHDFC Bank 4.6 millionSBI 2.5 millionCitibank 2.0 million HSBC 1.4 millionStandard Chartered 1.1 million

New entrants like Yes Bank are lookingto build a cards portfolio. Hence it hashired Vinayak Prasad from ICICI Bank tohead its premium cards business.Sudipta Roy has moved from his role ofDirector and Head of Cards, DeutscheBank to join ICICI Bank as Head ofProducts and Portfolio (Credit Cards).

The retail financial services industry haswitnessed an increasing trend ofconsolidation as well. It has beenobserved that there is an internalmovement of talent within the industry,

The retail financial services sector is showing signs ofrevival with the growth in the credit cards segment andan increasing trend of consolidation. The entry of creditbureaus and the focus on growing the secured assetsportfolio promise to fuel the industry’s growth further.

Cautious optimism inretail financialservices

The opportunity of retail financial services in the country is unquestionablystupendous, considering the demographic dividend of a large young populationand the GDP growth based on domestic consumption as against exports. The need

for financial inclusion is also paramount as nearly half of India’s population still has no access to even basic banking services. This essentially means an immediate need for freeing up bank branches or issuing new banking licences that can cater to the unbanked population.

BY YOGESH CHOPRA

pg.35


from multinational banks to privatebanks that are looking to enter the fray.Shanta Vellury moved from his role asHead of Cards Acquisition, AmericanExpress to join as EVP, Retail andConsumer Banking at Ratnakar Bank.Kushal Roy has accepted to head theCards division at ICICI Bank.

The sector has witnessed a few potentialmergers and acquisitions too. Forinstance, HSBC Holdings Plc is slated topurchase Royal Bank of Scotland GroupPlc’s retail and commercial bankingbusinesses in India that involvesportfolios with a gross asset value of$1.8 billion as on March 31, 2010. On theother hand, Shriram Group has droppedits plans to acquire Citibank’s ailingconsumer finance arm, CitiFinancialIndia.The potential bidders are LakshmiVilas Bank and Kotak Mahindra Bank.

There is an increased focus on growingthe secured assets portfolio such asmortgages and auto loans. Indian homebuyers have also made a comeback tothe market after more than a year ofsubdued activity.This trend is fuelled bythe drop in prices to about 25-40percent.The four largest players in thebanks and housing finance segment areHDFC, SBI, ICICI Bank and LIC HousingFinance.The giants accounted for nearly53 percent of the market share at theend of 2009.

The fortunes of the auto financeindustry are inextricably linked with theperformance of the automobile industry,which has seen a strong year-on-yeargrowth for the past five years (CAGR of

14.28 percent). As a result, there hasbeen a sustainable growth in the autofinance portfolio of banks.

The emergence of credit bureaus willprovide a more robust environment forgrowth in the industry. Samir Bhatia, theerstwhile Managing Director of BarclaysIndia has joined as the ManagingDirector and Chief Executive Officer ofEquifax Credit Information Company.

High Mark Information Services, anothersoon to be launched credit bureau inIndia, will focus on innovationsconcentrating on ‘uniquely Indianproblems.’Lafferty Group recentlylaunched its operations in the country. Itaims at providing market insights andintelligence in retail banking, cards andpersonal financial services.

● Shyam Srinivasan has movedfrom his position as Head,Consumer Banking at StandardChartered Bank to join asManaging Director and ChiefExecutive Officer at Federal Bank

● PR Somasundaram has joined asManaging Director and ChiefExecutive Officer at Lakshmi VilasBank. He was earlier the ManagingDirector and Chief ExecutiveOfficer at Standard Chartered Bank(STCI Capital Markets)

● Anil Kothuri has accepted toHead the Retail Finance division at Edelweiss. Earlier he was theHead, Auto Loans and CitiBusinessat Citibank

● Nitin Chopra moved from his roleof Chief Executive Officer at BhartiAXA Life Insurance to Head theRetail wing at The Ratnakar Bank

● Ravi Subramanian has joined asChief Executive Officer at ShriramCity Union Finance. He was earlierheading the Retail Assets andCards division at HSBC

● Arvind Hali has moved from hiscapacity as Group Business Head,Mortgages and Unsecured Loans,Reliance Capital to join as Head,Retail Assets and Credit Cards atDhanalakshmi Bank

Source: Business India, Economic Times, ICRA Report

WHOLESALE BANKING

We have noticed a few trends in thewholesale banking segment in therecent months:● The market is witnessing a

discontinuous growth driven by theentry of new products and services.To achieve this growth, there is arequirement for new skill-sets in sales and marketing, product design, credit and operations

● Banks will no longer enjoy windfalltreasury gains, which resulted from a decline in interest rates.Thiswill put pressure on the weaker banks

● With rising levels of interest in India, the competition from foreignbanks is set to intensify in the nearfuture, thus putting pressure ondomestic banks—both public andprivate—to enhance theirperformance

● Consumers are expected toincreasingly demand enhanced

institutional capabilities and higherlevels of service from banks

● There might be an increase in themovement of talent in the sector,especially professionals from overseasmarkets accepting job offers in India

Management imperatives will differ fromone bank to another. However, there willbe some common themes acrossdifferent classes of banks.The old privatesector banks need to fundamentallystrengthen their skill-sets. However, evenmore important is the need to reviewtheir own participation in the Indianbanking sector and their ability toremain independent in the light of thediscontinuities in the sector.The newprivate banks could reach the next levelof growth in the Indian banking sectorby continuing to innovate and developdifferentiated business models.Theyshould look to profitably serve segments

The wholesale banking segment in India is in a transitionphase as the market gradually opens up for foreignbanks. With new products and services and an increasein product and service expectations, the segment is likely to witness fierce competition in the race for the customer.

Wholesale banking set for aparadigm shift

Banking services are offered to institutional customers as well as to corporations. Theservices list includes treasury operations, cash management, forex, leasing, capitalmarkets, merchant banking and trust services. A large number of wholesale banking

clients also account for off-balance sheet businesses. This set of clients has immensestrategic value for the banks as there is a wide scope to garner other business from themas well. Treasury operations are important for managing the funding requirements of thebank. Treasury income also forms a significant component of the earnings of banks.

BY SURESH RAINA

pg.37


like the rural and low income andaffluent and high net-worth individuals;and also actively increase acquisitions asa means to grow and reach the nextlevel of performance in their servicesplatform. Attracting, developing andretaining more leadership capacitywould be the key to achieving this. Atthe same time, this might pose as thebiggest challenge.

The foreign banks will need to adoptalternative approaches to win the ‘racefor the customer’and build a value-creating customer franchise as theReserve Bank of India (RBI) graduallyopens up the sector. At the same time,they should stay in the game forpotential acquisition opportunities asand when they appear in the near-term.Maintaining a fundamentally long-termvalue-creation mindset will be theirgreatest challenge.

● Amit Malviya moved from his roleat HSBC Bank as Senior VicePresident to Bank of America MerillLynch, Corporate Banking - GlobalTreasury Sales, South

● Ajay Marwah moved fromNomura, in the role of Head ofFixed Income to Daiwa CapitalMarkets as Head of Fixed Income

● Rashmi Mohanty moved fromDeutsche Bank, Director,Global Markets to Religare as Director, Treasury

● Ravi Kumar moved from his role as Citibank’s Vice President and Country Treasurer to joinStandard Chartered Bank as itsTreasury Head

● Anita Yadav joined NomuraTreasury as Managing Director andHead of Global Marketsmovedfrom Deutsche Bank’s DeskStrategist and Head of CreditResearch for Asia

● Rajiv Nayar moved from Citibank,Head of Citi’s Capital Management,Hong Kong to Citibank’s Head ofCapital Markets Origination, India

● Ajay Sawhney moved from Bank of America Merrill Lynch, Head ofLeveraged Finance to StandardChartered as Head of DebtProducts, Southeast Asia

● Sanjeev Bajaj moved from JM Financial to Credit Suisse asHead of Fixed Income. Sanjeev was the Managing Director andCEO of the Fixed Income businessat JM Financial

Highlights● Standard Chartered Bank’s India

operations pre-tax profit has risen 19percent to $624 million (Rs 2,883 crore)for the first half of 2010, making Indiathe single largest contributor toStandard Chartered Bank Plc’s profit.Among business segments, Indianwholesale banking operations continueto be the largest profit contributor ($517 million) to the group

● Bank of America Merrill Lynch re-emphasised its focus on wholesalebanking by bringing on board KakuNakhate as its President and CountryHead.The bank is working to increase itsproduct penetration to enhance itsrelationships in the banking, investmentbanking and the securities businesses

● Several global banks have approachedRBI for a banking licence in India.Goldman Sachs and Australia and NewZealand (ANZ) Banking Group are some of the banks which plan tocommence their corporate bankingservices to the top-tier corporates andfinancial institutions

● Credit Suisse has received the licence toopen branches in India.With this, theSwiss bank can now offer a wide rangeof its available products, includingwholesale banking to Indian businesses

● The Rabobank Group sold an 11 percentstake in India’s Yes Bank to meetregulatory requirements as it seeks a fullbanking licence.The bank aims to set upits own corporate and wholesalebanking business

● ING Vysya became the second foreignfinancial group to exit a minorityholding in India as international banksreviewed their position in the fast-growing market.The Dutch major soldits stake in domestically owned KotakMahindra Bank

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