8  Companies THE ECONOMIC TIMES | MUMBAI | MONDAY | 10 AUGUST 2015

In a Nutshell Mahindra Hires McKinsey to Overhaul Logistics Biz  nies to go public once it touches a revenue were a functional organisation earlier. logistics are verticalising their structure Rangarajan Favours RBI Mahindra Logistics could of $1 billion (about `. 6,350 crore) from We have verticalised the organisation, so to offer sector competencies to customers Majority in Policy Panel `. 2,000 crore at present. McKinsey en- On The Move that we get closer to the customer and be- in the last few years. Specialised focus gets tered the scene late last year and is work- Growth Drivers for Logistics come more specialised,” Sarkari told ET. companies a premium,” said Prahlad Tan- NEW DELHI: Joining the debate over the pow- be the next group co to go ing closely with CEO Pirojshaw Sarka- “The thought process is very clear. We war, director — Transport & Logistics at Impending Goods and Services Tax ers of the RBI governor in setting policy rate, ri’s office since then, according to two have set out to become a $1-billion compa- KPMG. “Earlier Mahindra Logistics was public once it touches a (GST) Bill to be a game changer the bank’s former head C Rangarajan on Sun- people closely related to the matter. ny, and the quicker we achieve it, the fas- doing only automotive for Mahindra day said the government can do away with the revenue of $1 billion Until now, the company has decided to PM Modi’s Make In India campaign ter we go out in the market,” he said. Group and later tried their hand at all sec- narrow down its focus on specific sectors Expected to grow at twice Sarkari said the company will put out the tors. But it makes more sense for them to veto power of the governor but the majority of where it expects most growth to come strategy to chairman Anand Mahindra in focus on sectors that need similar process- the Indian GDP growth rate members in the Monetary Policy Committee [email protected] from and exit the rest. It is creating four the forthcoming war room in December. es to the automotive sector and get out of should be from the apex bank. Rangarajan’s business verticals: automotive & engi- Transport firms with War rooms are where sector heads ex- those where it is not a big player.” Mumbai: India’s largest tractor maker neering goods, automotive outbound, plain, review and debate their business In 2012, private equity fund Kedaara comments come at a time when the govern- vertical structures in India: ment and RBI are finalising the structure of the Mahindra Group has hired global con- consumer and pharmaceuticals and strategy with Mahindra. Mahindra Logis- Capital bought a minority stake in the `. Monetary Policy Committee (MPC), which will sultant McKinsey to help the group scale ecommerce. Mahindra Logistics will TVS LOGISTICS TRANSPORT tics, which earns a major chunk of the rev- company for 200 crore, a move that set a up its logistics business, Mahindra Lo- stay away from the transportation of DHL SUPPLY CHAIN CORP OF INDIA enue from the group companies, is plan- benchmark valuation and eventually a decide the interest rates. gistics, and make it ready for a public of- minerals, cement and large oversize pro- ning to reduce it and wants to gain work public offer. The PE investment is used  fer before 2018, two people with direct ject cargo, among others. from non-Mahindra companies. The glob- for scaling up the business through ac- Govts Must Stick To Fiscal knowledge of the development said. Ma- McKinsey will work with the company al consultant will help the company relook quisitions. Leisure travel company Ma- Discipline: Jaitley hindra Logistics has been identified as for two more years, helping it implement at the business mix and ways to achieve it. hindra Holidays & Resorts was the last one of the next Mahindra Group compa- the strategy, the same people said. “We “Large companies across supply chain group company to be listed in 2009. NEW DELHI: Finance minister Arun Jaitley on Sunday underlined the need for fiscal consoli- dation, saying failure in efficient expenditure CO MAY HAVE ALREADY BEGUN TALKS Global generic major Mylan seen as potential management on the part of governments could lead to a Greece-like situation. Speaking on the buyer; Ajay Piramal to reap a rich harvest if valuation meets expectations Louis Berger Fears occasion of the First Indian Cost Accounts Ser- vice Day function here, he said that in the post- liberalised era, competitiveness, cost and effi- ciency management have become the key Piramal Likely to Hive Off Bribery Scam may words of survival and growth. Jaitley added it is all the more important for the government of a country to have an efficient expenditure Cost it Some Work management failing which it may face sit- uation-like Greece. Its Critical Care Business firm appointed by the company Senior company exec to investigate overhead alloca-  Philips Healthcare Lines Up tion issues, found that some Experts believe Piramal may managers had been conducting $60 m for Pune Plant Vikas.Dandekar have opened discussions with se- says $3.9-m case may business on private email ac- @timesgroup.com NEW DELHI: Philips Healthcare India plans to In Sell-off Mode rious players that are interested negatively impact counts outside of the company’s invest up to $60 million (over `. 380 crore) in `757 cr 18% Co has put its in expanding into newer prod- IT system. “The first concern Mumbai: Ajay Piramal-con- ucts. One name doing the rounds that we had with emails was the three to five years to double the manufactur- market share ongoing projects here trolled Piramal Enterprises is Critical care Growth of at 12% of a is Mylan. The company has been way language was used ... it was ing capacity of its Pune facility. The company is weighing options to hive off its unit share in the critical care global inhala- very acquisitive in India, lapping language that just wasn't appro- also scaling up its operations under the PPP highly profitable critical care overall revenue of biz over the tion anesthesia up a string of manufacturing as- Anirban.Chowdhury priate,” said Walker. Terms model to keep its growth rate healthy. It has business. Though much smaller Piramal Enterprises last fi ve years market of sets, the last being Famy Care for @timesgroup.com such as “commitment fees”, than its two competitors, AbbVie as much as $750 million. Earlier “counterpart per diem”, “mar- pegged revenue growth at 18% for the current Competition in critical care: $1.2 b and Baxter, the business has a dis- in 2013, Mylan picked the injecta- Mumbai: US consultant Louis keting fee” and “field operation fiscal. “Philips India will be investing around AbbVie and Baxter tinct edge, offering the full-spec- bles business of Agila Specialties Berger International, which is expenses” were used as codes to $50-60 million for doubling the capacity of the trum of inhalation anesthesia Piramal’s presence in pharma will shrink to... and another oncology manufac- embroiled in a $3.9-million brib- conceal the true nature of bribe Pune plant in around three to five years. This is portfolio and has presence in over turing site from SMS Pharma. ery scam in India and three other payments. Contract Consumer excluding the land cost,” Philips Capital India 100 countries. “Interest is strong A Mylan spokesperson from its countries, is worried about the India did not initially feature development & products group chief executive officer Chhitiz Kumar said. with good cash flow, growth, sta- US office said the company does possibility of “losing some work” in the purview of suspicion. “As manufacturing ble customer base and limited Imaging biz not comment on market ru- here — ongoing projects and four we expanded the investigation,  activities Xiaomi May Set Up Plant competition. The key driver is the Ajay Piramal, Chairman, Piramal Group mours. But Mylan has been on or five it is currently in talks for. we included India as we have so valuation and if it does not match the prowl to gain assets globally. “Our situation is in the media much work there,” said Walker. in Andhra Pradesh expectations, the deal may not esthetics like halothane, isoflu- the sales for the Indian formula- It is presently pursuing its big- obviously. Does that cause some The top management reported NEW DELHI: Ahoarding put up by Xiaomi move quickly,” an industry rane, haemaccel, desflurane and tions business, a stratospheric gest every target — a $34-billion people concern? I am sure it does these to the US DOJ and agreed source, who claimed knowledge sevoflurane, and reaches 6,000 multiple that is said to have left deal with Perrigo for its over-the- … is there a potential that we with it on the process and coun- with the ‘Make in India’ logo at Visakhapat- of the movement, said. hospitals worldwide, according many salivating. counter consumer products. My- would lose some work? Sure, tries for the expanded investiga- nam airport, followed by a Facebook post, Piramal Enterprises, which to details in a July 2015 investor Also, Piramal's presence in lan itself recently warded off a there is a potential,” its executive tion. The probe revealed that the has sparked off speculation that the Chinese stretches from pharmaceuticals, presentation by the company. Pi- pharmaceuticals will further determined takeover bid from vice president for corporate company kept record of the handset maker might set up its first India realty investments, financial ser- ramal has put its market share at shrink to offering pharmaceuti- Teva with the Israeli drug firm strategy and development, Larry bribes by circulat- plant in Andhra Pradesh. The company, how- vices and healthcare intelligence, 12% of a global inhalation anes- cal solutions through contract de- moving on to buying the gener- D Walker, said in an interview. ing a spreadsheet `. ever, did not reply to queries whether it was clocked revenues of 5,123 crore in thesia market of $1.2 billion. velopment and manufacturing ics business of Allergan. He was key in assisting the in- internally show- 2014-15. The critical care unit con- An industry executive said if activities, the consumer products “Now, Mylan will engage in vestigation and the subsequent ing the proportion- planning to set up a manufacturing plant in tributed `. 757 crore to this, grow- the deal progresses to the final group and the imaging business new deals and India will contin- $25 million-plus reform that ate share of bribes Andhra Pradesh. Posting a picture of the ing at 18% over the last five years. stages, Ajay Piramal, well which is steadily scaling trac- ue to be important on its map,” Louis Berger claims resulted in paid to the officials hoarding, Xiaomi vice president Hugo Barra Critical care medicines are es- new internal controls, policies known for his natural instincts tion. Last year, the company par- another source said. Last week, Walker’s overseeing their said: “GOOD MORNING VIZAG! This is what sentially used in hospitals and for M&As, will reap a rich har- tially wound up its discovery re- Mylan chief executive of Heath- and procedures as well as a new statement work on those pro- you see as you walk out of the Visakhapat- institution settings to treat seri- vest. But it will still not be com- search work in Mumbai. A er Bresch told Reuters that the global accounting system at the comes even jects. nam airport arrival terminal this weekend. ously ill patients in intensive parable to the $3.7-billion trans- Piramal spokesperson said in an company is actively looking at company. Walker’s statement as the ED An email ad- care units. Piramal’s portfolio, action it signed with US drug e-mailed response, “As per com- many targets as it aims to be- comes even as the Enforcement dressed to James We’re about to take a huge step forward here filed a first built mostly through acquisi- maker Abbott in 2010, where val- pany policy, we do not comment come a leading consolidator in Directorate, which probes eco- information McClung — one of in India! Can you take a guess?” tions, comprises inhalation an- uations reached nearly 10 times on market speculation”. the generic industry. nomic crimes, filed a first infor- report the main accused mation report relating to money relating to in the bribery laundering in the Louis Berger money cases in India — in case, naming some politicians laundering in August 2010 in- Prasad Launches App and executives. the Louis cluded an entry Police have arrested Churchill Berger case which said “paid in Bihar to Aid Literacy Alemao, a former public works by (an employee of the company) department minister in Goa, in to minister on behalf of agent”. NEW DELHI: Telecom minister Ravi Shankar Prasad connection with the case. Last A subsequent email showed has launched a mobile app in Bihar to aid digital litera- month, the New Jersey-based tracking of the bribe payment cy in the state, reports Our Bureau. The app, Disha, is construction management com- schedule, showing the company expected to help people learn about computers and the pany admitted to violations of had paid $976,630 until then as internet through self-learning modules. It is free and the Foreign Corrupt Practices bribe for the Goa project. A thor- available on Google Play Store. In order to offer digital Act, according to the US Depart- ough investigation followed literacy to tribal and Dalit women in Bihar, the minis- ment of Justice. which included extensive inter- ter awarded tablet computers to women who received It will pay $17.1 million as pen- views and checks on employees. training from common service centres in the state. alty for bribing officials in Indo- “As information became availa- The move is seen as part of a string of initiatives be- nesia, Vietnam and Kuwait, ble during the process, those ing announced by the government as the assembly apart from India. In India, its ex- managers whom we found to be elections in Bihar draw near. Prasad stressed on the ecutives secured water projects engaged in suspicious or poten- need for intensified efforts to bridge the void in infras- in Goa and Assam by paying tially illegal activities were sepa- tructure and development between Bihar and other bribes, the company said. Au- rated from the company,” said states. The central government would enhance direct thorities are now probing its ap- Walker. McClung and 40 other interventional programmes “to bring rural Bihar pointment as consultant in the employees in India were sacked, closer to urban habitation and make the tribal popula- `. 14,573 crore Navi Mumbai air- according to sources. tion realise the benefits of development of which they port and about `. 3,000 crore Goa A second source said one form of have been deprived for long”, he said. Under the initia- airport projects. bribery was sponsorship of the tives to improve digital connectivity in Bihar, BSNL Walker said the unlawful prac- foreign education of ministers or will install 1,000 new base stations in the state and 184 tices first came to light in 2009 officials’ sons or relatives. Walk- of these will be located in Naxal-affected areas. when Lowenstein Sandler, a law er didn't comment on this. SOTC Offers Ideal Opportunities for Brand Transition: Menon

Thomas Cook In- channel presence is our strategic intent. Q&A dia’s acquisition of Therefore, having the Kuoni business in our Kuoni Group's trav- stable was valuable in enabling us to build el business in India volumes and leverage clear synergies. and Hong Kong is What is the one big advantage that you the second largest deal in the industry locally see in this deal? after billionaire investor Prem Watsa's Fair- In the long-term perspective, it is not just fax Financial Holdings took over Thomas about the advantages this gives us in terms of Cook in 2012. In an interview with ET's positioning Thomas Cook-SOTC-Sita (Sita was Divya Sathyanarayanan, Madhavan Me- acquired by Kuoni in 2000) to take on the var- non, managing director, Thomas Cook India, ious challenges that we will face as the mar- said the Kuoni business will help it build vol- ket changes. But simultaneously it will also umes to take on global travel companies. bulk up in terms of the revenue because these Edited excerpts: are all profitable businesses. ON STRATEGIC INTENT What was the strategy behind this How soon do you see these acquisitions acquisition? adding to your topline? We have no ambitions to be- There are three cornerstones of our strategy. We can see small appearances in the third First, we see strong synergies and benefits come a pure online player but quarter of this year. But the actual benefit accruing from Kuoni’s well-established pres- will probably be seen in the quarter ending we believe in the hybrid click- ence in key source markets like Europe. This March 2016. attracted us, as also the business lines of out- and-bricks model & an omni- bound, corporate travel, MICE (meetings, in- Last month, the company got a foothold in centives, conferencing, exhibitions), domes- Sri Lanka through its acquisition of the channel presence is our intent tic — all complementing our existing destination management company Luxe MADHAVAN MENON Asia and the Kuoni acquisition gives an businesses at Thomas Cook India. Second, as Managing Director, Thomas Cook India our use of the Thomas Cook brand is permit- entry into Hong Kong. So, how big is Asia on the company’s growth radar and are ted till 2025, it was important to build a road- sented a great opportunity for us. Kuoni has a there any other potential acquisition map and strategy to have a strong brand. well-established brand in Hong Kong. It posi- targets? SOTC (acquired by Kuoni in 1996) is an Indian tions us at the door of China. According to Our ambitions are no longer restricted to India brand with strong recall which offers us ideal WTTC (World Travel and Tourism Council), In- and we are looking at Asia seriously. We see opportunities for a brand transition. And, fi- dia and China are going to generate the largest great potential in the Sri Lankan market and nally, as India gains interest at the global lev- number of travellers by 2025. So, in essence, we have seen tourist arrivals growing signif- el, we see more and more global companies we have got a footprint. Kuoni Hong Kong is a icantly year-on-year. We have a presence in coming into India. How do we take a strong niche business catering to high-end luxury India where we see the tourist arrivals grow- position? We have no ambitions to become a travellers with a focus on Europe. We will be ing over a period of time. As we look at build- pure online player but we believe in the hy- leveraging their capabilities in terms of reser- ing businesses in Asia, Hong Kong repre- brid click-and-bricks model and an omni- vation of hotels, booking with airlines etc.