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the hunt report edited & designed by by & designed edited netscribes (India) private limited netscribes (India) private No part of this publication may be reproduced either in print or electronic form without the express permissionPartners of Hunt without the express either in print or electronic form No part be reproduced may of this publication w w w. h u n t - p a r t n e r s . c o m B E I J I N G I M U M B A I I N E W D E L H I the hunt report FOREWORD Dear Reader, We are delighted to present the eighth issue of The Hunt Report, the half-yearly industry roundup of key trends impacting executive hiring across industries. India is poised for a fast recovery from the gloom of the last recession. The pessimism and despondency seen through the past year has given way to hope and high expectations. The new government at the centre has completed its first 100 days with a few strong and positive moves. The stage is now set for big ticket reforms and consequent investments to flow into most sectors, which will build momentum and stimulate hiring. This issue captures people movement and analysis of 19 key industries. The report is aggregated for your benefit and assesses the impact of these industry trends on human capital and their implications on the leadership talent movement. We hope you find the Report insightful. We welcome your comments and feedback at: [email protected] Happy Reading! The Knowledge Management Team Hunt Partners September, 2014 IN THIS ISSUE The Hunt Report, a half-yearly update from Hunt Partners - Executive Search practice, evaluates the key business trends in various industry practices, ranging from Industrial, BFSI, Infrastructure, Life Sciences and more. This issue of The Hunt Report analyses the impact of these significant business trends on the executive hiring scene and the leadership movements in select industry verticals. CONTENTS I VOL VIII Pg•6 AUTOMOTIVE - Pg•12 CONSUMER Pg•20 GENERAL AUTO COMPONENTS Scaling new peaks INSURANCE Stepping on Reinsurance in Asia the gas Pg•14 COUNTRY FOCUS: Singapore attraction INDONESIA continues Pg•8AL CAPIT GOODS: Leaders in demand ElectRical AND Pg•22 INVESTMENT ENGINEERING MANAGEMENT Pg•16 DIVERSITY Poised for growth Breaking the glass Expansion ceiling on the cards Pg•10 CHemicals Gearing up for the Pg 24 NBFCs COMMERCIAL Pg•18 ESO - MNC CAPTIVES • boom India to dominate the BANKING ESO space New banks to sway the sector the hunt report Pg•26 PAYMENTS Pg•36 EPC Digital payments On an upward trail gain traction Pg•38S PORT Pg•28 PRivate EQUITY Bullish sentiment Set to perform Pg•40 POWER - Pg•30 SHARED SERVICES CONVENTIONAL AND CAPTIVES RENEWABLES On the cusp of growth Powering up for a transformation Pg•32 HOSPITALS Indian Healthcare Pg•42 REAL Estate sector on a roll Turbulent times recede Pg•34 PHARmaceuticals In proactive mode AUTOMOTIVE - AUTO COMPONENTS Stepping on the gas After two years of sluggish growth, the Indian automotive industry is set to resume its uptrend. New product launches and growth in Infrastructure-linked demand will generate requirement for professionals in technical, quality and engineering functions BY SURESH RAINA AND UDAY BROCA fter a two-year lull, the Indian automotive industry is on an upward trajectory. In this period, the industry dissolved about 2.5-3 million jobs due to weak demand Aand thereby, growth, and a slowdown in the commercial vehicles space. However, Q1 2014-15 sales figures have been promising, with Maruti Suzuki recording a healthy 30-percent growth. Other automotive majors like Honda, Hyundai, Nissan, and Ford have also displayed similar performance in the same quarter. We estimate that the sector can rebound in another six months as large infrastructure projects which are underway are launched. Driving into international markets This JV would focus on Latin America, Indian auto component makers are South East Asia and Europe. Motherson increasingly expanding their presence in Sumi acquired Stoneridge’s wire the global market. They have largely harness business which includes six adopted an inorganic growth strategy to manufacturing plants in the US gain access to new clients, technology and Mexico. and nearshoring. The termination of the US $2.5 billion Amtek Auto continued on its acquisition deal between Apollo Tyres and Cooper spree with its purchase of German Auto Tire & Rubber Company was seen as a component firm Keupper which provides major setback in Apollo’s bid to create machined casting solutions to global the world’s seventh largest tyre company. players such as BMW, Daimler, Renault Balakrishna Tires, a major name in the and Volvo. This is Amtek’s third OTR tyre space, is also expanding rapidly acquisition in the last two years. across the US and Europe. Mahindra CIE is keen to further Forging new alliances strengthen the JV by forming a tripartite Auto makers and component JV with a Japanese firm, which would be manufacturers are also joining hands headquartered in Thailand or Malaysia. with global companies. Some of the tie-ups are: pg.6 the hunt report PEOPLE MOVEMENT l Sumeet Narang, who was Marketing Director – Mobile at Samsung Electronics, is now VP-Marketing (Motorcycles) at Bajaj Auto. l Arvind Saxena joined General Motors India as President & MD. He was earlier the MD of Volkswagen Passenger Cars, India. l VRV Sriprasad, who was earlier associated with Daimler India Commercial Vehicles as VP (Marketing, Sales and After Sales) is now MD, Volvo Buses India. l Satyakam Arya, who was with Daimler India Commercial Vehicles as VP-Procurement is now with Mitsubishi Fuso Truck and Bus Corporation as Director & Head of Procurement. l Dr Seshu Bhagavathula, former VP-R&D of Great Wall Motor Company, is now CTO of • Hero Motorcorp and Italy-based Apollo Tyres. Commercial vehicles Magneti Marelli to develop next- l Manhar Kapoor has joined Eicher The turnaround in this space is expected generation fuel injection systems Motors Limited as General Counsel to be slow, daunted by a slowdown in • Hero Motorcorp and Erik Buell Racing, & Company Secretary. He was industrial production. VE Commercial AVL List and SRL Engines to improve earlier with Punj Lloyd as VP - Vehicles is considering entering the small R&D capabilities Corporate Legal & Secretarial. commercial vehicles segment with a • Setco Automotive and Spanish firm l Anish Shah has moved to M&M as range of mini trucks, a move that could Lingotes Especiales for the manufacture President – Group Special Projects pit it against bigger rivals. M&M is in the of machined ferrous castings from GE Capital where he was process of expanding its product line to • Lumax Auto with Japan’s Mannoh President and CEO, India. light commercial vehicles. With the Industrial for the design and compulsory installation of anti-lock manufacture of gear shift levers braking system (ABS) on all new models of commercial vehicles commencing These JVs would adhere to global Two-wheelers April 2015, safety standards will be standards of quality, technology, systems The Indian two-wheeler segment heightened, thus bringing in fresh and processes and will have serious continues to see robust growth with investment opportunities. The opening implications on talent in India. They will stellar performances by majors like Hero up of the infrastructure and energy stoke demand for professionals in Motocorp and Honda. The re-launch of sectors will create renewed demand for manufacturing, production and Mahindra Two Wheelers Limited also commercial vehicles. This development engineering functions for the export- contributed to the automaker’s growth will likely help the industry shrug off the oriented businesses. story. Sales and marketing talent will be slowdown over the next 6-12 months. in demand as luxury bike makers like Passenger vehicles Triumph, Indian, and Harley Davidson Nissan underwent a major restructuring among others, undergo rapid expansion. exercise with the launch of its new Datsun brand. Nissan is now rapidly building its With Harley already setting up their first new distribution channel and has seen manufacturing plant outside the US in sales grow over the last few quarters. Haryana, India, and Triumph planning a All passenger car players have revamped facility here over the next two years, this their senior leadership teams for the sales segment will receive a shot in the arm. and marketing functions to overcome We foresee significant investments for the slowdown. This space will continue to the sector coupled with new talent see action over the next six months. opportunities in the near future. pg.7 CAPI TAL GOODS: ENGINEERING AND ELectRICAL Poised for growth The sector is set to benefit with the new government’s mandate on infrastructure development. With a spate of acquisitions and company expansion plans on the anvil, the electrical industry is slated for growth. Senior professionals in both segments will be in demand BY SURESH RAINA he sector is well on track to witness double digit growth over the coming year. The government’s focus on manufacturing and clearing road blocks for infrastructure Tdevelopment will augur well for the sector. Also, the recent FDI nod for Defence and Railways, and renewed appetite for investment will bring much cheer. We expect a spurt in senior talent requirement in the second half of the year. Investments, acquisitions, exposure Global companies have focussed on The electrical sector in India displayed long-term localisation and value chain lacklustre growth over the last six optimisation to remain competitive. With months as large infrastructure and significant exposure to infrastructure power projects continued to face including power, mobility, airports, regulatory hurdles. Both Indian and MNC healthcare, and capacity expansion in players were undecided on fresh factories, the next 12-24 months will investments as they preferred to wait for be interesting.