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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. the outcome of the elections and receive clarity on project approvals. Industry GE’s acquisition of Alstom’s power sentiment received a boost from business was a major development. With favourable election results and the the integration exercise commencing recent investments by Adani Power, soon, it will have implications on Reliance Energy, GMR Energy and Tata business and talent. GE has also offered Power. The recently announced budget to buy stakes in Alstom T&D. allocation of `70.6 billion to develop 100 new ‘smart cities’ also augurs well Major players eye expansion for the sector. Indian energy players like L&T, Havells, and Crompton Greaves are again eyeing While revenues for the sector have capacity expansion and product ranged from flat to low over the last diversification. New export markets in year, profitability has improved due to the Middle East, Africa and South East better execution and continuous Asia are preferred as competition heats cost optimisation. up in India. pg.8

the hunt report PEOPLE MOVEMENT

l Milind Phulse, VP-Purchase at Ram Ratna Group has moved to Thyssen Krupp Regional HQ-India as Chief Procurement Officer. l Manoj Verma is now Global President and Director at NTL Lemnis. He was earlier CEO of Orient Electricals. l Naren Gursahaney has joined the board of directors at Next Era Energy. Previously, he was President and CEO of The ADT Corporation. l SN Goel has joined Indian Energy Exchange as MD and CEO. He was previously Director - Marketing and Operations at PTC. l S ameer Garde, who was Sr VP & Country Head Enterprise Business at Samsung India, is now the President - South Asia at Philips. l Ay,tanu Mait earlier with Ingersoll Rand as Head - Business Operations for Climate Solutions is now the President and CEO of Steer Engineering Companies are aggressively seeking l R avi Rajagopal is now EVP and l S hwetal Shah has joined Premium senior leaders who can lead business Global Head - Legal, Governance and Transmission as VP - Research development in international markets Risk at Crompton Greaves. He was Development & Engineering. He was and head new business units. previously the General Counsel of previously the DGM at L&T. Essar Steel. l Subramanya Ullal, ex-VP at Bosch MNCs such as Hager, who recently exited l Kamal Bali, ex-President and CEO of Electrical Drives is now CEO, Yuken India. a 16-year distribution deal with L&T and LeeBoy India Construction l Mariappan M, ex-Head - National Sales set up an independent business, are Equipment, is now MD, Volvo India. at L&T has moved to Sanmar Group as rapidly expanding their footprint and l Jeswant Gill has moved to President - Valves Marketing investing in manufacturing. Schneider Kennametal as EVP - Industrial l Jagdish Lomte has joined Thermax as Electric inked a pact with enterprise Segment. He was formerly VP- Global VP (IT) & CIO – BTG. He was earlier VP software product company Ramco Services, Industrial Technologies at (IT) & CIO with Walchandnagar Systems to offer advanced process Ingersoll Rand. Industries. control optimisation solutions for l Milind Kulkarni is now the MD of Seco the industry. Warwick Allied. He was earlier Batliboi's Global CEO-Machine tool group. Japanese firms are betting big with l Do,ilip ex-Director-HR Saho India Mitsubushi and Toshiba at the fore; • Toshiba JSW, the integrated entity of Tyco is now VP and Group Head-HR a spate of acquisitions were made over offering engineering products along TGO India at Teva Pharmaceuticals. the last six months. Indian electrical with turbines and generators, is l Brahmanand Reddy Patil, who was firms are also moving up the value chain providing complete EPC solutions for Group Manager for Electronics supported with better technology thermal power plants. It has planned Hardware and PD at Robert Bosch and access to newer markets. All these investments of over `30 billion over Engineering and Business Solutions is developments will stoke demand the next five years and is expecting now MD - Indian Subsidiary at Vector for talent. sales to reach `180 billion by 2017 Informatik GmbH. • Sterlite Grid, the power transmission l Jitendra Joshi is now President, Some plans and developments: arm of Sterlite Technologies, raised Baumuller India. He was earlier with • Mitsubishi Electric India plans to around US $125 million with Norgren as GM- Factory Automation Sales. treble its revenue by 2015 and touch investment from Standard Chartered US $1 billion in business Private Equity, the first foreign investment in the Indian power transmission sector pg.9 Chemicals

Gearing up for the boom

After a sluggish first half of the year, the chemicals sector is finally gaining steam supported by Specialty and R&D. Companies will seek talent for R&D and Business Development roles and look to close senior leaders in managerial positions

BY Suresh Raina AND Uday Broca

ike most other sectors in India, the chemicals industry has gone through a turbulent journey over the last six months. Yet, some sub-sectors such as Agro and Speciality Ldid manage to shine with double digit growth. In the near future, the recent outcome of the election and the overall buoyancy in the economy will create a positive effect on the sector.

Companies are now gearing themselves Specialty chemicals company Ashland up for the expected boom, especially in has also opened a new Pharmaceutical R&D. One of the sub-sectors that took Centre of Excellence in Hyderabad. These the hardest hit during the downturn was are welcome developments after the Bulk Chemicals. However, we are now proposed R&D centre of Dow Chemical witnessing a surge in activity in the Company at Chakan, Pune was shelved. segment with Tata Chemicals lining up Demand for senior leaders in the `17 billion to invest in its core businesses R&D function is thus expected to see of soda ash, salt and fertilisers. The an uptick. company has also launched a nutritional supplements factory in Chennai. Room for growth in Speciality Chemicals India an R&D attraction The Indian Speciality Chemicals sector India is fast emerging as a hub for continues to see robust growth. cutting edge R&D, attracting the Currently estimated to be a US $22 attention of several global chemical billion industry witnessing double digit players. BASF recently inaugurated a growth, the industry can touch US $100 Global R&D Centre in Mumbai. The billion by 2020 according to a McKinsey company also recently set up an report. The sector has tremendous Agronomical Research & Development potential for growth given that India’s Field Station in Pune for its Agri business. current per capita usage of speciality chemicals is less than 25 percent of the global average. pg.10 the hunt report PEOPLE MOVEMENT

l Harish Badami has joined ACC as MD and CEO. He was previously President and MD-India Operations at Celanese. l Richa Arora has moved to Tata Chemicals as COO-Consumer Products business from Five by Six Consulting where she was Founder & Chief Strategy Officer. l Bharat Gosalia, who was CFO at Aegis Logistics has moved to Hitech Plastin the same function. l Shankar Subramanian, who was Director-Residential Solutions business at Ingersoll Rand, is now VP - Decorative business at Shalimar Paints. l Gyan Shankar Awasthi has moved on from Tata Chemicals where he was AGM - Sales (Global Accounts) and is now Director Sales - West Asia at Omya India. l Dipnarayan Bhattacharya, As the segment trends grow towards formerly DGM - Business Agro-Chemicals at crossroads greater product customisation, it faces Development at Choksey At present, the Agro-Chemicals segment two major challenges. The first is the Chemicals, is now MD at Bitumode is at crossroads. Unless significant limited availability of feedstock due to International. investments are made in technology and import dependence as demand does not l Unmesh Nayak has taken up the talent to drive innovation, the segment justify local standalone investments. The role of Sr VP at Reliance Industries- will remain dependent on older product second is the lack of leadership talent to Polypropylene business. He was offerings. With the markets maturing, drive creation and sales of customised earlier associated with Marketing- there is significant demand for new and products. Developing the right talent Adhesives and Functional materials improved agro-chemicals. To meet this pool to ensure growth is the right way with The Dow Chemical Company. demand, Indian Agro Chemicals forward for the sector. l Avinash Misar, who was earlier companies need to advance in the COO of Garware Polyester, has production value chain. This would have Product customisation, which caters to joined Sterling Auxilaries in the severe implications on talent demand, unique customer needs, has helped the capacity of CEO & Director. especially at the leadership level, as the industry by building a product-driven l Venkataraman B, former Regional segment has a dearth of quality market and adding new, valuable Sales Director - Asia Pacific at managerial talent. participants at various levels of the value Valvoline has joined Aditya Birla chain. Personal care ingredients and Group-Epoxy Division as Sr VP, Petrochemical looks to grow additives, knowledge chemicals like Global - Sales & Marketing. The Petrochemical industry has Active Pharmaceutical Ingredients (APIs), witnessed a serious slowdown owing to paints and coatings, construction and the overall weak market sentiment and water chemicals among others, are the former government’s policy paralysis. some of the industry segments that are With the new government in place and in demand. hopes of an economic recovery, the segment is expected to bounce back Some recent M&A activities in the space: • Axiall acquired 50-percent stake in with a promising long-term outlook. • Lubrizol invested over US $50 million DCM Shriram’s polymer Fresh investments from state-owned and in a new CPVC plant in Gujarat compounding business private entities will bolster hiring which • Clariant sold part of its speciality • South Korea’s Songwon to acquire was stalled last year, especially for the chemicals vertical to SK Capital for US the speciality chemical business of mid-to-senior levels. $34 million. The former also acquired SeQuent Scientific the Masterbatch business of Plastichemix pg.11 Consumer

Scaling new peaks

The Indian e-commerce industry is set to extend its successful run. Growing demand for relatively unexplored functional skills will lead to companies tapping into the talent pool in mature markets

BY Sunit Mehra AND Praful Nangia

he Indian e-commerce story has seen immense action over the past few years with portals like Flipkart, Bookmyshow, and Makemytrip becoming household names. TThe space has been the most talked about recently among all other sectors.

The two Indian heavyweights, Flipkart Consumer survey results consistently and Snapdeal, have been leading growth displayed the two themes: with additional rounds of funding which 1. Customer loyalties to e-commerce have spiked their valuations. Access to sites are currently in a state of flux funding has also led to consolidation; The with the consumer more focused on Flipkart-Myntra deal is India's first getting the best possible deal sizeable consolidation in the e-commerce 2. Customers are more aware of User space. The Indian e-commerce market, Interface/ User experience estimated at US $2 billion, is part of the organised retail market estimated at These findings have forced big players to US $40 billion. According to some identify ways to differentiate themselves analysts, the sector could surpass the from the competition. As part of BD US $20 billion mark in the years to come. initiatives, websites are offering exclusive deals on brands to consumers. Apart from New skills, mature markets adding new verticals, Amazon and others As India’s online marketplace continues are also investing in last mile delivery. with its rapid evolution, demand is rising for relatively unexplored functional skills. From a retail industry perspective, new Last year saw a rise in Data Analytics and and existing e-commerce firms are Big Data initiatives across telecom, focusing on expanding their product e-commerce and retail among others. portfolio and enhancing the customer Companies are investing in data-related delivery experience. This is accompanied tools and technologies to monitor and with execution risks, the need for heavy tap markets. supply chain investments and last mile delivery. pg.12 the hunt report PEOPLE MOVEMENT

l Komal Anand, ex-Director-Sales, Organised Trade, PepsiCo India has joined McCain Foods as Head of Sales. l Ambarish Bandyopadhyay, National Sales Head, Modern Trade and Samardeep Subandh VP-Modern Trade quit HUL to join Marico. l K Radhakrishnan, CEO at Future Fresh Foods is now pursuing an entrepreneurial venture. l HyperCity’s CEO Mark Ashman and Chief Merchandising Officer Ashutosh Chakradeo have resigned.

There is an urgency to acquire talent • Teabox has raised around US $1 l Rishi Vasudev, ex-Sr VP & COO, across functional areas to help deliver on million from Accel Partners and Tailored Clothing (Arrow, Gant, Izod) - these promises. We foresee the war for Horizon Ventures Arvind Brands is now CEO- Calvin talent acquisition in this domain Klein, India (PGWTPL). intensifying, forcing companies Modern trade sector loses sheen l Sunil Sethi, who was the MD to tap the talent pool in mature markets. Professionals no longer seem inclined to of Kraft Foods, Malaysia has joined join modern trade. A few years ago, the Kellogg as VP Sales– APAC. Word on the street best of candidates made a beeline for l Rattan Keswani, ex-President of The following deals are testament to the the organised retail sector hoping for a Trident Hotels at EIH, is now Dy MD, rapid growth in e-commerce: replay of the telecom boom. However, Lemontree Hotels and Chairman, • Snapdeal has raised US $133 million in factors such as uncertainty in FDI Carnation Hotels a latest round led by eBay who earlier regulations have caused many of them l Ryan Valles who was CEO and invested US $50 million. Other investors to re-chart their career trajectories. co-founder of dealsandyou.com is like Kalaari Capital, Nexus Venture Several top executives are now shifting now EIR (Entrepreneur in Residence) Partners, Bessemer Venture Partners, to FMCG companies or looking to exit at Accel Partners. Intel Capital and Saama Capital also the modern trade divisions of their l P V Ramana Murthy is now SVP, participated. Snapdeal has raised close companies. According to data from Global Head-HR at Taj Hotels. He was to US $250 million till date Nielsen, modern retail, which accounts ED-HR of Hindustan Coca-Cola • Myntra confirmed the US $50 million for 7 percent of total sales, grew only 8 Beverages, India, Bangladesh. investment led by Premji Invest, and percent in 2013 from 32 percent in 2012. l Patrick Teo has quit Amazon, where existing investors Accel Partners he was Head of Technology for and Tiger Global. Myntra will use Amazon Digital Music, to join the funds to strengthen technology, Facebook as Director, Engineering. infrastructure, and customer l Manu Kumar Jain, co-founder and experience, and support MD, Jabong has joined Xiaomi as future growth Head of India Operations. • Local Banya has raised its Series A funding from Karmvir Avant Group. One round was raised six months ago from BCCL’s Springboard Fund. Funds will be used to scale up operations, hiring and marketing pg.13 Country Focus: Indonesia

Leaders in demand

Shortage of talent for senior leadership will require Indonesia’s private-sector to dip into the international talent pool. Globally mobile professionals with experience in developed and fast-growing markets, and who possess a deep insight into emerging Asia will be in demand

BY Arjun Erry

he strong growth curve projected by Indonesia over the past few years suggests that it will emerge among the top 15 economies based on GDP within the next decade, Taccording to the Boston Consultancy Group (BCG). However, despite promising demographic trends such as a large working population and growing affluence, Indonesia faces a talent challenge that could undermine its growth potential in the near future.

Leadership shortage Like many other emerging economies, In a survey conducted by the BCG and the Indonesia is fraught with increasing World Federation of People Management difficulty in supplying skills required of a Associations, senior executives opined that modern workforce. The situation is Indonesia faced two critical challenges– exacerbated in the face of increasing developing leadership and managing globalisation, a rapid rise in new talent. At the current trajectory, it will face a technologies, the Digital Revolution and 40-60 percent shortage of middle- changing work patterns. management talent by 2020. Yet, most Indonesian companies manage talent in Underlying causes traditional and relatively ineffective ways, Here are some reasons for the shortfall in which is unlikely to overcome the looming management talent in Indonesia: talent crunch. Another study found that 8 out of 9 major challenges in growing a No competitive education system business in Indonesia were directly According to the Program for related to the workforce (Figure 1). International Student Assessment, Indonesian students rank among the An employment study by Monroe weakest in the world. The challenge does Consulting Group (Figure 2) identified not only lie in the poor level of education trends related to jobs/candidate and quality of institutions. Accessibility availability and levels of seniority. to quality education for students from As seniority increases, there are all economic backgrounds is also a more vacancies but with lesser prime concern. candidates available. pg.14 the hunt report

Challenge Respondents PEOPLE MOVEMENT Difficult to find qualified management staff 183

Government's inconsistent application of 171 regulations l Pranay Shah Singh, former

Governmen's rigid employment regulation 170 Business director – Strategy at

Legal restrictions on firing staff 169 ZenithOptimedia, is now Head of

Difficult to find qualified technical staff 161 Strategy at Havas Media, Indonesia.

Restrictions on expatriate work permits 142 l Claire Chow, who was with KPMG

Difficult to find qualified expat staff 108 as Audit Sr Manager, Audit Trainer

Maximum retirement age 98 is now Finance Director of Siloam International Hospitals. Age limits on expat staff 76 l Source: Caste Asia Daniel Poller, who was the Figure 1: Challenges in growing a business in Indonesia co-founder of BlackOre, has joined Paramount Mining Corporation as CEO. l Jorge Gonzalez, ex-GM Manufacturing at Triumph International is now the COO at Sophie Paris. l A rjun Varma is now Group Head of Marketing (Products, Segments,

Figure 2: Job/candidates availability as per level in hierarchy Core Brands, International & Roaming) at Indosat. He was earlier Head, Consumer Marketing (Core, Roaming & International) at Globe Telecom. Best talent with family businesses l Marcus Maelissa has moved from l Suresh Nair is now MD, Indonesia Indonesia is a family-centric society, with Ooredoo Myanmar where he was at Hitachi Data Systems. He was family-owned enterprises dominating the Director of Sales Operation & earlier GM & VP APAC at FalconStor. landscape. Affluent families ensure that their Planning and joined Microsoft as l Robert Gagnon, ex-GM APAC children receive the best education to run Head of Channel Operation - at DMSAsia (EG Asia) is now CEO their multimillion dollar businesses, thus Microsoft Devices Indonesia. at IPAYMU (PT. INTI PRIMA making hiring from such families difficult. l Jateen Panjwani is now the MANDIRI UTAMA). Country Service Manager at Boots MNCs covet top talent & Coots, Halliburton. He was earlier Prestige and social standing are integral to with OPS Group as CT Consultant. the Indonesian society. Most Indonesians prefer to be part of a company that In future enhances their social status. MNCs thus Until Indonesia is equipped to develop attract the best professionals available, its local leaders, we believe that its leaving little choice in the talent pool for Compensation is another factor for private sector will need to ‘import’ talent smaller firms. attracting and retaining senior talent. At from the developed and near-shore some level, Indonesia has low pay scales; markets, especially in technical/specialist Grooming in-house talent an assistant’s remuneration is IDR 3 streams. This would include recruiting for Despite these hurdles, proactive companies million per month. However, leadership roles in Banking (risk, and investors in Indonesia can fulfil their compensation at higher levels is on par compliance, treasury), Manufacturing growth aspirations. One strategy involves with developed markets. (R&D, supply chain), Retail investing holistically in upgrading the senior (merchandising, sourcing) and IT and management. Rather than relying on the job Finally, a prestigious working Digital (analytics, cloud, mobile), among market to supply fresh talent, most environment is imperative for a company. others. Private players will seek talent companies are instead increasingly focusing This could involve choosing an office that is globally mobile, has work on developing key in-house talent. They are space in a reputed location, providing experience in both developed and fast- also taking a disciplined approach towards ample training, and giving managers growing markets, and has a strong performance management and are working international exposure. understanding of emerging Asia. to better identify, develop and reward future leaders. Firms are also providing their top- talent differentiated and accelerated development paths through fast-track promotion programmes. pg.15 Diversity

Breaking the glass ceiling

In a positive contrast to the rest of the world, women professionals in India are climbing the corporate ladder to cinch leadership positions, thus breeding diversity

BY Suresh Raina The proportion of women at the CXO levels in businesses across the world Source: Grant Thornton IBR 2014 ndia Inc. has grown to become more welcoming towards women leaders. A recent Grant Thornton International Business Report titled ‘Women in business: from Iclassroom to boardroom’ indicates that contrary to international trends, where the number of women employed at senior management positions is stagnating, India is witness to a reverse trend, with the number here on the rise. North American and European companies are displaying a reduction in the incidence of women attaining senior positions, while in India, 14 percent of senior level positions are filled by women.

Indian boardroom composition set According to the India Board Report to change survey, woman representation on The Companies Act, 2013, will also executive boards of Indian companies change the composition of corporate stood at under five percent. These figures boardrooms, bringing in an element of only further suggest that the diversity. The Act mandates every listed opportunities for women are immense. company to appoint at least one woman director to the board within a year. Other Quota system for women companies reporting minimum revenue representation of `3 billion will need to appoint at least A few years ago, certain European one woman director within three years. countries introduced a law whereby This directive will help create a pipeline boards of companies had to comprise 40 of competent women leaders, throwing percent women. The trend has yielded open doors to more women candidates excellent results with the European in corporations. Commission considering imposing quotas across the EU. Among other According to an analysis done by India nations, in Asia, Malaysia has imposed a Board Report 2014-15, more than 30 percent quota for women for new 65 percent of the listed companies in appointments to boards, while for other India are yet to appoint a woman countries, the suggested quota stood at board member. 11 percent for Italy, 18 percent for Germany, and 25 percent for France. Brazil targets 40 percent appointments, though only for state-controlled firms. pg.16 the hunt report PEOPLE MOVEMENT

l T heresa Stevens, after being the Chief Corporate Development Officer at Aptalis Pharma, has joined Lupin in the same function for its global operations. l Minakshi Samant, who was Head – HR at Huntsman is now HR Director - South Asia at Millward Brown. l Kavita Gupta, former Sr VP - Head Structured Trade & Finance, India, Corporate & Commercial Banking Group at IndusInd Bank has moved on to join Cargill India as Sr Director, Head - India Corporate Origination, Trade & Structured Finance. l Geetu Ahuja Sharma is now CMO at Fashionandyou.com. She was earlier associated with Tyroo Media as Director Delivery (Internet / The proportion of women at the CXO levels in businesses across the world Source: Grant Thornton IBR 2014 Performance Campaigns). l Monica Tata, previously the GM, In the UK, the proportion of women on Entertainment Networks, South The Godrej Group too has a back-to- FTSE 100 company boards topped 20 Asia at Turner International India, is work programme called GROW (Godrej percent for first time in 2013, but this now the MD at HBO India. Revival of Opportunities for Women), number was still below the government l The following individuals, which enables qualified women target of 25 percent in each board by 2015. were appointed as Independent/ professionals to rejoin the workforce Meanwhile, only four of these companies Additional Directors at after a break. Accenture India's Maternity have a woman at the CEO position. various firms: Returners Programme provides • Shubhalakshmi Panse at advanced career guidance to women on Batting for women in senior roles Federal Bank a maternity break and helps them find While there are few women in CXO • Ranjana Kumar at Britannia the best-suited re-entry roles. positions in India at present, conscious Industries efforts are underway to change this • Pallavi Shroff at Apollo Tyres, With respect to the manufacturing situation. In fact, some organisations have • Punita Lal at Ceat sector, even though several companies given a clear directive to their executive • Sangeeta Talwar at HCL are inclined to hire women in factory search partners to identify women Infosystems roles, women prefer taking up positions candidates to fill mid and senior-level • Shobhana Ramachandhran at in supply chain, HR and R&D, in addition management positions. MNCs such as Sundaram Finance to the more traditional options of American Express, Honeywell, Siemens and • Sudha Ravi at Goodyear India Finance and IT. However, in Indian Schneider Electric as well as leading Indian organisations, since there are several companies such as Bharti Enterprises and other options for women, a majority of the Tata group have mandated their search them opt for senior roles in finance partners to arrange for sufficient women Encouraging women for a and marketing. representation at the interview stage to second-innings enhance the chances of promoting Several corporates are encouraging women diversity at the top levels. leaders to return to jobs post a mid-career break. The Tata group’s Second Career According to an EY report ‘Worldwide Internship Programme (SCIP) is directed Index of Women as Public Sector Leaders’, towards women professionals who wish to only around 7.5 percent of public sector return to the industry after a gap. leaders in India are women. This statistic is one of the lowest among the world but still better than Japan which stands at around 3 percent. pg.17 ESO - MNC Captives

India to dominate the ESO space

The Indian market is set to emerge as a hub for domains like energy, aerospace, defence, telecom and infrastructure, among others. This will stir demand for strategic leaders in management oriented roles

BY Anne Prabhu AND Rajesh Kumar

ndia continues its journey to become an integral part of a complete customer value chain for providing synergies to various organisations. The economy is emerging as a Iglobal hub for organisations in the domains of energy, aerospace, defence, telecom and infrastructure. Right from product development initiatives to enhancing their capabilities as Original Design Manufacturers (ODM), and for new network development, the country is making its mark in these sectors globally. According to a study by HCL and Technology Business Research, the global off-shore engineering services sector is expected to grow to over US $200 billion by 2020, of which, India’s share would be about US $50 billion.

Demand for strategic leadership Leaders in such organisations will ensure Given the tremendous opportunity in that the global business needs are ESO, organisations in that space within catered to and client relationships the country would require strong and excelled. In order to step-up strategic leaders who would be able to competitiveness, big organisations are lead and motivate a team in excess of hiring from the market instead of 1,000-2,000 engineers. In this competitive promoting in-house talent. They are scenario, where China, Indonesia and engaging search firms to fill their senior Vietnam are emerging as the next leadership positions. destinations for outsourcing work, the necessity for strong leaders would JV for technology sharing become imperative. In that respect, the A joint venture provides an easy access work would not entail only engineering route for foreign companies to venture services, but also client services into the Indian market. The JV could be and management. for technology transfer, sales or manufacturing. The skill sets required for this role include excellent stakeholder relationship management as well as business operations. Some recently formalised JVs were: pg.18 the hunt report PEOPLE MOVEMENT

l Amitabh Barthakur former VP and Regional Director of Operations, Planning, Design & Development at AECOM (India) is now Partner at HR&A. l Gopichand Katragadda has joined Tata group as the Chief Technology Officer. He was earlier MD at the GE India Technology Centre. l Hemendra Shah has moved to Rotating Offshore Solutions Pte Ltd as Project Engineering Director from Neuman & Esser Compressor Application Centre where he was Head - Global Engineering Centre (MD). l Bejoy George, who was Executive Director & CEO at Axis Aerospace & Technologies, is now SVP, Global Sales & Practice Head - Aero, Auto & Industrial at HCL Technologies. l Munesh Makhija, previously VP • Hero Moto Corp formed a JV with Global Research at GE Healthcare, l Shantanu Apte has moved to Bangladesh’s Nitol Niloy group to set is now MD GE India Technology Tata Consulting Engineers as Associate up manufacturing plants with plans Center and Chief Technology VP. He was earlier Head of to invest US $40 million over the next Officer - GE India Communication & IV&V- India five years at Atkins Global. • JBM Auto formed a JV with Italian bus l P hilip Todd, previously the Program manufacturer BredaMenarinibus to Director at Fluor, is now Group MD, manufacture luxury buses, and plans Major Projects at Atkins. to invest `5 billion in the venture Competitive landscape: South East Asian countries COO requirements for Recently, South East Asian countries like manufacturing establishments Vietnam, Malaysia, and Indonesia A large number of international among others are gaining prominence companies want to set up their in the ESO space. The prime motivation manufacturing facilities in India. These for outsourcing work to these countries manufacturing facilities generally have was the cost advantage offered by engineering establishments, which take them.These countries have evolved care of the design modifications. For such from product localisation to product a set-up, there is a requirement for senior- development. Therefore, they are level professionals having a mixed being tapped further for the engineering and manufacturing development of local manufacturing background. These positions would and procurement activities. require strong operations professionals who can drive the dynamics of These countries provide an excellent a big set-up and look for synergies in ecosystem for the development of the the complete ecosystem of ESO space and provide tough the establishment. competition for the Indian ESO sector. These nations are developing capabilities in telecom, oil and gas and IT products. Therefore, there could be talent movement at senior leadership levels from India to these countries. pg.19 GENERAL INSURANCE Reinsurance in Asia Insurance Penetration Data for 2012

Country

Japan 524,372 129,740 9.2 2.3 4,142.5 1,024.9 126.6 Singapore PR China 141,208 104,302 1.7 1.3 102.9 76.0 1,372.3 South Korea 78,920 60,376 6.9 5.3 1,578.1 1,207.3 50.1 attraction India 53,300 13,142 3.2 0.8 42.7 10.5 1,249.0 Taiwan 72,522 15,230 15.0 3.2 3,107.1 652.5 23.3 continues Hong Kong 28,979 3,738 11.0 1.4 4,024.7 519.2 7.2 Singapore 12,257 9,823 4.4 1.6 2,471.8 890.2 5.0

Thailand 10,789 7,567 3.0 2.1 156.5 109.7 68.9 High growth prospects, a skilled workforce, defined Malaysia 9,513 5,315 3.1 1.7 329.9 184.3 28.8 Indonesia 10,894 4,615 1.2 0.5 45.8 19.4 237.7

regulations and a competitive tax environment make Philippines 2,265 1,231 0.9 0.5 23.3 12.7 97.1 Singapore an attractive hub for reinsurers. Demand for Vietnam 832 1,091 0.6 0.8 9.8 12.2 89.7 talent in business development roles and underwriters is Sri Lanka 313 385 0.5 0.7 14.8 18.2 21.2 particularly high in Asia as a whole Asia Total 957,712 388,511 4.1 1.6 229.8 91.9 4,167.7 Australia 43,689 42,525 2.8 2.8 1,987.7 1,934.7 22.0

United States 567,756 703,128 3.7 4.5 1,808.1 2,239.2 314.0 BY Arjun Erry AND Yvo Metzellar Europe 876,444 658,732 3.9 2.8 996.0 728.3 815.0

World 2,620,864 1,991,650 3.7 2.8 372.6 283.1 7,034.6 s a prominent Asian reinsurance centre, Singapore plays host to a range of leading global reinsurance groups. Many of these groups service Asia-Pacific markets from Atheir offices in the city. Singapore is also home to Lloyd’s Asia and the number of Lloyd’s syndicates with a presence in the market continues to increase.

Over the years, Singapore’s offshore Factors like rapid urbanisation, an general insurance business has grown expanding middle class, rising affluence, significantly. Twenty years ago, the and increased longevity will stimulate offshore segment in gross premiums greater demand for insurance and terms for both direct and reinsurance reinsurance. There will also be a growing businesses accounted for only 40 need to cover large, specialised and percent of Singapore’s total general complex exposures in areas such as insurance business. By 2011, the offshore trade credit, political risks and aviation/ component had grown to 65 percent. aerospace risks.

For the reinsurance sector, offshore gross For international businesses, Singapore is premiums have risen by an aggregate of attractive due to its skilled labour force, over 70 percent over the last five years*. well defined regulations and competitive The leading sources of demand are tax environment. Challenges include the China (19 percent), Australia/NZ (18 continuing review of Singapore’s Risk- percent), Japan (13 percent), South Korea Based Capital Framework as regulators (11 percent), India/Pakistan/Sri Lanka (9 look to bring their framework up to date percent) and Indonesia (8 percent). with the core principles of the updated International Association of Insurance Greater prospects Supervisors (IAIS). The long-term fundamentals and growth prospects for Singapore remain robust. Specialist talent in demand Key opportunities include infrastructure The demand for reinsurance and development, increasing trade within consequently, specialist talent, is Asia, and between Asia and the rest of increasing in Asia. the world. pg.20 * Market statistics from MAS website the hunt report PEOPLE MOVEMENT Insurance Penetration Data for 2012

l Kay Artus has joined ERV Group as Head of International Business - Asia

Country Pacific, Americas / New Markets. He Life premiums Life (USD m) Non-Life premiums (USD m) Population (m) Population Insurance Insurance life penetration (USD premiums as % of GDP) Insurance Insurance non-life penetration (USD premiums as % of GDP) Insurance per Insurance capita non-life as (USD premiums % of population) Insurance per Insurance (USD capita life as % of premiums population) was earlier a Management Japan 524,372 129,740 9.2 2.3 4,142.5 1,024.9 126.6 Consultant with Munich Re / PR China 141,208 104,302 1.7 1.3 102.9 76.0 1,372.3 Munich Health. South Korea 78,920 60,376 6.9 5.3 1,578.1 1,207.3 50.1 l Winston Hou has moved to India 53,300 13,142 3.2 0.8 42.7 10.5 1,249.0 Munich Re as Deputy General

Taiwan 72,522 15,230 15.0 3.2 3,107.1 652.5 23.3 Manager of Actuarial Services –

Hong Kong 28,979 3,738 11.0 1.4 4,024.7 519.2 7.2 China. He was previously the

Singapore 12,257 9,823 4.4 1.6 2,471.8 890.2 5.0 Associate Director of Actuarial

Thailand 10,789 7,567 3.0 2.1 156.5 109.7 68.9 Solutions at Deloitte Consulting. l Malaysia 9,513 5,315 3.1 1.7 329.9 184.3 28.8 Limin Chen has moved from

Indonesia 10,894 4,615 1.2 0.5 45.8 19.4 237.7 Munich Reinsurance Beijing Branch where he was Life Chief Underwriter Philippines 2,265 1,231 0.9 0.5 23.3 12.7 97.1 (Greater China) to join China RE Vietnam 832 1,091 0.6 0.8 9.8 12.2 89.7 Insurance Company as Director of Sri Lanka 313 385 0.5 0.7 14.8 18.2 21.2 UW & Claim. Asia Total 957,712 388,511 4.1 1.6 229.8 91.9 4,167.7 l Sarabjot Singh, who was formerly Australia 43,689 42,525 2.8 2.8 1,987.7 1,934.7 22.0 VP of Marsh India Insurance Brokers United States 567,756 703,128 3.7 4.5 1,808.1 2,239.2 314.0 is now Head - Business Europe 876,444 658,732 3.9 2.8 996.0 728.3 815.0 Development and Administration – World 2,620,864 1,991,650 3.7 2.8 372.6 283.1 7,034.6 India at Hannover Re Risk Source: Swiss Re, Sigma No 3'2013 Management Services. Talent growth scenario l Ankur Nijhawan is now MD - India The demand for talent in reinsurance at Hannover Re Risk Management generally exists across the board, but Services. He was earlier Practice demand for talent in business development Head- Marsh MicroSecure at Marsh. roles and underwriters is particularly high. l Derek Ford, who founded Firms were hiring candidates in Q4 2013-14, Breakfast Networking – Perth has though recruitment has dipped in Q1 A special report by Fitch Ratings now taken up the role of COO at 2014-15. In keeping with recent trends, estimated that Asia’s contribution to total Aon Risk Solutions. recruiters expect the process to ramp up global reinsurance premiums was under l Ryan Kim has moved on from WIS once again in 2015. Since the reinsurance 10 per cent in 2013. This is Insurance broker where he was CEO talent pool in Singapore is constrained, disproportionately low considering its (Hong Kong) to take up the role of employers are willing to relocate talent from large population and high economic Head of International Facultative – countries like India, China and Dubai. The growth. Fitch therefore reckons the Korea at Korean Reinsurance sector generally pays handsomely, with region has strong potential for future Company. salary increases ranging between 15 to 35 growth. Recognising this untapped l After holding the post of Director percent for those with rare skill sets. However, potential, reinsurance firms are bolstering Property Specialty at RSA, Middle pay scales in Asia are, on average, about 10 to their Asia-Pacific teams. East, Peter Thompson has joined 20 percent lower than those in Europe. Zurich Insurance Company as We expect the large European and Underwriting Manager - Property - Since most reinsurers prefer to hire Japanese firms to expand their MENA Region. candidates who are already from the operations for the Asian region in l Meihong Qian, the former GM of reinsurance sector, recruiting those who Singapore. The increase in natural Reinsurance at Ping An Property & have opted for a mid-career switch is disasters in H1 2014 in Asia has also Casualty Insurance Company of highly unlikely. Still, we expect that heightened the importance of risk China has joined Peak Reinsurance reinsurers will recognise the dearth of management and reinsurance protection. Company as Director, China Market. talent and accordingly agree to train This is aided by greater volume of l Zhang Shibo has joined Canopius candidates who already have relevant risk witnessed by direct insurers; hence, Asia as Head of China Market. He technical skills. In terms of industry their risk needs to be ‘parked’ or was previously SVP, China Market at relevance, we expect that reinsures will underwritten by reinsurers. This Peak Reinsurance Company Limited. prefer candidates from general insurance development also likely implies increased owing to their background in the marine, recruitment demand. property or casualty sectors. pg.21 Investment Management Region Focus: South Asia

Expansion on the cards

Firms are keen to strengthen their asset and wealth management divisions to target the South East Asian markets. Shortage of talent and higher pay scales are forcing companies to revisit their retention strategies

BY Praful Nangia AND Arjun Erry

ccording to Pricewaterhouse Coopers’ 17th Annual Global CEO Survey, AMCs are in expansion mode with 58 percent of the CEOs surveyed expecting to increase Amanpower in 2014. This, coupled with the global economic revival has led to increased hiring in the sector and is further stoking demand for quality talent.

This positive outlook by CEOs comes on Financial institutions in Hong Kong and the back of announcements from several Singapore were reworking their retention firms keen to strengthen their asset and strategies reflecting concern about the acute wealth management divisions. Coutts, BNP shortage of skilled compliance professionals. Paribas and Old Mutual have already taken steps in that regard. With a focus on However, the hiring trend might not be Singapore and Hong Kong in 2014, Coutts entirely suitable for asset managers’ budgets. is keen to double its senior bankers in the As employee confidence has risen so have region as part of its emerging markets salaries, with almost 65 percent of the firms strategy. Interestingly, product announcing higher salaries for their top development and management remain a employees. Firms are relenting to a 20-percent key focus area for most asset managers. increase in salaries while hiring laterally, a This increasing demand and the stupendous increase from the 5-8-percent consequent pressure on salaries are norm prevalent since the slowdown. redefining hiring tactics. Higher AUM recorded Rising demand, higher pay scales Recent data from the Association of Mutual There is high demand for talent catering to Funds of India (AMFI) reflected that AUM fixed income and compliance in this region. rose 9 percent to touch `9.87 trillion in the According to a senior leader, Fixed Income quarter ended June 2014. This rise was due Managers with equity experience are the to the increase in assets of equity funds, most sought after. He also agreed that asset short-duration debt funds and fixed maturity managers were succumbing to regulatory plans. AMFI expects this to be accompanied pressure, therefore, there was a heightened with an increase in folio numbers, substantial focus on compliance. contribution from smaller cities and a higher number of distributors, among others. pg.22 the hunt report PEOPLE MOVEMENT

l S tefanie Drews, ex-Global Head of Key Clients & Family Offices at Barclays is now Global Head - Institutional Marketing & Proposition at Nikko Asset Management. l Akshay Gupta, former MD & CEO of Peerless Funds has moved to Indiabulls as Group Executive Head - Asset Management, Private Equity and Private Wealth. l S atya Narayan Baheti, who was CGM, Mid-Corporate Group & SME at IDBI Bank is now the MD and CEO of IDBI Asset Management. l Mohit Bhatia who was VP-Franklin Templeton Investments is now Head of Sales and Marketing at Canara Robeco Asset Management.

A SEBI-sponsored study found that The sectoral salary increment projections l S anjay Parikh, ex-COO of Taurus banking channels were currently of most commissioned surveys indicate Asset Management, has joined underutilised for MF distribution. It also that this sector ranks first. However, the Deutsche Asset Management India in highlighted that MF presence in India benefactors are limited to the top 10 the same capacity. was heavily skewed in favour of the top fund houses by AUM, as 22 of the 43 l Kiran Deshpande, ex-COO of 60 districts. AMCs reported losses for the last fiscal. Deutsche Asset Management India is In our view, this would enable the larger now COO and CFO of Baroda Pioneer We believe that most AMCs would invest fund houses to post better retention Asset Management. in strengthening their bank distribution numbers and also have their pick from l Ramesh V, who was MD and CEO of networks to coincide with the RBI’s the talent at smaller fund houses. MF Utilities India is now Dy Chief issuance of new banking licences Executive at AMFI. through this year. This should help the Market developments l Dan Miller has moved to Barclays as industry sidestep the difficulties in US-based Principal Financial Group, MD, Head of Equities Sales Trading recruiting distributors and agents in which had a JV in the Principal PNB AMC for Hong Kong, China and ASEAN smaller towns and rural areas. with Punjab National Bank and Vijaya from BNP Paribas Securities Asia Bank since May 2004, has acquired Vijaya where he was Global Head of Firms relook at retention strategies Bank's 4 percent stake and a 5-percent Execution Sales, APAC. The salaries and increments scenario in the stake in the trustee company. With l Mayank Saxena who was VP, Head of sector is expected to undergo a sea change. Principal's consolidation, Vijaya Bank is Southeast Asia Financial Institutions Record AUM and employee dissatisfaction left with no stake in the AMC, while PNB's Group Investment Banking at Credit have apparently pressured AMCs to revise holding is reduced to 30 percent. Suisse, is now Director, Head of compensation strategies to retain talent. Principal now holds 70 percent in the JV. Southeast Asia Financial Institutions According to industry sources, the numbers Group (FIG) Investment Banking at are 12-15 percent in annual increment, Bank of America Merrill Lynch. going up to 20 percent for top talent in l Henry Wong, who was Chief larger fund houses. Last fiscal, the annual Investment Officer-Fixed Income at increments stood at around 8 percent for BEA Union Investment Management, executives displaying average performance has joined Deutsche Asset & Wealth with top performers receiving up to Management as Head, Asia fixed- 12 percent. Expectations of an economic income business for APAC. rebound following Narendra Modi’s electoral win have also led to the loosening of purse strings. pg.23 NBFCs Commercial Banking

New banks to sway the sector

A new chapter is set to unfold in the commercial banking space in India, with the commencement of two new banks mandated by the RBI. This will trigger a demand for talent across senior to mid-level bankers

BY Arjun Erry AND Rajesh Kumar

n a country of 1.2 billion people, where internet penetration is expanding at a pace of 42 percent, to stand at 243 million users today, it is confounding that basic amenities Isuch as banking are available to only one half of the households. With the aim of extending the reach of banks to villages, farmers, and small businesses, the RBI has granted preliminary licences to two syndicates to set up two new banks in the country.

Of the 26 organisations that applied for Such structure helps focus better on the bank license, the RBI gave a nod to business and regulatory compliance. IDFC and Bandhan Financial Services in Another area of focus will be the April 2014, to set up banks within the integration of the existing commercial country. Over the next 18 months, the banking structure with the new banks, so two chosen applicants will have to as to offer a seamless business flow from comply with the requirements specified the beginning. by the RBI. The key element of the set-up for these two players will be getting the The senior leadership team would also organisation structure right, and be required to prepare a robust mission designating the right talent at the and vision for the bank which should be right position. aligned with all the banking operations, and would define the focus areas for the Organisation structure bank's future growth. and business With the set-up of the new banks at full Talent landscape steam, a lot of focus will be laid on With the new banks set to get operational forming the organisation structure.The over the next two years, the hiring would ideal structure for both banks will be a be accelerated for support functions like flat organisational structure, segregated Chief Risk Officer, Chief Operating Officer, into business-wise segments such as Chief Human Resource Officer, Chief wholesale banking, retail banking, and Compliance Officer and Chief Audit other key sub-sectors. Officer.The organisations will need to evolve around the existing banking structure and geographic spread. pg.24 the hunt report PEOPLE MOVEMENT

l Debashis Roy is now the CEO of Legasis Services. He was formerly the Sr Director, Head Enterprise Risk Management at IDFC. l Subhro Bhaduri, who was Head of HR at Kotak Mahindra Bank, has joined Aditya Birla Financial Services as Chief People Officer. l Avtar Monga resigned as the Sr Executive of the Global Delivery Centres of Expertise at Bank of America-Merrill Lynch. He is now with IDFC as COO. l A kshay Gupta, who was MD & CEO at Peerless Funds, has joined Indiabulls Housing Finance as Group Executive Head - Asset Management, Private Equity and Private Wealth. l Samrat Gupta, who was with Tata Technologies Limited as CFO and Chief People Officer, has joined another Tata company, Tata Motors The talent for the upcoming banks could Finance as CFO. Compensation and long- be sourced from: l Pavan Pal Kaushal has moved to term incentives • Private Banks: Private Banks have IDFC as Chief Risk Officer. He was The main influencing factor for robust processes formed in the areas earlier heading the Financial professionals, apart from associating of audit, compliance and risk Services Risk Practice at Ernst with a start-up, would be the functions. During 2004, when two & Young. compensation and long-term incentive commercial banks set up shop in l Harjeet Toor, previously EVP and schemes. An attractive compensation India, there was talent movement Business Head - Retail, SME and structure will be a great pull for talent from here to these new banks. Commercial at Fullerton India Credit from public sector banks and financial • Public sector banks: These banks Company is now Business Head - institutions. Also, providing Employee have sound set-ups in the retail side Retail & Small Business Lending and Stock Ownership Plans (ESOPs) to of banking, with employees who are Credit Cards at RBL Bank. employees will not only help entice key capable of handling big scale l A nand Natarajan, former EVP & talent from different financial institutions, operations, and are well-versed with COO at Fullerton India Credit but also help in aligning the vision of the regulatory requirements. Company, has taken up the position bank with the individual’s career • Financial institutions: In financial of COO at ANZ Indonesia. prospects. Several private sector banks institutions, the workforce has l Mugdha Sahal is now Director, have extended this benefit to their exposure to working in rural and Private Client Practice at Amarchand employees which has worked as a semi-urban areas, is acquainted with & Mangaldas & Suresh A Shroff & win-win for both parties. the modus operandi there, and has Co. She was earlier Director, good knowledge of the policies and Investment Advisory, Trust Services processes. at IIFL Wealth Management. l Parminder Panesar formerly with Board composition IDFC as VP Corporate For the newly created banks, there would Communications & Marketing has be a requirement for senior leaders taken up the post of Head of taking board positions. The new Corporate Communications at Companies Act and the guidelines from Axis Bank. the RBI would require a strong team of l Sumit Agarwal has joined IDFC as board members, and search firms would Director, Head - Loan Syndications. be required to carry out board evaluation Earlier, he was Sr VP - DCM and assessment. & Loan Syndication at Kotak Mahindra Bank. pg.25 Payments

Digital payments gain traction

With a jump in credit and debit card users and online transactions, the industry is poised for excellent growth. Companies are striving to quickly close senior-level positions for product and business development

BY Suresh Raina

he digital payments industry in India is witnessing accelerated growth. According to a study conducted by the Internet and Mobile Association of India, the industry is Texpected to grow 40 percent by end–2014 to reach `1.2 trillion in payments. The sector’s burgeoning pace is chiefly attributed to the recent surge in the number of credit/ debit card users, online transactions and prepaid cards in India.

Mobile payments ring in Mobile payment operators are also working The proliferation of the industry has seen closely with the National Rural Health new trends emerge domestically. Mission and MNREGA for disbursements to Telecom giant Vodafone India became open up transaction channels for the rural the first to roll out its mobile payment market. The sector is expected to see service, M-Pesa, by March 2014. Its close heightened investment activity. competitor, Airtel Money, registered an active user base of 1.7 million for the However, digital transactions are still in a quarter ended March 2014, up from 1.3 nascent stage. With the RBI announcing million in the previous quarter. Both licenses for ‘Payment Banks’, this space players are ramping up leadership teams continues to display opportunities. to drive penetration and usage. Companies are thus on the hunt for senior-level talent in the product and Tata DOCOMO’s mRupee, in partnership business development domains to help with ICICI Bank, is planning to extend drive business and secure the critical mass. services to 26 Indian cities by end– 2014-15. Idea Cellular and Axis Bank New developments in transactions have launched Idea MyCash, a mobile The big three — American Express, wallet. Reliance Jio has also received the MasterCard and Visa — continue to mobile wallet license for Jio Money . explore innovative ways to expand into new product segments and markets. In addition to the consumer business, the business customer segment is providing a big opportunity. To quickly capture market share, firms are closing experienced professionals at key positions. pg.26 the hunt report PEOPLE MOVEMENT

l Deepak Chandnani, ex-CEO of Obopay, has joined Worldline by Atos as CEO, South Asia & ME. l A mitabh Jaipuria is now Head Fixed Wireline Business at Reliance Jio Infocomm. He was earlier the CEO at AGS Transact Technologies. l Sandeep Moonka has moved to PayU India as Head-Banking Products. He was earlier Manager - BD at Eko India Financial Services. l Siddharth Das is now COO at PayZippy Flipkart Payment Gateway. l Devi Dayal Garg, former Sr VP-Finance at Walmart is now CFO at Firstdata. l Vikram Narayan has joined PayPal as Country Manager & MD, India. He was earlier CEO and Country Manager at Experian Services India. l Vivek Nair who was with ICICI Bank in Special Structuring is now Some major developments include: Visa's Director of Analytics - APAC Payment Banks get nod • MasterCard acquires Sam Pitroda’s l Mahesh Misra is now Chief RBI has announced licenses to payment mobile wallet and payment Distribution Officer at Aviva India. banks and specialised banks to provide solutions company, C-SAM He was earlier Sales Director at services to small businesses. Payment • MasterCard acquires ElectraCard Experian India. banks will only be involved in retail Services (ECS) l Shailesh Baidwan, ex-CEO India payment and remittances, and will focus of American Express Banking on unbanked areas. This will allow While SBI was the first Indian bank to Corporation, is now Regional several new players including NBFCs and foray into the payment gateway business President, APAC at Aimia. other payment companies to apply for a through SBIePay, existing players are l Sunil Nair has joined Prizm license and will stoke demand for bolstering their payments services with Payment Services as Program leadership talent for new banks over the features like wallets, marketplaces, Head-Money Spot & Key Account next 6-12 months. logistics and marketing support. Relations. Earlier he was MD-South CCAvenue offers an e-commerce suite, Asia at Euronet Worldwide. E-commerce and payment while PayU India has launched a semi- l Y eshwanth Kumar ex Head of gateways closed wallet service. Sales at FIS Payment Solutions & As competition heats up, players are Services is now Country Manager expanding beyond traditional offerings Companies like Citrus and Movida are at BPC Banking Technologies. to offer value-added services such as rapidly acquiring customers. Venture l A mrish Rau, ex-CEO of First Data analytics. New partnerships will be capital firms are also displaying interest, Merchant Solutions Asia at First forged as entities move towards better which is evident from their investments. Data Corporation has joined Citrus user experience under increased scrutiny Firms like Amazon are building their Payments as CEO. from the regulator, demanding higher payments business to cater to domestic l Puneet Bahl ex RBS - Retail security against frauds. e-commerce players. Banking Head is now with Visa as Group Country Manager, Sub- Payment gateway is a critical yet In the ATM outsourcing sector, several Saharan Africa. problem-ridden area. With the entry of brown label and white label projects are leading e-commerce players such as now nearing fruition and consolidation. Flipkart and Snapdeal, we expect Players including TCPSL and BTI Payments convergence among the e-commerce are already operational. Many smaller banks players, and the private providers and including CSB and Yes Bank are considering banks to grow their margins as full the white label route to expand. solution service providers. pg.27 Private Equity

Set to perform

An improving global picture, a new government and improved investor sentiment will augur well for the Indian Private Equity sector in the second half of the year. A pick-up in recruitment of operational teams and consultants is being observed

BY Sunit Mehra

espite the US fiscal crisis and uncertainty surrounding the eurozone economy, markets recovered smartly in 2013 and continued the trend in 2014. With Dapproximately US $425 billion being raised globally in PE monies last year, we can safely say that the sector is well on the road to recovery. The 22-percent rise in the total value of global buyouts in 2013, as per the Global Private Equity Report 2014 by Bain & Company, and Apollo Global’s single fund raising of US $18.4 billion for its flagship buyout fund are other striking examples of the robustness displayed by the sector. Closer to home,International Finance Corporation (IFC) is looking to raise a US $750 million to $1 billion fund of funds for the emerging markets.

The India story The country witnessed investments The optimism in international markets worth US $4.93 billion by PE and venture coupled with several positive capital players in the first half of this year. developments in India has led to the In addition, several sovereign wealth widespread belief that the slump of the funds have made large direct last three years is over. The rupee has investments– an example being the US recovered from its historic low of 68 $239 million PIPE deal into Kotak against the dollar and our new majority Mahindra Bank by GIC. Interestingly, government is on a strong footing with a investments in the period January-June pro-business regime focused on 2014 are lower than the US $5.48 billion infrastructure and economic growth. recorded in the first half of 2013. But with improved investor sentiment, there is expectation for greater deal activity in the second half of 2014.

pg.28 the hunt report PEOPLE MOVEMENT

l A lok Gupta, previously the CEO of Axis PE, left to join Gerken Capital as Senior Advisor and MD (India). l Anshuman Goenka joined Banyan Tree Finance as MD from Standard Chartered Private Equity. l Arun Nanda, former Infrastructure Sector President at Mahindra & Mahindra, is now Non-Executive Chairman at 3i Group. l Bharat Banka has moved into a corporate role within the Aditya Birla Group from Aditya Birla PE. l Bijou Kurien, earlier with Reliance Retail Ltd. as President & CEO, is now a member of the strategic advisory board at L Capital. l Kutty Dutta, formerly with Coller as Investment Manager, is now Director at HSBC-Alternative Investments. A few fund houses announced first/final l Manish Chokhani, earlier with closures for their funds. These include Axis Capital as MD & CEO, has Gaja Capital’s first close of its US $250 joined TPG Growth India as million fund and AION Capital’s final close Chairman to oversee growth of US $825 million. Others firms such as investments in India & South CX Partners and Multiples Alternate Asset East Asia. Management are expected to soon begin l Mukul Nag and Rahul their fund raising exercises. Raisurana, former MDs at Standard Chartered Private Equity Hiring gains pace moved out last year. Although in the early stages, hiring is l Nikhil Vora, who was MD at IDFC heating up in the sector with several Securities has quit to launch an firms vying for superior talent. The last six early-stage venture capital fund months have seen firms such as Banyan focused on the consumer sector. Tree, CDC, ChrysCapital, Gaja Capital, IDFC l Sachin Chopra has moved out of PE, ICICI Ventures, Partners Group and Everstone. Sequoia put out mandates to hire people l Shami Nissan has joined Actis as at the MD/Director level. Additionally, a director in the Responsible recruitment of operational teams and Investment team. She was earlier consultants is a recent hiring trend a member of PwC’s Sustainability being observed to drive value across and Climate Change team. sub-par investments. l Shyam Sundar and Raja Parthasarathy have moved out of IDFC PE to head Morgan Stanley’s infrastructure fund in India. l Sunil Vasudevan, Partner at India Value Fund, is moving on to launch his own fund - Amicus Capital. l Youssef Haidar has been promoted as the MD of TVM Capital Healthcare Partners. pg.29 Shared Services Captives

On the cusp of growth

Unlike the rest of the world, India has lagged in harnessing the benefits of shared services. As domestic market revenues begin to trump shared service exports, there is a greater need now to develop talent suited to running domestic services

BY Arjun Erry

lobally, over the past three decades, the concept of shared services has found many takers. About 85 percent of Fortune 100 companies have derived numerous benefits such Gas cost reduction, capability enhancement, global delivery, and business transformation. India has been the destination of choice for offshore services for nearly a decade.

According to the AT Kearney Global • Holding on to activities Services Location Index 2011, India is the With rapid growth, Indian companies top pick among offshore services have had to evolve and transform destinations based on three parameters: their business models. Executives • Financial attractiveness believe that keeping activities within • People skills and availability the ambit of their business units • Business environment would ensure better responsiveness to markets. Tepid adoption in India • Low priority for service providers However, India has not been as Being focused on the international aggressive as the rest of the world in business, service providers failed to adopting shared services for itself. The consider the domestic market a domestic BPO market contributed 0.16 priority, especially in a talent- percent to India's GDP in 2012 while constrained environment. global BPO revenues comprised 0.27 • Unclear value proposition percent of global GDP (Figure 1). Some The traditional value proposition for of the factors affecting the sector in offshored shared services, such as India include: labour arbitrage or access to differentiated talent, is still • Lack of scope and size weak in India. Keeping aside the top 100, Indian companies have annual revenues of under US $2 billion. pg.30 the hunt report PEOPLE MOVEMENT

(Figure 1)

l Ganesh Murthy, previously the Executive VP and CFO of Mphasis has moved to Dell Services as VP and CFO. l E dward J Fitzpatrick, who was the CFO of Motorola Solutions, has joined Genpact in the same function. l C handrashekar Kakal has joined L&T Infotech as COO. He was earlier with Infosys as SVP. l A nuj Kumar, formerly with IBM India as GM - Global Process Services, is now GM, India & South (Figure 2) Asia at Concentrix. l Gowrish Prabhu has joined Accenture Operations (BPO) as GM, Marketing Capability, Delivery Excellence & Innovation. He was formerly VP, Marketing – Products at Customer Centria. l Rajesh Pankajakshan, former VP - Technology at Firstsource Solutions, is now VP - Technical Services Group at Hinduja Global Solutions. The industry will need to attract senior l A njum Khurshid, former Program business leaders who can build a domestic- Manager (Retail, Consumer Products facing BPO. It needs experienced market- On the upswing and Logistics) at Infosys BPO, is now facing executives who have built other Many India-based service providers ignored GM – Mobilization at Accenture. services / IT businesses addressing the the domestic market while they focussed l T ulasi Ravi Chandra. Alapati has domestic market; commercial orientation will on achieving high growth and margins joined HCL Technologies as DGM - thus be a key area. As India is a price-sensitive through exports. However, when global BFS BPO Solutions and Presales. He and low-cost market, leaders will need to growth started showing signs of a was earlier with Cognizant innovate service delivery models that will slowdown, they shifted focus to Indian Technology Solutions as DGM - BFS allow them to enjoy similar margins as their companies. For example, a large service BPO Presales, Solutions, Sales global business. As the public sector still provider in the Banking Financial Services Support and BD. remains a large, untapped opportunity, leaders and Insurance (BFSI) domain got its first will need to position strong teams capable of Indian client in 2008 despite having working with this segment. A fitting example presence in India for almost a decade. of this kind of collaboration is the outsourcing of Indian passport issuance to TCS. As shown in Figure 2, in recent years, the This lack of talent is a challenge for India- domestic BPO sector has grown faster focused service providers because of the Accordingly, the growth of the domestic than the export-oriented shared services. low price points of domestic businesses BPO industry will create demand for talent In the upcoming years, shared services which impacts the service providers' in the following roles: will prove to be major force in India. It will ability of renumerate staff well, compared • Business Leaders: To build/grow strong, be led by a variety of factors largely with the BPOs that serve the overseas local BPOs clubbed under two areas: greater market. To cater to these growing • Senior Programme Directors: To oversee adoption of the traditional shared requirements, the government will need multi-year, multi-million dollar, large services model, and leveraging emerging, to play a larger role in creating a wider outsourcing programmes India-specific opportunities. talent base across tier-2 and tier-3 towns • Senior Commercial/Sales Leaders: To and in rural India. interact with leaders on the customer- Developing talent pool side and create the vision of outsourcing. NASSCOM lists low employability of Commercial orientation for leaders graduates in India as a serious cause We believe that the skill-sets required to for concern for the industry. India has build, grow and lead domestically oriented limited talent availability largely due to BPOs will be different from the skills low employability. required to manage offshore BPOs. pg.31 Hospitals

Indian Healthcare sector on a roll

The Indian healthcare sector presents unlimited scope for growth with the increase in demand for superlative services, as also an increase in funding opportunities from PE firms and VCs. This has also brought about a surge in demand for talent in the sector

BY Anne Prabhu AND Saurabh Coakley

iven the lack of quality and affordable healthcare across the country, the healthcare market remains attractive for companies to venture into. With increased funding Gfrom Private Equity (PE) firms and Venture Capitalists (VCs), the players in the market are looking at various modes of expansion, including forays in the overseas market.

New healthcare formats on the rise Talent movement The market remains bullish on mid-sized The growing scale of operations of day hospitals and day care healthcare centres. care surgery and speciality clinics has The ability to scale up and derive value raised the demand for talent who will be out of existing set-ups, though, remains a able to manage the front-end expansion question. While general diagnostics and activities and operations at these centres. traditional health care service chains With FMCG and Retail sectors losing flourish, specialists such as IVF, Heart sheen, an inflow of professionals from speciality clinics and others formats these sectors to healthcare is also seen. continue to tread cautiously, depending This has benefitted healthcare delivery, upon the responses from the market because of the transferable skill sets that where they are operating. Some of the individuals from these sectors possess. unconventional models adopted by the Their skills of managing large-scale and players today in the market include low diverse operations in multiple locations, cost, no-frills hospitals, day care surgeries, come in handy for this industry, and has specialist hospitals, wellness centres etc. resulted in subsequent movement Since the working models of all these of talent. healthcare services are different, a one-size-fits-all model cannot operate across specialities.

pg.32 the hunt report PEOPLE MOVEMENT

l Vinod YR, former VP of Apollo Hospitals has moved to Aster Medcity as Chief Business Development Officer. l Koshy Ancheril, previously Sr Manager-HR of Aster Medcity has joined Rajagiri Healthcare and Education Trust as Sr Manager – HR. l A nupam Verma is now President of Wockhardt Hospitals. He was previously the CEO of DM Healthcare (India). l Jitendra Haryan has moved to Jaslok Hospital and Research Centre as CFO from SevenHills Healthcare where he was VP – Finance. l Mukesh Rai has joined Reliance Industries as VP – Finance. He was earlier Director – Finance at Apollo Hospitals. l Dr Tarang Gianchandani, who The demand for quality talent remains was earlier Acting CEO, Director, • Free3 Healthcare, which runs a dental high across these sectors, majority of Medical Services, Strategy Planning clinic chain Smile Merchants, received which is for established large scale & Hospital Quality at Jaslok between `5-10 million from Seed-stage hospital chains. However, the jury is still Hospitalis now CEO-Jaslok Hospital impact investor Unitus Seed Fund (USF) out on the success of such individuals’ and Research Centre. • Hyderabad-based Sandor Nephro ability to manage the multi-city multi- l Vivek Balasubramanian is now Services, which runs a dialysis chain clinic spread of these institutions. GM at Anglo Arabian Healthcare. Sparsh Nephrocare, raised its first round Professionals in Business Development He was previously with Yashomati of investment of `200-250 million from and Operational continue to be in Hospitals as Director – Admin. Tata Capital Healthcare Fund demand too. Business Development and l Vishal Mishra, who was with • Address Health India, which runs acquiring a doctor’s existing practice has Rockland Hospitals as Head-Sales & primary paediatric care clinics in become key to a centre’s success where Marketing, is now the VP-Marketing Bangalore, is raising USD $333,000 from the model is dependent on the at Oswal Multispecialty Hospital. USF, in a pre-Series A round of funding doctor’s reputation. l Manikandan Bala joined Elektra for the healthcare firm India as VP – India. He was earlier • Kolkata-based Bengal Speech & As multiple healthcare delivery models with Johnson and Johnson as GM - Hearing, which runs hearing aid and come of age and gain acceptance, the Global Orthopedics & Neuro speech therapy clinics, is raising around chains are increasingly moving away (DePuy Synthes) & Managing US $5 million from private investors from projections which were only based Director Synthes. • Aster DM Healthcare, which runs on assumptions. Instead, they are using l S ameer Kaul, VP –Marketing with hospitals across India and the Middle empirical data. This has, in turn, resulted Dr Lal Path Labs moved to East, has raised US $60 million from its in streamlining of operations and using Metropolis Hospitals as their COO – existing investors Olympus Capital and much smarter ways to track ROI by North India. India Value Fund Advisors blending technology in their processes. l Founder and MD of HealthBridge • Hyderabad-based Krishna Institute of Advisors, Adheer Gogate joined Medical Sciences (KIMS) is in advanced Companies that have received funding Philips Healthcare as their Sr stages of discussion to secure a fresh from VCs and PE firms over the Jan–July Director and Head, Healthcare round of funding amounting to cycle include: Transformation Services. US $54.5 million which would also • IFC invested a majority stake in a provide an exit to a previous private US $10 million Series B funding in equity investor Nephroplus Health Services in March 2014 pg.33 Pharmaceuticals

In proactive mode

After a tumultuous ride which ensued after the USFDA crackdown on quality, the Indian pharmaceutical industry is now in global expansion mode with increased interest observed in R&D

BY Anne Prabhu AND Saurabh Coakley

here is increasing demand for Indian medicines from developed countries like the UK and the US. India is home to the highest number of FDA-approved drug- Tmanufacturing plants with over 150 formulation facilities. It is also the second- largest pharmaceutical supplierof generic drugs to the US.

With the episode of strict action by US The Torrent Pharma–Elder Pharma deal drug regulators against some Indian which came under the lens of the pharmaceutical players behind us, the Competition Commission of India (CCI) sector’s growth story now continues has also been given a clean chit. with expansions across the globe. This Companies are evidently increasing upbeat market sentiment coupled with focus on expanding their operations in increase in demand from developed newer markets. countries is reflected in increased activities like mergers and acquisitions Regulators turn strict (M&A), with the Sun Pharma-Ranbaxy With Indian pharma companies set to Laboratories deal being the flavour of expand operations, regulators are the season. Other pharmaceutical determined to keep a strict check on companies are following suit. quality. The latest announcement in this regard was the government’s plan to Companies go shopping spend US $500 million over three years In April 2014, Aurobindo Pharma to double the drug inspection and acquired the commercial operations of regulatory force. The government is also Dublin-based Actavis PLC in seven expected to set up state-of-the-art Western European countries. Another testing labs at ports, ensuring that drugs eminent player, Cipla,also picked up and pharmaceuticals exports are in line stakes in US-based Chase Pharma in with global quality standards. May 2014, and in Uganda-based Quality Chemical Industries Ltd (QCIL) late last year. pg.34 the hunt report PEOPLE MOVEMENT

l Ayushman Bhattacharya has moved to India Management Centre for Roche Products as Director - Speciality BU. He was earlier Deputy Director-Oncology & Transplant Business unit at Sanofi- Aventis Pharma. l NK Jain, who was Sr GM - Sales Marketing at Zydus Cadila has moved to Intas Pharmaceuticals as SBU Head & Sr VP - Sales & Marketing-CNS Business. l Kuntal Baveja who was MD and Country President of Novartis Figure 1 - Investments in R&D (US $ Mn) Bangladesh is now Country Head Source: PWC, Aranca Research and President, Sandoz Philippines, a Novartis Company. l Mahesh Kulkarni, the former Sr VP – Quality at Hospira, has joined Dr. Reddy’s as VP-Global Quality Management. l Vikram Singh, who was Medical Director at MSD Middle-East These measures come on the back of the Region is now VP-Medical Affairs & l S anjay Srivastava who was United States Food and Drug Pharmacovigilance at Johnson & Associate Director – HR at Astra Administration’s (USFDA) import ban on Johnson (Pharmaceuticals). Zeneca is now with Boehringer Indian pharma companies like Ranbaxy Ingelheim as Director – HR. Laboratories and Wockhardt after they l Vivek Shankar Verma has taken failed to meet quality standards. A recent up the role of Sr Director at Emcure meeting of USFDA Commissioner Pharmaceuticals. Previously, he was Margaret Hamburg with Indian A shot in the arm for R&D Cluster Head & GM – Institutions at government officials and pharma Research and Development (R&D) is Glenmark Pharmaceuticals. company executives where she stated another function which is witnessing l In an internal move, Rajaram N, that the US regulator would increase its increased demand for talent. With Indian who was COO at Sanofi Aventis is offices in India, train officials and increase pharma companies developing their now Country Head & GM (Pharma) inspections at overseas plants, also R&D capabilities, emerging trends such at Sanofi. served as a catalyst for this move. as the growth of biosimilars and big l Amaninder Dhillon joined Dr. pharma’s outsourcing of R&D to Reddy’s Laboratories as their Hunt for talent goes global specialist R&D outfits or Indian pharma Associate Director – Oncology. He With acquisitions taking place on an companies with strong R&D capabilities was earlier with GSK as Group international scale, the war for talent are creating demand for talented Product Manager. acquisition is going global. Key scientists. Higher investments in R&D are l Theresa Stevens, former Chief executives with international reflective of this demand, as observed in Corporate Development Officer experience in Operations, Sales and Figure 1. A higher proportion, 6.5-8 of Aptalis Pharma, has joined Business Development are in demand percent from 3-5 percent earlier, of their Lupin in the same function for its by companies. sales revenue is being channelised into global operations. R&D activities, especially in collaborative research of drug discoveries.

pg.35 EPC

On an upward trail

After a slack, a range of new activities are brewing in the Infrastructure sector, giving way to positive growth. With new policy reforms bolstering projects, there is a boost in demand for Design and Business Development professionals.

BY Suresh Raina AND Rajesh Kumar

he sluggishness of the Infrastructure sector is slowly giving way to positive sentiment with a new government at the centre. This coupled with improvement in Tmacroeconomic indicators should bring in a resurgence of investments and development. If policy reforms are implemented as planned, the projects will be fast-tracked.

A progressive network of roads • As an industry first, the Asian In stark contrast to having the largest Development Bank (ADB) has road network in the world, the Indian commenced the feasibility study road infrastructure sector still reels under work on the Chennai–Vishakapatnam insufficiency of funds and formation. Industrial Corridor, and may fund Projects under the Build-Operate-Transfer the corridor (BOT) PPP model, introduced for the • The government has scrapped its development of the country’s National plan to build the Eastern Peripheral Highway network, have missed the mark Expressway under PPP Mode with only three out of 147 PPP projects • For 2014-15, 3,000-3,500 km of road attaining completion. Alternatively, the projects will be developed employing government is increasingly adopting the the BOT (PPP) model, while and engineering, procurement and 5,000 km will be developed through construction (EPC) model for further the new EPC route expansion. In the latter, the government provides funding while the private player With the surge of newer developments handles the development. in the sector, talent acquisition will be a critical factor for the projects’ success. Some recent major developments: Over the course of the next 6-12 months, • The government has planned an the requirement of project managers investment to the tune of `1 trillion in and senior professionals in design, bid partnership with Japanese investors management, and regulatory affairs to fund road projects management will remain high. • Sadbhav Engineering bagged the Rajasthan road project on EPC model pg.36 the hunt report PEOPLE MOVEMENT

l Naresh Mehta has joined AIA Engineering as Head (HR and Org. Capability Development). He was earlier at Electrotherm as Group AVP (HR & OD) - Office of Strategy Management & Organisation Transformation. l Ajay Jain has moved to Centrum Capital as ED from JC Man Group where he was Director. l N. Sai Mohan, who was Technical Advisor, International Division at Kalpataru Power Transmission is now ED, International Division at Gammon India. l Amogh Nawathe has taken up the role of Sr VP-Business Head- International Projects at Kalpataru Group. He was previously with KEC International as VP-Business Head-International Projects Power Systems SBU. l Govardhan Gaddam, former Transforming infra in Tier-1 cities Project Director at Mott MacDonald, Renewable is the buzzword With Tier-1 cities reeling under is now VP-Corporate, Head of Gujarat Currently, the power sector is buzzing infrastructure chaos, state governments Region at SPML Infra. with action in turnkey power projects. are focusing on advanced infrastructure l Sista Prasad is now COO at CEC Activity is expected to increase in the developments such the Metro and International Corporation (India). renewable energy space with the Monorail. According to a study by Ind-Ra, Earlier he was ED & BU Head at government pursuing projects. all major privately held airports under Pratibha Industries. Some of the big orders wins are: PPP are witnessing a YOY positive growth l Yugesh Goutam has taken up the • BHEL won the EPC order of `79 in passenger traffic. However, the huge position of Group President HR at billion for setting up power projects losses incurred by airlines might hit the JSW. He was previously ED - HR for in Jharkhand airports’ performance. the Infrastructure Sector at RPG • Tata Power commissioned a 50 MW Enterprises. solar PV project for NTPC Key developments in the subsector: l S Venkatesh, former Founder & CEO • Jakson Group bagged EPC orders • The 30-km Noida-Greater Noida of Svanishta, has moved to KEC totalling `2 billion for electrical and Metro Link has been approved and International as ED-HR for the solar business will be operational by 2017 Infrastructure Sector. • L&T won EPC contracts for about US • Chennai Metro Rail has completed $480 million for two gas-based track laying and electrification work combined cycle power plants in up to Alandur and will soon Bangladesh commence operations on the first • Mahindra EPC Services successfully stretch commissioned two solar plants • Mumbai Metro commenced Airport and Metro projects have a long for automotive manufacturers operations in June 2014 gestation period and require the in Chennai • Japan International Cooperation engagement of seasoned finance Agency (JICA) announced `89.33 professionals. Some companies are keen For the functioning of ongoing and new billion aid for Delhi Metro Phase III to reduce stakes in existing airports to and upcoming projects, we expect and commenced tunnelling work for reduce the group-level debt burden. demand for Project Directors both in the Janakpuri-Noida Metro Line Furthermore, there is huge demand for Civil, and Mechanical, Electrical, and • KIA airport development is underway specialists in Design, Business Plumbing Engineering (MEP). Development and Operations in such complex projects.

pg.37 Ports

Bullish sentiment

The Indian ports sector is expected to benefit from the new government’s stand focussed on infrastructure development. As competition intensifies to acquire new clients, companies will be on the hunt for BD professionals to fill senior leadership positions

BY Suresh Raina AND Rajesh Kumar

n the infrastructure front, the new government has got off to a good start with the various environmental clearances given to Adani Ports and Special Economic Zone O(APSEZ) for its 8,481 hectares special economic zone; the company operates India’s only port-based SEZ. The government is bolstering the sector with new policy measures such as deregulation of tariffs. Furthermore, investments in other sectors like roads, power and railways are expected to drive business for ports and inland terminals. Thus, the overall sentiment for the sector is bullish.

Deregulation of port tariffs to serve Many private companies, including as incentive global players, are already operating in The new government is focused on the India and are bidding aggressively for development of the infrastructure sector. new projects. Major ports have registered The deregulation of port tariffs would an increase of 22 percent in thermal coal provide incentives for the private players imports for 2013, according to data from to become more efficient, which would the Indian Ports Association (IPA). Power in turn, make them more productive and plants also look towards imported coal to profitable. The new policies will also help meet their requirements. The volume attract foreign investments. India has thus handled by the ports is bound to already received investments close to increase with several new ports being a record US $3 billion till the end of commissioned over the next 6-12 March 2014. months and amidst Coal India’s continued struggle with inefficiencies. Coal, oil imports major drivers for port expansion Some of the major investments in the India’s bulk imports comprise oil and coal. sector are listed below: Thus, it makes an excellent business • Essar Ports will invest `30 billion over proposition to invest in the development the next three years towards the of ports and terminals. expansion of four port projects pg.38 the hunt report PEOPLE MOVEMENT

l Sandeep Mehta, who was Head HSSE - Africa & Middle East Region at APM Terminals, has taken up the position of Regional Director - Inland Services AME Region in the same company. l R ajaram Iyer who was Head - Ocean Freight Operations, India at DHL Global Forwarding is now Director Transitions at CMA CGM SSC India. l Captain Sujeet Singh, former CEO of Nhava Sheva International Container Terminal, has moved to DP World Surabaya Indonesia as Director Operation. l Anil Radhakrishnan has joined Adani Logistics as CEO. He was earlier the MD–India at APL. l Sujeeta Kumar Mohapatro, previously Head - Cargo Operations at (Essar) Paradip Port, has taken up the role of Head-Port • The VO Chidambaranar Port Trust at Operations at India Power Some of the investments in this rapidly Tuticorin will execute the outer Corporation (Haldia). developing space include: harbour project worth `234 billion in l Christopher Verma, who owned • Two Indian companies, Container four phases. The project will host 17 Logex Consulting, is now Partner/ Corporation of India and HIND berths and would add 328 million MD at V Ship Lines JLT. Terminal, India are vying for the tonnes to total capacity on l Vishal Sharma has moved to management contract of the Inland completion DAMCO (Maersk Group) as its CEO Clearance Depot (ICD) in Sirsiya, • The `51 billion international India, Bangladesh, Sri Lanka. He Birgunj. deepwater project at Vizhinjam was previously CEO of Gateway • Asian Terminals is stepping up receives five bids from national and Rail Freight. investments to strengthen existing overseas companies cargo handling services. • APSEZ acquires the Dhamra Port in Odisha for nearly `55 billion Business development • Paradip Port calls for bids for the professionals in demand hybrid cargo business Opportunities galore for inland On the talent front, we expect an • Ennore Ports is planning to raise terminals escalation in demand for leadership `5 billion of debt through tax-free Inland ports continue to witness robust personnel, with a special focus on bonds to undertake modernisation growth. Infrastructure bottlenecks at operations experience. There is ample and expansion projects ports have opened up opportunities for opportunity for business development • APM Terminals and another global the inland terminal business and most professionals at senior leadership player are together in talks to pick up players, both Indian and global, are in positions as competition will intensify to a majority stake in L&T’s `40-billion expansionary mode. Companies are acquire new clients. Also, professionals Kattupalli Port actively making investments and are with exposure to Operations and • APSEZ wins contract to develop the keen to buy companies’ existing assets. Infrastructure will be increasingly sought `12.7 billion container terminal Maersk Line continues to invest in inland after to deliver complete logistical project at Ennore Port services in India to increase its presence solutions to clients as standalone • Singapore’s PSA International wins a in the country. Several inland terminals offerings will gradually loss fervour. `80-billion DBFOT contract to are being developed across major hubs Demand for senior leaders with suitable develop a container terminal at throughout the country to ease and fitting skill sets is robust. Jawaharlal Nehru Port Trust congestion at ports.

pg.39 Power – Conventional and Renewables

Powering up for a transformation

The power sector has divided fate in the ensuing months. While the renewable space has surged ahead, conventional and other energy sources will be witness to a slack. The sector will witness demand for finance professionals to raise capital and restructure debt

BY Suresh Raina AND Rajesh Kumar

he new government has ambitious plans for the power sector. As per a forecast, India would be adding close to 10,000 MW of coal-fired power capacity by March T2017. The sector, which was till now reeling under pressure, is expected to grow in the light of new policies promoting investment, especially in the renewable power space.

Renewably sound • Tata Renewable Power has acquired Renewable energy, especially wind and AES Saurashtra Wind Farms. It is solar energy, is witnessing increased executing two wind projects with a activity in terms of mergers, acquisitions combined capacity of around and new investments. With the 250 MW in South Africa government giving fiscal and policy • Inox Wind has received orders for support to the renewable energy sector, setting up 170 MW wind farms it will receive the much needed • SunEdison is planning to set up an investment boost. Renewable power is 18 MW solar park in Tamil Nadu also becoming more competitive when • Suzlon Power has bagged an order compared with conventional power with for 100 MW wind farms from ReNew multiple advancements in technology. Wind Power • CLP is planning an IPO over the next Some major developments in the 12 months sector were: • SunEdison will install 159 KW of • The World Bank is planning to invest photo voltaic micro-grids in six US $775 million in clean energy remote Indian villages.This project projects in India will provide electricity to close to • NSL Renewable Energy has raised 5,000 people currently living off-grid funding from global aid agencies in remote villages including IFC, ADB and DEG

pg.40 the hunt report PEOPLE MOVEMENT

l Anil Nadkarni, who was earlier the CIO at Thermax, has joined Mahyco Seeds in the same function. l J P Chalasani has moved to Punj Lloyd as Director and Group CEO. He was earlier the CEO of Reliance Power. l V inod Bhandawat, former Dy CFO at Vedanta Resources Plc, is now CFO at Adani Power. l M S Mehta, who was earlier the CEO at Vedanta Resources Plc, has joined Reliance Infrastructure in the same function. l Juvenil Jani has moved to Green Infra Limited as CFO from Adani Group where he was CFO-Coal Mining & Trading. l Mahesh Barve has moved to Jindal Steel & Power as VP, from Arcelor Mittal Distribution Solutions – India where he was CEO.

As businesses will see increased deal • Lanco Infratech has sold 80 MW activity in the coming months, the capacity hydro power assets to demand for quality leadership positions GreenKo will also ascend. If the protective • Tata Power is looking at selling its • Jaypee Group has sold its two hydro measures are passed by the government stake in Indonesian coal mines to power assets to UAE utility Taqa to boost domestic manufacturing, Indian raise capital • Southeast Asian company 1MDB is companies and MNCs will require • JSPL has commissioned an 810 MW the front runner in acquiring stakes manufacturing and technology captive power plant in Odisha using in the 1,200 MW Udupi Power Plant professionals. The demand for project coal gasification of Lanco Infratech management and business development • Reliance Power has commissioned its professionals will also surge. second and third unit for Sasan In the near future, the leadership talent Power Plant requirements in the sector will remain Conventional Energy • GVK Power, in view of gas subdued. With the projects getting The conventional energy sector shortage,has posted a loss of clearances, there will be requirements for continues to face multiple problems like `3.5 billion with two of its power finance professionals to raise capital, environmental clearances, raw material projects becoming completely restructure debt and recover some of the supply and the backlog with state non-operational lost time. discoms. The sector is heavily regulated • Lanco is planning to sell its stake in with demand expected to move at a slow three power projects to raise Unconventional energy sources pace. In the sector, coal continues to `25 billion, and has sold one of its The other unconventional sources of remain the dominant fuel, but supply is units to a Middle East company power like hydel, bio-mass etc. are erratic and dependent on imported • Adani Power is planning to sell lagging as compared to the sourcing. On the other hand, the 50-percent of its stake in Carmichael development in the wind and solar fluctuation in the supply of gas/oil are Mines in Australia power sector. The high operational cost hindering the smooth functioning associated with bio-mass power of the plants. On the other side of the spectrum are increases the cost of generation and MNC companies which are showing hence, makes it a non-feasible solution. Owing to the above problems, many interest in buying power assets in India. On the other hand, hydel is dealing with companies in the sector are seeking an The latest updates in that space are: its own challenges like huge capital cost exit from their conventional energy and operational challenges. In the future, undertakings. The latest developments there could be consolidation in the mini on that front are: hydel sector. pg.41 Real Estate

Turbulent times recede

After a few turbulent quarters, the Indian real estate segment is witnessing renewed investor interest. Foreign funds and institutional investors are exploring new opportunities, thus stoking demand for professionals in various functions

by Suresh Raina and Rajesh Kumar

he last few quarters have been challenging for the Real Estate sector. While the large players continued to be under pressure, the sector saw fresh investments from PE Tfirms; few funds also made exits. Real estate developers are venturing into the affordable housing segment and are expanding their presence in non-metro cities to cater to untapped demand in the Tier-2 and Tier-3 segments.

Residential segment heats up • Blackstone invests `1.75 billion in The residential category is undergoing Ozone group’s Chennai project quick development. In addition to the • Emerging markets investment firm metros, developers are also targeting Xander invests US $61 million in real Tier-2 cities. There are significant deals on estate developer Rustomjee both the buy and sell side. To cover a • Piramal Fund invests `1 billion in the wider customer base, developers like Tata residential projects of Satya Group Housing and Mahindra Lifespaces have • IL&FS PE firm exits Phoenix Mills launched projects in the affordable • Morgan Stanley Real Estate partly housing segment. Some of the recent exits Oberoi Realty developments include: We expect to see strong demand for • Godrej Properties announces a senior finance professionals with a capital premium project, Godrej Oasis, in markets background as there will be Gurgaon extensive activities like consolidation, • Mahindra Lifespaces to raise US $125 due diligence and entry/exits by PE firms. million and foray into affordable Demand for domain experts and housing professionals with a deep understanding • Eldeco Group to develop a township of legal requirements for land acquisition in Mathura in various markets will remain steady. • India Infoline Finance invests `1.5 billion in Wadhwa Group’s Navi Mumbai township project pg.42 the hunt report PEOPLE MOVEMENT

l Ramashrya Yadav, who was the Joint CEO of Orbit Corporation, is now CEO-Real Estate Practice at Edelweiss Financial Advisors. l S Raghunandan, previously CEO-Retail of the Prestige Group, has joined Virtuous Retail Pte Limited as CEO. l MN Hariharan has moved to Virtuous Retail Pte Limited as Director-Finance. Earlier he was Associate VP at Inorbit Malls. l G Raghavan, who was CEO, Career Building Solutions at NIIT, has joined Bhartiya Urban in the same function. l K Srinivas, former President of the Motorcycle business of Bajaj Auto, is now Member of Management Council at Wadhawan group. l S K Sayal is now MD and CEO of Bharti Realty. He was earlier CEO New investment proposals of Alpha G Corp. Some key developments: expected for commercial space l Pawan Kumar Choudhary has • After acquiring property worth The commercial segment has also been taken up the role of CEO-Special US $530 million in London, Lodha impacted by the change in sentiment. We Projects at L&T Realty. He was Group makes its second property expect new investment proposals for previously Sr VP and Head - acquisition there valued at US $150 malls, IT Parks and office spaces. In a study Infrastructure & Development million to undertake residential by real estate consultancy firm Knight at DLF. development Frank, there is higher availability of mall • Indiabulls Real Estate buys property space in Tier-2 and Tier-3 cities over the worth US $264 million in London Tier-1 cities. • Muthoot Leisure acquires Xandari Resort & Spa in Costa Rica Some of the recent major developments There is significant demand for senior • Kuwait-based Hayat Invest ties up include: sales and business development with Chennai-based XS Group to • Honeywell acquires 800,00 sq.ft of professionals in this space. Professionals develop two residential projects BTS non-SEZ office space in Ecoworld in these two functions will be required to • After their initial foray in hospitality • IREO forms JV with Singapore-based liquidate the increased inventories by through Lemon Tree Hotels, Ascendas to develop an IT park drawing attractive lease plans and Netherlands-based pension fund in Gurgaon product mixes and will thus be essential manager APG, in partnership with PE • Embassy Property Developments and for the success of this category. firm Xander, launches a US $300 Blackstone acquire 60-percent stake million India office fund to acquire in the Vrindavan Tech Village at an Indian real estate goes global high quality income-generating enterprise value of US $342 million Developers are scouting for new office assets in the country. • Brookfield buys out Candor opportunities globally. Simultaneously, Investments, a subsidiary of Unitech global investors are displaying renewed We expect robust demand for Corporate Parks interest in Indian real estate with foreign professionals with strong strategy and • DLF raises capital through the pension funds and institutional investors business development skills who also Commercial Mortgage Backed exploring various options. have exposure to international real Securities issue backed by malls DLF estate. As diversification into the ME, Emporio and DLF Promenade Europe and the US is an area of interest for major players, it will be eagerly pursued over the coming years.

pg.43 ABOUT HUNT PARTNERS

Hunt Partners is a leading boutique Asian executive-search firm. The firm was founded in 2004 in Hong Kong and Mumbai, and it has since grown to establish three direct offices across the region. Prior to coming together to start the firm, the founders had successful careers as corporate general managers, executive search consultants and entrepreneurs. The firm has witnessed rapid growth of people, offices, industry practices and revenue, and is now repeatedly recognised within the top 10 retained search firms.

Hunt Partners is a uniquely structured firm, being the only reputed executive-level search firm operating through an integrated structure of directly-owned and managed offices. As a true partnership, all the firm's Partners have ownership and are committed to fostering an environment that produces results and therefore a solid reputation.

Hunt Partners operates from principal offices in Mumbai, New Delhi and China. Future plans include continued expansion via new offices in South East Asia and West Asia, and a continuously expanding partnership.

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