How India Inc can stay on course
Indian Industry must embrace change to not just survive but to exist longer and stronger
India has changed since the 90s. And it has changed dramatically. There are three phases to this metamorphosis. The early 90s saw it open up, thanks to the boldness of the Congress-led government of Narasimha Rao and his Finance Minister Dr Manmohan Singh, who combined admirably to let India explore the world of globalisation.
The liberalisation policy in its wake saw a slow and steady demise of the licence raj. Corporate India, in a way, enthusiastically hailed the new order, which sort of gave it a sense of liberty and a feeling of true ownership.
Arrival of India
As the world entered the new millennium, India acquired visibility in the global space. The Y2K conundrum gave the countrymen a pride of place in the global sphere. Their software skill came to the fore. And, the world no longer asked: Where is India? The Indian IT industry was primarily instrumental in changing the global view of India. Not surprisingly, the IT prowess led to interest in India among many multinational companies.
A combination of factors has developed an Indian who aspires to a higher standard of living. A modern India is indeed a study in sharp contrast to India of the pre-90s. An amalgam of factors – size, population, geography and aspiration levels et al – has indeed culminated in the world at large focusing on India.
We have seen the emergence of a confident India and aspiring Indians. Once this raw aspiration chord was kindled, the propensity to elevate – economically and otherwise – only multiplied. And, this aspect is indeed the key to the India growth story. Well, Covid-19, however, has turned everything topsy-turvy for the world. And, India is no exception.
Fresh Disruption
For a country which has demonstrated an enviable resilience in times of disruptions earlier – be it during the sensational opening up of the economy in the 90s or in the wake of the Y2K imbroglio, Covid-19 does pose an enormous challenge. The Covid-induced disruption has already upset fairly well-developed apple-carts across the business and social fabrics of the country.
But the “We can do spirit” of the Indian is well intact. After all, the disruptions of the past have seen the positive fall-out of a demonstration effect on a common Indian. They have also dusted the entrepreneurial spirit in an Indian.
New Normal
Covid-19 and social distancing have presented a new normal for society as a whole. Healthy and safe living has taken precedence over many other things.
Covid-19 and the stricter restrictions have all combined to redefine the knowledge dissemination and assimilation process, reconfigure the consumption behaviour and restructure the entire go-to-market approach. In the event, a host of opportunities in areas such as electronic gadgets, digital workspace and construction have opened up for the industry.
Change is the only constant. When the going is tough, you turn tough. That is what Corporate India has to do to stay on course not just to survive but to exist stronger and longer. What could be done?
Change Chart
• Look inward. And, do it quickly. Can I cut the flab? How much can I? So, cost management becomes a sine qua non. Both the fixed and variable costs require a hard look.
• Corporates must now realise the importance of growing profitably. That means working out a perfect correlation between selling price and cost.
• They should get rid of avoidable layers between the company and end-clients. Often, manufacturing companies have built avoidable multiple layers between themselves and end-clients for assorted reasons unrelated to business.
• Ipso facto, this calls for brand building of a solid kind. Brands do have recall value. And, they do command reputation, respect and loyalty. What does it take to build a brand of reputation? Fairness, trust, quality and care are key constituents that form the fulcrum of a darling brand.
• Consumption has acquired a new meaning and format in the post-Covid era. The way one consumes a product has changed dramatically. A simple case in point is the purchase of groceries by housewives during this pandemic. Safety-driven and health-conscious are ordering groceries online! In a way, delivery method has dramatically changed.
• It calls for Corporate India to embrace digital technology – not just for the delivery of products but to reach out to clients as well. The evolving times have underlined the importance of direct communication with clients – at back-end, front-end and across the entire chain.
• It also means a redefining of the business strategy. The “go-to-market” has to undergo a major metamorphosis. Digital tools have to be increasingly employed to crack the consumption demand that is hesitatingly waiting.
• The aversion to flexi-work appears to be evaporating. This gives both the job-seeker and job-giver enough leeway to work out a lasting relationship that is built on trust and each other’s strength.
• In a demanding situation, it is well-nigh difficult to stay afloat let alone profitable. A situation like this calls for development of a new order where multi-skilling gets top priority. Both in terms of optimising the available human resources and from the angle of providing job security, multi-skilling is the way forward for corporates.
• A paradigm shift in the communication process with the use of the internet and digital technology will go a long way in establishing a close connection with stakeholders in a dynamic way.
• Manufacturing companies faced tough situation when during the lockdowns, contract and migrant labour left for their home towns and villages. Read in this context, multi-skilling of its regular staff would have to be encouraged. Corporate India (especially manufacturing) needs to foster an ecosystem around its production facilities that would effectively deal with such a kind of migrant exodus.
• The core to a competitive existence lies in a nimble leadership — which is sharp in understanding the evolving situation, quick in decision-making, bold in executing and uncompromising in implementing.
These aren’t really outside the realm of achievable for the Indian industry. What is in the realm of your control, you strive to perfect it. Once you perfect the process, the result will play out automatically.
(The author is a senior financial journalist based in Chennai)
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