HE IS A tall personality in the corporate world of Tamil Nadu. Conversations with him often turn out to be an exciting educational experience. We are talking about Suresh Krishna, a statesman among the industrialists. He is always passionate about Indian multinationals. “Indian firms should have global ambitions. Why should they not?” So runs his theme. When one of the joint venture companies (TVS Whirlpool) of the erstwhile TVS Group ceded majority ownership to its foreign partner, Suresh Krishna chose to quit as its chairman, saying he did not want to be a chairman in an organisation where TVS did not have majority control.
ASPIRATION AND AGGRESSION
To become a multinational, it requires enormous grit and staying power. In the evolving modern global business dynamics, such an aspiration has to be supplemented by a sense of aggression and an unhesitating approach to the entire decision-making process. More than all these, an intellectually robust management team is a sine qua non for executing the multinational aspiration to perfection in the emerging highly competitive and geo-politically-influenced global business arena. No doubt, we are now seeing more Indian companies stepping out of the shores to set up bases across the globe.
SIGNIFICANT SETTLEMENT
Viewed in the context of increasing aspirations among the Indian firms to become global players, the recent out-of-court settlement of internecine quarrel between two fighting partners of long years – AGCO Corporation of the US and the Chennai-based Tractors and Farm Equipment (TAFE) of the Amalgamations group is significant in very many ways. Fo r o n e , i t h a s brought to light a new TAFE, which doesn’t hesitate to assert its rights. For another, it has revealed a TAFE which is now going alone on a blinkered horse-like mission to establish its brand name in the international sphere. The Amalgamations group, which owns TAFE, is a quiet, conservative and media-shy industrial organisation. What these attributes, however, don’t reveal is the steely resolve underneath this image. This is amply demonstrated in the way skipper Mallika Srinivasan marshalled TAFE when its partner raised several roadblocks for the Chennai-based company. Today, TAFE has proved that Indian companies are no push-overs when it comes to dealing withultinational organisations. In this instance, TAFE has emerged a clear winner by wresting the ownership of the iconic Massey Ferguson brand in India and two other countries. Not just that. With the proposal to buy out AGCO in TAFE, the Chennai firm will have nobody looking over its shoulders.
BUSINESS RE-JIG
Another Chennai-based Group has pushed itself to the centre of news. It has decided to enter a new chapter with the announcement of a major reorganisation of its businesses. Dr P C Reddy-founded Apollo Hospital group has decided to demerge the omni channel pharma and digital health business – comprising the telehealth business of Apollo Hospital Enterprises Limited and its investment in Apollo Healthcare Ltd. – and merge into a new entity through a composite scheme of arrangement. Following the demerger, the scheme provides for the amalgamation of Apollo Healthcare Ltd. (AHL) with the proposed new company. Subsequently, Keimed Private Limited (“Keimed”), a leading wholesale pharmaceutical distributor, will be merged with the proposed new company. Once the scheme becomes fully effective, the new company will become Indian-owned and controlled. Once this happens, the new company will apply for a listing on the stock exchanges. That could fetch growth funds. When the business grows big and becomes complex, clarity is the inevitable causality. In some of the well-known groups in this part of the world, a cobweb surrounds the holding structure of these organisations. Any effort to simplify the structure should bring about a sense of clarity. Any move to get onto listing is welcome as it could bring about accountability to their actions.
Aspirations and growth bring about fresh challenges. These have to be surmounted to get into a new chapter.
