Interview with Mike D. Batra, co-founder and managing director of India advice Dr. Wamser + Batra GmbH, published in “Indian Economy” – The medium for the growth market, on September 18.09.2013, XNUMX
IW: The negative reporting about India seems to have reached its peak. Many commentators are already talking about the end of the BRIC states, and many are particularly skeptical about India. How do you realistically assess the current economic situation?
Mike Batra (MB): Just as there was excessive positive exaggeration a few years ago, this is now the case in a negative sense. Of course there are many challenges, but for the most part they are not new. Nothing has changed in terms of the long-term prospects, and that is what most foreign companies are in the market for. Many of our customers are currently taking the step towards local assembly or production, with a clear focus not on the small but fine premium segment as before, but on the broader market of the upper middle segment. Some aspects of the current 'crisis' also offer opportunities, such as the loss of value of the currency, which enables a cheaper entry, for example when buying land.
IW: What role does innovation play for India? Where, when and why is local product development particularly important?
MB: Especially if you have already made a name for yourself in the high-quality segment and now want and can tackle the broader market. Only in this way is it possible to truly participate in the great potential of the Indian market. These are often cheaper products with less functionality, but with the same German (or Austrian) quality. In many areas there are also opportunities for a global entry-level product, with export, for example. B. within Asia within the framework of existing free trade agreements.
IW: Do you think that India will become a global innovation hub and will sooner or later also be exported to Europe (keyword “reverse innovation”)?
MB: I don't think so, because the quality awareness is completely different. But India will be able to develop and deliver more innovative products for other emerging countries than before. Latin America, but also Africa in particular, are increasingly being targeted by Indian companies.
IW: From your perspective, what are the three most important components of being successful in business in India?
MB: I see the following:
- Realistic assessment of market potential
- Find and retain suitable personnel
- Consistent leadership and control from the parent company
IW: As one of the few India consultants, you also keep an eye on the so-called “informal sector”. Why are you concerned with this or are these markets really of interest to German companies?
MB: Certainly not as sales markets initially. But as part of market assessments, we usually also carry out on-site market research trips where the entire market is examined in order to obtain a realistic picture of all segments. Very often, the informal sector in particular has offered European companies interesting insights into product adaptations or innovative sales channels.
IW: A misconception is that employees in India are numerous and cheap. In reality, there is a shortage of skilled workers. High performers and managers are correspondingly expensive and rare. Dr. Wamser + Batra also does a lot of recruiting in India. How do you find employees?
MB: Through a complex process that we have developed and improved over the years. This is the only way to find the few suitable applicants who understand the philosophy of a German or Austrian medium-sized company and who can and want to implement it with a horizon of 10 years. In addition, in India it is normal to 'just apply' for jobs, even if you are not sufficiently qualified or you just want to 'test the market value' so that you can demand more from your previous employer. Salaries vary greatly depending on region or number of previous employers. Candidates with a lot of changes (in India, 2 years of employment is often considered a long time) usually disqualify themselves early.
IW: “Getting things done” is always a challenge in India. What is your management mantra?
MB: This challenge undoubtedly exists for employees (especially from a distance) and even more so for external service providers in India. In practice, this requires clearly understandable guidelines as well as constant and consistent follow-up, including targeted sanctions; unfortunately, this is always accompanied by increased support and, in particular, communication effort.
IW: Do you lead your team in India in Indian (hierarchical, personal, pragmatic, specialized) or German (team-oriented, fact-oriented, perfectionist, interdisciplinary)?
MB: It's more of a healthy mix of these two leadership styles, and like everywhere else, a little 'carrot and stick' can be quite effective, especially in India.
IW: What can/must the Austrians/Germans learn from the Indians in business?
MB: Taking entrepreneurial risks more easily, dealing with crises more calmly in order to overcome them with more improvisational skills and an increased willingness to change.
Thank you for the interview
(recorded by Wolfgang Bergthaler)
Published under: see here
