Why the European HQ should have a “Caregiver” / International Coordinator 

  • By Management Oversight promptly identify difficulties of the Indian subsidiary. 

Through our many years of business experience in India, we have repeatedly found  

  1. that the reports of Indian subsidiaries or joint ventures (JVs) often differ from reality and  
  2. that for sustainable business success in India, a “caretaker“ is required in the European parent company, i.e. a responsible person who will closely accompany the Indian subsidiary/JV. 

What characteristics and qualifications should a “caregiver” have? 

He/she should:  

  • in the European parent house be well connected; 
  • the sufficient Time for the subsidiary or JV, contact with the Indian branch should preferably be daily or bi-daily; 
  • with the customs in India be familiar; 
  • have the ability leading people and be empathetic - despite the professional level on which they operate, Indians are often also interested in the personal level. For long-term success, it is therefore important that the "caretaker" acts as a door opener and builds a position of trust with the employees of the Indian branch; 
  • be able to clearly and quickly Filtering between important and unimportant matters, between gossip and serious information. Rumors are often used deliberately to pursue particular interests; 
  • "Guardrails“ and enforce them. In India in particular, it is extremely important not only to introduce clear and binding regulations on paper, but also to bring them to life and monitor them; 
  • the operational structure and process organization along the entire value chain know (purchasing, logistics, production, HR, finance, administration, IT, etc.); 

 

What happens if you no “Caregiver” for India? 

At the latest when India reports that “everything is running smoothly”, but for years the Indian branch has (only) been making a profit or making losses, you should pay attention and take a closer look (keyword: Audit). 

Because this is often an indication of “inner consumptions”, “bypasses” or other compliance-relevant and performance-relevant topics.  

Other abnormalities include:  

  • significant deviations in balance reconciliations (banks, customers or suppliers),  
  • high employee turnover,  
  • slow or incorrect monthly reporting,  
  • slow communication with the parent company  

See blog article: https://www.wb-indien.de/2024/07/30/case-study-struktur-kontrolle-und-transparenz-compliance-themen-aktiv-entgegensteuern/  

In such a situation, a health check which we regularly conduct with our prospects and customers.  

A “caretaker” provides the necessary “Managerial Oversight” at your Indian branch, and should quickly identify such typical risks and act accordingly (keyword “Internal Control Framework"). 

Take advantage of the opportunity for a non-binding health check. We look forward to seeing you.