Expat execs at home in India

PUNE/KOLKATA: Cutting their teeth in fast-growing and highly-challenging markets such as India and the Asia-Pacific region is fast becoming a vital shortcut for ambitious managers at transnational firms. That’s not all. Most expatriate managers who initially plan to be here in India for a year or two, end up staying on much longer given the richly rewarding experience of setting up a subsidiary from scratch and growing it at a an enviable clip.

Think Scott Bayman of GE whose 15-year stint in the country came to an end this month when he retired, or Kwang-Ro Kim, the former MD of LG Electronics India who rose to become one of the top-five executives at the consumer electronics giant after spending 10 years in India taking the company to the leadership position in almost every consumer durable category. The mid-to senior-level managers who took the risk of coming to the little-known market less than a decade ago now wield considerable influence in the parent company.

Take the case of Frenchman Thierry Cros, MD, Seco Tools India, manufacturer of carbide cutting tool, who came to India as VP marketing, seven years ago. The company moved on from becoming a JV to a wholly-owned subsidiary of Seco Tools AB, the Swedish company, and Cros too decided to stay put as its head. “If I had chosen to stay back in France , I’d have had to slog as a VP for at least four years before getting a crack at the top spot. And I would have had to change companies,” says Cros.

According to Cros many of his current and former colleagues whose careers seem to be stagnation are looking to take a leaf out of his book by seeking a posting to markets such as India.

The reasons are only too obvious. As the more developed economies are growing at a snail’s pace and salaries are booming in India, the choice is not so difficult anymore. “You haven’t really arrived until you have had a stint in India or China. Large multinationals are all looking at India as practically their second global headquarters, after the US. They have hand-picked teams to set up big units here and once these executives go back, they will be serious contenders for more senior-level or top positions,” says joint MD of Ikan Relocations, a Delhibased relocation and immigration management firm, Rohit Kumar.

Arnold Camelbeke, a Belgian, and managing director, Bekaert India, a whollyowned subsidiary of the Belgian major, NV Bekaert SA, over Euro 2 billion manufacturer of steel cord for radial tyres, has been here for 11 years, after having set up operations in China. Pointing to the advantages of a longer tenure, Camelbeke says: “India is still a hardship posting: look at the roads, power, water and other infrastructure issues. But, staying here for a long time helps to learn how to cope with all this and readies you for any challenge in the future.”

Traditionally, international companies have been recalling their expat managers after a three year tenure in India. This disrupted continuity of operations, frequently leading to a feeling of insecurity among employees and customers. Owing to the fast growing strategic importance of India both as a market and as a global base for product development, sourcing and manufacturing, large companies are now looking for executives to stay for at least five years.

Interestingly, as the expat clusters grow, it has a positive effect on the local infrastructure. For example, when DaimlerChrysler came to India in 1994, they found that its 20-odd expat execs needed a school for their children. So, the company helped set up Pune’s first International Baccalaureate (IB) school, used by children of not just of expatriates but locals as well. The same goes for restaurants, hospitals and sundry services.