Dr. Santrupt Misra is the CEO Carbon Black Business of Aditya Birla Group and Director, HR of the Aditya Birla Group , Director on the Aditya Birla Management Corp.Pvt Ltd Board ( Apex decision making body of the Group) , delivered the key note address on Globalization & the Indian MNC - HR & Talent management - Challenges & Opportunities to global partners of Horton International ( hortoninterinternational.com) , a top 20 search firm , in their Annual Global Partners Meeting ( at Taj Lands end Mumbai, India, March 3rd ,2012)
His presentation gave a good perspective of Indian groups expanding overseas, and the challenges they face in acquiring the right talent. According to him the relationship between the company and its search partners is a partnership and the success of the business will be greatly determined by the initial support they receive from the search partners.
Key decisions / initiatives taken at the meet
1. Further strengthen central secretariat / group administration to enhance systems / best practices / seamless delivery across globe
2. Strengthen network – already Appointed New partners in Austria and Peru
3. Build NICHE’ Global practices – Maritime & Pharma / Healthcare launched
4. Build / consolidate >> International & Regional Key accounts
5. Actively promote Cross border business – both clients & CANDIDATES
6. Focus on BRIC – the growth engines – source candidates from other countries to address Talent shortage
7. Launch of “Horton International Leadership Series “ in India
'Globalisation and Indian MNC' by Dr Santrupt Misra- Aditya Birla Group
1. ‘Globalisation and Indian MNC’
HR and Talent management
Challenges and Opportunities
Horton International
Global Partners Meet
Dr Santrupt Misra
Mumbai, March 3, 2012
2. Context
o What is driving Indian Companies to Globalize ?
o Evolution over time
o Globalization of Aditya Birla Group
o HR Challenges of Globalization for Indian Companies
o Role of Search Partners
3. Drivers of Globalization
Opportunity : Slow Growth , Low Valuation
Liberalization of India
Trade Barriers
Challenges of doing Business in India
Success of IT
Globalization of Customers / Markets
Improvement of Global Knowledge / Understanding
India Diaspora
Cash Surplus
Desire to Derisk: Synergies
4. Evolution over time - India
o Early Globalization
o IT Globalization
o Late Globalization
o Fashionable Globalization
o Entrepreneurial Globalization
5. Evolution over time - India
Foreign Direct FY 1995 FY FY 2011
Investment 2005
Inward FDI ($billion) 1.3 6 61.9
Outward FDI ($billion) 0 2.3 43.9
Sectoral share of Services as a percentage of GDP has
been above 50% across the last decade, 58% in FY2011
According to the BCG report –”2011 BCG Global
Challengers” - 20 of the top 100 emerging companies
tapping global markets are from India
According to E&Y, the value of mergers and acquisition
(M&A) deals involving Indian companies aggregated to
US$ 34.4 billion in 2011 involving 806 transactions
6. Aditya Birla Group
•Launched globalization journey four
decades ago, established first overseas
company in Thailand in 1969
•A US$35-billion corporation, in the league Australia | Austria | Bahrain|
of Fortune 500 - Anchored by 133,000 Bangladesh | Brazil |
employees from 42 nationalities Canada | China | Egypt |
France | Germany | Hungary
| India | Indonesia | Italy |
•15 business sectors, over 50 companies in Ivory Coast | Japan | Korea
| Laos | Luxembourg |
33 countries across 6 continents – Over Malaysia| Myanmar |
60% revenues from international operations the Philippines | Poland |
Switzerland | Singapore |
Spain | Sri Lanka |
•Directly serving over 100 million Tanzania | Thailand | UAE |
customers UK | USA | Vietnam |
•Over 1.5 million shareholders
India’s First Truly Global Corporation
7. Aditya Birla Group: Globally
A metals powerhouse, amongst the worlds most cost efficient
aluminium and copper producers . Hindalco-Novelis is the largest
aluminium rolling company . One of three biggest producers of
primary aluminium in Asia
Number one in Viscose Staple Fibre
Largest Producer of Carbon Black
Fourth Largest producer of Insulators
Fifth largest producer of Acrylic fibre
Among the top 10 cement producers
8. HR Challenges
Unknown Employer Brand
How to staff the top
Assimilate the newly Acquired / Hired
Generalize or Specialize
Cost Comfort
Overcoming the Attitude of Colonization
Employment Market Trends
Risk Assessment
Speed of replacement
Stop gap arrangements
Talent Assessment: Existing / New
Talent Strategy : Industry / Location / Ownership aspirations
9. HR Challenges
Mode of their Entry Size of Investment
•Green Field •Large
•Acquisition •Small
Sector Familiarity
•Established/ Entrenched •Many old MNCs
•New •Early Entrant
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10. HR Challenges
Speed of
Experience as MNC Internationalization
•First Time •Rapid
•Done it, Seen it •Slow
Brand of the Leadership in the
Company Host Country
•Known •Local
•Unknown •Expat
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11. Learnings
Support Internationalization Strategy with Competence Strategy
Cadre of Entry Specialists
Your own Organization Culture can be as much a challenge as
national culture
Integration speed based local expectations, not your experience
Trust Building cannot be left to chance
HR Due Diligence & Planning are key to success
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12. Role of Search Partners
Centre of Relationship Network – Legal, Accounting, Search
Office Space
Employment Market Trend
Advice on Talent Strategy: Employer Brand
Deep understanding of client – Our experience with search
partners
Initial Hires
Expat CEO mentoring
Cultural aspects of people management
Board composition