Indian pharma cos relying on local talent for overseas operations

NEW DELHI: Indian pharmaceutical companies are relying on local talent to head their overseas operations. Most Indian companies have either retained the existing management or hired local talents to head their overseas operations , which they acquired recently. Traditionally, Indian companies would send a senior executive to foreign shores to head the business.

Company officials say now there is more comfort level in working with the existing team instead of sending an Indian senior executive which gives a feeling of scrutiny to the employees and make them insecure . In the case of Hyderabad-based Dr Reddy’s Laboratories (DRL), the company has a policy of retaining the existing management of newly-acquired company or hiring local talents to run their operations. The company has retained the management of Betapharm in Germany, which the company acquired last year.

DRL senior VP Global chief of Human Resources and Corporate Communications Prabir Jha said, “Retaining the same set up sends a signal of trust in the existing management. Also, in some countries, we do not have a background about business operations and legal issues of the particular country. Therefore, there is no direct value addition to send an Indian executive and disturb a running business.”

Ranbaxy Laboratories, which employs around 12,000 people worldwide , believes in promoting local talent to form a multi-cultural and multi-ethnic global team. The company’s Romanian subsidiary, Terapia which it acquired last year is headed by a local executive.

When Sun Pharmaceuticals took over Caraco in the US a few years ago, it appointed an Indian to head its operations. But now, it is once again head head by an American. Lupin Ltd which acquired of Japan’s Kyowa Pharmaceutical - a family owned pharmaceutical company - will also continue with the existing management

Recently, for its expansion into the French market, Wockhardt hired a French native as its chief executive officer (CEO).
“This trend is symbolic of the growing confidence of the Indian companies , and their urge to become true multinationals.

It has particularly become evident in the pharma sector. However, an increasing number of clients in other sectors are also showing preference for hiring locals to head their respective international ventures,” says Uday Chawla, managing partner of the Delhi-based head hunting firm Transearch. Conventionally, companies have always preferred to have their businesses headed by an Indian, with local executives as part of the team. “This was first broken by the Indian IT companies, while they were having major international expansions in the early 2000s,” says Perry Madan, associate partner, Elixir Web Solutions, another Delhi-based executive search firm.