Poaching in retail gets chaotic
Talent poaching continues to daunt big retail. To take over the reigns of an unruly growth, retail needs experienced hands.
By Supriya Verma & Boby Kurian, TNN |
MUMBAI/ BANGALORE: Talent poaching continues to daunt big retail. To take over the reigns of an unruly growth, retail needs experienced hands. With a shortage of veterans, the big players seem to be in a direct bullfight for retaining their top management.
The latest development involves Darshan Mehta, a one-time close confidante of Sanjay Lalbhai and former head of Arvind Brands. Mr Mehta quit Arvind and was on his way to Future Group to spearhead the latter’s international brands business and strategic alliances.
It now appears that Mr Mehta, who moved out of Arvind last weekend, is now headed to Reliance. He is seen floating a venture of his own with the backing of Mukesh Ambani and a private equity firm. The new entity is expected to handle the fashion apparel brands of Reliance Retail and may be in-charge of sewing up alliances with international players. He appears to have taken three of his colleagues — Sumit Yadav, Pradip Mukhim and Nithin Chhabra — from Arvind with him to Future and now to the RIL-backed new venture.
However, Mr Mehta could not be reached for official confirmation. His promise to return a call did not materialise at the time of going to the press. The fight for talent in India’s red-hot retail sector has been hogging media limelight for a while. In fact, Reliance, Future group, Bharti-Wal-Mart, Aditya Birla are all vying for the same talent pool. And the scene appears to be turning chaotic by the day. Industry observers feel no other segment is experiencing such a situation.
Earlier it was the likes of Raghu Pillai, Gunendar Kapoor which Reliance had poached but now it is their turn to face the vagaries of talent poaching. Recently, Reliance saw the exit of Sriram Srinivasan even though he is expected to continue as an advisor for a while. He was heading the apparel division for their retail business.
Around the same time, Madura Garments, the country’s largest fashion retailer and part of AV Birla Group, saw its president Hemchandra Javeri moving out. His name is now linked to possible assignments with Future Group and Arvind Mills. But there is no confirmation on this, and Mr Javeri said he has not taken a call on the new assignment.
The moolah is the main lure for the flux gripping the retail play. A minimum of 30% increase in compensation, five-day week work culture, and exposure with the world’s biggest retailer are among the reasons cited for people’s decision to work for these retail behemoth. ESOPs, joining bonuses, exit allowances are some of the additional perks that attracts talent.
However, observers say, it is tough to put an end to the rat race. At Madura Garments, like in many other retail companies, there’s now a call to induct expats into critical functions. The expats come on a fixed-term contract and defined deliverables.“This brings in international skills into an emerging sector in India, and also stem attrition,” said observers.
The latest development involves Darshan Mehta, a one-time close confidante of Sanjay Lalbhai and former head of Arvind Brands. Mr Mehta quit Arvind and was on his way to Future Group to spearhead the latter’s international brands business and strategic alliances.
It now appears that Mr Mehta, who moved out of Arvind last weekend, is now headed to Reliance. He is seen floating a venture of his own with the backing of Mukesh Ambani and a private equity firm. The new entity is expected to handle the fashion apparel brands of Reliance Retail and may be in-charge of sewing up alliances with international players. He appears to have taken three of his colleagues — Sumit Yadav, Pradip Mukhim and Nithin Chhabra — from Arvind with him to Future and now to the RIL-backed new venture.
However, Mr Mehta could not be reached for official confirmation. His promise to return a call did not materialise at the time of going to the press. The fight for talent in India’s red-hot retail sector has been hogging media limelight for a while. In fact, Reliance, Future group, Bharti-Wal-Mart, Aditya Birla are all vying for the same talent pool. And the scene appears to be turning chaotic by the day. Industry observers feel no other segment is experiencing such a situation.
Earlier it was the likes of Raghu Pillai, Gunendar Kapoor which Reliance had poached but now it is their turn to face the vagaries of talent poaching. Recently, Reliance saw the exit of Sriram Srinivasan even though he is expected to continue as an advisor for a while. He was heading the apparel division for their retail business.
Around the same time, Madura Garments, the country’s largest fashion retailer and part of AV Birla Group, saw its president Hemchandra Javeri moving out. His name is now linked to possible assignments with Future Group and Arvind Mills. But there is no confirmation on this, and Mr Javeri said he has not taken a call on the new assignment.
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The moolah is the main lure for the flux gripping the retail play. A minimum of 30% increase in compensation, five-day week work culture, and exposure with the world’s biggest retailer are among the reasons cited for people’s decision to work for these retail behemoth. ESOPs, joining bonuses, exit allowances are some of the additional perks that attracts talent.
However, observers say, it is tough to put an end to the rat race. At Madura Garments, like in many other retail companies, there’s now a call to induct expats into critical functions. The expats come on a fixed-term contract and defined deliverables.“This brings in international skills into an emerging sector in India, and also stem attrition,” said observers.
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