There is little depth in the Indian market: Munesh Khanna

Munesh Khanna is one of the most visible investment bankers in India Inc, having worked with the likes of Arthur Anderson and NM Rothschild for nearly three decades. During this time he drove some marquee deals including Tata Tea's acquisition of Tetley, the restructuring of Enron's India business and the acquisition of Betapharma by Dr Reddy’s Laboratories. Now, Khanna is taking the next step in his journey by moving to Grant Thornton, as senior partner to boost its M&A business. He had a quick chat soon after starting out in his new role.

What is your outlook for M&A activity in India?

The world economy had gone through significant stress since the 2008 crisis. What commenced as crisis restricted to the financial sector has spread its tentacles across the world and some significant economies and businesses are facing financial stress. This is giving opportunities to cash rich economies and companies to take advantage of market conditions and expand. This will directly lead to significantly higher M&A

What is pushing the growth of M&A activity in India?

Financial pressures on some companies which expanded very fast based on high levels of debt, rationalization of the valuation expectation and the continued growth of the India consumption pattern is encouraging domestic consolidation and foreign investment in India, resulting in higher M&A activity in India.

What is your plan for Grant Thornton? where do you think it stands today in the market?

Over the last few years Grant Thornton has expanded its operation in India across service lines, as a senior partner my role is to work with the leadership team and the practice service leaders across service lines to increase our penetration in the western region market. Additionally it is also to build upon the corporate finance practice across the country and be a more significant player in this market

How has the role of an investment banker evolved?

Investment bankers must see their role as something more than mere fund arrangers. The client is looking for a solution, but unfortunately, there is little depth in the Indian market to provide strategic advice and therefore investment bankers must enhance their advisory skills.

What advice do you have for I-bankers from your previous jobs?

Never think short term no matter how easy and enticing it looks, build, plan for the long term.