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MUMBAI: Confederation of Indian Industry (CII) in partnership with
Commonwealth Business Council (CBC). London organized the inaugural
Global Business Leaders Forum on 12 March 2007 in Mumbai. Business
Leaders from developed and emerging market convened to discuss the
shift in Global business dynamics and how companies must innovate
to keep ahead a competition.
Dr Mohan Kaul , Director General, Commonwealth Business Council
in his welcome address and initial observations said the Forum had
brought together more than 300 business leaders from India and across
the globe. The Forum, he said, aimed to discuss the new competitive
challenges that organizations face in the current era of globalization,
thereby enabling participants to review their strategies, beliefs
and principles.
Mr K V Kamath Member, CII National Council and MD and Chief Executive
ICICI Bank Ltd. spoke on 'Transformation and Innovation: Leading
Change in Organizations'. He said the best way to adapt to change
was to transform, and the best way to transform was to innovate.
He spoke of the ICICI Bank experience, 'Transformation through innovation',
and shared experiences on successful innovations leveraging technology.
The first session on Global Perspectives – New Challenges
had Mr. Jacques Lamarre chairman, CBC and President & CEO SNC-
Lavalin chairing the same. Mr Lamarre said the Forum would focus
on issues related to changing paradigms, new economic perspectives,
new approaches to global trade, leading change in organizations
and transformation and innovation.
The session addressed the larger economic and political picture,
understanding the current dynamics and implied opportunity and threats
for emerging and developed markets. The session also addressed the
issue of global economic imbalances. It had Dr Anil Khandelwal CMD,
Bank of Baroda share his thoughts on the issue. Mr Dominic Barton,
Chairman Asia, Mckinsey and Mr Bryan Sanderson Fmr Chairman, Standard
Chartered Bank also spoke on the subject.
The second session was on 'Transformation and innovation –
leading change in organisations'. Mr James Smith , UK Country Chairman,
Shell who chaired the session spoke of exploring examples from leaders,
how organisations had been transformed and re-invented continuously
to become high-performance global companies, and the lessons for
the future.
Mr Nigel Boardman partner, Slaughter and May in his presentation
on 'Transformation and Innovation – Leading Change in Organisations',
spoke on four changes which he thought were necessary in corporate
environment: (i) Criminalisation, (ii) Balance of Board, (iii) Corporate
Purpose and (iv) Pay.
Mr Jacques Lamarre, Chairman, SNC Lavalin made a présentation
on how thé company had adapted to the changing scenario –
whether it was the product mix or the countries they had business
relations with.
The third session was on 'Financial markets and financial flows
– different perspectives'. Chaired by Mr Bryan Sanderson ,
Fmr Chairman, Standard Chartered, it looked at differing Perspectives
of Financial Markets, Capital Markets, Investor protection, ownership.
It also focused on structures in China / India / Asia / Europe,
as also issues related to East-West takeovers, mergers and acquisitions
and private equity.
Ms Naina Lal Kidwai , Chief Executive, HSBC, India in her presentation,
'Priorities and concerns for global institutions' pointed out that
Global economic growth continued, albeit in moderation. She added
that interest rates rose in developed economies to contain inflation
before going on to the Global scenario, and what was to be expected
in 2007. "Emerging markets growth will offset slowing advanced
economies," she said.
She also spoke of softer demand and tightening monetary policy
in US, Japan & Germany, of 'emerging Asia' being the fastest
growing region led by China and India, the forecast that global
economic growth would fall from 4.9 % in 2006 to 3.7% in 2007, adding
that growth was likely to rebound in 2008. In the Indian economy,
the share of services was expected to go up by 3% and Industry by
2% of GDP by 2010, she said.
Mr Seetharaman , Deputy CEO, Doha Bank spoke of an Asian –
Arab synergy that was leading the global economic growth scenario.
" India needs to further engage GCC countries and change market
preferences," he said. He spoke of the change in the banking
sector, which he termed as 'no longer location-based'. Convergence
of all products and services was the change that furled the banking
sector, he added.
Mr Ajay Mahajan of Yes Bank spoke of the capital markets in India
, his presentation focusing on growth with financial intermediation.
While equity markets had done exceedingly well in India , he said
domestic institutional investors participation needed to be enhanced.
He noted that share of corporate bonds in non-food credit had dropped,
and said the corporate bonds market needed to be developed. "Infrastructure
finance is the key to growth," he said.
Mr Alexander v Ungern-Sternberg , Chairman, Euro IB in his presentation
said India was a High-Growth Market. He discussed the structure
of Investment Flows from Europe to India as also India to Europe.
He spoke of deal structuring, especially the cross border element,
where he said there was a higher margin requirement for all risk
categories (debt or equity) as also senior debt (low risk) was generally
best provided by major local banks.
Looking at 'Investor Perceptions / The Indian Opportunity', he
said until early 90's, India was seen to be a closed economy. "From
1995, it was high Indian growth and much improved corporate governance
that caught attention while from 2005 onwards, there had been stronger
interest in non-quoted situations. In vestment Capital is available
both in Europe and in India for 2-way Investment flows," he
concluded.
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