Bain and Company plans wholly-owned subsidiary
Tina Edwin
New Delhi, Dec 28: The Boston-headquartered $500-million global strategy-consulting firm, Bain and Company, has chalked out plans to set up a wholly-owned subsidiary in the country.Its maiden office is expected to be opened in the second quarter of next year, though the choice of location-New Delhi or Mumbai -- is yet to be decided upon. Bain is also firming up plans to recruit fresh talent from the Indian Institutes of Management and Indian Institutes of Technology for absorption into its worldwide operations. The fresh recruits could be placed with Bain's offices in Boston, London or Singapore. Bain plans to set up an advisory group comprising senior managers, independent management consultants and former secretaries to the government of India to advise the firm on specific cases. ``We are developing 50 people-Indians and non-Indians-to relocate to operations here,'' vice-president and partner Rajan Pant said. The firm intends to start operations with 15 of 50 consultants. Gradually, as the firm
signs up clients, the strength of the office is to be increased. Bain plans to have a main office supported by a satellite set-up, one of which will be in Mumbai and the other in Delhi. Subsequently, perhaps in five years, Bain hopes to expand operations with satellite offices in cities such as Calcutta, Chennai and Bangalore. The subsidiary office will initially focus on domestic operations, but may, over time, explore opportunities in neighbouring countries. The domestic office will be the first in the region between Europe and Singapore on a map.``India is the hardest market to operate in for any management-consulting firm,'' Pant said. On the other hand, it is also a critical market for any one intending to be a global firm. ``The country's basic advantage lies in its skilled and informed business leaders who possess an uncanny ability to generate profits even in difficult conditions,'' he said. The local market for use of management practices, Pant says, is new and young. On the firm's intention to
recruit local talent, Pant said, in addition to fresh graduates of IITs/IIMs, Bain would consider hiring people from institutes with about two years' experience. The recruitments are expected to begin in the next academic year as the firm is still discussing the proposal internally. Pant said Bain India may have a board of directors drawn from diverse professional backgrounds to give the firm a perspective of the country and its business environment. The group, which will comprise former bureaucrats, will assist the consultants on a case-to-case basis. Established in 1973, Bain and Company specialises in helping client companies become profitable in a turbulent environment. In many cases, the consultancy shares risk with the clients -- putting a percentage of its fees at risk. It is already working with some of its global clients operating in the country. Pant said that Bain expected to sign up one or two local companies in the first year of its operations. It will be on the lookout for opportunities
to restructure public-sector firms. Worldwide, Bain competes with McKinsey and Boston Consulting in strategic consulting. In Asia-Pacific, it competes with Booz Allen too.
Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.
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