GE India CEO John Flannery affirms that the country is at an early stage of devel opment and GE has a number of solutions for its growth problems in an interaction with virat bahri of B&E
B&E: GE India's financing business faced a number of delinquencies in the past. How are you going to address that situation now?
JF: The whole industry - especially in the unsecured consumer sectors - has seen higher than normal delinquency in the past 24 months. We have dealt with it in the "old fashioned" way in terms of just adding a lot of resources and focus to the situation but also using our global best practices to apply technology based initiatives to reduce delinquency. The worst is behind us for sure at this point and we were solidly profitable in the first quarter of 2010. Going forward,we want to remain an active player in financial services in India. We will continue to build out our partnership with SBI and invest in sectors where GE has significant expertise like infrastructure, energy, health care and aviation. We are also interested in continuing our history of making private equity investments - we've done a significant number of deals over the last 10 years with very strong returns - we would definitely like to see more of those opportunities.
B&E: GE has traditionally been famous for aspiring to be among the top three in every market it enters. Where does your company stand with respect to that philosophy when it comes to the Indian market?
JF: Our overall agenda is to become a much bigger player in India than we have been historically. As much as India has grown in the past decade, it is still in the very early stages of its long-term development. To achieve our agenda, we will be focused on enhancing our local product development and marketing capability, expanding our technology and manufacturing base and seeking to partner with leading Indian companies where that makes sense. As with any successful organisation, making sure we attract, develop and retain the absolutely best human resources is of paramount importance. When we look at where we are today in India, we are not fully satisfied. There is no shortage of opportunities in India, and there is a good fit to become two or three times the size we are today. We have had solid success in many areas but given the opportunities in this country and their excellent fit with our areas of strategic focus, we should be doing more — significantly more.
B&E: GE India's financing business faced a number of delinquencies in the past. How are you going to address that situation now?
JF: The whole industry - especially in the unsecured consumer sectors - has seen higher than normal delinquency in the past 24 months. We have dealt with it in the "old fashioned" way in terms of just adding a lot of resources and focus to the situation but also using our global best practices to apply technology based initiatives to reduce delinquency. The worst is behind us for sure at this point and we were solidly profitable in the first quarter of 2010. Going forward,we want to remain an active player in financial services in India. We will continue to build out our partnership with SBI and invest in sectors where GE has significant expertise like infrastructure, energy, health care and aviation. We are also interested in continuing our history of making private equity investments - we've done a significant number of deals over the last 10 years with very strong returns - we would definitely like to see more of those opportunities.
B&E: GE has traditionally been famous for aspiring to be among the top three in every market it enters. Where does your company stand with respect to that philosophy when it comes to the Indian market?
JF: Our overall agenda is to become a much bigger player in India than we have been historically. As much as India has grown in the past decade, it is still in the very early stages of its long-term development. To achieve our agenda, we will be focused on enhancing our local product development and marketing capability, expanding our technology and manufacturing base and seeking to partner with leading Indian companies where that makes sense. As with any successful organisation, making sure we attract, develop and retain the absolutely best human resources is of paramount importance. When we look at where we are today in India, we are not fully satisfied. There is no shortage of opportunities in India, and there is a good fit to become two or three times the size we are today. We have had solid success in many areas but given the opportunities in this country and their excellent fit with our areas of strategic focus, we should be doing more — significantly more.
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Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
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