The nuts and bolts of evolutionary transformation

Abstract

The nature and the character of engagement of Indian firms with global markets have undergone a dramatic change over the last decade. Historically, they have been engaged in the export of commodity products, but in the last decade, Indian firms, especially from the software, pharmaceutical and auto-component sectors, have been successfully participating in global markets that are technology and knowledge intensive. Even though the competitiveness of these firms has been largely anchored in country specific advantages of low-cost labour, the managements of these companies have sought to go beyond cost competitiveness by focusing on the organisational dimension. Today highly responsive organisations like Sundram Fasteners compete fiercely in the global markets, including the most advanced markets of the world. J Ramachandran and Sourav Mukherji spoke to Suresh Krishna, CMD, Sundram Fasteners Limited (SFL) to gain an understanding of the organisation’s journey from its early days to its current phase of globalisation and its position as a leader in the manufacture and export of auto components. Transformation in the case of SFL encompassed three aspects – changing employee mindset through down-to-earth and honest communication, embedding a culture of operational excellence and building a momentum for growth through strategic acquisitions, selective partnering and greenfield expansion. Explaining SFL’s multi-pronged approach to globalisation, Suresh Krishna points out that buying customer access and back ending to India is going to be the driving force for companies trying to globalise. The operational and growth strategy of the company have evolved accordingly, as has its ability to manage different cultures. Discussing the possibility of India transforming itself into a hub for automobile components, he identifies the hurdles that have held back Indian entrepreneurs in the past and the opportunities and challenges emerging out of the liberalised economy.