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How to Find the Best CEO or CFO for Your Subsidiary in India

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Samriti Parashar Head of Recruitment
Praveen Singhal Country Head India
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If you want to successfully grow your subsidiary in India, it is important to attract the right leadership. In addition to important technical skills, industry expertise and a good understanding of both Indian and European culture are essential. We share three tips to find the right CEO or CFO for your operations in India.

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1. In India, you need a CEO or CFO who understands the Indian market, regulations and customer

There are few situations in which it is really necessary to put a European manager or director in charge of the Indian branch. In many cases, an Indian manager will be more successful in his own country. Let’s take setting up a sales office as an example. In India, having a good network of contacts, understanding the market in which you operate, the service that the customer expects and knowledge of the attractive subsidies and regulations that India offers for foreign investors, is of great importance.

For the world’s largest supplier of poultry processing services, Meyn, having an aftersales team led by an Indian CEO is therefore crucial. “Our goal is to have all our aftersales offices worldwide run as autonomously as possible and therefore they have to become profitable. That is only possible if you have someone in charge who understands how and which services you should provide in India. We got to know our director through the Dutch Embassy in Delhi. He knew our company, the industry, most of our customers and had experience with Dutch culture, so that was a perfect match.”

2. An expat CEO or CFO as a bridge builder to Europe

In India, a foreign CEO, General Manager or CFO is looked up to, which can have a positive effect if you want to introduce a European corporate culture in your Indian branch. KPN therefore sent sourcing manager and transformation coach Jasper Fortuin to Pune to introduce the European corporate structure, without management, at the Indian branch.

“I want to work with everyone as equals, but here I am both the customer and the boss, so I am automatically at the top of the ladder. That means that everyone listens to what I say and agrees with it, while I am looking for their insights. By having a lot of patience and showing time and again that criticism can be expressed safely, we have now made the switch.”

Other important reasons to choose an expat CEO or CFO are, for example:

The CEO or CFO has acquired very specific skills and knowledge in Europe that must be transferred to the organization;

The foreign company is making a major investment in India and needs to be able to protect the intellectual property and the investment;

Someone on the ground is needed who is not only fluent in English, but also in the native language of the head office and can therefore act as a bridge builder;

Someone is needed who can drastically restructure the company, because there has been a major disruption in the activities of the Indian subsidiary.

But make no mistake. If you are struggling with a dysfunctional team or a restructuring needs to take place within your Indian company, it can also be very wise to choose an Indian manager. An Indian CEO or CFO often has cultural knowledge that is invaluable and is used to functioning within the hierarchy that is normal in Indian companies. IndiaConnected advises and supports many foreign companies in India that are faced with these kinds of challenges. We have experienced interim managers in-house who can get your team back on track.

3. An experienced CEO or CFO for your branch in India

A local or expat director, what is the best choice? There is no single answer, because it depends on your goals, the type of business you want to set up and the skills needed to make the subsidiary in India a success. We regularly recruit experienced Indian CEOs and CFOs for foreign companies. They can quickly get your Indian branch up and running or keep it going because of their knowledge of the sector and the Indian market, they have international experience which allows them to bridge cultures and ensure mutual clarity and understanding. Would you like to know more about our methods and what is involved in having and retaining staff in India? We have listed all our knowledge about recruiting and having staff in India for you in our free guide for employers in India.