Member Article

UK PLC needs to embrace change as Indian appetite for British brands grows

British executives should prepare themselves for fundamental changes to their working style and culture as more Indian businesses prepare to acquire household UK brands says Typhoo CEO, Keith Packer and Finance Director, Somnath Saha.

Addressing an IFB 2014 fringe event hosted by accountant Grant Thornton at its Liver Building offices, the two key figures in the Wirral-based business explained how they had come to form a strong working relationship since the company, including its famous tea brand, was acquired by the Apeejay Surrendra Group in late 2005 from Premier Foods.

Mr Packer said: “The Indian entrepreneurial spirit coupled with the need to understand all elements of a business makes for an interesting mix.

“There’s a real cultural journey that you have to be aware of to ensure you know every aspect of detail about your organisation. India’s executives understand their products inside and out; they know everything about the raw material, packaging, the marketing and the shipping costs.

“There is a high regard for the quality and safety standards that UK businesses operate to, these best practises have been reciprocally shared with our parent group.”

The popularity of British brands in Indian markets is so strong that many believe that other British companies will be acquired or will be merged with Indian conglomerates in the coming years and decades.

Somnath Saha, Typhoo’s Finance Director added: “British brands demand a large amount of respect and fondness in India and we have seen many examples of successful takeovers of British companies by Indian businesses. The volume of deals will grow in the coming years, there can be no doubt about that.”

“British businesses and workers should have nothing to fear about future Indian investment. The examples we have seen so far, Tata in JLR and Corus, Apeejay in Typhoo, have all revealed a long term view and not take short term decision making, even if the companies require additional funding by the investor.

“Indian investors do not have a culture of asset-stripping or closing local operations due to short-term losses. The Indian investors and promoters always look into long term strategy of ROI for these foreign investments, mergers or acquisitions.”

Grant Thornton’s Ashish Chhawchharia, who flew in from Kolkata especially to take part in the event, said: “People running companies which find themselves with new owners from a different corporate culture, often go through a period of adjustment.

“Some people cannot change and are left behind by the changes but most people adapt. International cooperation and understanding is vital if future acquisitions are to be as smooth as what we have seen at Typhoo. Collaboration is key in every business including ours, which is why I am here in Liverpool today”

Grant Thornton is one of the world’s leading organisations of independent assurance, tax and advisory firms. It operates from over 26 offices across the UK, as well as member firms in over 100 other countries.

This was posted in Bdaily's Members' News section by Simon Malia .