Thriving Through Localisation: Strategic Mastery in India's Dynamic Market.
We're thrilled to bring you an exclusive interview with Vivek Bhatia, Managing Director and CEO of TKIL Industries (formerly thyssenkrupp Industries India), just in time for this month’s Asia Pacific Conference (APK) in India, where Vivek shares his valuable insights on business success, innovation, and the Indian market.
Under Vivek's leadership, TKIL Industries has steadily positioned itself as a key player in engineering innovation, offering comprehensive solutions across sectors such as cement, mining, and materials handling. With a passion for embracing the challenges of economic growth and technological advancements, Vivek has been instrumental in steering the company toward new heights in India's rapidly evolving market landscape.
In this candid conversation, Vivek shares his valuable insights on navigating the complexities of the Indian economy, the strategic initiatives TKIL has adopted, and the cultural nuances vital for multinational corporations to succeed in this vibrant country. Join us as we delve into the mind of a visionary leader who seamlessly blends global strategies with local execution to drive success:
David: Vivek, in recent years, how has the economic growth in India influenced the expansion and performance of foreign businesses like TKIL Industries?
Vivek: India, in recent years, has been the fastest-growing major economy. The dynamism is visible on the ground and is indeed attracting significant interest and investments from around the world. Particularly, the investment in infrastructure has increased substantially, which has positively impacted the growth of all core industries, especially capital goods, which is of interest to us. Consequently, we have more than doubled our business over the last 5 years in India.
David: What strategic approaches have TKIL, or formerly thyssenkrupp, adopted to leverage India's economic growth and how do these strategies differ from your operations in other regions?
Vivek: Our approach has been to focus on delivering superior value to our customers. While the market in India is highly cost-sensitive, customers do appreciate and are willing to pay a premium for higher performance. At the same time, we have been aggressive in localizing our products and services and have invested considerable time and energy in localizing our supply chains to a large extent in India. This has enabled us to also improve the cost competitiveness of our offerings. A critical aspect of our strategy has been the investment in and development of local talent. Over time, a strong pool of local engineers has enabled us to localize our products, ensure faster and shorter response times to meet the requirements of our customers, and as a bonus, has proven to be invaluable in supporting our business globally.
David: What have been the most significant cultural challenges faced by the business in aligning with the Indian market, and how have you addressed these challenges?
Vivek: Indian customers are very dynamic and like to invest time and energy in evaluating products and solutions. We have realized that brand and high quality alone are not sufficient. For us, close collaboration with the customer has been key to ensuring success. In many cases, we have worked closely with client teams to handhold them toward the optimal solution for their business requirements over several months. Therefore, succeeding in India requires patience, sustained engagement with clients, and the ability to communicate the value delivered. Once trust has been established over time, the process becomes much faster. Having a local team that understands the nuances of the local business is critical for success. In fact, this has been one of our strengths and is the reason why, for over 75 years, we have continued to thrive in the Indian market and have also been able to use our Indian operations to deliver projects and products across the world.
David: Given the unique cultural and business landscape of India, what leadership qualities do you believe are essential for a CEO to succeed in this environment?
Vivek: India is a highly diverse and culturally vibrant country. Across the length and breadth of the country, there is a diversity of climate, people, language, behaviours, and cultural nuances. At the same time, it has a longstanding, highly capable, and highly competitive business environment. To thrive and succeed in such a landscape, strong people skills are of paramount importance. As a CEO, one must understand the diversity and deep cultural aspects that underpin the business environment in India. At the same time, one must be able to work with a diverse workforce and engage with equally diverse clients. As a leader, in such a context, it is equally important to be a great listener—one needs to have an ear to the ground to understand the challenges and also to seek solutions. Thirdly, very strong problem-solving skills are essential—one needs to work constantly on sharpening the products, understanding the competitive landscape, and navigating through the stakeholder ecosystem.
David: How has TKIL Industries adapted its business model to cater to the Indian market, and what lessons have been learned in this process?
Vivek: Very quickly we have realized that in India, a cookie-cutter approach will not work and products or solutions for other markets will not prove to be competitive. Therefore, our approach has been localization from very early on. Secondly, we have invested considerable time to understand the diverse customer segments that include government-owned public sector entities on the one hand and large to small private sector players on the other hand. According to each segment, we have tailored our approach, scope of offerings, and risk appetite to be able to compete in the Indian market.
David: What are the potential pitfalls foreign companies might face in the Indian market, and how does TKIL mitigate these risks?
Vivek: An obvious risk is underestimating the complexity of operating in India. While significant improvements have been made towards 'ease of doing business' in India, one must appreciate that India as a country has a federal structure. Therefore, to operate any business, one must understand the role of central, state, and local government agencies. However, the good news is, that there is help available both from government bodies for trade promotion and from familiar global and national trade bodies. The Indo-German Chamber, VDMA, and similar bodies provide a valuable network. Another area that new entrants must work towards is local teams and leadership. Unlike other markets globally, success in India requires a close understanding of the local context and culture. Fortunately, India has a strong, large, and highly capable talent pool at all levels. What's essential is recruiting and seamlessly integrating talent into the core corporate structure, all while maintaining the entrepreneurial spirit of the workforce.
David: Looking forward, what do you see as the most promising areas for growth and opportunity for foreign businesses in India, and how is TKIL Industries positioning itself to capitalize on these opportunities?
Vivek: India today, and arguably over the next two decades, offers the most promising business outlook for any major economy. So we look forward to the years ahead with confidence regarding the development of the local market and business opportunities. At the same time, the large domestic market also provides a strong platform to be able to export to other global markets out of India. With a growing number of FTAs and bilateral agreements, India is increasingly becoming an attractive location from where we look forward to servicing customers around the world. With our strong team on the ground and a high degree of localization, we are very well placed to capitalize on the opportunities of the decades ahead of us.
David: From your experience leading a large business in India, what would you say are the top three priorities that western, particularly German businesses, need to focus on to achieve success in the Indian market?
Vivek: The top three priorities, as per me, would be firstly to invest time and effort to understand the diversity, secondly to have localization as a priority from day one, and thirdly to invest in building a local team that understands the global culture and brand and yet at the same time, the local market.
David: Vivek, thank you for sharing your insights with us. It's been a genuine pleasure speaking with you.