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
John Flannery, GE's current CEO is on an important mission - to make GE India a truly local company and to capitalise on a number of opportunities that the company has missed so far in this huge market. GE India now faces an unprecedented phase ahead, as the company will have a separate P/L and will report to Flannery under an inegrated structure. He has been with the company for over 22 years and was President & CEO, GE Capital, Asia Pacific before taking up the current role. In this exclusive with Business & Economy, expresses his views on going the distance. Some excerpts...
B&E: It seems that GE's interest in India has become more pronounced and apparent in the past one or two years. Would that be a correct assessment in your view?
JF: Like you pointed out, GE's interest in India is more apparent now. In terms of why the interest level is so high, it’s two things – firstly in the last 18 months, it has become absolutely clear that growth rates in developed countries are going to be a fraction of what they are in developing countries. So at an ultra-macro level, we have to be big in the Vietnams, the Chinas, the Indias of the world. So that’s one particular aspect. Secondly, we are talking about reverse innovation and more such concepts. We have found just superb companies in India. The more time we spend here, the more people we meet; we are more excited and impressed by some of the business models. It’s not just the labour arbitrage, it’s the very innovative supply chain model, engineering, design, et al. So we are looking at that and saying that these business models can be global. It is for us to understand them and be able to develop them to be successful not only in India but also take them to developed markets. They fit with GE on a macro basis. When you look at what’s important for India – healthcare, infrastructure, et al – These businesses are big businesses for GE as well. For instance, Triveni Engineering (recent tie up for manufacture of 30-100MW steam turbines) has a very impressive business from design, engineering, supply chain and manufacturing.
B&E: You joined as CEO last year, and the company has simultaneously initiated a restructuring of its India operations. What is the core agenda that you seek to drive in India?
JF: I want GE India to be viewed as one of India’s best INDIAN companies – not one of its best MNCs. By combining strong local talent with our global experiences, we can help India develop important sectors like power, health care, transportation & infrastructure. Achieving that vision will benefit our customers, our employees and India as a country – and doing so will provide rewards to GE shareholders as well.
John Flannery, GE's current CEO is on an important mission - to make GE India a truly local company and to capitalise on a number of opportunities that the company has missed so far in this huge market. GE India now faces an unprecedented phase ahead, as the company will have a separate P/L and will report to Flannery under an inegrated structure. He has been with the company for over 22 years and was President & CEO, GE Capital, Asia Pacific before taking up the current role. In this exclusive with Business & Economy, expresses his views on going the distance. Some excerpts...
B&E: It seems that GE's interest in India has become more pronounced and apparent in the past one or two years. Would that be a correct assessment in your view?
JF: Like you pointed out, GE's interest in India is more apparent now. In terms of why the interest level is so high, it’s two things – firstly in the last 18 months, it has become absolutely clear that growth rates in developed countries are going to be a fraction of what they are in developing countries. So at an ultra-macro level, we have to be big in the Vietnams, the Chinas, the Indias of the world. So that’s one particular aspect. Secondly, we are talking about reverse innovation and more such concepts. We have found just superb companies in India. The more time we spend here, the more people we meet; we are more excited and impressed by some of the business models. It’s not just the labour arbitrage, it’s the very innovative supply chain model, engineering, design, et al. So we are looking at that and saying that these business models can be global. It is for us to understand them and be able to develop them to be successful not only in India but also take them to developed markets. They fit with GE on a macro basis. When you look at what’s important for India – healthcare, infrastructure, et al – These businesses are big businesses for GE as well. For instance, Triveni Engineering (recent tie up for manufacture of 30-100MW steam turbines) has a very impressive business from design, engineering, supply chain and manufacturing.
B&E: You joined as CEO last year, and the company has simultaneously initiated a restructuring of its India operations. What is the core agenda that you seek to drive in India?
JF: I want GE India to be viewed as one of India’s best INDIAN companies – not one of its best MNCs. By combining strong local talent with our global experiences, we can help India develop important sectors like power, health care, transportation & infrastructure. Achieving that vision will benefit our customers, our employees and India as a country – and doing so will provide rewards to GE shareholders as well.
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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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