Booz, Parthenon set up consultancies in India

Booz, Parthenon set up consultancies in India

The Economic Times: September 29, 2008

Mumbai: The collapse of some of the biggest names in investment banking has rattled global financial markets. India has been no exception and in what can be termed an interesting scenario, large consultancy outfits are now seeing the need to be in India.

From the point of view of the consultants, India is not just a representative market. In case of Booz and Co, the newest entrant, it intends to have a 12-member team. The senior members will primarily be of Indian origin and have had the experience of working in their overseas offices.

While Booz will initially start operations with a dozen consultants, the plan is to expand to 100 people in a couple of years. Booz, as part of its global restructuring exercise, had moved out of India in 2000.

Things are a lot different today. "Global companies are using the Indian model in various businesses. This is in countries like Africa and other developing economies," says Suvojoy Sengupta, head of India operations, Booz and Co.

Globally, Booz has 3,300 people in its 57 office in 30 countries. "With India expected to grow at 7% per annum, companies are serious about India," he adds. Apart from sectors such as telecom, energy and healthcare, Booz sees opportunities in other areas like supply-chain management. The global presence has its own advantages.

Recently, when a Delhi-based corporate asked for a proposal, Booz was able to get six vertical specialists from 5 different countries in two days. It is expected that the top team at Booz, comprising mainly people of Indian origin, is relocating to India from the offices in the US and UK. Globally, Booz clocks revenue of $1 bn.

Another strategic consultancy firm Parthenon has set up shop in India early this year. It relocated Chip Greene, an expat, to head the Asian operations in India. Today, the size of the team has increased to 15. The firm's Mumbai office has already started servicing clients in China, Japan and Thailand. Parthenon has a different model of accepting fees.

"At times, we are given a portion of our fees in the form of stock or options. The valuation is simple for companies whose shares are traded. When the company is privately held, we fall back on traditional option pricing models," says Chip Greene, partner and Asia head, Parthenon group.

For India, the time has come when its success in various industries can be replicated in other countries. That's exactly what is happening as consultants are looking to make a name here.