The Hindu Business Line : KPMG to expand Indian operations

KPMG, the third largest consultancy firm in the country, is embarking on a major expansion of its Indian operations even as it shifts its focus towards advisory services.

The KPMG's new Chief Operating Officer, Mr Richard Rekhy, told Business Line that the consultancy firm is gradually shifting its focus towards advisory services as "audit is no longer a major revenue earner."

"Bulk of our revenues comes from advisory services. After the fall of Enron, audit is no longer hot," Mr Rekhy said.

No more expat heads

KPMG is making several other moves in its Indian operations. With Mr Ian Gomes, the current Country Managing Director, returning to his UK practise this weekend, the company will no longer bring in expats to head the Indian operations. From July 1, a new two-member team comprising Indian nationals will take over the reigns of the operations.

Apart from Mr Rekhy, the Chief Executive Officer, Mr Russell Parera, will form the leadership team. To bolster its tax and corporate finance teams, which are currently smaller in size, KPMG is headhunting for some of the best to join the team. Its recent big catch, Mr K.R. Girish, who was earlier with RSM Associates, will head the tax practise in South India.

India will also be the centre of excellence for Asia-Pacific in advisory services.

To double partners

KPMG will double the number of partners to around 42 in another six months. The number of consultants will also increase to 5,000 from 1,750 currently by 2010. It will also induct expats to work in teams like corporate finance who will help Indian firms planning to set up operations abroad. Likewise, desks have been set up Japan, South Korea, Germany and in the US to help foreign firms do the same.

But the big target for the KPMG is to become the leading consultancy firm in the country by 2010.

According to market analysts, its revenues are little less than Rs 300 crore, which is within sniffing distance of the number two consultancy firm, PricewaterhouseCoopers. While Ernst & Young leads the pack, KPMG is the youngest among the Big Four having set up its operations as late as 1993.

Mr Rekhy said India is becoming a key country for KPMG with the consultancy firm holding its international board meeting in India last February.