The Hindu Business Line : 'Role of CFOs in Pharma Companies undergoing transformation'

NEW DELHI: The role of Chief Financial Officers (CFO) in the Indian pharma sector is undergoing a change and they would have to be more proactive than before as companies seek ambitious growth strategies, according to a survey conducted by global consult ancy firm Ernst & Young. The E&Y survey, which interviewed CFOs of Indian pharmaceutical companies (IPC) and CFOs of India-based subsidiaries of multinationals (MNC), underscored the important changes in the role of the CFO and the finance function in dr iving the success of drug firms.

"Today's CFO has to be proactive to support ambitious growth strategies in a highly dynamic and competitive market while driving an efficient and compliant organisation," the Associate Director Healthsciences Practice of Ernst and Young India Mr Muralidh aran Nair said.

According to the survey, majority of respondents felt improving shareholder value and responsiveness to business needs are among the top four drivers of the change in the Indian Pharmaceutical sector. Around 42 per cent of the respondents said ability to maintain and drive growth is the key challenge in the next three years. To address this challenge, around 70 per cent of the CFOs of MNCs and one-third of those of Indian drug firms would like to increase time spent on business partnering - to be a proa ctive partner in decisions relating to value creation by way of strategy, governance and cost management, it added. - PTI

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