With the rise in international trade and transactions, it is important for multinational companies to understand and collaborate with local decision makers.

Addressing a finance conclave organised by the Confederation of Indian Industry, S Varadarajan, Director – Finance, VA Tech Wabag Private Limited, a pure-play water technology company, said it is necessary for companies to understand the local laws and compliance standards. In order to ease transaction process the company employs local players to lead the projects, he said.

Stating that localisation is important for growth, Varadarajan said, companies should accept the risks and accommodate the price differences as well. “We use European technologies in all our projects but we sell them at the local cost,” Varadarajan said.

VA Tech Wabag has a market share of 14 to 15 per cent in India. “Globally, water technology market is highly fragmented as there are many local players, making it important for us to connect with them,” he said.

Axel Galametz, Chief Finance Officer, Renault India Private Limited, said when the companies set up a subsidiary, expatriates are installed to bridge the gap between subsidiaries and the parent company. “This is to align the focus of the corporate and set expectations, as it takes a few years for them to catch up with the standards of the parent company.”

K Ravi, Chief Finance Officer, Roots Industries India, an exporter and manufacturer of industry equipments, said apart from finance, the CFOs should have a thorough understanding of technical concepts to have a robust process in place. “This will in turn help in reducing the process costs that is important for sustainability.”

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