Talk at the World Economic Forum's Private Meeting for Global Growth Companies - "The Way Forward: Opportunities arising out of the crisis at Singapore on 11-12 October, 1998.

The Asian crisis has taught us a lot of lessons, some extremely bitter and some mind boggling in its repercussions. It has however also provided us with a great opportunity to work our way out of this great mess and strengthen ourselves for the future. The massive devaluation of the currency while causing enough havoc has made us far more competitive and we can now look for a much larger share of the overall world markets.

From a CEO's perspective this crisis has been quite a mind opener. A CEO now must necessarily spend up to perhaps 75% of his time studying the trends in the outside world and only 25% within the company leaving the balance to his deputies. A major crisis in a company can now occur for no fault of its management, nothing to do with its manufacturing ability or with its marketing strategy or with its HRD or quality. Crisis are occurring globally based on a massive money across borders and across sectors. Companies are facing the onslaught of this capital mood swings with its fall out in market shift and ability to raise funds. Overnight a company which would be doing extremely well would become not credit worthy because of its own country's down grading or because collectively the fund managers have lost interest in that country or that sector.

The CEO therefore has to be totally on top of the world economic situation, its potential rapid movement and mast be able to foresee such crisis well in advance and would have to be able to move rapidly its product and money and its strategy in line with market moods.

In our country the impact of the crisis has been less because of our restricted currency movements. We are however still passing through a recession fm the last three years. Our own group has however grown in this recession from $ 100 million to $ 1 billion in a six-year span. We are today one of the largest mobile telecom players and a strong IT players. All based on our ability to be entrepreneural, to constantly watch out for and grab new opportunities and to network with global companies. We have totally turned around our Group in these last three years «f recession, from a traditional steel company to a vibrant IT & Telecom group.

The key lesson learnt from that Asian and the way forward is:

• There is no level playing ground anywhere in the world. You just take the situation as is and capitalize on opportunities by exploiting your advantages and overcoming your shortcomings. No one will help you except yourself.
• If you are manufacturing for domestic markets then most of your raw materials must be denominated in your local currency.
• You and your country must have a major inherent competitive
  advantage in the product that you are marketing in the global
  market.
• Go strong on Global networking. Set up your own company in the markets you wish to capture or have a good JV partner.
• Focus through combination of spin offs, acquisitions and mergers.
• Reduce costs and overheads* it is always good for you. Keep your people motivated.
• Go strong on service sector. It has become far more important than manufacturing. Revenues are in dollars and there are no raw material imports.
• Don't be a copycat. Find your own solutions relevant to your needs. Totally understand what you are doing.
• Entrepreneurship will still be the key to your success. Be flexible, be innovative and constantly watch your step. Do not panic.

While fee Asian crisis has had a devastating effect on many industries in Asia, you should not worry too much as the problem is temporary. Asia by mid large has a large pool of top quality intellectual professionals who have the capability to better the best available hh the Western world. Crisis like this will, I am confident, bring out the best in us and make us more determined and stronger to compete in the world

The crisis should thus be welcomed as a rightful jolt In correcting our path. Perhaps 10 years of strong growth had weakened us and allowed us to become lazy and easy going. The worst is over; lets leave it behind us to be stronger for the future. The individual winning formula is to think long term, to be fast and flexible, to be focused on customer needs and competitors and to be always willing to turn any adversity into a new growth opportunity.

Thanking you

VINAY RAI