Greenard Willing - Case Study
From the Asialink Business India Country Starter Pack
Jeff Castellas’ clients were on the cusp of signing off on a world-first coal-technology agreement when the vagaries of India’s bureaucracy kicked in.
As Managing Director for corporate advisory and financial services provider Greenard Willing in India, Castellas is lead adviser for Australian company Environmental Clean Technologies’ efforts to establish the world’s first commercial demonstration and pilot-scale Coldry and Matmor technologies for coal de-watering and iron-making plants in India, a project Castellas says will “change the way energy and steel is produced in India”. But first, a tri-party agreement between ECT and two Indian publicsector corporations had to be signed.
“It’s quite the process to work out who signs it, it has to be representatives in equal positions…and [include] different stampings, and all the parties need to agree to that.” “Then the ministries have to address this, the Ministry of Coal and the Ministry of Steel, then the Ministry of External Affairs comes along and says that because the project deals with an international company, it needs Cabinet approval in order for the parties to be able to sign. This triggers delays to achieve signing with the need for more correspondence and visits to India.”
Castellas and ECT argued that Cabinet approval was not needed, and after a few months, with the Australian High Commission in Delhi engaging directly with India’s Ministry of External Affairs almost daily, it was recognised Cabinet approval was not needed.
“Now we’re back down to making sure we sign on the right paper and confirming the date,” says Castellas. “The point is that in India the complexities and the surprises that can come up all of a sudden are really challenging and Australian businesses need to be prepared to accept this and work with the culture and system.”
“You need to have people on the ground to help you move through the process because the nuances of what goes on in India, the way that people operate, is a very cultural thing. Relationships have to be
very carefully managed.”
Castellas has worked in India for “the best part of 20 years”, and stresses that the most important relationship for Australian businesses to build is with an Indian company’s “promoter”, the key decision maker and usually a member of the family that owns the business. “You can go up through the management group, work your way through the engineers and CEOs and the boards, but you have to get to the promoter and build trust from which can flow mutual prosperous business outcomes.”
Once relationships and trust are established, there is much to be gained from engaging with India, says Castellas. “The Indian market is hard to crack but once you’re in, you’re in. The returns and benefits are long term and there’s a level of surging market demand there and it’s a very trusting, respectful society. Build your commercial relationship over time and you can be very confident those returns will be delivered and probably exceeded.”
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