"The differences in the concerns of CFOs in Indian-headquartered companies versus India-based subsidiaries of multinationals are significant. As the market matures, we expect these differences will start to disappear," said Murali Nair, Ernst & Young Healthsciences Practice, India.
Consistent with the global survey, respondents in both groups cited
bottom-line pressure as a key concern (76% overall), however the focus of
their cost-cutting efforts varied. CFOs of India-headquartered
pharmaceutical companies are more concerned about cutting costs in the
supply chain (67%) compared to 44% of MNC CFOs.
Other findings include:
-- Risk management: 58% of IPC respondents report being unsatisfied with
current risk mitigation measures compared to only 11% of MNCs.
-- Drivers of change: CFOs from Indian pharmaceutical companies agree on
the following top four drivers of change: improving shareholder value,
responsiveness to business needs, globalization, and cost pressures.
This is in contrast with the global survey results for MNCs where
compliance & risk are major change drivers.
-- Paucity of information that matters: Although 81% of respondents have
implemented Enterprise Resource Planning systems, 50% of MNCs and 67%
of IPCs either do not or only partially extract performance measures
from their ERP systems.
-- Key challenges: 42% of Indian pharmaceutical company CFOs feel that the
"ability to maintain and drive growth" is a key challenge over the next
- To address this challenge, 70% MNC CFOs and one-third of IPC CFOs
would like to increase time spent on partnering.
|SOURCE Ernst & Young|
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