The curious case of Gujarati Businessmen

The Curious Case of Gujarati Businessmen – Bhavesh Upadhyay

Gujarati Businessmen are known for talking about one thing on a large scale – recession. They talk so much about it if they would give 5% of the time from their discussion to improve the system and policies in the organization – they might move the mountains.

It’s a fact that, whenever it is about international and national investors, the Gujarati entrepreneur is appreciated because of their sense of making a profit; but as soon as the investors get into the working style, they mostly receive nothing but disappointment. Most of the Gujarati companies are person-driven rather than system-driven. The company owners can not come out of ‘Pedhi’ culture. Some promoters are there with the motive of making their organization a professional one, but as soon as the money comes into the picture for the cost, they are so cheapskate they remind you of uncle Scrooge. There you see the real character of the person – speak for something, but never implement that.

As per a survey, foreign investment companies are very much eager to make investments in Gujarati companies; but due to a bad report in (un)professional culture, system and process, government compliance, HR policies and business analysis – the investors are feeling that the Gujarati companies are in the low level. Gujaratis are excellent in making a profit in small and big levels, but having not much idea about how to increase the valuation of the organization. Most promoters don’t even know that what is the valuation of the company and how it can be calculated? If we talk about PAN India, then Mumbai, Pune, Hyderabad, Bangaluru companies are having professional culture. These cities are not having two faces. They believe in transparencies.

Unfortunately, the Gujarati companies lack such professionalism. They believe more in shortcuts. Schemes are tricks are really bad which involves:

  • Fake promises
  • Delay in increment/appraisals
  • Fewer holidays/day-offs to employees
  • Calling them on the day-offs
  • Meetings and projects without actions plans and so on…

These are the reasons by which they can not attract global strategic investors. Foreign investment is very much interested in investing in India – which is a high-growth market. Their major interest is in the Indian companies which want to increase their valuation. With investment, they are eager to make these Indian companies be ready with the global network, a world-class system and strong fundamentals.

Along with Singapore and US, Japanese and Chinese investors are also passionate about making the right investment. Unfortunately, the Gujarati companies even though are financially strong, but having very negative feedback when it comes to system and policies. Investors are looking for companies, which can stay strong against the wind of unfavourable conditions. With growth, they seek security as well.

Human Resource Management is a powerful aspect of the company. Gujarati companies are very weak in their HR policies. It must not be forgotten that the HR rulebook is no less than the constitution of the company. Promoters are fully focused on profit but show no interest in employee development. It is necessary to have a fully automatic system. The company must be system driven and not person driven. If an employee leaves the company, then it must not affect the company. Another thing, often the promoters are unaware of the current situation of their organization. (Yes, you read right).

If you ask for data then it takes 3 days. They are focused only on margin and cost. If you need global investment, then you must have everything online. It is very much important that the management can get the data in moments – yes, in moments. The Gujarati company owners need a big transformation. If your organization is having a great culture, then definitely the investors will come to you even you are having marginally less profit in your records.

The article is originally written by Bhavesh Upadhyay in Gujarat Mitra. Here is the full article in Gujarati.

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