Absence of contractual sanctity, the X factor in adverse times, says GVK's Sanjay Reddy

Speaking on managing a business in adversity at the national conference and annual session of the Confederation of Indian Industry (CII) Sanjay Reddy vice chairman, G V K Power and Infrastructure Ltd, said inconsistency in policies and violation of contractual sanctity pose the biggest challenge in adverse times, as companies are left with little option but to sink their investments in long term infrastructure projects.

"While adversities do bring challenges they are temporary and also bring opportunities along." said Reddy.

He also stressed on the need for taking focused steps towards bridging the huge infrastructure deficit which assumes great importance in taking the Indian growth story forward.

Speaking on balancing the short term adversity and long term growth prospects of the company, Mr Sanjiv Goenka, chairman RP- Sanjiv Goenka Group citied strategies adopted by the retail and power segments of his group in managing the adverse scenarios.

"A combination of strategies like focusing on improving long term efficiencies, reducing costs along with better utilisation of existing assets helped in garnering increasing returns even during difficult times," Goenka said.

Sharing his perspective, Mr. T.V. Narendran, Managing Director, Tata Steel - India and South East Asia, was of the view that adversity also brings an opportunity to the businesses to revisit existing policies, making short term corrections , build alternate options and initiate steps for strengthening long term foundations of the businesses which otherwise would not have been taken during good times.

"While managing adversities in the DNA of big companies which have been there for a long time, it is the new companies which need to do the work and revisit their strategies to balance the long term growth and short term challenges before the businesses," said Narendran.