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

Inconsistency in policies and violation of contractual sanctity pose the biggest challenge in adverse times as companies are left with little option having sunk investments in long term infrastructure projects said G V K Sanjay Reddy vice chairman, G V K Power and Infrastructure Ltd. Reddy was speaking on Managing Business in Adversity at the national conference and annual session of the Confederation of Indian Industry on Wednesday in the capital. Reddy said "While adversities do bring challenges they are temporary and also bring opportunities along."  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, 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 , 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".