Time for “Finance” has arrived

When I was a kid, most of my friends wanted to become an engineer, doctor, or pilot. As time passed, the fad for IT professionals soared, with many youngsters bagging good assignments in the developed world. Of late, Artificial Intelligence and Data Mining skills have been sought after, including using AI to make some quick bucks in the stock markets through algo trading by automating trading decisions.

Many of you, however, will be surprised to know that the ‘finance’ skill possessors have become one of the most bankable professionals in recent times. If you are a CFO or almost there, possessing professional qualifications like CA, CMA, or a credible MBA (Finance), you are likely to receive a lot of Head-hunter calls.

You may have recently read a beautiful article by Mannu Arora on this platform (ETCFO, I mean) that – ‘CFO shortage looms as demand soars amid IPO revival’. And it is so very true.

Let me try to put forth the picture as it is emerging for the ‘finance’ folks, especially those with experience. Of course, professionally qualified freshers will also be required to learn by undertaking routine kinds of stuff.

1. Equity money: In the second half of this financial year, there will be over 70 companies that are likely to access the public equity market in India, planning to raise about $11 billion (Rs 90,000 crore). And this figure does not include the SMEs, where over 150 companies are trying to raise around Rs 3,700 crore. (Between Jan to Oct 23, over 180 firms have gone public in India, more than in any other full year, beating the US, Hong Kong, and China hollow). These IPO-raising exercises obviously need skills, and who else except the well-oiled finance folks?

2. Debt raising: It is common knowledge that for every Rs 100 raised as equity, there is space to raise another Rs 200 as borrowings. So, someone has to prepare business cases, projections, and IRR (profitability) numbers to raise the so-called double the amount of equity. Lenders need finance folks to prepare the stories of why they should lend, how well the cash flows in the future would stack up to ensure timely payment of interest and principal amounts, and much more.

3. Investors and growth market: The good news is that India is likely to register the highest growth rate among major economies this year. In the midst of global uncertainties, the country displays political stability, a young and growing labour force, and a rising middle class, all of which are making the country the darling of foreign investors. Investors are lurking around the corner to be attracted to credible India-centric entrepreneur-led investment stories to be communicated by the finance team.

4. China plus one: India is the landing spot for manufacturers looking for alternatives to China as a supply chain base. With PLI incentives carved out for 14 industry sectors, world-class corporate tax rates, and
digitization of the economy, India has become a preferred port of call for most investors. They need loads of information from the finance team before investing their FDI money.

5. Supply Chain bolstering: India stands on clearly visible four pillars of growth: the forging of a single national market, post-GST; shift in renewable energy resulting in industry expansion; move in supply chains away from China towards India; and a high-tech welfare oriented safety-net for the hundreds of millions through the India stack and UPI related system. These developments boil down to enhanced supply chain management. Good finance minds will be required to manage and control these growth areas.

6. Largest economy: You are all aware that India is now the 5 th largest economy in the world and is likely to be the 3 rd largest by 2028 or so. You may be pleasantly surprised to know that India is likely to beat the total GDP of the whole of the whole of European Union (27 countries) by 2050 and the USA itself as the largest GDP country on earth by 2075. Yes, there is every likelihood of this happening, give and take a few years. And this growth will need money. Not only sourcing it but also deploying it appropriately with proper internal control and processes. Every penny invested should provide an adequate return on investment, and someone needs to be hawk-eyed – who else but the finance fellows?

Few last words

This decade belongs to India. And nothing is possible without people.

India would need good resources. Surely, the country would need good engineers, doctors, nurses, IT, human resources, salespersons, marketers, lawyers, and more. But, to put it all together and help maximize returns, skills in financing, accounting, MIS, costing, and auditing would be paramount.

Think of the symphony orchestra consisting of dozens of musicians with varied instruments. And yet, they are always in sync with each other. The orchestra conductor plays the role of bringing the musical to life. So is the role of the CFO and its Team. They are the conductor of an organization to deliver results seamlessly by eliminating bad noises of disharmony and setting proper controls. Hence dil-maange-more for Finance Services!

About the Author: Robin Banerjee is the Chairman of Nucleon Research Pvt Ltd, a global clinical research company. Earlier, he served as the Managing Director of Caprihans India Ltd. Robin has authored 3 bestselling business nonfiction books: (i) Who Cheats and How; (ii) Who Blunders and How; and (iii) Corporate Frauds: Bigger, Broader, Bolder.

Disclaimer: The views expressed are solely of the authors and ETCFO.com does not necessarily subscribe to it. ETCFO.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.