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German consultant to set shop in India

Droege & Comp, a Germany-based management consulting firm that is opening shop in India, can help you manage your company if your CEO quits, reports Lalatendu Mishra.

business Updated: Apr 24, 2007 01:56 IST

If your CEO quits all of a sudden, what will you do? Your quarterly targets are at a stake, employees are nervous, and you don't know what to do. Don't worry; there's a way out.

You can rope in a management consultant for say, six months, who appoints one of its partners as CEO to run the company for you.

Droege & Comp, a Germany-based management consulting firm that is opening shop in India, can help you just do that-manage your company.

"We can step in to tide over such a crisis. Last year the CEO of Germany's fire engine maker Ziegler quit and we were asked to take over the company with a turnover of 25 million Euro and 200 employees," said Joachim H Ihrcke, Droege & Comp India's Managing Director.

Droege successfully ran Ziegler, achieving an EBITDA of 18 per cent. ''We have done similar things in China as well," added Ihrcke, who is based in Singapore and will handle the Indian operations through general manager T Thomas and his team based in Mumbai.

Droege & Comp, which has offices in New York, Singapore, Moscow and China, will open the shop in India on Tuesday. This follows the entry of German automobile majors BMW; Volkswagen will be the next big German company to enter India.

Traditionally, Droege follows the investments of German companies in emerging markets and advises them in the fields of corporate fitness, turnaround and restructuring as well as organisational efficiency in new, unfamiliar markets.

"We confine ourselves to German companies and companies from other countries who have business interests in Germany. Any Indian company having ambitions to capture the European market via Germany can be our client," said Droege & Comp CEO Christian Horn.

As many German auto part suppliers would be following BMW and Volkswagen who would also be sourcing products from India, Dreoge thinks this is the right time to set up a base here.

Unlike others who charge lump sum, Droege's operates on a success-based fee structure. It charges clients fees based on the returns the client gets as per the agreed targets before taking up the consultancy assignment.

"We share the risks with clients and stress on implementation. We aim at achieving higher returns for clients and our fees are directly related to the client's tangible results,'' said Horn. That should make his potential clients happy.