The key challenges facing Indian companies as they morph into global corporations are innovation, efficiency and recognizing and responding to challenges in radically different markets and geographies in a holistic manner, Industry leaders said.

Participating in a panel discussion on "Globalising Indian business - The Challenges" at the fourth Hindustan Times Leadership Summit in New Delhi on Friday, leaders of Indian companies which have emerged as global players concluded that challenge was to change internal mindsets to think and compete globally, and create an environment of innovation and a global mindset.

Kicking off the discussion, Baba Kalyani, chairman and managing director of Bharat Forge, outlined the lessons he had learnt while transforming an 'old economy', low-technology component company into a capital and technology-intensive multinational. "The challenge was to go from a local component manufacturer to a global product manufacturer" and set new global benchmarks through constant research and development, Kalyani said.

Anand Mahindra, vice chairman and managing director of Mahindra and Mahindra, discussed the "fungibility" of the global marketplace. Any decision taken in any market will have to reflect global strategy, Mahindra stressed. Responding to a query from session moderator Raju Narisetti, editor, HT Business Paper, Mahindra said the index for benchmarking the globalization of a company was to measure the 'global-ness' of one's response to a new challenge.

Tulsi Tanti, Chairman and Managing Ddirector, Suzlon, outlined a unique route to globalization. The wind energy major had no option but to go global from the start, as the main market for its products lay overseas. Today, the Pune-based Suzlon's global marketing headquarters are in Denmark, the world's alternative energy capital. While Indian technology skills and cost advantages are leveraged in the research area, the marketing arm functions completely independently, under a supervisory board.

Dr. Vijay Mallya, chairman, UB Group, also stressed the need for "letting go" of controls on professional managers. "Indian managers need to be given the chance and the confidence to perform," Mallya said.

"Indian managers are as good as the best in the world," adding, "you need to give them the freedom to operate while maintaining strict accountability for delivery." Agreed Mahindra, "You cannot run a global company as a mom and pop shop."