‘Valuation of organisations has become more important than profits’

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: What started with a capital of Rs 60,000 in 1992 is today a well reputed company. K Pandia Rajan founded Ma Foi Management Consultants Limited with an aim to make it a one-stop shop for all HR needs. Since its inception, the company claims to have helped generate career opportunities for more than two lakh individuals in 36 countries and having worked for over 200 Fortune 500 organisations. Ma Foi has been a part of Vedior since 2004. With the merger of Randstad and Vedior, Ma Foi has become a part of the second largest HR services company in the world with operations in 53 countries. This gives Ma Foi the opportunity to create more jobs in India. Pandiya has played a crucial role in the evolution of the HR industry in India. He spoke to fe’s Prachi Raturi Misra on Ma Foi’s plans and the future of the job market in India. Excerpts:

How did Ma Foi do in the last financial year, considering the fact that the corporate sector has been going through a difficult phase?

We have been leaders for past five years. This is the year we have sharply increased our market share. We earned revenue of Rs 783 crore in the last financial year and created about 26,400 permanent jobs. The temporary jobs numbered 30,000. By December, this number was up to about 48,000. Right now our market share is 8 % and we plan to take it to 15 % in the next three years.

How much has the slowdown affected the HR industry in India?

It was a highly fragmented industry but you see distinctive movement towards consolidation. During meltdown we had a lot of exits. It was the first year, this industry shrunk from Rs 9,800 crore to Rs 9,600 crore because of the shake-up.

Now it is increasingly becoming an industry where you need to give guarantees. It’s becoming like the western world where you need stability and organisational identity. Those days are gone when you had a suitcase and a consultant’s tag and companies would give you work. Things are increasingly moving from HR department to materials department where people are negotiating long-term contracts. For example, most of our 2,000 clients are for long-term. That has been a big transition.

What are the new HR trends that have emerged out of the slowdown?