 "Will invest in technology to stay ahead: Ashu Suyash")
Ashu Suyash, managing director and chief executive officer of CRISIL, shares her thoughts on business outlook and her plans for 2016 with Abhijit Lele & Rajesh Bhayani. Edited excerpts:
You've spent almost six months at the helm of CRISIL. What priorities have you set and what challenges do you see in the unfolding environment?
I find the world as an interesting place through CRISIL's lens. A two-speed world — stronger economic growth in the emerging market and subdued in the developed market.
For company like CRISIL, which is pioneer in ratings, as Indian economy grows – market and equity are bound to expand.
We as an unbiased and independent entity in industry well poised to make most out of the environment.
Technology plays an important role in your business. But how would you realise this? Will you develop it in-house or go for acquisitions?
We will incubate a few ideas, invest into as well as acquire companies. We have a track-record of acquisitions. Entire analytics space is evolving and changing fast. We have to remain at the forefront. CRISIL is the first point of call for regulators and governments. We will like to stay that way and be ahead of curve. The technology will enable us to continue to have an edge. The board of directors has approved the proposal to invest up to Rs 30 crore for investments in financial technology companies in areas/sectors that are deemed strategic for CRISIL.
A committee of senior executives has been designated to identify companies, evaluate and finalise actual investment proposals and decide the optimum methodology for the investments.
While CRISIL is known for rating work, it gets substantial revenues from non-rating business as well. Will at some point of time, non-rating piece will be split into a separate entity?
Rating is a key component in the domestic business with one-third share of revenues. The non-rating businesses – analytics and advisory -- account for the balance two-thirds. We will remain evenly split on the domestic and global business. Our focus on India and world will remain.
Today our businesses – rating and non-rating – co-exist. The rating division operates as firewalled as it is required. CRISIL is like a diversified group. There is no plan to split the rating and non-rating activities as distinct entities.
Is rupee depreciation helping CRISIL in getting more income, as half of its business comes from global operations?
Appreciation and deprecation of currency is not in our control. We believe in focusing on our business rather than speculation. The company follows a conservative policy of hedging the income. About 50 per cent of net income is covered through forwards (derivatives).
What are your priorities for 2016?
We are evaluating a number of areas. Like analytics, risk assessments, enabling global and domestic investors to become compliant from regulatory and credit markets point of view. The infrastructure advisory is a key growth area. CRISIL will be advising on smart city rollout in five places, including Thane, Nashik, Nagpur and Solapur.
You've spent almost six months at the helm of CRISIL. What priorities have you set and what challenges do you see in the unfolding environment?
I find the world as an interesting place through CRISIL's lens. A two-speed world — stronger economic growth in the emerging market and subdued in the developed market.
Also Read
Given the diversity and changing market regulations, the economic growth provides opportunities and as well as presents challenges. The technology has emerged as disruptor across the sectors.
For company like CRISIL, which is pioneer in ratings, as Indian economy grows – market and equity are bound to expand.
We as an unbiased and independent entity in industry well poised to make most out of the environment.
Technology plays an important role in your business. But how would you realise this? Will you develop it in-house or go for acquisitions?
We will incubate a few ideas, invest into as well as acquire companies. We have a track-record of acquisitions. Entire analytics space is evolving and changing fast. We have to remain at the forefront. CRISIL is the first point of call for regulators and governments. We will like to stay that way and be ahead of curve. The technology will enable us to continue to have an edge. The board of directors has approved the proposal to invest up to Rs 30 crore for investments in financial technology companies in areas/sectors that are deemed strategic for CRISIL.
A committee of senior executives has been designated to identify companies, evaluate and finalise actual investment proposals and decide the optimum methodology for the investments.
While CRISIL is known for rating work, it gets substantial revenues from non-rating business as well. Will at some point of time, non-rating piece will be split into a separate entity?
Rating is a key component in the domestic business with one-third share of revenues. The non-rating businesses – analytics and advisory -- account for the balance two-thirds. We will remain evenly split on the domestic and global business. Our focus on India and world will remain.
Today our businesses – rating and non-rating – co-exist. The rating division operates as firewalled as it is required. CRISIL is like a diversified group. There is no plan to split the rating and non-rating activities as distinct entities.
Is rupee depreciation helping CRISIL in getting more income, as half of its business comes from global operations?
Appreciation and deprecation of currency is not in our control. We believe in focusing on our business rather than speculation. The company follows a conservative policy of hedging the income. About 50 per cent of net income is covered through forwards (derivatives).
What are your priorities for 2016?
We are evaluating a number of areas. Like analytics, risk assessments, enabling global and domestic investors to become compliant from regulatory and credit markets point of view. The infrastructure advisory is a key growth area. CRISIL will be advising on smart city rollout in five places, including Thane, Nashik, Nagpur and Solapur.