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PwC’s Indian boss is lobbying for a seat on the Big Four’s global executive committee, along with his counterpart in China, arguing that the rapid growth of its business and the increasing importance of the Indian economy will warrant a position at the top of the network of earning $53 billion.
Sanjeev Krishan, chairman of PwC India, has petitioned senior figures in recent months to add him to the firm’s influential network leadership team, people familiar with the matter told the Financial Times.
The move has caused unrest within the accounting and consultancy firm, with a senior person familiar with the discussions saying that while the issue has not yet risen to the level of “tensions”, it has been seen by some within the network as a ” problem’ is considered. .
One partner said Krishan had “pushed very hard” for a seat, while another, who has held global and national leadership roles at the firm, said it was “very unlikely” the Indian firm would get a place on the committee.
Like the rest of the Big Four firms – Deloitte, EY and KPMG – PwC is run as a global network of partnerships linked through a global entity. The company’s network leadership team sets the overall strategy and standards for its 151-country network.
The network leadership team currently consists of the firm’s global chairman, the heads of the US, UK and Asia Pacific/China businesses, as well as the European boss, who holds a seat that can be rotated at the behest of PwC’s global board of directors . .
“The size and composition of PwC’s network leadership team is determined by the regulations applicable to the network and by PwC’s Global Governance Board,” a PwC International spokesperson said. “There are currently no plans to add additional members to the network leadership team.”
The Indian company’s lobbying underlines the sometimes contentious political maneuvering within the Big Four’s vast global networks and marks an early test for Mohamed Kande, the company’s new global chairman.
It also comes as PwC’s Chinese operations face a crisis over the audits of collapsed property developer Evergrande. One of the senior partners said, “India is very feisty right now because of what is going on with China.”
Demand for professional services in India has increased rapidly in recent years thanks to Prime Minister Narendra Modi’s economic boost and the professionalization of the country’s economy.
The Indian company was the fastest growing of PwC’s 21 largest companies in the network last year, with a turnover increase of almost a quarter. This performance supported PwC’s overall revenue growth in Asia Pacific, which was slower than the other major regions at 7 percent, dragged down by China. The Indian company expects to exceed $1 billion in sales for the first time this fiscal year.
A person familiar with the Indian company said it was well positioned to continue growing at a rapid pace because of the country’s growing economy and young, growing population. PwC’s China boss was added to the firm’s network leadership team in 2008 because it was seen at the time as the region with the greatest growth potential, a senior partner said.
However, the Indian business remains small compared to some companies in other regions.
“If you look at their numbers, the domestic ones [Indian business] is growing tremendously, but from a very low base,” said the partner who has held global and national leadership roles. “To put them on the network leadership team, you would also have to put Canada, France and the Middle East. Suddenly the network leadership team consists of 10 countries. That would not be workable.”
PwC’s network leadership team, which met 25 times last year, will be overhauled as early as next month when Kande, Marco Amitrano and Daniel Li take up their positions as heads of PwC global, UK and Asia Pacific respectively. Paul Griggs, the company’s new American boss, joined the committee in early June.