MAM
There is a pot of gold for India at the end of it: Ashish Bhasin
NEW DELHI: In the second part of this exclusive chat with DAN CEO APAC, chairman India Ashish Bhasin, the versatile leader talks about his experiences of handling various international markets during the lockdown, his expectations with the future of the Indian market, and how the industry can tackle this crisis.
You said that people should be planning for the short term. So, how are the immediate few months looking like to you? How can the industry prepare itself?
When this year had started we all, including my agency had forecasted a 10-12 per cent growth for the industry. Now, the reality is that we are going to end this year, most likely, at negative 15-20 per cent. There is a 30 per cent swing in what we had expected and what we will reach. Now, this 30 per cent amounts to around Rs 22000 – 23000 crores, which are going to get away from the industry. Some parts will be severely disrupted because of this.
First, accept it there's no point in hoping and wishing that suddenly a magic wand will be waived and everything will come back to normal. Now, you know at which levels the businesses are going to operate; so figure out the right structures. Invest only in the right people and resources. This is not the time to be adventurous. This is the time to conserve cash and reserve your resources.
Same goes for the clients. I am seeing people suggesting their clients keep advertising during the lockdown or they will disappear from the consumers’ minds. And in theory, it is right. But if we look at it practically, there is a liquidity crisis in the market. There are certain categories whose shops are shut completely. So, what’s the point in advertising after a certain limit?
I agree that advertising plays an important role in reviving any economy but this is the time to be sensible. Even the clients have to invest in critical resources to let their businesses survive.
I think the focus has to be on how do you make your money work harder. How do you make it more efficient? How do you get a bigger bang out of your buck? Once that happens and once the demand starts coming back you can then become a lot more adventurous.
Do you see more job losses happening in the coming few months?
Well, that’s the sad part about the pandemic, everyone will have to face some pain. At Dentsu, from the very beginning of the pandemic, we had taken this decision to take pay cuts at each level, to save jobs. Obviously, the rangers differed from market to market. It was very clear to us that there is going to be disruption and there might not be any revenue beyond a point.
Now the recovery has been much slower than expected, and certain businesses will have to take these tough decisions, be it advertising or any other. For example, in the events business, where there is movement from months now, then it’s not fair to continue with employees at much-reduced salaries.
Also, it will largely depend on if the festive season really picks up and businesses start coming back. But again, it will be at an industrial level. You will be seeing job losses and it will depend on the sector to sector and which part of the business one is in.
You have also been handling the APAC region of the network. Tell us more about the experience of handling other markets in the region, even beyond the pandemic.
It has been eleven months since I have taken the role and I think it would be fair to say that we have managed to stabilize it very quickly. There were some early calls I had to make, some quick management changes across the region were announced. I changed the CEO and the CFO of our Australia and New Zealand operation and created a new team over there. Some leadership changes were done in the Philippines market too. A few more were in the process but then the pandemic hit us.
So, the region was a little complicated and challenging for the network but I think we have taken some steps in the right direction. It is a work in progress but I am sure we will be able to take it there, increase our revenues. Right now, my focus is on building the right teams, getting the right people on board and empowering them.
And how did the various teams react to the pandemic?
So, we have a big office in Wuhan, which turned out to be the first city to get impacted. And they were quick and adept at handling the situation. We moved everyone to work from home within a few days and the learnings from there really helped us with other markets too. We set up Market Incident Teams (MIT) and Regional Incident Teams (RIT) to assess the whole process and impact. We were then able to take these lessons to countries like Vietnam and Indonesia. It came to India quite later and by that time we were prepared for it. We shifted thousands of people to work-from-home overnight. I am very thankful to all my teams for managing this so well.
Now, China was quick to recover, subsequent lockdown and unlocks have happened in Australia and now there is the second wave there. Markets like Taiwan were relatively less impacted. China is showing robust growth now, Korea has recovered pretty well. Vietnam has handled the pandemic very well.
And how’s the future of the Indian market looking like to you?
I think there is going to be month-on-month recovery from here on. Also, in the larger picture, in the next 2-3 years, 250 million more people are going to come onto the internet. Agriculture is doing now much better and we're investing in infrastructure. I think in the medium-term and long-term, India is going to be in a good position. I can guarantee you there is a pot of gold at the end of it for India.
Read more: Rural, tier 2 & 3 cities to drive the next leg of growth
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI:Â Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
