Mazars to enter consulting, advisory business in India
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Synopsis
As per the Indian regulations, multinationals cannot directly audit Indian companies. So, they operate in the country through affiliate firms.
By Sachin Dave, ET Bureau
Last Updated:
Mumbai: French accounting major Mazars is revving up its investments in the country by launching a consulting and advisory business, possibly drawn by the success of Grant Thornton and BDO in challenging the big four that are under fire from Indian regulators.
“India is very much on the top agenda within the firm,” said Rudi Lang, group executive board member at Mazars. “We will handhold the business till the time it can support itself.”
Mazars already has a presence in the country’s auditing space through two affiliate firms – New Delhi-based SN Dhawan and Mumbai headquartered-Kalyaniwala & Mistry. The consulting and advisory partners of both these firms will now be subsumed in Mazars LLP as the French firm looks to focus on audit practice in India along with the consultancy one.
“We have a diversified global client base so we are looking at both outbound and inbound opportunities,” Lang said. “We follow our clients across the globe.”
Mazars’ foray comes at a time when the big four firms—Deloitte, PwC, EY and KPMG—are under fire from Indian regulators for their association with companies that have gone into bankruptcy proceedings or have seen some corporate governance issues.
Vishesh Chandiok-led Grant Thornton and Milind Kothari-led BDO, which are not as large as the big four in India, are now trying to leverage the situation.
Mazars will join rival global networks RSM, Nexia and Baker Tilly in pushing for a big presence in India by capitalising on this opportunity.
In the last few years, the big four have been trying to cut down on their audit practice in India – their revenues from audit have already shrunk to about 20% of their total business in the country from the peak of close to 50% a decade ago.
Mazars is an audit-heavy firm that is trying to diversify its services in the high-growth advisory business by offering consulting, digital, cyber and forensic-related services.
As per the Indian regulations, multinationals cannot directly audit Indian companies. So, they operate in the country through affiliate firms.
“Mazars will offer a full bouquet of advisory services in India including DATE (Digital, Analytics, Technology and Enterprise Applications), GRC (Governance Risks and Compliance), Cyber Security, Forensics, Deals-Corporate Finance, International Trade, Management Consulting, Finance Transformation and Automation. We will build a client-centric practice that is obsessed about clients and top quality service,” said Kartik Radia, Managing Partner, Mazars India LLP.
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Mazars LLP, which is led by Kartik Radia who has joined firm from rival BDO, is on a hiring spree, and plans to appoint 30-35 partners and around 500 professionals by the end of the financial year, a top official said. “India is very much on the top agenda within the firm,” said Rudi Lang, group executive board member at Mazars. “We will handhold the business till the time it can support itself.”
Mazars already has a presence in the country’s auditing space through two affiliate firms – New Delhi-based SN Dhawan and Mumbai headquartered-Kalyaniwala & Mistry. The consulting and advisory partners of both these firms will now be subsumed in Mazars LLP as the French firm looks to focus on audit practice in India along with the consultancy one.
“We have a diversified global client base so we are looking at both outbound and inbound opportunities,” Lang said. “We follow our clients across the globe.”
Mazars’ foray comes at a time when the big four firms—Deloitte, PwC, EY and KPMG—are under fire from Indian regulators for their association with companies that have gone into bankruptcy proceedings or have seen some corporate governance issues.
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Vishesh Chandiok-led Grant Thornton and Milind Kothari-led BDO, which are not as large as the big four in India, are now trying to leverage the situation.
Mazars will join rival global networks RSM, Nexia and Baker Tilly in pushing for a big presence in India by capitalising on this opportunity.
ADVERTISEMENT
In the last few years, the big four have been trying to cut down on their audit practice in India – their revenues from audit have already shrunk to about 20% of their total business in the country from the peak of close to 50% a decade ago.
Mazars is an audit-heavy firm that is trying to diversify its services in the high-growth advisory business by offering consulting, digital, cyber and forensic-related services.
ADVERTISEMENT
As per the Indian regulations, multinationals cannot directly audit Indian companies. So, they operate in the country through affiliate firms.
“Mazars will offer a full bouquet of advisory services in India including DATE (Digital, Analytics, Technology and Enterprise Applications), GRC (Governance Risks and Compliance), Cyber Security, Forensics, Deals-Corporate Finance, International Trade, Management Consulting, Finance Transformation and Automation. We will build a client-centric practice that is obsessed about clients and top quality service,” said Kartik Radia, Managing Partner, Mazars India LLP.
(You can now subscribe to our Economic Times WhatsApp channel)
