Business

Monday October 26, 2009

Siemens' new president wants the group to be preferred business partner

By LEONG HUNG YEE


PETALING JAYA: The new president and chief executive officer of Siemens Malaysia, M. Prakash Chandran, is positioning the group for greater challenges and further make its presence felt.

“We really need to ensure that we’re in the market. We will also accelerate our presence in Malaysia,” he told StarBiz.

His aspiration for the group was to become the “preferred business partner” in Malaysia.

Prakash said the company was making all efforts to understand customers’ expectations and ensure that its people possessed the right set of skills to address the needs of customers.

Siemens has been involved in numerous projects in the country. Among the notable ones are the design and construction of the express rail link between the KL International Airport and the city, and setting up of a communications network and fire-alarm system for 6,000 hotel rooms in Genting Highlands.

M. Prakash Chandran ... ‘We review our focus projects every year.’

Prakash said the group was currently reviewing its projects as well as those it was interested in participating.

“We review our focus projects every year. We have plans for the short, medium and long-term period,” he said.

Prakash, who is also head of the energy sector for Asean, said the sector represented a key business area for the company in its Malaysian market.

He said the group was involved in the energy substations project for Tenaga Nasional Bhd and Sarawak Electricity Supply Corp.

While he did not provide details of the projects it was bidding for, he said the group was “keen to participate” in the Bakun hydro-electric dam in Sarawak. “We’re not involved in the undersea cable transmission project but we’re interested in building the convertor stations. We look forward to that project.”

He also sees opportunity in renewable and green energy projects locally. “When fossil fuel burns, it creates carbon footprint. This (renewable energy) is really an answer to all. It is good for the environment and reduces carbon footprint as well. There are already few renewable energy projects in Malaysia, such as solar, hydro and biomass,” Prakash said, adding that a lot still needed to be done in this sector.

“We have just bought a global renewable energy company and that adds to our confidence in providing the expertise and value add in this field,” he said.

Locally, Siemens is focused on three core sectors of energy, industry and healthcare.

Prakash said Siemens had a “very good market share” in the healthcare sector. “Our installations and projects done are a good showcase of our capabilities.”

Although Siemens seems to have a finger in just about every pie, its core business is still the power sector in Malaysia.

He said the group basically classified its projects as based-business and large projects, whereby skills outside Malaysia were required. He hopes to grow its based-business by 8% to 10%.

On future acquisitions, Prakash said the group was looking to “improve its footprint” by acquiring businesses that had “real strategic value” for the group.

“We’re always looking for the perfect fit. We are currently looking at opportunities in the smart products industry. It’s something that we’ve just been looking at.”

Prakash said the group was “still looking” and had yet to find any suitors. “We’re looking at anything that can help make us even more complete,” he said with a grin.

To a question, Prakash said he could not provide any financial figures as the parent company, Siemens AG, was currently in a silent period prior to the release of the financial results.

For the first nine months ended June 30, Siemens AG posted a net income of 3.56 billion euros on revenue of 56.9 billion euros.

Asked if the company’s financial performance had been affected by the global crisis, Prakash said: “Yes. The storm has come to Siemens.”

However, he was rather optimistic and upbeat that the group would perform better next year.

“For sure, we always feel that next year will be better,” he said.

Although he did not disclose the latest financial figures, Siemens has been growing its business year-on-year.

Prakash will also continue Siemens’ commitment to its corporate social responsibility (CSR). Over the years, Siemens has been known for its philanthropic work and has been involved with the community at large.

“We want to create an impact in the country for people in aspects that matter,” he said, adding that the group would embark on a few new CSR projects involving arts.

Prakash also believes in developing human capital, providing training and skills development. He stressed that human capital would be vital for future growth.

In his own words, he hopes to be the “people’s CEO” and be more accessible to employees, and a non-barrier interaction between management and employees.

Prakash, 46, will assume his new post next month, succeeding current president and CEO Tan Sri Rainer Althoff who will retire at the end of this month.

While he may be the first non-German to helm the company, Prakash – who hails from India – is no stranger to the group.

Armed with a bachelor in technology (electrical engineering) with a first-class distinction from the University of Kerala, India, he joined Siemens Malaysia in 1996.

He has more than 24 years’ experience and had headed various departments in the power division.

Prakash assumed his first key post in Siemens as the senior vice-president for power transmission and distribution in 2004.

His achievements include gaining a 20% market share increase in the sector for the group.

He was also applauded for his achievement for sustaining an average growth in sales of more than 30% per year.

His office is like his second home and, sometimes during important projects, it is also his first home.

However, he believes in a balanced lifestyle – having equal doses of work and play. He tries not to bring work home.

“When I’m at home, I spend quality time with my family. I don’t carry 50% of my mind with work when I’m at home. That’s home,” he said, adding that he also took short holidays from time to time.

Prakash, who enjoys reading, also has a keen interest in Indian classical music and plays. His other special interest is Malayalam (his mother tongue) dramas, where he used to write, act and direct plays during his college days.

For the past 20 years, Prakash has been active in the Malayalam theatre in Kuala Lumpur, where he has written, acted and directed a number of full-length plays.

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