Managing in a Slowdown

The InfoEdge Experience ??

InfoEdge in 2009 Businesses like Naukri.com, 99acres.com,

Jeevansathi.com, Shiksha.com and Quadrangle

Revenue – 240 crores in 07-08 1700 people Offices in over 40 cities 28pc growth in H1, 8pc growth in q3 All Non Recruitment Ventures losing money

at the moment 330 crores of cash in the bank

InfoEdge in the last slowdown

Only in the Recruitment Business Raised 7.2 crores from ICICI

Ventures in June 2000 Revenues of 1 cr in 2000-01, 3.8

crores in 2001-02 and 9 crores in 2002-03

Broke even with 3 crores of cash in bank in the 2nd Half of 2002-03

Last Slowdown vs This Slowdown Unlisted vs Listed One Investor vs Many Stakeholders Underpenetrated vs Largely Penetrated Single Business Unit vs Multiple Business Units Understaffed Vs Overstaffed Limited Competition vs Massive Competition 3 crores of cash vs 330 crores of cash

The Last Slowdown was good for Naukri. This one will probably be good for our new business ventures like 99acres and Shiksha

Managing Employees, Investors and Everyone Else Recognise the fact that its not business as usual. Let

people in your company understand this as well. Differentiate between non performers and non

performing businesses. Different remedies for both. Problems which could have been ignored earlier need to

be tackled on a war footing Communicate more with investors. Give them as much

information as possible about what you are planning to do.

Provide Clear Leadership. Your employees should believe that the company is clear about how it well weather the slowdown. Ambiguity and Uncertainity may not be a good idea.

Managing in a slowdown Understand the 2-3 things which could

see your business through. Focus on these

Control Wasteful Expenditure. Conserve Cash

Alter the innovation pipeline and push up revenue generating products

Relook at Pricing Keep your sales staff motivated