Cover Story

Return of the Prodigal

Opportunities abroad, which fuelled a mass exodus of hospitality talent beyond India's borders, have reached full circle. The prodigals, who had set sail to seek fortunes in verdant foreign shores, are returning to capture a slice of the Indian pie, finds Neeti Mehra

Surveying his 30-acre stretch of land in Nasik, Rajeev Samant had a moment of epiphany. This was the mid 90s and the Stanford graduate cum ex-Oracle employee, on his return to India had tried his hand at farming, and failed. At this very instance, he decided to try to grow wine grapes there, given the terroir and climate was, in fact, ideally suited to it. Teaming up a winemaker from California's Sonoma Valley, Samant worked there and learnt the hard way.

"One of the biggest hurdles I faced when I came back was to procure a license to produce wine. Also, I was producing good quality Indian wine, which was priced slightly higher as compared to imported French wines available here," says Samant, CEO of Sula Vineyards.

Battling bureaucracy, a necessary evil that most entrepreneurs negotiate with, he finally procured the license after two years - a license which had not been granted by the state of Maharashtra since a decade - and then set out to convince a consumer base that was biased against Indian wine. He sold only one truckload of wine in the first six months, but didn't lose faith in the inherent potential of the domestic market. This year the vintner will touch the million-bottle mark. Ask Samant and he says, "India has actually been the place that has given me all that I can call mine today. All the action is here and the industry is growing at a steady pace."

This isn't just a one-off case. Today, professionals that left the homeland to seek their karma and earn a decent living abroad are filtering back to find their destiny in what's touted to be the fastest growing economy in the world (with a GDP growth approximating eight per cent per annum). Close on their heels are second generation Indians and complete outsiders to this industry, following their passion to join the swelling ranks of this booming service sector.

India, redux

Some market observers attribute this to the rationalising of salaries across the board and more opportunities being available for entrepreneurs, who are now seeking a life outside saturated and highly competitive international markets. But in fact, a smattering of nostomania and the comfort of being a first class citizen in a familiar surrounding is an intangible undercurrent to this influx, the start of a journey back home.

With the world's eyes on India, it becomes only imperative to understand the geo-political situation that laid the foundation of immigration. Initially, opportunities were few and far between, both for a hospitality entrepreneur and an employee, which prompted them to make a beeline for foreign shores - some through work visas and some through immigration.

However, post economic liberalisation in 1991, the economy boomed and suddenly the economics of doing business with India made sense, notwithstanding 9/11 and SARS. Hotels and restaurants began mushrooming in every city; the wheels of change were set in motion and many chose to come back.

This buoyancy wasn't unfounded; the opportunities were tangible and real. In 2004, the Ministry of Tourism and Culture, Government of India, commissioned a study on manpower requirement in the hotel industry and quantified the euphoria with an ominous message that there is likely to be a shortage of trained manpower. Clearly, it is an opportunity in disguise for qualified professionals.

The almost global parity in salaries - the foremost need leading one to migrate - coupled with intangible yet real needs such as family compulsions were integral. The comfort of being a first class citizen in a familiar society acted as a final catalyst. Gurreet Singh, VP (Operations) at Nirula's, travelled to UAE in 2003 but moved back to India within two years due to family compulsions.

Another factor for the return is the inability to adjust to an alien hospitality landscape. The transition takes a while; getting used to a lifestyle different from what India proffers - domestic help, friendly society, and a life beyond work. Carmo Barretto, GM at Starters & More, who has worked with Le Meridien in Kuwait and Dubai and later in a private F&B operation in Muscat, returned to India at the age of 28. He says, "It's not just about earning money; it is about having a career, a family and activities that one can pursue with passion." Ultimately, it all boils down to fitting in the society, and India is a perfect fit.

India ahoy

Scoping the landscape to see the reasons behind the reverse migration that propelled professionals back into the great Indian gastronomical landscape are numerous.

Professionally, the transition abroad isn't a cakewalk. Even though there is no overt racism, a proverbial glass ceiling exists and after a series of progression, there is no challenge left to motivate one. Sanjay Malkani, VP (F&B production) at Concept Hospitality, who has worked in Muscat says, "When one joins a position in a foreign country at a very high level, it isn't always possible to add more value because even though we are competent, the top positions almost always go to expatriates or locals. Also, there is always an underlying feeling of being a second class citizen abroad." With success being stymied thus, some make a conscious decision to return.

Those who opt to work abroad ultimately have to take a call regarding the direction of their life, albeit a difficult one. For those who want to return, there is a right time to do so. They should be in a position and age to be assimilated with the changing hospitality landscape in India. Agreeing with this, Barretto says, "The fundamental question is, ‘when is the right time to return?’. Today, though the F&B market is still evolving and will absorb professionals opting to return, hotels have already reached a maturity level."

International exposure helps professionals shape their career back home, even though it may not add volumes to their resume. "It doesn't fascinate the Indian administration at all if you have a few destinations on your resume. The deciding factors are your strengths and the management concepts in the country you have worked in that you practice," Barretto avers.

Singh adds, "Today there is enough money in leisure and entertainment and more propensity to spend. People who are working within the industry are getting paid better."

But the return in some cases is not a completely happy sojourn. A K Agrawal, principal of Institute of Hotel Management, Delhi has seen scores of students who had left for foreign climes unhappy to return because of a dip in pay scales, purchasing power parity notwithstanding.

Despite this, Malkani feels that international exposure is an absolute must, but ultimately the potential lies in the homeland. "People are returning to India because of opportunities. At the same time, any experience is a value-add," he opines, a sentiment echoed by Dominic Costabir, director of Hospitality Training Institute, who feels that it is imperative to get exposure whether it be through study trips, internships or training with a base in India rather than a full-fledged experience abroad.

The outsiders

Strangely enough, the Indian hospitality sector is attracting a certain section of upstarts, working their way right from scratch in the international market. Sensing the innate potential, they returned to India to find an environment conducive to hone skills acquired abroad, and ultimately dominate the culinary horizon.

While it is easy to set up shop internationally, it is difficult to sustain because the market is saturated with big brands and well-developed consumption preferences. Rahul Akerkar, bio-chemical engineer and current MD of deGustibus Hotels, and one time dilettante with a singular constant in his life - food, has moonlighted as a chef while working in the US, where he spent 13 years. Learning on the job, he made up his mind to become a full-time chef and finally returned to India to set up a restaurant. He admits candidly, "I didn't have the guts to set up a restaurant in New York so I came to Mumbai to do that."

While India afforded him the opportunity for success eventually, it was not easy. Facing red tape while setting up the stylish Indigo and Indigo Deli, he hop-scotched through cities while seriously contemplating immigration. In the US it took him three weeks to set up a restaurant; here, a year. Despite this, he claims that he is here to stay. "Parts of the West are dead, they've reached their destination and they aren't going any further. It's all in this part of the world now. We will run out of place but there will still be a lot of mouths to feed", he declares.

Echoing this sentiment is Yasser Ali, COO of Amore Gourmet Gelato. One time pre-med student and social worker, he bumped into his now business partner Nayyer Hussain while raising funds for his NGO. Both followed their passion to set up a gelato eatery with Costanzo Malatto, master gelatiere from Italy. Ali says, "I have put everything in line by moving back to India from Italy. But it was the right time to jump in. We were the first to open a gelato outlet and now two more gelato eateries have opened up after us." Considering that India is such a difficult market to break into, Ali believes that if they can succeed here, they can succeed anywhere in the world. He adds that out-of-the-box thinking and assimilation of the capitalistic culture from the West has helped him to focus while incorporating their discipline and work ethic.

One lament is however the deterioration of living conditions and inadequate infrastructure. Akerkar adds, "I don't see the quality of life improving so there is that frustration, but professionally what I can do and achieve here is very exciting right now. The sky is the limit here."

The second generation

Sons of the soil are returning home in the face of opportunity with an interesting twist today - their progeny is reversing the migration trend. Rohan Gopaldas, manager to the MD of Taj Hotels, is a second generation Indian who lived in Connecticut, NY all his life. A progeny of baby boomers who immigrated to the US in search of better opportunities, he works directly with Raymond Bickson, MD and CEO, Indian Hotels Company.

Graduating from Cornell Hotel School, he plunged into asset management with Starwood, handling renovations and later, divesting property. Assessing his future options, he chose India over China. This, he divulges, has worked out for him personally and professionally. Personally, because he was able to trace his roots, and professionally because of the exposure he stands to gain on the operations and hotel development level, something the West has outpaced itself in. Internationally, the marketplace is saturated; the templates for any business strategy have already been developed leaving no challenge or leeway to innovate for professionals.

He explains, "The industry in India is in its infancy and I have a long term plan. I think that the opportunity is going to be for a long time and in my position I can develop my career." The interest is not waning. Gopaldas receives at least two calls a month from former colleagues and friends, sussing out job opportunities in this market.

While the current prognosis of the sector's growth is positive, it is the dynamics of demand and supply that will dictate the return, if any. Following these footsteps, the pied piper of growth leads professionals out of the international rat race and straight onto the two-edged sword of immense growth potential in India pitted against survival due to poor infrastructure. But the trend is here to stay.