Some of the exits were a reflection of slow growth
Dear Balbir Singh Sooch,
During unprecedented events, churn and tumult are inevitable for businesses. Our edition today captures this profoundly. Ride-hailing giant Ola is jolted by top-level exits, agile fashion startups gain an edge over old-fashion brands, while the high valuations of the Motherson group appear unjustifiable, given the demand outlook.
TECHNOLOGY + STARTUPS
A series of short rides for Ola CXOs
Arun Srinivas is the third COO to quit in two years. While Ola has had a high degree of churn at the top, the pandemic has further exacerbated that problem. It highlights Ola’s instability at the senior-leadership level and the characteristically short stints of corporate veterans whom CEO Bhavish Aggarwal ropes in for senior positions. Some of the exits were a reflection of slow growth in key projects such as overseas expansion and a fallout of its fast scaling that led to faster retreats.
CONSUMER
Agile fashion startups score over big brands
Consumers who preferred shopping offline are reconsidering their action in the post-pandemic world. While old-school fashion brands continue to rely on store-based retailing, the stores remain empty. Whereas smaller players, with their agile business models and effective online presence, have a better chance at surviving the crisis.
MONEY + MARKETS
Inside Motherson Sumi’s restructuring
The board of Motherson Sumi Systems, a global auto-ancillary player, has approved a reorganisation plan that the management believes will have three benefits — simplification of group structure; alignment of interests of all shareholders; and creation of a strong platform for growth. But it appears good for the promoters at the expense of the minority shareholders.
Regards,
ET Prime Team