IndiaConnected

Dutchman makes mark on Indian five-star hotel

 

How do you manage a thousand Indians? "Communicate openly and honestly, but also be strict," says Michel Koopman (55), who has been general manager of the super deluxe Leela Hotel in Gurgaon for two years.

The Leela in Gurgaon (Photo: The Leela)

The Leela in Gurgaon (Photo: The Leela)

 

Michel Koopman is a real hotel man. Since his first job as an errand boy in the Amsterdam Hilton, he has climbed up the hierarchy of five-star hotels all over the world. In recent years, he has managed the Grand Hyatt in Melbourne, the Hyatt Regency in Osaka and the Intercontinental in Shanghai, among others.

For two years, he has been running the Leela Hotel in Gurgaon, just outside the Indian capital New Delhi. He likes that very much. Koopman: "It's nice to work with Indians. The fact that they speak English of course helps enormously. It's quite a difference with China. If you make a joke there, they don't understand you. With Indians, you can laugh.

The culture is very different from that in China, Koopman notes. "China is a dictatorship; there, everything revolves around cooperation. I call it a we-culture. India, on the other hand, has an 'I' culture. Indians always ask themselves 'What's in it for me? They want to be treated with respect."

Moreover, Indians all have a clear opinion, Koopman states. "If you ask twenty Indians what a good Biryani is, you will get twenty different answers. The trick is to get everyone on board the same train." The key to this is good communication. "I communicate very openly and honestly, but I am also strict. We work in a clear format to achieve our goal: this hotel has to continuously improve."

Michel Koopman, General Manager, The Leela in Gurgaon (Photo: Leela)

Michel Koopman, General Manager, The Leela in Gurgaon (Photo: Leela)

Although the Leela Group is an Indian chain, Koopman tries to leave his mark on the culture. "My office is very accessible, anyone can walk in here. They are not used to that. I also have breakfast with a changing group of employees every month, I play in the Leela football team and take part in all kinds of sports tournaments with the staff." Still, hierarchy is important, Koopman acknowledges. "Indians have respect for older people, so it helps that I already have some grey hair."

The level of service in Indian five-star hotels is insanely high. Leela's motto is Atithi Devo Bhav which means 'The guest is god'. "Our Indian guests at home only have to snap their fingers or a servant will be standing in front of them. It sounds bizarre, but in our hotel they have relatively fewer staff than at home. That means they are very demanding in our hotel. That takes a lot out of my people." The difference with Leela's international guests is huge. "Foreign guests experience our hotel as a wonderful, luxurious bubble, away from the hustle and bustle outside our walls."

Koopmans notices the increasing prosperity in India by the increase of Indian guests. "Two years ago, 30% of Leela's guests were from India, now it is 60%. We see enormous growth in the demand for wedding and event venues and spas." The hotel industry is highly profitable. "We are running a turnover of 200 crores (over EUR 27 million) with a profit margin of 50%."

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Doing business in India: now or never

India is known as a difficult country for foreign companies, but under the country's new prime minister the investment climate is improving rapidly. This offers Dutch entrepreneurs enormous opportunities.

The presentation of the Indian budget for 2015/2016, the first of the Modi government, was a breath of fresh air. From the home of my parents-in-law in Trivandrum, South India, I watched on television how Indian Finance Minister Arun Jaitley presented one measure after another that will make doing business in India much more attractive and easier.

On the one hand, there are the hard measures: corporation tax is being cut to 25%, all sorts of import duties are being scaled back and the Reserve Bank of India is being given the formal task of keeping inflation within limits (maximum 6%). On the other hand, there are the soft measures: there will be a one-stop shop for foreign companies to go to if they want to set up an Indian limited company, visa policy will be eased and the tax system will be greatly simplified.

Modi is not only working on the preconditions, his cabinet is also making huge investments in the country in the coming years. More than 11 billion dollars will be invested in improving the country's infrastructure. This money will be spent, among other things, on the construction of 100 thousand kilometres of motorway, the construction and expansion of ports and the improvement of the railway network. Delhi is also investing in social facilities, such as the construction of millions of public toilets.

Recent developments in India offer Dutch companies enormous opportunities. Some Dutch SMEs, such as Syntech International and Fresh Food Technology, are already benefiting from them, but many Dutch companies are still ignoring the country because of the outdated notion that doing business in India is too difficult. Now that Prime Minister Modi is thoroughly improving India's investment climate, it is time to wake up and change that negative image. For entrepreneurs who want to conquer the world's largest growth market, it is now or never.

Bart Hergaarden is partner of IndiaConnected.
Respond bart@indiaconnected.nl or @barthergaarden