Luthra & Luthra has promoted two M&A and private equity lawyers – Damini Bhalla and Amit Shetye – to its partnership, as the firm has widened its executive committee and management outlined a strategic vision to ditch lower margin work and eschew big headcounts.
Bhalla initially practised in Luthra’s Mumbai office, then spent two years in Clifford Chance in London, before returning to Luthra in Delhi.
Shetye joined Luthra in 2007 from ICICI Bank in Mumbai.
Bhalla and Shetye both graduated in 2005, from Nalsar Hyderabad and ILS Pune respectively. Last year Luthra had promoted a total of six to partner.
The firm promoted eight lawyers to managing associate, and nine to senior associate level (see below).
Luthra also expanded its executive committee from three partners – managing partner Rajiv Luthra, senior partner Mohit Saraf, and Delhi project finance partner Sameen Vyas – to six, by adding Mumbai projects partner Vijaya Rao, Delhi corporate partner Samir Dudhoria, and Delhi regulatory partner Sundeep Dudeja.
Saraf said that Saturday (3 August) began with a “big town hall meeting”, with nearly all lawyers and support staff from all offices flying into Delhi. “Everybody got together, discussed directions of the firm, restructuring, and what we expect in the market.”
The promotions were announced later that day at an evening function held at the Sheraton hotel, at which several awards were also handed out to lawyers in the firm.
The intellectual property and IT team under partner Gayatri Roy won the team of the year, and Mumbai banking and finance partner Bikash Jhawar was given the ‘partners solitaire’ award – “the highest award we give to anybody” in the firm, said senior partner Mohit Saraf, for “the way he built the business, the way he built the team, the next level in client services, all those leadership qualities”.
Strategy
Earlier on Saturday Saraf said he had announced a radical realignment of the firm’s strategy after the firm had grown too large for the past few years, “spreading too thin” in terms of the work it did.
“Our profitability has taken a beating,” he admitted, adding: “We understand that in 2013 the level of things have to be far better if we want to be ahead of the curve. How do you transform this firm as a go-to-firm for all transaction matters in corporate law?”
The strategy going forward would neither focus on being the largest firm in headcounts nor offices – it currently has offices in Delhi, Mumbai and Bangalore – explained Saraf and Rajiv Luthra. Instead it would “do very niche transactional” work at high billing rates and not compete on price with rivals.
“The biggest pressure was that [other comparable-size firms] was dropping rates on anything, and we don’t want to stay in that market. That is not our market, not what we are known as,” noted Saraf. “Routine matters do not actually give you an opportunity of what value you can bring to the table.” Therefore, Luthra would get out of routine matters and “focus on very high-end transactional work”. [Clarification: Saraf has clarified that he intended to refer to pricing pressure across the industry, rather than just pricing pressure from one firm]
Rajiv Luthra commented that over the years the firm gradually started getting into bulk and lower-margin work. “Now we are trying to get out of that because it takes the same management time and rather than have a vision of a 1,000 lawyer firm […]. We felt, let’s focus on the 80/20 rule” – the principle that 20 per cent of clients in most organisations generate 80 per cent of revenues.
“[The idea is not] that we stop small work completely,” he clarified. “The idea is to do small work for big potential clients. But not do small work for small clients who have no potential. [To] focus on the 20 per cent, rather than the 80.”
[Detailed analysis of Luthra’s new strategy coming soon]
Legally India reported yesterday that one partner – Nivedita Tiwari - had joined smaller firm MNK Law Offices, and two others were due to leave the firm in the coming months.
J Sagar Associates (JSA) had promoted 18 into salaried partnership and two into equity, Amarchand Mangaldas had promoted 13 to partner in July, Trilegal none, Khaitan two into equity and five into salaried level, AZB a total of five.
New Luthra managing associates:
- Anshul Jain (regulatory)
- Kaushik Laik (capital markets)
- Khushi Mishra (insurance)
- Nirupam Lodha (intellectual property)
- Vaibhav Suri (real estate)
- Vishal Yaduvanshi (capital markets)
- Atul Ninawat (direct tax)
- Gunjan Mishra (indirect tax)
New senior associates:
- Sujatha Balachander (litigation)
- Garima Chauhan (tax)
- Manshoor Nazki (capital markets)
- Mayank Aggarwal (tax)
- Komal Mehta (capital markets)
- Priyanka Singh (project finance)
- Vivek Aggarwal (corporate compliance)
- Apoorve Vashistha (litigation)
- Vardhan Tulsian (litigation)
Comments
When there is such vast variety of positions available for lawyers (we're talking creme de la creme of the recruit-able fresh graduates/ PQE 1+ laterals, not some hapless, witless lawyers), can one truly afford to cling on to a tyrannous mentality of squeezing them for every ounce of their blood, sweat and time for profit margins without treating them fairly? The firms which embodied this model are all either extinct today, or rotting at the bottom of every conceivable ranking/ table or on their way there. It is this 'sweat-shop' image that firms leaping ahead have done everything imaginable to shun in favor of a more generous, affable and fair image.
A simple 6 point check-list to know when it is time for a serious shake-up for your firm.
1. When you hire projecting yourself to be BigLaw or expect work done like it's one or snatch away lawyers from other BigLaw claiming yourself to be one as well, but pay inferior to your competitors.
2. When you promise salary revisions in offer letters (maybe even two such upward revisions in a single year) but after the lawyer joins you renege, and on being asked about it you arrogantly dismiss it.
3. When, year on year, you dole out pittances as bonuses to lawyers with pomposity who by then realize that their back-bencher classmates working more comfortable hours for your competitors get higher packages.
4. When you insist on a host of other 'Nero-esque policies' designed to make your lawyers more miserable and unhappy.
5. When you have to counter attrition by clawing-back your juniors' hard earned money and making them struggle and 'pay' for an exit instead of making them feel more fond and attached to your firm.
As a consequence while your intake may comprise of lawyers other top firms would jump at the opportunity to hire, only a slim percentage of that intake will actually stick around for any substantial time. For the time that it does, it will probably be restless and under perform because you've sucked the life out of them.
Sun Tzu once said - Keep your soldiers well fed, rested and in good morale or perish. In battle, they are the ones who'll fight to win for you and live on, and let you live, to tell your tale.
[quote name="Have details?"]You speak of attrition at Luthra. How many lawyers have left recently? How many of them with less than 3 years at the firm? Has Luthra enforced this bond? I heard they have probably used this twice in all the years it has been. Learn to put things in perspective[/quote]
[quote name="Have details?"]You speak of attrition at Luthra. How many lawyers have left recently? How many of them with less than 3 years at the firm? Has Luthra enforced this bond? I heard they have probably used this twice in all the years it has been. Learn to put things in perspective[/quote][/quote]
Now one can't just up and quit, associates are locked-in for 3 years and have been told that "enforcing the bond" in itself is almost non-negotiable.
Khaitan picked up its strategy from its neighbours in Mumbai - Trilegal!! KCo has merely responded.
Haha, good one!
Haha, good one![/quote]
Yeah! They have. Its called cutting salary for obtuse reasons and holding bonuses for months at a stretch!!
Mohit seems to be suggesting undercutting generally in the market - which is a matter of fact and sad. Good move to acknowledge it and might augur well for the industry. Hope the peers have his resolve, and we could all be looking at better prospects.
As Rajiv would say - Wake up and smell the coffee, my friend! :)
Glad you clarified the nature of your statement in your choice of name :) Clearly pricing isn't an issue, coz it doesn't work either way for you. Match the quality, and you'll see the field open up for you as well.
Chappie, you're clearly out of your league here. I understand that the situation of the markets or perhaps the quality of your counsel may have affected whatever fledgling capital markets fraternity you belong to, but no point taking it out on the real big guns here. Don't think it behooves much explanation that the LL capital markets practice has always been, and continues to be expensive and sought after. The markets know it, the fraternity knows it, clients know it - tu bhi seekh le!
If you really wanna know whose undercutting, a trip to one of the DoD presentations for government deals would be a start, I say.....
Chappie, you're clearly out of your league here. I understand that the situation of the markets or perhaps the quality of your counsel may have affected whatever fledgling capital markets fraternity you belong to, but no point taking it out on the real big guns here. Don't think it behooves much explanation that the LL capital markets practice has always been, and continues to be expensive and sought after. The markets know it, the fraternity knows it, clients know it - tu bhi seekh le!
If you really wanna know whose undercutting, a trip to one of the DoD presentations for government deals would be a start, I say.....[/quote]
Being good and being humble about it is attractive to clients... being belligerent and arrogant about it.... turn off!!
This kind of arrogance is the reason why this Firm is suffering from a lack of work.. though they might seem to think or want to think otherwise....
If you're arrogant and you know it.. clap your hands.... WOW where did that noise come from?
To do what? How will they (especially Rajiv) contribute? Don't you know Rajiv Luthra is a law graduate from Agra University (of all places)!
To do what? How will they (especially Rajiv) contribute? Don't you know Rajiv Luthra is a law graduate from Agra University (of all places)![/quote]
And yet he set up a Tier 1 firm of 200 lawyers! Clearly your degree from (presumably) an ivy league hasn't taken you too far.
http://supremecourtofindia.nic.in/judges/judges.htm
I am from one of the N law schools, so I'm not making a case for myself. Just that summarily rejecting the competence of people who are not, is naive and arrogant.
As most other people, I know people from N schools who are lousy at their work, and people from non-N schools who are fantastic.
On Alias' point on choosing to be lean, there is absolutely nothing wrong with it, IF the firm is geared for it. Currently, I don't think it is, with far too much emphasis on the rainmaking abilities of a select few partners. As for admitting a problem with profitability, it seems pretty much standard these days, with every firm globally using this as a basis (justified or unjustified) to trim staff numbers.
Very interestingly, there are very few firms that seem to have thought laterally, and figured out different revenue raising models. While the LPO experiments seem to have not borne fruit, there are various other disruptive mechanisms that companies are happy to try out to obtain cost savings. Maybe a little actual thought leadership would help?
On Alias' point on choosing to be lean, there is absolutely nothing wrong with it, IF the firm is geared for it. Currently, I don't think it is, with far too much emphasis on the rainmaking abilities of a select few partners. As for admitting a problem with profitability, it seems pretty much standard these days, with every firm globally using this as a basis (justified or unjustified) to trim staff numbers.
Very interestingly, there are very few firms that seem to have thought laterally, and figured out different revenue raising models. While the LPO experiments seem to have not borne fruit, there are various other disruptive mechanisms that companies are happy to try out to obtain cost savings. Maybe a little actual thought leadership would help?[/quote]
Can't agree about Bharucha and Trilegal. Platinum, TTA, S&R and AMSS Mumbai, most certainly
I seriously hope that you are being sarcastic. What you said is the ACTUAL REALITY there.
how much did they pay you to write this? or is this the text of the resolution passed in the new exec committee???
The "leading" firms all get the bulk of their best domestic deals through ethnic ties, social connections and the power of monopoly. Rajiv can very well look at the landscape, decide on the right size for the firm, and scale back until better times return. It's a good call.
The folks in charge of day-to-day at the firm have lost the battle to be a workplace of choice, and so they are losing very desirable work to smaller outfits with better-trained and experienced associates who balk at old-fashioned naukri. They seem especially vulnerable to this trend.
Rajiv is probably better served by scaling back the law firm significantly and concentrating on government relations work that can sustain higher fees and a more flexible business model.
Frankly, this is just business. Anyone who is ranking the "top five" in a closed market lacks a basic understanding of how monopolies work. Rajiv's just re-calibrating his slice of a smaller pie. The market should appreciate his honesty (in this regard), which is distinctive in India.
[quote name="Wonderer"]Its Luthra's loss. Madhurima on a exec committee is better than madhurima in some other firm. Wonder why she would tolerate this insult. Capital markets is down globally. Not her fault. I am sure Mohit cant deal with her IQ and is just plain scared of giving her more say...[/quote]
She may not want to be on it as well!
Delhi, Mumbai, Bangalore and Hyderabad.
They seem to be going for a high risk - high reward strategy, given the competition and the limited options available otherwise. But at the same time, they ought to take into note that gone are the days when you could charge exorbitant rates in standard PE/ MnA transactions.
Just wait for the next articles on Trilegal or Khaitan...
http://www.legallyindia.com/index.php?option=com_jcomments&task=rss&object_id=3886&object_group=com_content&format=raw
Add to that practice heads who are more concerned with their OWN personal agendas and selfish goals rather than the growth of their respective practice groups or members in the same.
The attrition in L&L has been accelerating year on year...the management finally smelt the coffee and decided to call it 'strategy'.
The attrition in L&L has been accelerating year on year...the management finally smelt the coffee and decided to call it 'strategy'.[/quote]
Why have so many people left? They had quite the formidable IP team.
The attrition in L&L has been accelerating year on year...the management finally smelt the coffee and decided to call it 'strategy'.[/quote]
3 MA's from IP so far ;-)
http://articles.economictimes.indiatimes.com/2013-07-30/news/40895629_1_banking-licence-job-market-fresh-hiring
One of the most honest interviews given, by any senior partner in the recent past, and I am sure Mohit with his flair, aggression and brilliance will pull it off, again. He is clearly acknowledging that profitability has taken a hit and putting in place a course of action which will enable Luthra to see the storm off. Guys – if you recollect, just a decade ago, L&L was only know for projects related work and it was Mohit who had the vision to make L&L a full service firm and started mobilizing resources and now they are in the top league (i.e. - a decent alternative to the AMSSes and the AZBs – both for clients and lawyers alike). A firm which grows aggressively is bound to face consequences – and this is more of a consolidation period. I think by emphasizing on the focus on niche work and profitability he is intending to get rid of the deadwood in the firm and put the firm back on track.
One of the most honest interviews given, by any senior partner in the recent past, and I am sure Mohit with his flair, aggression and brilliance will pull it off, again. He is clearly acknowledging that profitability has taken a hit and putting in place a course of action which will enable Luthra to see the storm off. Guys – if you recollect, just a decade ago, L&L was only know for projects related work and it was Mohit who had the vision to make L&L a full service firm and started mobilizing resources and now they are in the top league (i.e. - a decent alternative to the AMSSes and the AZBs – both for clients and lawyers alike). A firm which grows aggressively is bound to face consequences – and this is more of a consolidation period. I think by emphasizing on the focus on niche work and profitability he is intending to get rid of the deadwood in the firm and put the firm back on track.[/quote]
Define "Deadwood"!!
[...] There is no doubt about [Mohit's brilliance]. His vision is dynamic. The only problem - He relies on people ... who have clouded visions driven by their own illusions of self proclaimed grandeur ...some even by their own demons of insecurity. If Mohit can look beyond those people and appreciate others independent of pre-painted biases, his vision will surely become reality... as it has been the case in the past when he used to think and act of his own accord.
There has been a ton of negativity professed by so many about this firm...if they can realize how their people feel about how things are running there.. and take positive cues from this... amend their "strategy"... this firm has enough brain power left to rise above other firms... provided they act now.. else the brain power (and rainmakers) will eventually leave and then all will be lost.
Holding on to hope and waiting for the sun to come out!
If you implied luthra downsized to rid the deadwood, you're mistaken. On good authority- mass exodus of Partners, PAs, SAs, JAs on unprecedented scale was voluntary n lack of heavy recruitment because of slow market n inability to find people unwilling to accept the ridiculous 3yr jail term.
Was profitability hit because of madhurima's practice. Is she on her way out? Kian, any interest to carry this story further? You also mentioned in the above article that a detailed analysis of luthra's strategy will follow. When is that coming?
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