Lakshmikumaran closes London office as Brexit paralysis kills clients’ appetite for British ventures

Friday, 29 March 2019 By Legally India Law firms

Lakshmikumaran exits Britain bearing brunt of breakneck Brexit

Lakshmikumaran & Sridharan (LKS) is closing its three-year-old London office, after the UK’s negotiations to leave the European Union (EU) have proved more hairy than anyone could have anticipated.

An LKS source said that Brexit was primarily the cause in closing the office, blaming a “policy paralysis” currently afflicting the UK, which had reduced Indian companies’ appetites in investing in the UK.

LKS commented in a statement: “In the last 18 months, due to unforeseen conditions arising out Brexit, we have decided to discontinue the London operations.

“At the time when we started the London operations, these circumstances were unforeseen. We continue to assist our clients by providing legal advice relating to cross border transactions and issues.

“Our commitment to our clients remains strong and we shall assess future operations after conditions stabilise.

Ex-Jones Day India partner Sumesh Sawhney who was heading the London office has exited the partnership on 1 March; the LKS office due to close on 31 March 2019.

Sawhney is a 1992 Punjab University LLB graduate, who had been a partner at Amarchand Mangaldas and at Clifford Chance’s India group in London, before joining Jones Day in 2012.

In 2016 he had joined LKS, with a brief to build London into both an execution and business development office.

Sawhney did not respond to messages seeking comment since earlier this month.

London, sharing common law and historical ties to India, has naturally been an attractive destination for Indian law firms looking to expand abroad, though its high rents and competitive legal market don’t necessarily make that easy.

Comments

Ex-LKS 1 Apr 2019, 06:04

+4 -1

The truth is that LKS' London office was never able to generate enough revenues to sustain itself, more so a Magic Circle partners' salary was pinching the management sitting in Delhi. To add on to that, the partners appointed by Sumesh have not been very efficient in generating adequate revenues for themselves, let alone support the London office. BREXIT was a good opportunity for LKS to play the blame game.

Also ex-LKS -1 of many 1 Apr 2019, 06:37

+1 -0

This is true. Inside scoop being that LKS couldn't handle someone outside the family (who was not even given the equity partnership for that reason), was trying to run the show and couldn't handle it. Albeit the reasoning for not being able to handle it was the laughable hiring capabilities of the firm at senior levels (just do a trend of their recent hires, and you'll see) and their inability to pay as a firm and retain talents. A number of other exits are also on the way (probably delayed because of policy of only releasing bonus and promotions in June, so as to kill prospects of people moving to other firms).

Guest 1 Apr 2019, 06:49

Brexit has nothing to do with it. On the contrary Brexit will mean more opportunities for Indian professionals and businesses.

sammie 1 Apr 2019, 07:48

What happens to [...] Sumesh Sawhney ?

Ex-LKS 2 Apr 2019, 05:24

+0 -1

He is already out of the firm. He has earned enough to sustain himself and his family. I know him personally, his only intent was to leave the practice once his daughter completes her graduation and I guess this was it. I don't think we'll see him practicing any more.

Easy Excuse 2 Apr 2019, 04:29

+8 -2

What an easy excuse to cover up the management’s failure to build a robust corporate practice.

It continues to be an indirect tax litigation law firm with strong bias for Tamil culture and does not have in it what it takes to be a corporate law firm.

Ex-LKS 2 Apr 2019, 05:26

+3 -2

The first thing the [...] need to do in order to project themselves as a law firm is appoint a house keeping guy to do the dishes post lunch. Associates/Senior Associates/Partners standing in line to wash their dishes is some sight.

To Ex-LKS by Ex-LKS 2 Apr 2019, 08:34

+3 -1

Dude, this comment was unnecessary and inappropriate.
It is a matter of culture of a firm and reflects good habits. Many companies across the Globe encourage the practice of washing dishes by the users thereof. It is a sign of basic respect of human being irrespective of their level/title. The lunch room is a private area, not for clients. Its like home. Many senior partners at LKS would stay back at lunch table if they see any junior having lunch alone - just to give him/her company .

[quote]On a lighter note - Considering that you are an 'ex', how many law firms' lunch rooms do you visit to understand their worth before joining them?[/quote]

kianganz 2 Apr 2019, 08:47

+2 -0

I'd agree - lawyers washing their own dirty dishes can be quite a sensible policy.

Guy who replied to 4.1 2 Apr 2019, 08:39

+2 -2

Just close your eyes for 30 seconds and imagine the efforts required for 25+ years to build a practice of this size and credibility. Now ask yourself, who are you to judge or label them?

LKS explored and experimented with an idea and with a person. But the idea did not succeed or the person failed them.

At least they tried instead of posting comments on others on a website. Take this article as a news update and move forward, please don't waste your own time in analysing the probable causes without having experienced it.

Ex-LKS

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