Mumbai: General counsels (GCs) at some of India’s large businesses are taking on more strategic roles, often reporting directly to chairmen, promoters or the managing director and chief executive, and companies are going all out to retain top talent as the industry is seeing a high churn with rampant poaching amid an acute talent crunch, said industry insiders.
It comes at a time when the role of chief legal officer has attained greater significance than ever before amid increasing legal disputes, a stricter regulatory environment and increase in mergers and acquisitions, factors that have prompted large companies to strengthen their in-house legal teams.
“Legal and regulatory challenges have become increasingly complex and can significantly impact business operations,” said Sanjeev Gemawat, group general counsel at Essar Group. “As a result, promoters and boards are now actively engaging with general counsels to navigate these issues effectively.”
Top movements of legal professionals in the country in the past 12 months include Gemawat, who joined Essar from Vedanta Group; Tapan Pati, who joined Godrej & Boyce Manufacturing as group general counsel from Johnson & Johnson; Bhardwaj Pandya, group general counsel at Allcargo Logistics, who moved from Mondelez International; Ananya Sharma, group general counsel at JSW Group, who joined from AZB & Partners; Pooja Yadava, general counsel at Hero MotoCorp, who joined from Nayara Energy and Amitabh Lal Das, chief legal officer at Hyundai Motor India, who was earlier at Bajaj Auto.
“With rapid economic growth and rising governance expectations, general counsels will play a pivotal role as strategic advisors, aligning business objectives with national priorities and fostering compliance, innovation and institution-building to support India’s global leadership ambitions,” said Gemawat.
Naveen Raju, group general counsel and executive vice president at Mahindra Group, said increased regulation and the global nature of business operations have led to a much greater need for legal expertise. As a result, companies now recognise the importance of building strong in-house legal capabilities.
“The role of general counsels and chief legal officers has evolved to become more strategic, encompassing critical responsibilities such as risk assessment, corporate governance and crisis management,” said Raju, also a member of Mahindra’s Group executive board.
The growing importance of GCs can be ascertained from the ballooning legal spending of companies. Nifty 500 companies collectively spent ₹52,568 crore (about $6.26 billion) as legal expenses during 2023-24, up 17.03% from ₹44,920 crore in the previous year, according to data compiled by ETIG.
“This shift reflects the growing recognition of GCs as key advisors in governance, risk and business strategy. GCs understand their role is not limited to legal matters – they support the entire organisation,” said Karl Fernandes, senior partner and head of the corporate practice group at Vahura. “Their true value lies not just in their legal expertise but in applying it to the company’s broader objectives and challenges. This evolution underscores the need for legal leaders to be part of top-level decision-making, helping businesses navigate complex regulations while driving their goals.”
Companies are also offering attractive compensation to attract top talent. Salaries of legal heads at large groups range between ₹3-6 crore, according to search industry executives. “In the past, firms often relied on an external law firm for all their legal requirements. However, with the evolution of the legal market, practice areas have become hyper-specialised and legal talent is dispersed across numerous service providers. Organisations now see the need for an experienced GC to lead a capable in-house legal team and be accountable for safeguarding the firm’s legal interests,” said Raju.
Ami Parikh, general counsel, Asian Paints, said, “There is a clear focus on good governance, ESG and with rising shareholder as well as consumer activism, firms can no longer operate without robust risk mitigation mechanisms in place.”
