Shyam Patro - 10 Best Leaders from Finance in India 2024

Strategic Innovation and Ethical Leadership

Shyam Mohan Patro

Group CFO

ZIM Laboratories

Driving sustainable growth through ethical and innovative financial strategies defines the career of Shyam Mohan Patro. With over 25 years of experience across global and domestic markets, Shyam has reshaped financial operations in diverse sectors, including pharmaceuticals, engineering, and nutraceuticals. His ability to navigate complex regulatory environments while aligning financial strategies with long-term business objectives has made him a distinguished leader. As the Group CFO of ZIM Laboratories, Shyam’s academic credentials—an MSc in Applied Mathematics from NIT Rourkela, Cost Accountant, EPBM from IIM Calcutta, and Company Secretary accreditation—fuel his leadership. He has successfully designed finance functions for greenfield projects, implemented SAP systems, and driven cost optimisation and investment appraisals that have propelled companies toward growth. Shyam’s leadership fosters collaboration, accountability, and innovation. He ensures decisions are made with a holistic view of the business, driving ethical and impactful outcomes in high-stakes investments, compliance, and EBITDA strategies. A visionary finance strategist, qualified independent director, and transformative leader, Shyam continues to inspire the next generation of leaders through his commitment to ethical leadership, strategic insight, and operational excellence. He discusses his journey and more with TradeFlock in this interview.

Take risks and embrace continuous learning. Millennials and Gen Z professionals are naturally inclined to take risks and aren’t afraid of failure. Give them the freedom to innovate and grow.

What challenges arose while building the finance department, and how did you tackle them?

The main challenge is mindset. I approach this with two perspectives: what I would do if I were the owner of the company and what I would expect if I were the customer. Unfortunately, the required skill sets often don’t align perfectly with available talent. A 40-50% skill match is common, so developing the team becomes critical. One major issue is reluctance to adapt to new organisational policies or industry norms. To address this, I focus on instilling the company’s vision from day one. Clear structures, SOPs, and guidelines provide a foundation while offering employees freedom and encouraging risk-taking, increasing their capabilities. Freedom fosters ownership, and that’s key to building a successful department.

After 25 years in finance, what are your key learnings, and how do you apply them?

The core of business success lies in managing mindsets. Aligning diverse individuals with different aspirations and experiences toward a shared vision is crucial. While challenging, achieving this solves 80% of organisational issues. Leadership also involves nurturing new mindsets. I provide broad guidelines and a clear vision, coupled with the freedom to make mistakes. Mistakes are the learning opportunities, but there must be limits to avoid harming the company. Balancing freedom with accountability has been a cornerstone of my approach.

If you were in a regulatory body, what changes would you make to improve the industry?

While several positive changes are already in place, bridging the gap between business understanding and regulatory frameworks remains essential. For instance, in the pharmaceutical sector, APIs (Active Pharmaceutical Ingredients) need more regulatory and government support to grow. Incentivising eco-friendly practices like zero discharge and ETP (effluent treatment plants) can encourage sustainable growth. Regulations should support businesses while maintaining stringent compliance to create a thriving ecosystem. It’s a two-way street.

How will digital finance and regulatory reforms shape India's financial future?

Positive changes are evident, particularly with reduced ambiguity. Earlier, businesses had to navigate through various indirect tax regimes, e.g., excise, service tax, CST, and VAT, separately. Today, GST has simplified this process, of course reducing bureaucracy. Income tax reforms have also improved, offering clearer roadmaps and automation, which in a way minimise litigation and reduce face-to-face interactions. Businesses must embrace these advancements to stay competitive. Thanks to digital innovations, compliance is now smoother, making it easier for organisations to operate efficiently and effectively.

What principles guide your decisions on high-stakes matters?

Decisions must always consider the business as a whole. I segmentize the investment proposals into three buckets: business growth, compliance, and having on routine operations. Ethical and sustainable practices are nonnegotiable. A decision should never be shortsighted or unethical; it must prioritise long-term growth and sustained earnings. After all, we’re running a business, not a charitable organisation.

What innovations in your sector excite you the most?

In the pharmaceutical sector, molecular development stands out. The industry has moved beyond traditional formulations to explore gene therapy and biological innovations, which hold great promise for mankind. However, these advancements require substantial investments. Such innovations redefine healthcare, and it’s exciting to see how science is continually evolving to meet humanity’s needs.

What drives your success as a group CFO?

Compliance is critical; any violation poses significant risks to the company. Establishing a zero-tolerance approach to non-compliance while aligning growth strategies ensures stability and progress. As a CFO, my decisions affect not just the organisation’s profitability but the lives of employees who are working with the company with dedication and zeal and their families. This responsibility requires me to weigh every choice judiciously and anticipate its far-reaching impact.

How will your role as an IICA-qualified independent director evolve?

My diverse experience across finance, compliance, and market dynamics allows me to contribute significantly to the board structures. Boards often comprise members with varied backgrounds, such as promoters and independent directors. My role will be to harmonise these perspectives and guide decisions that will benefit the organisation. A holistic approach to business issues is essential. Independent directors must bring a balanced view, fostering governance that supports sustainable growth while addressing broader industry challenges.