Bar & Bench also spoke to Rajesh Begur (pictured), Managing Partner, ARA LAW on his vision and plans

ARA LAW

Before founding ARA LAW, I was associated with Amarchand Mangaldas. When ARA LAW was set up, we decided to do an acronym of the names of the partners who co-founded ARA LAW. The two As in ARA LAW are no longer with the firm. When we started ARA LAW the growth prospects with then existing firms were very unclear but at the same time we realized that there was a dearth of quality law firms providing timely and cost effective advice to their clients. In 1996 cross border legal advice was the prerogative of a few firms based in Mumbai and Delhi and we were quite sure that there was a big vacuum in this space. These presented numerous opportunities for ARA LAW to capitalize on them and build our niche practice. As in the past, we continue to ensure that every matter gets the Partner’s time and attention, strive to provide practical and commercially workable solution, timely and cost effective advice.

Recession Year and Rebound?

From the firm’s perspective, last year was a good year. As a matter of fact last year was one of the best years since our formation in 1996. Every year has been better than the previous.

There are several factors that have helped us adapt to the changes, such as: our continued focus on core practice areas that has helped us create a niche for ourselves; dedicated team for the practice areas that has over the years built a strong legal and commercial acumen; our in-house research based approach to law and our thrust on continuous legal education in the form of knowledge management and encouragement to the team members to participate in specialized programs / workshops to enhance their skill set. In this regard we not only have in-house training sessions for the team but also invite external professionals to update the team on specific areas.

As regards the current state of affairs, although I have been hearing reports that the 2007 levels have come back and that the markets will cross the 2007 levels, I doubt it very much. There was a certain level of irrationality in 2007. I feel the markets have definitely bounced back, but ‘caution’ is still the word out in the market. Activities and deal flows have definitely increased across practice areas.

About the firm and structure of the Firm

It’s been 15 years since ARA LAW was set up. Currently, with the addition of Ashish we are a three-partner firm with Darshan Upadhyay, focusing on Private Equity. We are one of the very few law firms in India  which have the experience and strength to provide advice on both, the establishment of funds; and to assist them on their investments.

Anooshree C. Sinha, who was our other Partner, has taken a sabbatical and she is currently pursuing her higher studies in the US and may return to India in couple of years.

We have our offices primarily in Mumbai and have a small set-up based out of Bangalore. At this stage we are seriously considering ramping up our presence in Bangalore. Once we have our Bangalore office strengthened to a desired level, we are also looking at establishing a presence in Hyderabad.

We have a total strength of 18 lawyers. We are scouting for the right talent and ‘DNA’ to be a part of Team ARA and are working with several professional agencies in this regard.

Compensation Structure rejig to attract talent

ARA LAW has decided to take proactive initiatives to rejig the compensation structure which promotes transparency and encourages personal growth of high performing individuals. This is aimed at giving an opportunity for young talent to develop and be mentored towards achieving their life goals, whilst maximising commitment and service quality to the industry and the fraternity alike. We are sure this would lead to recognition and attract talent in areas where ARA LAW provides legal advisory services, with a difference comparable to international standards. We are ready to invest in our people and put them at par within the industry standards.

ARA is a boutique law firm?

We have in the last decade focused our energies on developing identified practice areas and are now in the process of specializing in it with a Partner heading each vertical (for e.g. Private Equity) and similarly ensure each team member builds competency in at least one practice area. ARA LAW is a corporate and commercial practice law firm and to that extent you could call us a boutique law firm. 

Having said that, we have been known for our M&A, Private Equity, Capital Markets and Real Estate practice. In the Capital Markets space, our structured products and mutual funds practice is one of the largest in the country and we believe the firm does substantial work in the mutual funds space. Our capital markets business has been driven by non-IPO led transactions including mutual funds, structured products practice and derivatives. We have also built our strength and capacity in the wealth management practice, which is growing steadily. We now also aim to focus on IPO transactions so as to be a strong contender within the IPO space.

2011 growth plan

Our focus is to be one of the best in a small segment of practice areas instead of being one of the many full service law firms. Our desire is to be recognized as the best law firm in each of our core practice areas and be benchmarked for quality and expertise.

We wish to have a pan India presence and during the year aim to strengthen our operations in Bangalore and establish a presence in Hyderabad. Once we can consolidate our operations at these locations we could probably look forward to having a presence in New Delhi.

The induction of Ashish has come as a boost to our Infrastructure practice. We are also looking to provide a fillip to our Real Estate practice.

As regards recruitments, most law firms are now recruiting well in advance of the completion of the academic session. We have been periodically recruiting and this year we have graduates from the Jodhpur law school (NLU, Jodhpur) and other law schools. Our current strategy for 2010-11 is to look at mid-level to senior level candidates who bring in expertise and can build teams.

Foreign Law Firms

Foreign law firms and their entry has been a topic for discussion for more than a decade. Everyone seems to have an opinion and predicts that the foreign law firms will be allowed to practice in India in the next two/three years, no matter how they express themselves.

To my mind, the competition from foreign law firms is already here in some or the other form for e.g. public offerings and involvement of foreign law firms, recruitments and demand for Indian lawyers, tie-up and best friend relationships with some of the Indian law firms, etc.

There is clearly a scope for partnering with foreign law firms in times to come. Such partnering could have several advantages, such as, know-how and processes, training, ability to work on multiple jurisdictions (like when Indian companies look at outbound investments), etc.

Of course there also several concerns surrounding the subject, but once you have talked these issues through and have a regulatory framework, the road ahead could be much clearer. Other than the regulatory framework, I believe that our legal education system will require an urgent overhaul in terms of curriculum and training of the lawyers, so as to prepare them for times ahead.

Our Hon’ble Union Law Minister Mr. Veerappa Moily, recently indicated that an "era of judicial reforms" is needed for providing affordable and quality justice, reducing pendency of cases, computerization and other issues requiring administrative reforms.

The entry of foreign firms may be permitted in a regulated manner provided it offers a level playing field to Indian lawyers and allows the domestic market to adjust with the changing scenario. Having said that, it would help to have a decision on this sooner than later to alleviate the uncertainty and possibly more litigation on the subject.

CSR Activities

The firm believes each one of us has a moral duty and responsibility towards the society. There are various ways in which one can contribute towards its well being and growth depending upon each one's desire and ability. As a firm we have been involved in quite a few initiatives which include regular support to foundations such as TARA, Pratham and others that provide education and related support to less privileged children.