Women in CFO roles are increasingly becoming influential figures, shattering barriers, and making noteworthy contributions to the corporate realm. Their impact is transforming the financial landscape, challenging stereotypes, and promoting diversity within Boardrooms. Smita Nanda serves as a prime example, embodying the capabilities of women in Financial Leadership.

With a distinguished career spanning almost three decades, Smita has navigated intricate financial landscapes, displaying remarkable resilience and strategic prowess. Her journey mirrors the changing role of women in finance, surpassing conventional norms. Smita's dedication to excellence, fearlessness in decision-making, and proficiency in financial restructuring have not only rescued companies from distress but have also established new standards for success.

In an exclusive conversation with Women Entrepreneur of India magazine, Smita shares the influential details of her journey as one of the pioneering leaders in the country. Let's hear it from her.

Could you elaborate on your financial expertise and share insights into your previous industry experience?

My professional journey of almost three decades has been challenging and creative. Having Experience in Finance, Accounts & Taxation, Fund Management, and Corporate Compliances, have gained exposure in business structuring/restructuring, project planning through joint venture and joint development, merger and acquisition, and amalgamation. As well as successfully raised debt/project funding, structured funding, stressed asset funding, listing of Non-Convertible Debentures (NCDs), Issuance of warrants, conversion into equities & listing in stock exchanges, funding through Foreign Portfolio Investment (FPI), and successfully raised funds through Qualified Institutional Buyers (QIB) and more from industries like Information Technology (IT), Manufacturing Industry, Entertainment, to Real Estate Sector and now in Hospitality Industry. During my professional tenure, I have experienced an opportunity in calamity, which boosted my confidence, capability, and creativity immensely.

With working on specific financial projects as mentioned above, I've realized the pivotal role of information technology in both scaling and escalating businesses. Going beyond my core competency, and with the support of an IT platform I have not only implemented the project successfully in record time but also resulted in cost savings. This motivated me to pursue various courses in ERP and SAP software, in financial, taxation & accounting as well as corporate compliance sector by collaborating with industry giants such as Big Four. This software played a crucial role in achieving substantial professional growth and overcoming obstacles.

In my professional career, I've built a substantial network of professional friends and they acted as one of my strong support systems in achieving my goals.

Please provide an overview of Kamat Hotels and delve into the specific responsibilities you hold as the Chief Financial Officer of the company.

Established in 1986, Kamat Hotels (India), or KHIL as we lovingly call, it is one of the companies of Kamats Group that has experience over 80 years in the Hospitality business. KHIL is into many hospitality ventures other than hotels, such as resorts, heritage hotels, and more. KHIL is also into Hotel Consultancy, setups, and other such related activities. This Group is headed by Dr. Vithal Venkatesh Kamat, Founder, Promoter, Executive Chairman, Managing Director (ECMD) & Chief Mentor of the Company, has been spearheading the growth of Kamat Group. The next generation, Vishal Kamat, Promoter & Executive Director, who work under his guidance and heading the Operations and Growth of the group.

The most globally recognized brand is THE ORCHID, an Ecotel Hotel, Asia’s first chain of a 5-star, environmentsensitive hotel that has won over 95 National & International awards. The Orchid is in Mumbai, Pune, and many more locations.

In my role as CFO, I shoulder responsibilities encompassing navigating financial intricacies, formulating strategies, and ensuring financial wellbeing. These measures helped the company transition from adversity to triumph. This is one of the most significant accomplishments for me, where the company and promoters provided me the opportunities to prove my expertise.

In your current role, what challenges do you find most prominent, and how do you navigate and overcome these obstacles?

I joined, the company seven years back when the Company was facing various challenges in cash flow to Non-Performing Asset (NPA) with loan/debt book, approx some of thousand+ crores, (including principal, interest, and penal interest), and was labeled a Stressed Asset by various Asset Reconstruction Companies, Financial Institutions, and bankers. During this period of struggle our Promoter ECMD & Executive Director were mentoring and building trust and confidence within operational teams & implementing cost-effective measures in operations, these measures helped the growth of operations.

In this stressed period, they entrusted me with the responsibility of robust implementation of financial discipline and complete financial restructuring. Accepting this impossible task including the period of the Covid-19 pandemic, when the Hospitality Sector was one of the most affected industries required a unique approach. This Pandemic lasted nearly 24 months with three waves, and the hospitality business was the first to crumble and the last to recover. Seeing the challenge as an opportunity, we initiated proposals with our Asset Restructuring Companies (ARCs) & Bankers, with transparent communication, this helped us extremely well.

Promoter & Board of Directors, granted me the autonomy to implement necessary changes as may be required to restructure the entire debt and to take out the Company from the tag of stressed asset.

Building trust with in house team of the company & external stakeholders e.g. lenders, vendors, and more, was crucial and demanded patience and reassurance. Leveraging the expertise of our consultants, we designed a meticulous plan as a team. The journey involved rebuilding trust with existing stakeholders, settling existing debts, and bringing in new investors and lenders. The outcome of this whole exercise was remarkable and helped to turn around the Company as well as the group with a significant reduction in the loan/debt book (current loan/debt amounting only some of hundred plus crores at group level)and with an impressive EBITDA (Earnings Before Interest, Tax, and Depreciation). This success features the power of perseverance, strategic collaboration, and transparent leadership.

Reflecting on your professional journey, could you share a notable milestone that stands out as particularly significant?

As mentioned earlier, a significant turning point in my professional journey occurred when I assumed the role of CFO at Kamat Hotels (India) or KHIL, amid challenging circumstances. After, being classified as a Non-Performing Asset (NPA), stress in ongoing cash flow, and labeled as stressed assets, we implemented robust financial discipline, honest & transparent communications with lenders plus, regular repayment of debt on a y-o-y basis with the available cash flow, which helped us to gain confidence & trust in lenders as well as other stakeholders, and after surpassing the COVID-19 phase successfully, with the help of our strategic financial restructuring, we navigated away from the brink of the National Company Law Tribunal (NCLT).

The most fulfilling achievement lies in the remarkable growth and turnaround story. In the past seven to eight months, again the substantial repayment of debt & reduction in loan book, adding a new brand i.e. “IRA by Orchid Hotels”, and adding eight (8) new properties, renovating some of our existing properties. Which helped us add 400+ rooms. This resulted not only in growth in revenue and profit but also in M-Cap, Equity & Enterprise value. These measures established, that our restructuring strategy worked very well and re-gained & rebuilt the confidence and trust within our new lenders, stakeholders, investors/shareholders, bankers, clients, and more. I'd also like to highlight that, across all our properties, we have implemented various cloud-based software, and this software integrated between operations & finance. This techno-savvy move has significantly reduced our operational costs, accuracy in data information, marking for future growth, cost control, and enhanced efficiency in serving our clients/guests.

From your perspective, how is the representation of women in the finance industry, and what measures can be taken to encourage more women to pursue careers in finance?

In my view, the representation of women in the finance industry is undergoing positive changes, yet there remains room for improvement. The notable figures like Finance Minister Nirmala Sitharaman breaking barriers, this sector continues to be predominantly male-dominated. However, I firmly assert that success in finance should not confined by gender. Women possess the capability to excel in any domain, and inherent limitations not be presumed.

Encouraging greater female participation in finance necessitates cultivating a culture of equality, establishing mentorship programs, and highlighting the achievements of successful women in leadership roles. The key lies in empowering women, boosting confidence, and promoting the belief that they can excel in any field, including finance.

A business leader you admire - There are many women business leaders, and I extend my appreciation to them eg. Indira Nooyi Ex-CEO of PEPSICO, Sonia Syngal President and CEO of GAP, but for me, a true leader and mentor is my, MOTHER, who taught me, work with humbleness and pursue your dream with hard work & honesty.

Advice for aspiring women entrepreneurs and business leaders - Embrace hard work, and pursue your ambitions, dreams wishes fearlessly and without compromise. Dedicate yourself with honesty, and humbleness & balancing time between family and profession, as a fulfilling personal life can bolster professional growth. Fearlessly pursue every endeavor, follow your heart's guidance, and never sacrifice your dreams or aspirations.

Smita Nanda, Chief Financial Officer, Kamat Hotels (India)

Smita Nanda is a highly accomplished finance professional who currently holds the position of Chief Financial Officer (CFO) at Kamat Hotels (India). Smita boasts a strong educational background, having earned an ACA (Financial Planning, Taxation Accounting and Services) from The Institute of Chartered Accountants of India and an ACS (Banking, Corporate, Finance, and Securities Law) from The Institute of Company Secretaries of India. Her professional journey (almost 3 decades) spans diverse industries, ranging from IT, Real Estate, Entertainment to Hospitality, where she has gained extensive expertise in financial planning, company secretarial functions, strategic financial management, mergers & acquisitions, structured project funding, QIB, and IPO.