'Hope other industrialists...': Ex-CEA K Subramanian lauds Zoho's Sridhar Vembu for focus on R&D

Former Chief Economic Advisor Krishnamurthy Subramanian on Monday praised Zoho Corp’s founder Sridhar Vembu for stepping down as CEO to focus on research and development. “Awesome and all the best @svembu,” Subramanian wrote on X. “I hope our other industrialists learn from you and focus on R&D. India, especially India Inc, needs it!”  

In an announcement that marks a leadership transition for the software giant, Vembu revealed his decision to take on the role of Chief Scientist. “A new chapter begins today,” Vembu wrote in his post. “Given the challenges and opportunities ahead, particularly with the rise of AI, I believe it’s best to dedicate myself fully to R&D initiatives while pursuing my rural development mission.”  

The company’s leadership has now been restructured. Co-founder Shailesh Kumar Davey has stepped into the role of CEO, while other leaders will oversee core divisions: Tony Thomas will lead U.S. operations, Rajesh Ganesan will manage the ManageEngine division, and Mani Vembu will head the Zoho.com division.  

Vembu, renowned for his commitment to sustainable growth, reiterated that research will be critical to Zoho’s future. “The future of our company entirely depends on how well we navigate the R&D challenge,” he said. “I’m excited to return to hands-on technical work.”  

Interestingly, Vembu's announcement comes just days after industry experts slammed the top IT forms for ignoring R&D. While the tech industry is celebrated for its global service capabilities, critics argue that it lacks significant investment in innovation. Mihir Vora, CIO of TRUST Mutual Fund, recently said, “Big disappointments have been our large IT companies. They generate immense cash flow but invest only small amounts in R&D. They remain risk-averse, content as service providers.”  

Vora, however, noted that Indian pharmaceutical firms take bigger risks by challenging multinational patents and investing in research for new molecules and drug delivery mechanisms. Vora's remarks came after Nilesh Jasani, founder of GenInnov Funds, pointed to China's advancements in generative AI. 

Jasani pointed out that Chinese firms have unveiled groundbreaking language models, offering comparable capabilities at a fraction of the cost of global competitors. He said that India’s generative AI landscape is “largely derivative” with little innovation to show. He also warned that without visionary leaders willing to invest in unknown frontiers, India’s reliance on imported technology will deepen, limiting its global competitiveness.