30 Asian Legal Business | December 2024 Cover Story in an emerging legal market that is forcing the top firms to recalibrate pricing and hiring strategies. Pricing became strategic based on practice area and client relationships. Lawyers found it tougher to compete in private equity, banking and finance, and domestic investment funds space as a large basket of smaller firms showed far more flexibility in terms of pricing. But top-tier capital markets practices continued to hold on to their rates, owing to the huge demand for work. In-house counsel found that smaller and niche firms could offer a more personalised and client-focused approach that they may not get at a larger firm. This was highlighted by Bengaluru’s emergence as a focal point of legal market expansion, driven by the city’s burgeoning tech ecosystem. Numerous law firms, ranging from established players to boutique practices, significantly invested in the city’s legal infrastructure, building new tech practice areas and doubling down on key groups such as private equity and real estate. Firms like Obhan & Associates, PLA Advocates, Antares Legal, and Wadia Ghandy & Co strategically launched Bengaluru offices, signalling the market’s immense potential and diversity. Technological innovation, particularly artificial intelligence, marked another significant trend in the Indian legal landscape. Law firms cautiously but progressively embraced AI-powered solutions to enhance operational efficiencies. Trilegal’s partnership with AI legal tech platform Lucio, and Nishith Desai Associates’ development of an in-house generative AI chatbot named NaiDA, represented pioneering efforts in this domain. However, the market maintained a measured approach, recognising the critical importance of human expertise alongside technological capabilities. Akshay Chudasama, managing partner of one of this year’s top-performing law firms, Shardul Amarchand Mangaldas & Co, says the use of technology and artificial intelligence is an important part of the firm’s practice and an eventuality that lawyers cannot hide from. “AI will not replace lawyers, but lawyers with the ability to utilise technology will replace lawyers without the ability to utilise it,” he explains. “We will be attracted to lawyers who understand and utilise technology to provide better solutions to clients.” Capital markets emerged as the standout practice area, riding the wave of robust initial public offerings and qualified institutional placements. CAM and SAM emerged as winners in terms of mandates, but a new stream of firms hopped on the capital markets bandwagon, aiming to capitalise on the buoyant market conditions. Dealmaking remained a critical revenue stream, with a notable emphasis on domestic transactions and emerging practice areas like alternative energy, healthcare, ESG, artificial intelligence, financial technology, and data privacy. In the near future, “investigations will see a tremendous amount of work,” Chudasama adds, saying the firm is strategically looking to build its already established white-collar practice. Significantly, antitrust was a practice where firms recalibrated their approach. As enforcement matters dried up – a trend that has persisted over two years now – firms began bulking up their merger control offerings, which has become the bread and butter for antitrust lawyers. For JSA, the antitrust practice has become a key strategic asset, enhancing its robust M&A services. Amit Kapur, JSA’s joint managing partner, notes that India’s economic growth and market consolidation have led to more merger filings and increased antitrust activity. He anticipates further growth in this area, driven by new merger control guidelines and significant changes in enforcement policies. Kapur also points out that insolvency-related M&A, and sustainability-linked finance structures are two other areas of growth the firm has identified for the future. The potential entry of international law firms into the Indian market added another layer of complexity and anticipation. While the initial announcement suggested increased competition and expanded options for international clients, the implementation remained somewhat nebulous, with the Bar Council of India yet to formalise specific guidelines. Baker McKenzie, which has one of the largest and oldest international India practices, is extremely keen on getting feet on the ground once regulations allow, says the new chair of their India group Mini Menon vandePol. The firm sees particularly significant potential in outbound India work and aims to use its capabilities across Asia, Africa, the Middle East, Europe and the U.S. to partner with Indian clients on their overseas investments and expansion. (ND) Indonesia: Cutting edge Indonesia’s legal market is undergoing a transformative evolution, driven by the country’s remarkable economic potential and increasing global significance. Projected to become the world’s fourth-largest economy by 2045, Indonesia is attracting unprecedented international investment, with a robust GDP expected to reach $4.5 trillion (PPP) this year. This economic dynamism continued to reshape the legal landscape in 2024, creating a complex ecosystem of international participants, technological innovation, talent wars, and competitive repositioning. Several international law firms entered the Indonesian market this year and expanded their local offerings. UK-based Withers associated with Karna Partnership, Japanese TMI Associates deepened its regional presence, and Allen & Gledhill launched AGI Legal. “Indonesia’s robust economic growth and its position as a gateway to Southeast Asia have drawn significant interest from foreign law firms,” say managing partner Alldo Fellix Januardy and partner Melly Afrissyah at AVYA Law Firm.
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