BUSINESS OPPORTUNITY

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BUSINESS OPPORTUNITY

• By
• Entry India, LLC
• www.entryindia.com

Russia
USA
China
Australia
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Agenda

• India and its people
• Opportunity identification and making money
• Real world examples
• Factors for success
• Showcasing of real-world projects in Entrepreneur
  booklet
• Note
• Topics not covered US side of the business
  (Exporting, Financing, Customs, etc.)

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Target Audience

• Small Medium Enterprises (SMEs) and Start-ups
  with products and services to sell in India
• Entrepreneurs to create or innovate unique
  solutions for the Indian market
• Non-Resident Indians (NRIs) who want to establish
  a revenue-generating business for their families
  in India

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What comes to the mind when we hear the word
INDIA?

• Outsourcing
• Population
• I dont know where India is on the world map
• Mahatma Gandhi
• Corruption
• Bollywood
• Slumdog Millionaire
• Young population with so many wants
• Everything seems to sell in India
• Risk taking entrepreneurial spirit
• Are people really making money there and how I
  can?
• Where do I start???

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India Statistics

• 7th largest country in the world
• Population 1.156 billion (July 2010 est.)
• Worlds 4th largest economy GDP 1.236 trillion
  or 3.57 trillion (PPP)
• Capital is New Delhi and Financial Center is
  Mumbai
• Largest English speaking nation in the world
• Over 200 languages are spoken
• Density 389 persons per square km as compared to
  31 persons per square km in USA

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India Rising Indicators

• GDP Growth
• 6.8 in 2009 and expected 8.5 in 2010-11
• US-India Trade
• Export to India (2008) 32.44 billion, a 85 up
  from 2007
• Import from India (2008) 39.89 billion, a 65
  up from 2007
• Population divide
• 52 less than 25 years of age
• Middle Class 300 million
• One-third households got a raise of over 20 in
  last 12 months
• Only 2 of Indians have life or health insurance
• Urbanization
• Currently 29 of population is living in cities
  and this will increase to 590 million by 2030
• Per Capita Income
• grew by 10.5 to 985 (2009-10) from 892 (2008
  09)
• Working Population
• 180 million new job seekers will enter working
  age by 2020
• Cities will account for 70 of the new jobs
  created
• College Graduated Workforce Currently 14 million
• 500 universities and 25,000 colleges

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About Indians People do Business with People

• Compete work hard and win
• Make more money, buy branded clothes, big cars,
  big houses
• News must know what is happening (necessarily
  complete or accurate)
• Go to school, get a degree and a high paying job
• Save and own a home
• Negotiate a price and get discounts
• Secretive about what they know
• Relationship building
• Senior to be called Sir or use Mr. as prefix to
  their last name
• Talking, Food, Cricket, Politics
• Family and sacrificing for their kids
• Family run businesses
• Show-off (regional)
• Believe in astrology
• Sensitive to religion wont do business or
  accept a check during certain time of the year
• Advertisement Tag line Brand that Americans
  Love

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What Indians think About America/Americans..?

• World leader
• Wants to control
• Clean, pollution free
• Innovators and leaders
• Abundance
• Superior Education
• Excellent law-enforcement
• Angelina Jolie
• Too much process oriented
• Dying consumerism
• Cheap real estate
• America on Sale
• Who is buying in America?

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Budding Areas of Opportunities

• The following is a small sample-set of areas with
  opportunities to make money
• Food Beverages
• roof-top farming, food processing technologies,
  food packaging technologies, water treatment
  plants for drinking water
• Home based
• Home décor products, kitchenware, bed and bath,
  etc.
• Healthcare
• setup hospitals, medical clinics, drug
  development industry
• Medical devices/equipments, scanning and testing
  labs, etc.
• Development of disease specific herbal products
  following FDA guidelines
• Education
• degree colleges (medical/nursing), vocational
  institutes
• Programs to train teachers, automotive mechanics,
  medical technicians, etc.
• Courses in upcoming fields of genetics,
  nanotechnologies, etc.
• Infrastructure
• waste management, solar and wind technologies,
  temperature controlled warehouses, air and noise
  pollution control technologies
• Towing trucks, automated parking lot technologies

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Identifying an OpportunityAn Example

• What is the Scene
• 180 million entering working age in 10 years
• Huge Demand/Supply mismatch in education, skills
• What can be done
• Setup colleges, training centers
• Create programs, design new courses in upcoming
  fields
• Scalability or business expansion model
• Franchising

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Some Examples with next steps

• You have a product or service that you want to
  sell in India. For example face cream, hand
  sanitizer, education service, consulting service,
  automated parking lot technology, etc.
• Do your research, Make a business case, Find a
  Distributor, Become a Franchisor etc
• You want to buy cost effective products from
  India to sell in US. For example handicrafts,
  handlooms, rugs, jewelry, herbal medicines, etc.
• Do your research, Find a Supplier or a Sourcing
  Agent
• You want to save on your costs in US by using
  Indias workforce in India. For example software
  development, research, legal and financial
  opinions, etc.
• Hire an outsourcing consultant, find and select
  an outsourcing company
• You want to start a project in India like setting
  up a manufacturing plant, power plant, develop a
  product for Indian or US market, etc.
• - Contact US dept of commerce, Find a
  partner company in India.

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Example 1Recommended steps

• Example 1 I want to sell Hand Sanitizer Gel in
  India
• (the following depends on the size of your
  project and your expectations from India)
• Call US Commercial Service Office (USCS) in India
  and give them your requirements
• I need to have a feasibility report that presents
  the market size for the product, competition,
  pricing models, market development, distribution
  network and supply-chain recommendations,
  logistics and shipping arrangements, expansion
  strategies and revenue repatriation.
• USCS will recommend consulting companies that can
  create a feasibility report
• You would select one of the consulting companies
  based on cost, location, previous clients. Etc.
• Based on the recommendations of the report, you
  would proceed further or end the project
• If proceed further Call US Commercial Service
  Office to find and select a distributor
• Pay the fees (350 minimum) to USCS
• Based on recommendations by USCS, visit India and
  do one-on-one meetings with the prospective
  distributors in presence of an official from USCS
  office
• Select the distributor of your choice and
  finalize terms and conditions with the
  distributor (USCS plays no role in this part)
• Call Entry India, get a Lawyer recommendation and
  sign a legally binding agreement

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Success Factors

• Time and Patience
• Right Expectations
• Well defined agreements
• Clear Strategy
• An Indian on your side

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When Dealing with an Indian Partner

• Check for
• Reliability Testimonials with Client
  verification
• Ethical Practices
• Commitment to work/doing business
• Cooperation with partner
• Fair and responsiveness to employees
• Show that you have multiple options open
• You are in the game for long time
• Willingness to come to India
• Build relationship

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Pay Special Attention to

• Scams, crime and corruption (82nd in Corruption
  Index)
• IP infringement
• Resolution of disputes, court settlements

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Resources

• India Business and Travel Guide by Entry India
• Camille E. Sailer, Esq., Director of
  International Trade, NJEDA
• Sidney Simon, Special Agent in Charge - Office of
  Export Enforcement
• Regina Gordin, Business Development Officer
  Export - Import Bank
• Abdul Quader Shaikh, Ph.D., Senior International
  Economist, US Commercial Service
• Download more presentations on Doing Business in
  India, Financing in US, US side of Export control
  and more from entryindia.com

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• THANK YOU