How to enter in indian market

1
Your Guide to Expand in India
Mr. Rohit Chaturvedi XnI Consultancy Services
Private Ltd 161, Windsor Greens F-28, sector 50,
Noida, 201301, INDIA Ph- 91-120-4316510 info_at_expan
dinindia.net http//www.expandinindia.net
2
Index

• Why India ?
• 8 vital Research areas for your India Expansion
• Market Opportunity Assessment
• Options for Setting Up an Office in India
• Entry Strategy- Business Incubator or own Setup
• What to Avoid when looking for Partners
• Top 10 cities for Doing Business in India
• Distributor Management
• Import duty
• Other Service Provider for your Expansion Needs

3
Why India ?

• A 1.6 Trillion Dollar GDP economy,
• GDP growing _at_ 6-8 pa , and forecasted to grow at
  the same rate in the next 4-5 yrs
• Young educated population with an average age of
  the population of lt30 yrs (growing consumption
  larger workforce)
• Indians have a liking for foreign brands
• There are 55 billionaires (4th highest in the
  world) in India and 125,000 HNIs(gt1mln US worth
  investment capital) and growing.
• Indian Industry is quite progressive and open to
  new technologies
• There are severe shortages in some resources in
  the country and people are looking to fill up the
  gaps. Just to take one example , According to a
  report
• Indias investment in infrastructure during
  2007-12 is expected to be around 500 billion as
  the expected level of infrastructure investment
  projected in the 11th five year plan is 2.36
  times that of the 10th plan. Furthermore, this is
  expected to almost double for the 12th five year
  plan (2012-17).
• The report, also pointed out that about 97
  million jobs are likely to be created over the
  next 10 years across different sectors in the
  country. Due to this huge increase in jobs,
  India may need to potentially build an average of
  8.7 billion sq ft of real estate space every
  year, adding up to a whopping 95 billion sq ft
  between 2010 and 2020, RICS said.
• The study, however, said there is a huge
  shortfall of skilled manpower (Training
  Development Opportunities) in the infrastructure
  sector that needs to be addressed with urgency.
• Read more http//www.expandinindia.net/blog/bus
  iness-expansion/

4
8 vital areas to research for your India Expansion

• Macro Economic Analysis
• Dipstick Survey
• Opportunity Assessment
• Competitive Benchmarking
• How to Participate
• Business Partner
• Other Service Providers for your Expansion needs
• Site Selection (Operations)
• Read more http//www.expandinindia.net/blog/in
  dia-business-expansion/

5
Market Opportunity Assessment

• While India looks to be a very large and
  lucrative market, from the outside, things on the
  ground could be different. Its better to start
  with a realistic assessment, before committing
  resources.
• The amount of published information in India is
  huge but the quality of such data to take
  meaningful decisions is limited. There are of
  course some organisations and associations which
  compile data from the respective industries
  periodically- but the number of industries thus
  covered are not many.
• A typical Segmentation Matrix for an Industrial
  firm could be something like this

Customer Segments
Price

• Global firms
• Export Oriented firms
• Indian Multinationals
• Precise requirements
• Safety Security Important
• Environmental Concerns

INR x

• Large Indian Firms/ Public Sector Firms
• Performance as per Specs
• Value for Money
• After Sales Service
• Product Life/ Features

INR 0.80x

• Government Companies
• Base Level performance
• Price Sensitive
• Tenders

INR 0.60-0.65x
Read more http//www.expandinindia.net/blog/indu
strial-market-research-india/
6
Options for setting up an Office in India

• A foreign company planning to set up business
  operations in India has the following options for
  entry
• AS AN INDIAN COMPANY A foreign company can
  commence operations in India by incorporating a
  company under the Companies Act, 1956 through
• Joint Ventures Foreign Companies can set up
  their operations in India by forging strategic
  alliances with Indian partners.
• Wholly Owned Subsidiaries Foreign companies
  can also set up wholly owned subsidiary in
  sectors where 100 foreign direct investment is
  permitted under the FDI policy.
• For registration and incorporation, set of
  applications have to be filed with Registrar of
  Companies (ROC).
• AS A FOREIGN COMPANY Foreign Companies can set
  up their operations in India through
• Liaison Office/Representative Office- Liaison
  office acts as a channel of communication between
  the principal place of business or head office
  and entities in India.
• Project Office Foreign Companies planning to
  execute specific projects in India can set up
  temporary project/site offices in India.
• Branch Office Foreign companies engaged in
  manufacturing and trading activities abroad are
  allowed to set up Branch Offices in India for the
  following purposes Export/Import of goods-
  Rendering professional or consultancy services,
  Carrying out research work, in which the parent
  company is engaged., Promoting technical or
  financial collaborations between Indian companies
  and parent or overseas group company etc
• Read more http//www.expandinindia.net/blog/set
  ting-up-office-in-india-for-doing-business/

7
Entry Strategy Business Incubator or Own Setup

• While it might be natural to start small and then
  grow , while entering a new market and the
  strategy designed accordingly-
• Phase 1- At the initial stage companies find
  simple to export products to India , and work
  with established distributor of similar products
  or hire independent agents to market, sell and
  distribute their products. This of course helps
  to hedge the country business risk and at the
  same time test the water.
• Phase 2- Over time companies realize that to be
  successful in India they need a larger footprint
  , which may not be possible through a third
  party. In most of the cases, companies grow in
  size and capability and then make a local
  acquisition or establish local full time employee
  base that may involve marketing, distribution,
  sales, testing, assembly and ultimately
  manufacturing.
• While the above could be done by forming your
  company in India and investing yourselves, there
  is an option to go for Business Incubator. Some
  new business entrants, especially from Europe
  US , when they launch business in a niche
  segment in Indian market explore benefit of
  Business Incubator Offices. These offices are
  designed to bridge the gap between strategic
  plans to cost effective and low risk actionable
  step and assisting its development into a viable
  business.
• Major benefit of this is starting-up of new
  office with minimum time and less investment
  along with least legal formalities. Services
  provided by such offices help with business
  basics, Networking activities, Marketing
  assistance, High-speed Internet access, CA, Legal
  etc ..
• Read more http//www.expandinindia.net/blog/bus
  iness-incubator-centre-in-india/

8
What to avoid when exploring Indian markets for
partners

• Avoid being too optimistic on closing the deal
  quickly. Unlike before lot of companies in India
  are fairly diversified. They have a big portfolio
  and they know that with the Indian markets
  opening up, there will be many more opportunities
  on their way.
• Mix written and verbal communication. . Indians
  are emotional and they like people to people
  interaction. They are less likely to go into a
  relationship purely based on non-personal
  communication (email etc).
• Avoid approaching Indian market with a single
  solution mindset. Some Indian partners might have
  a propensity to minimise their initial
  investments/ risks and could want the approaching
  firm to bear some initial risks-commercial/
  technological
• Avoid taking few things on the face value.
• Read more http//www.expandinindia.net/blog/wha
  t-to-avoid-when-exploring-indian-markets-for-partn
  ers/

9
Top 10 cities for doing business in India

• Mumbai
• Delhi
• Chennai
• Bangalore
• Hyderabad
• Kolkata
• Pune
• Ahmedabad
• Nagpur
• Surat
• Read more http//www.expandinindia.net/blog/top
  -indian-cities-for-doing-business/

10
Distributor Management

• In a general sense, following could be mentioned
  about Indian Distributors
• Strengths
• Strong business acumen
• Hard working
• Ambitious
• Supportive
• Emotional (believe in relationships) Brand
  Loyalty
• Flexible
• Strong end user relationship
• Street Smart
•  
• Weaknesses
• Not so specific on dates (repayment dates,
  timelines on projects etc..)
• Not much into forecasting of demand, need
  everything now/urgent.
• Dilly dallying at times over serious decisions
• Cribbing for not making profits (lot of times
  just to exert pressure)
• Over commitments on delivery, specially around
  long term actions
• Have weak in-house systems/processes

11
Import Duty in India 2012-13

• Read more http//www.expandinindia.net/blog/dist
  ributor-management-in-india/

12
Other Service Providers for your Expansion Needs

• Companies to assist you in Business Meeting with
  prospects (customers, distributors, partners etc)
• Immigration formalities / Work contract-
  Organization of the necessary documents for FRRO/
  PIO/ OCI applications, Lodging of the
  applications (RP) with local immigration office
  and successful registration with FRRO/ FRO with
  the issuance of Residence permit booklet.
• Accommodation- Temporary Accommodation, Pre
  arrival Housing needs analysis, Collection from
  and return to temporary accommodation, Welcome
  to India City information Pack, Shortlist and
  pre-screening of suitable properties, Accompanied
  visits to inspect short listed properties, Lease
  negotiations (rent, terms and conditions, etc.),
  etc
• Other Settling down Services- Relocation moves,
  Identification of options for doctor, dentist,
  baby health care , Visit to the bank and post
  office, Visit to shopping mall/ food markets ,
  Overview of leisure hobby facilities, rest
  recreation options, etc
• Business Requirement for your team member(s)-
  Employment Services- Registering the Employee,
  Issuing Employment Letter,
• Payroll Services - salary structuring for your
  team members , payroll processing, pay slips,
  statutory reports and submissions, client and
  employee query management, IT Computation and
  submissions, and other local compliances, etc .

13
Thank You
Mr Rohit Chaturvedi XnI Consultancy Services
Private Ltd 161, Windsor Greens F-28, sector 50,
Noida 201301, INDIA Ph- 91-120-4316510 info_at_expand
inindia.net http//www.expandinindia.net