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Transcript of Doing Business in India 2014 - presentation
Doing Business in India
31 July 2014
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Doing Business in India2014
Julian Taylor
Executive Director - Asia PacificExecutive Director - Asia Pacific
Scottish Development International
Welcome & introduction
Doing Business in India2014
TEAM SCOTLAND APPROACH
Work closely with range of public and private sector partners• business and industry organisations• local authorities and cities• Education and Globalscots
Local co-ordinated presenceLocal co-ordinated presence• local staff working with SE/ HIE • industry specialists, Smart Exporter
Increase in overseas coverage• 28 overseas offices (increasing to 29)• UKTI partner in Scotland
Embed within Industry Strategiese.g. Oil & Gas Strategy, Tourism
Selling Scotland
International Business Growth Model
Efficiency Innovation InvestmentStrategy
Development
Organisational
Development
Market
Developmen
t
Overall Business Growth Model
Start Up
International Business Growth Model
Awareness
& Ambition
Building
Capacity
Action
Planning
Market
Expansion
Market
Presence
Financial &
Business ServicesEnergy, Oil & Gas
Creative Industries &
Electronic TechnologiesFood and Drink
Key Sectors
Tourism UniversitiesLife Sciences Other Growth Sectors
• Aerospace, Defence,
Marine
• Chemicals
• Construction
• Forest Industries
• Healthcare
• Textiles
Doing Business in India2014
Rooma Kumar Bussi
Country Director
Scottish Development International, India
Market opportunities
Routes to market
India Overview
• 29 States & 6 Union Territories
• 7th largest country in the world
• Population of 1.2 billion
• 22 Official Languages; 4000+ dialects
• Largest employable talent pool in the world (4.74 million & growing at 15-18%)
• 60% of the population under the age of 25
India exports software to 90 countries. The Indian IT-BPO Industry has crossed US $100 billion
‘India - the world’s back office’
Mobile phone users: 800 million(fastest growing market)
Education Market in India expected to grow to $80 billion
India - Economy
Second fastest growing economy
GDP: $1.842tr (4th in world)
GDP PPP $4.530tr (3rd in world)GDP PPP $4.530tr (3rd in world)
Growth rate: 4.4% (Q1 2013)
Asian Development Bank predicts India's GDP to grow by 7% in 2014-15
India- Modi-fied
New Government in power - Bharatiya Janata Party (BJP) led National Democratic Alliance.
• The Government’s top priorities:
• Exercise fiscal prudence
• Address policy paralysis
• Restore investor confidence
• Support infrastructure, education and health
Indian Economy - Outlook
• Investor sentiment is up
• Indian Rupee is already strengthening on the back of increased FII inflows.
• Gross domestic product (GDP) is expected to grow at 7% in FY15. • Gross domestic product (GDP) is expected to grow at 7% in FY15.
• India has the second fastest growing services sector with CAGR of 9%.
• US$ 1 trillion investment in infrastructure in the next five years.
• US$253.6 billion investment in the power sector by 2017
SDI’s Strategic Focus in India
CollaborativePursuing collaborative
CollaborativePursuing collaborative
Outward Opportunities:
Providing support to Outward Opportunities:
Providing support to
Inward OpportunitiesTarget key India
companies with strategic fit for Scotland
Inward OpportunitiesTarget key India
companies with strategic fit for Scotland
Pursuing collaborative opportunities between
India and Scotland
Pursuing collaborative opportunities between
India and Scotland
Scottish companiesScottish companies
Scottish Investors in India
Indian Investors in Scotland
Life Sciences in India
• $4 billion industry, projected to reach $8 billion by 2015
• India is ranked amongst the top12 biotech destinations in the world.
• M&A activity on the rise; Global companies are setting up a base in India.
• The pharmaceutical industry in India is valued at US $12 billion and is• The pharmaceutical industry in India is valued at US $12 billion and isexpected to grow to US $ 55 billion by 2020.
• India is a major destination for generic drug manufacture.
• Indian companies are concerned about the lack of new drugs in their pipeline so are investing in drug discovery.
Opportunities in Life Sciences
• Medical Technology and Diagnostics
• Bioinformatics
• Drug discovery• Drug discovery
• Stem Cells and regenerative medicine
• CRO
ICT in India
• US$108 billion industry. World’s largest sourcing destination, accounting for approximately 52% of the US$ 124 -130 billion market.
• Indian exports have grown by about 35% year on year in the last eleven years. Contributes to 6.1% of the nation’s GDP.
• Appetite for new products, technologies to create bespoke solutions
• Employs 10 million Indians and growing
• Indian ICT companies continue to grow internationally largely via acquisitions
• Global Indian HQ giants - TCS and Wipro have a presence in Scotland
Opportunities in ICT
• IT Products & Services
• E-commerce
• Gaming and Animation
• IT Education
• E-Healthcare
• Other areas of opportunities are :Big data, electronics, cyber security, e-learning, advance engineering, aerospace, marine and defence
• 620 Universities, 33,000 plus colleges, 15 million students
• Size of the private education sector is $57bn, growing at 16%
• Expenditure on higher education likely to go up from US$ 10.3bn
to $30bn by 2017-18
Education in India
to $30bn by 2017-18
• 500 million people to be skilled by 2020
Opportunities in Education
• Institution to Institution linkages – articulation, faculty development/exchange, joint research
• Skills development
• Corporate training
• Continuous Professional Development (CPD) courses
• Teacher Training
Food & Drink in India
• Changing consumer preferences, increased prosperity and urbanization
• Food industry worth US$ 13.56 billion, growing at 17 %
• Food services sector in India is expected to reach US$ 24.77 billion by 2015
• India’s retail industry, currently accounts for around 15% of the nation’s GDP and is expected to grow almost three times to $660 billion by 2015.
• The Government has initiated steps towards allowing higher levels of Foreign Direct Investment, paving the way for foreign retailers to open independent retail stores in India .
Opportunities in Food & Drink
Market Opportunities
• Premium Food - packaged food and seafood
• On-line retail
• Whisky
Top Imported Food Product Categories
• Seafood: Atlantic Salmon, Scallops, Lobsters, Sea-bass
• Raw Meats: Lamb, Pork , Duck, Turkey• Raw Meats: Lamb, Pork , Duck, Turkey
• Processed Meats: Pork , Duck , Turkey
• Frozen Fruits: Assorted Berries
• Dairy: Cheeses, Butter , Cream, Ice Creams
• Confectionary, Crisps, Packaged Foods
Scottish Brands available in India
Gardiners of Scotland, Walkers Shortbread, Deans of Huntly, Edinburgh ShortbreadHouse, Borders Biscuits, Mackay Jams, Loch Duart, Highland Smoked Salmon,Lions Group- Salmon
Renewable Energy in India
� Share of renewable energy up from 7.8% in FY08 to 12.95% in FY14
� Government of India targets:
� 35% Renewable Energy Share by 2050
� 41,400 MW of RE Power by 2017- translating into an opportunity worth $10.51 billion worth $10.51 billion
� The National Wind Energy Mission (NWEM) – to be launched by mid 2014, targets
� 1,00,000 MW of utility-scale wind power
� 1,000 MW of distributed wind power, and
� 11,000 MW of off-shore wind power by 2022
Key Market Drivers
Key
Energy Security
Concerns
Vast Untapped
Potential of
Renewable Supportive Key
Market
Drivers
Renewable
Energy
Distributed
Electricity
Demand
Technological
Advancements
Supportive
Govt. Policies
Opportunities in Renewable Energy
• Services to On shore wind energy companies
• Replacing old, underperforming wind turbines with modern ones
• Technologies and methods for successful integration of intermittent RE
into the grid
• Decentralized power generation using hybrid systems• Decentralized power generation using hybrid systems
• Training to create skilled workforce to support the growing RE industry
• Smart grid technologies and distributed power generation
• Technical collaboration/ Research & Development
• Energy efficiency
• Clean technology
Setting up in India -Market Entry Options
Operating as a Foreign company
• Liaison office
• Branch office
• Project Office
Operating as an Indian companyOperating as an Indian company
• Wholly owned subsidiary
• Joint venture
• Limited Liability Partnership (LLP)
Support from SDI
• Market research & readiness
• Introductions to trusted partners
• Assistance for market entry or other set up requirements
• Tap into SDI’s Network
� GlobalScots
� UK Trade & Investment and UK India Business Council
� British Business Group
� Trade Associations ad local chambers of commerce
Doing Business in India -Essentials
• Prepare
• Trust
• Invest
Doing Business in India2014
Oscar Kerketta
Consul General of India
Consulate General of India
India-Scotland Bilateral
Trade & Investment
CONSULATE GENERAL OF INDIA
EDINBURGH
INDIA-SCOTLAND
BILATERAL TRADE AND INVESTMENT
POLITICALPOLITICAL•The current Scottish Government is extremely keen to develop deeper
links with India, keeping in view the historical and enduring relationship
with one of the fastest growing economies. The India Plan issued by the
Scottish Government on 26 March, 2010, focussed on 4 key areas, i.e.
tourism; education and science; trade and investment and; cultural links.
Scotland had earlier issued similar plans in respect of USA, GermanyScotland had earlier issued similar plans in respect of USA, Germany
and China only.
•First Minister Alex Salmond visited New Delhi in October, 2010 to attend
the closing ceremony of the Commonwealth Games. He met the Prime
Minister and the Ministers of HRD and NRE. MOUs on education
cooperation were signed between the Universities of India and Scotland.
CONTINUED…………..
•More recently Mr. Humza Yousaf, Minister for External Affairs &
International Development, Scottish Government visited India (Delhi &
Mumbai) from 10-16 October, 2013 coinciding with the Indian leg of the
Commonwealth Games Queen’s Baton Relay.
•Two Scottish organizations, (i) Scottish Development International and
(ii) VisitScotland are engaged in India to improve bilateral investment
and tourism respectively. Scottish Development International (SDI) has
three offices in Mumbai, Delhi and Hyderabad.
INDIAN INVESTMENTS IN SCOTLAND
•The Indian investments in Scotland mostly range from small to medium
businesses with the exception of Dr. Vijay Mallya’s acquisition of the Scotch
Distillery Whyte & Mackay in May 2007 for approximately £600 mln. However, as
per a deal announced in November, 2012, UK drinks giant Diageo is reportedly
buying a majority stake in India's United Spirits group for £1.28 billion.
•Tata Steel Europe based in Motherwell near Glasgow, made an £8 million
investment in a 3,500 ton heavy plate press at Dazell in 2011 and has added a £7
mln Quenching and Tempering Furnace at Clydebridge.
•Other Indian companies with significant presence in Scotland include IT•Other Indian companies with significant presence in Scotland include IT
businesses Tata Consultancy Services (TCS), Infosys, and Axsys Technology, steel
wire maker Usha Martin, and pharmaceutical ingredients manufacturing facility
near Edinburgh by Piramal Healthcare.
•Including the recent investments in 2013 of Kyndal Group of India of £6.7mln in
the whisky distillery in Glenrothes, Scotland and; Essar’s BPO arm Aegis’s
investment of approximately £60mln in a call centre in Glasgow, the total
investment by Indian companies in Scotland would be to the tune of
approximately £700mln.
SCOTTISH COMPANIES IN INDIA
•Several Scottish companies have significant investments in India. Cairn
Energy has been one of the largest foreign investors in oil and gas sector
in India. However, it has recently sold its majority stake in Cairn India to
Vedanta Group of Industries owned by Shri Anil Agarwal in London for
an estimated amount of £5.56 billion. Cairn Energy now has around
10.3% stake of approximately £630 million in cairn India.
•Standard Life’s 26% equity at approximate £26 million for joint venture
with HDFC Standard Life Insurance in 2000 is the sixth largest providerwith HDFC Standard Life Insurance in 2000 is the sixth largest provider
of life insurance in India with 14,000 employees in 600 retail outlets.
•The Glasgow based Scottish Engineering firm Weir Group has acquired
valve division of BDK Engineering Industries in India for £40 million.
•The Edinburgh based architecture and design firm RMJM Architects, is
providing design services to around 40 construction projects in Delhi and
Kolkata which includes development of a new airport terminal in
Kolkata and the Kolkata International Convention Centre, besides
schools and housing projects in New Delhi.
CONTINUED………………..
•Royal Bank of Scotland with its investment of approximately £345 million
employs 4000 persons in banking operations and around 2000 persons
undertaking software development in India.
•SgurrEnergy, a leading engineering consultancy firm specialising in renewable
energy has opened an office in Pune to serve the rapidly growing sustainable
energy market in India.
•Reid & Taylor operates a high-end textile mill in Scotland and exports the
majority of its fabric to India.
•Touch Bionics, a Scottish developer of the world’s first commercially available
bionic hand has entered Indian market through its Indian distributor.bionic hand has entered Indian market through its Indian distributor.
• Menzies Aviation with investment of £20 million is providing cargo handling
services at Bangalore and ground handling services at Hyderabad airports.
•Aggreko with £16 million has acquired the power rental business of Cummins
India.
•In addition, Scottish oil and gas companies, like Wood Group, Clyde Pumps,
Petrofac, PSN, SGS Waterweights KBR and Selex Galileo, with their combined
investments of approximate £70 million, are active in India.
•The total investments by Scottish companies in India would be to the tune of
£1.137 billion.
BILATERAL TRADE DATA
SS 2010 2011 2012
Scotland’s export to India £ 223,990,000 £ 248,545,000 £ 241,546,000
India’s export to Scotland £ 107,530,000 £ 140,411,000 £ 138,456,000
Source: Scottish Government
MAJOR SCOTTISH EXPORTS
The major Scottish exports to India:
Food and drinks (23% of total Scottish exports),
followed by -
Electrical and instrument engineering (15%),
Business services and finance (10%),Business services and finance (10%),
Industrial and construction goods (7%),
Chemical and mineral products (5%), etc.
The details of commodities exported from India to Scotland are
not available.
RECENT BILATERAL INVESTMENTS IN 2013
INDIA TO SCOTLAND
•Joint venture between Kyndal Group of India and John
Fergus & Co. Ltd., Scotland for investment of £6.7
million by the former in the whisky distillery in
Glenrothes, Scotland.
• The investment of Aegis, the business process
outsourcing (BPO) arm of Essar, in a large call centre in
Glasgow. The company, which already has a call centreGlasgow. The company, which already has a call centre
in Manchester with 400 employees, is looking to create
2,500 jobs in Glasgow.
•Tata Consultancy Services (TCS) in December, 2013 has
been selected by the Improvement Service to implement a
‘Citizen Account Service’ for Scottish citizens. This would
allow citizens in Scotland to access several public services
from a single user profile.
RECENT BILATERAL INVESTMENTS IN 2013
SCOTLAND TO INDIA
• Joint venture between Perthshire-based This-Tel with
India-based IT firm Crane Global Solutions for
marketing the digital pens of This-Tel in India which
permits written information to be scanned and
transmitted to a central server.transmitted to a central server.
• Joint venture between Edinburgh-based Dryden
Aqua and SVS Aqua of India to market the Scottish
water filter media in India.
THANK YOUTHANK YOU
Doing Business in India2014
Karyn Watt
Partner and Head of Infrastructure
Anderson Strathern
Market overview & considerationsEconomic overview
Indian law & personal experienceBribery acts
Intellectual property
Economic Overview
• Economy to grow at more than 5% 2014-15
• Worlds most attractive investment destination
• Key Industries
• Textiles
• Chemicals
• Pharmaceuticals• Pharmaceuticals
• Steels
• Cement
• Mining
• Machinery
• Software
• Transportation Equipment
• Inward Investment
• Foreign – Direct investment stock $202 billion
• Outward Investment
• Estimates of around $15 billion• Estimates of around $15 billion
• Key Sectors
• Education
• Renewables / Cleantech
• Life Sciences
Bribery Act 2010
Envelopes:
• 1 – is this a bribe?
• 2 – is this a bribe?
• 3 – is this a bribe?
• 4 – is this a bribe?
Bribery Act 2010
• Came into force 1 July 2011
• Covers both domestic and foreign bribery acts.
• Implementation in response to criticism that the current law is fragmented and outdated.
• Purpose of the act: to provide a modern and comprehensive scheme of bribery offences.
• Significant implications for companies and individuals alike.
• Guidance published by the Ministry of Justice, March 2011.
• Covers domestic and foreign bribery acts.
Bribery Act 2010Offences:• Section 1 – Active Bribery (the offering, promising or giving of a
bribe)• Section 2 – Passive Bribery (the requesting, agreeing to receive or
accepting of a bribe)or • Section 6 – Bribery of a foreign public official
• Section 7 – Failure of commercial organisations to prevent bribery
Penalties (section 11):• Individual – imprisonment up to 10 years (12 months on summary
conviction), a fine of up to £10,000 if the conviction is summary or unlimited if it is an indictment
• Commercial organisation – up to £10,000 if the conviction is summary or an unlimited fine if it is an indictment
Active Bribery – Section 1
Where an individual offers, promises or gives a financial or other advantage to another person; and
1) intends the advantage to induce a person to perform a relevant function or activity improperly, or to reward a person for improper performance of a relevant function or activity;
OR
2) knows or believes that the acceptance of the advantage will in itself constitute the improper performance of a relevant activity or function.
Passive Bribery – Section 2
Where a person requests, agrees to receive or accepts a financial or other advantage…
1) …intending that a relevant function shall be performed improperly;
2) … and such request or agreement or acceptance itself 2) … and such request or agreement or acceptance itself constitutes improper performance by that person of a relevant function;
3) … as a reward for improper performance; and
4) … and, in anticipation or in consequence of such a function is performed improperly.
Failure of a Commercial Organisation to Prevent Bribery – Section 7
THE DEFENCE
“A Commercial organisation will have a full defence it if can show that despite a particular case of bribery it nevertheless had adequate procedures in place to prevent persons associated with it from bribing”bribing”
“Guidance about Procedures Which Relevant Commercial Organisations Can Put Into Place To Prevent Persons Associated With Them From Bribing” – Ministry of Justice
THE DEFENCE Adequate Procedures - The Six Principles
• “The Government considers that adequate procedures put in place by commercial organisations wishing to prevent bribery being committed on their behalf should be informed by six principles.”
6Principles
1ProportionateProcedures
2Top-level
commitment
3Risk
Assessment
4Due
Diligence
5Communication
(inc. training)
6Monitoring& Review
IP Slide
• Scottish lawyer cannot practice in India
• Know who you are doing business with
• Work with trusted advisors
• Check your contracts are governed by Scots law or English law
India Law & Personal Experience Slides
Hotel Shot
Beggar Shot
Photo from Premier
Thank you!Thank you!
Doing Business in India2014
Douglas Neilson
ConsultantConsultant
Doing Business in IndiaCultural considerations
Setting up a business in the market
Background
• Vast country - about a third of the size of the US, and made up of 29 different states
• Economy with huge potential – the third largest by Purchasing Power Parity
• About 1.25 billion people – a large consumer market with a high youth populationpopulation
• A highly diversified market
• Price competitive, value for money market
• Disappointing recent economic performance – weak growth, high inflation
• Rated by World Bank on Ease of Doing Business lower than BRICS peers
• Considers 11 parameters that impact businesses across various stages of their lifecycle
• Underscores urgent need for a favourable, flexible, liberalised and a transparent business environment. The Confederation of Indian Industry is pursuing reforms
Historically Difficult to do Business
pursuing reformsEase of Doing Business In India - Global Ranking
139132 131 134
87 9199 96
0
40
80
120
160
2011 2012 2013 2014India China
22.4 24.3
111.7117.6
0
35
70
105
140
2012 2013
Bill
ion
India China
FDI Comparison With China
Source: World Bank Source: Government Data; Figs for India are for Mar 2013 and Mar 2014
High Expectations of Modi
• Election of the BJP government viewed positively by businesses
• Strong expectation of Prime Minister Narendra Modi, given his track record as Chief Minister in Gujarat
• Widely believed that during his tenure in Gujarat the bureaucracy was effective, corruption was absent, and the courts were speedy and effectiveeffective
Source: Government Sources
Gujarat’s Share of Per Capita IncomeGujarat v/s India : GDP Growth
6.2% 6.2%
10.1%
7.7%
0%
3%
6%
9%
12%
Gujarat IndiaAverage GDP Growth Pre Modi (FY-95 to FY-01)
Average GDP Growth Post Modi (FY-02 to FY-12)
5.1
5.86.1 5.9
5.8
7.14
0
2
4
6
8
1960-61 1970-71 1980-81 1990-91 2000-01 2012-13
% S
ha
re to
In
dia
Post ModiNumbers
Cultural Issues
• 7 major religions and many minor ones ; 6 main ethnic groups
• Each state resembles a separate country, often with its own languages and cultural practices
• Personal relationship building is key to business in India
• Caste system though fading in cities, is still a factor• Caste system though fading in cities, is still a factor
• Indian employees want to please - ‘Yes’ usually means ‘Maybe’
• Bureaucracy is very resistant to change and very effective in doing so
• The level of poverty - a lot of people with absolutely nothing - is a real shock to the senses
Opportunities
• Rising personal incomes and emergence of a new middle class
• Fast growing economy with one of the world’s largest youth populations
• Changing consumer attitudes; Readiness to take on higher leverage
Forecast of Household Disposable Income (INR 000; 2000 Base Year)
Working Age Population (15-64 Years) as % of Total Population by Countries
0
150
300
450
600
19
85
19
87
19
89
19
91
19
93
19
95
19
97
19
99
20
01
20
03
20
05
20
07
20
09
20
11
20
13
20
15
20
17
20
19
20
21
20
23
20
25
Rural All India Urban
5.8%
5.3%
4.6% 3.6%
2.8%
3.6%
(INR 000; 2000 Base Year)
Source: Mckinsey Global Institute
Actual Forecast
Source: UN Population Division
50%
55%
60%
65%
70%
75%
1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
China India UK USA
Total Population by Countries
Opportunities
• Expanding emerging cities - with more than 50 cities now over a million people - and a lot more urbanisation to come. This is similar trend to China
• Availability of skilled, low cost workforce
• Good network of banks, financial institutions and an organised capital market
220
290340
590
0
160
320
480
640
1991 2001 2008 2030
Mill
ion
+250
46 54 5869
54 46 4231
0
25
50
75
100
1991 2001 2008 2030
%; R
up
ee
s B
illio
n, R
ea
l 2
00
8
Urban Rural
238,04149,04329,10015,903100% =
Urban Population Share of India’s GDP
Source: Mckinsey Global Institute
India / Scotland –Growing Together
• Reformist agenda & business friendly - open for business with Scotland
• Huge potential in many areas - some examples:
• Infrastructure (Roads, Rail and Ports) • Engineering
• Power & energy • Finance • Consumer products
• Education • IT and Technology • Water treatment• Education • IT and Technology • Water treatment
• Waste management • Renewable energy
• Logistics and online retail
• According to a report released by SDI, India has been ranked as the third top future market after the US and China by Scottish businesses looking to expand overseas
• Scotland and India share a longstanding history of trade and business relations, while UK is a leading source of FDI into India
Pitfalls
• Slow and uncertain legal system
• Bureaucratic delays
• Key hires can be hard to find.
• Poor infrastructure, including distribution and logistics - much of India remains ruralremains rural
• Hard to follow an exit or downsizing strategy if things don’t work out.
• Meaningful Due Diligence is hard, particularly in times of tough competition
• New entrants will have to invest in capacity building and long term hires
• Getting ripped-off
Interesting points about India
• Expected to spend US $1 trillion on infrastructure by 2017
• The fastest growing telecom market in the world
• UK’s target to double trade to £23 billion with India by 2015 is on target. A free trade agreement between the EU and India is under negotiation
• An emerging biotech leader with a growth rate of 37% per annum - one of • An emerging biotech leader with a growth rate of 37% per annum - one of the highest globally
• The Twelfth Plan aims to develop the skills of 500 million people by 2022
• In Education, opportunities could include: setting up offshore campuses and partnering with Indian institutions to offer joint delivery of courses
• A generation of savvy businessmen who are smart, flexible and solution oriented– many have built up top class businesses in a heavily over-regulated climate
Secrets of being Successful in the Indian Market
• Recognise that India is on track to become one of the world's largest economies in coming decades
• Recognise that a coherent India strategy is an absolute must for companies looking to build global reach
• Recognise that you have to do your homework upfront - regional plans and good research. You need to understand and cater for the upsides and good research. You need to understand and cater for the upsides and downsides upfront - not wait till problems blow-up
• Recognise that products need to be customised for the Indian market - off the shelf won't cut it
• Recognise that Indian consumer markets are driven by 'Value for money" -not simply the lowest price
• Recognise that Bureaucratic delays are a reality - you need to factor them in
• Top managers are often Western educated, but they are first and foremost Indians, with a unique culture that is very much their own
• Indian business is very much relationship driven - much more than in the West
• You need to be active and visible in the Community and build contacts at senior levels - both at business functions and socially
Relationships - The Secret of Doing Business in India
senior levels - both at business functions and socially
• You need to deal with well reputed counterparties - that means doing your homework upfront - selecting the wrong business partner can cause you years of grief
• There's a brave new world of opportunity out there, but it won't just knock on your door. You have to make it happen - that is the challenge
Doing Business in India2014
Hilary Dunne
Project Team ManagerProject Team Manager
Trade Mission to India 2014
Doing Business in India2014
Background
SDI Cross Sector Missions are aimed primarily at SMEs who are SDI Cross Sector Missions are aimed primarily at SMEs who are either new exporters or wish to develop and grow their business in a particular market.
It is not aimed at large companies or very experienced exporters who are already well established in a market. Although larger companies will still be considered.
Doing Business in India2014
Background
We are targeting between 10 and 15 companies for each of the missions. missions.
There is a set subvention grant for specific markets, covering travel and hotel costs.
The level of assistance available is a total of £550 per company.
Doing Business in India2014
Countries visited so far:
South Africa Nov 2012
India Nov 2012India Nov 2012
USA & Canada Apr 2013
Brazil Jun 2013
China Sep 2013
UAE & Qatar Oct 2013
USA Apr 2014
Doing Business in India2014
Funding
• Funding is provided by UKTI’s MVS (Market Visit Support) service.• The MVS funding level depends on the destination.• The MVS funding level depends on the destination.• Funding is provided retrospectively.• We collect bank details and send the subvention direct to the
company.• No travel receipts or complex documentation is required. • The completed Mission Application Form and Mission Feedback
Form is all that is needed.
Doing Business in India2014
Benefits of attending
• Perfect introduction to market.
• Connect with SDI and further UKTI support.• Connect with SDI and further UKTI support.
• Meet new customers.
• Non-competitive environment.
• Space for your own agenda / business meetings.
• Pre-mission research / support can be provided.
• Follow up support provided.
Doing Business in India2014
Highlights of Mission 2012“What the visit achieved was to open up the possibility of trading in the target market. We now have relationships with people who have the ability to help us access the relevant consumers. That would not have been possible before the visit.”Gerry Dunn, Natural Fruit and Beverage Company
Directly through this pro active support we have identified a strong potential J/V partner with whom we are now in Directly through this pro active support we have identified a strong potential J/V partner with whom we are now in detailed negotiation. Assuming we can successfully agree terms than we envisage Future Factory Launching in India by end February 2013.We envisage first years sales of £50k”Derek Peacock, Future Factory
The support provided ensured we were properly briefed before leaving for India, were familiar with all others in the delegation as well as the local staff, had meetings carefully organised for us, on the basis of background research performed by SDIs local staff and were invited to receptions where several good contacts were also made and followed up with.”Sunil Kadri, Europharma
“The level of support from SDI was outstanding, can’t really suggest any improvements other than do more of it!”Gordon Macmillan, Enocell
Doing Business in India2014
Trade Mission to India
Bangalore, Hyderabad, Delhi
(Cross Sector Mission)
• Key sectors identified:• Key sectors identified:
• Education
• Life Sciences
• ICT
• Renewable Energy
• Target of 10-15 companies
Doing Business in India2014
Trade Mission to India, 6-11 October 2014
Sunday, October 5Arrival BangalorePM: Welcome drinks with SDI & delegation
Monday, October 6AM: Doing business in India/Market briefing session
Thursday October 9AM: One to One meetingsPM: Business networking reception organised by SDI
Friday October 10AM: Doing business in India/Market briefing sessionPM: One to one meetings
Tuesday, October 7AM: One to one meetingsPM: Business networking reception by SDI
Wednesday, October 8AM: Flight to HyderabadPM: Marketing briefing over dinner
Friday October 10AM: Depart for Delhi or ScotlandPM: Attend BBG National Meet (Companies will need to register for this)
Saturday October 11Attend BBG National Meet
Sunday October 12Travel back to Scotland
Doing Business in India2014
For more information about any of our trade missions please speak to me today or email:[email protected]
I have further information about the trade mission that you can take with you todaywith you today
I also have application forms, should you wish to apply for a place on our trade mission
For more information:Hilary Dunne
[email protected] 4266333
Doing Business in India2014
Coffee break10 minutes10 minutes
(please sign up for one to ones at the entrance)
Doing Business in India2014
Steve Forsyth
CEO
this-telthis-tel
Case study presentation
Real life stories & experiences shared
Doing Business in India: Real Life Case Study
Steve Forsyth, CEO
31st July 2014
Information workflows redefined
Secure virtual digital writing solution (PaaS) increasing information workflow
efficiency in form management, approval and certification processes
this-tel Overview
• Target Market: Our Sectors
The capital business process and physical data flow requirements of blue-chip service delivery companies who have
combined spend of over £2 billion per annum. Eg. Any organisation who needs to streamline and make more efficient
the flow of real data: Banks, Oil & Gas, Hospitals & Healthcare, Transport, Logistics, Government bodies etc
• Target Market: Our Regions
Scottish based company in Perthshire, focussed on a true international strategy: UK, Europe, Middle East, India, Asia,
Eastern Europe, South America and Australasia.
• The Present Problem:
Globally, service delivery sectors still use paper and pen for much of their on the ground operations and data
information delivery
• The Opportunity:
The service delivery sectors have been going through a process of consolidation, leading to:The service delivery sectors have been going through a process of consolidation, leading to:
• The necessity to redefine the efficiency of their service delivery of front line services, while reducing
administrative and back office costs
• Our Solution: An inhouse designed & developed secure virtual digital writing solution increasing information
workflow efficiency in form management, approval and certification processes encompassing both smart paper and
electronic forms:
What we offer Businesses in India
Traditional paper information workflow is inefficient, costly, & prone to errors
Our digital writing solution provides an increase in 95% efficiency & ROI at over 50%
Workflow Benefits
• Data delivery direct to decision makers
• Increased information accuracy by removing
human data entry errors
• Improved quality of information by value
added applications (audio visual) and
information from third party data bases
• Information delivery globally in seconds
• Instant search & retrieval of records
How we started doing business in India
Information transfer to central data database & decision makers in
seconds & minutes rather than the traditional days and weeks
SDI support in doing business in India
SDI have been instrumental in our progress: Training, Market Research & Export Support to start
with to name but a few support products.
SDI heavily assisted on the locating, vetting and interviewing of our initial Distribution partners in
the region. Having the support of SDI allowed us to “punch above our weight” and attract large the region. Having the support of SDI allowed us to “punch above our weight” and attract large
blue chip partners
SDI´s support, culminated in this-tel signing a long
term strategic contract in relation to the Indian
Health Authority and the upgrade of their ICT
systems & workflow requirements.
Signed contract size is worth an initial
£16 million over 3 years, with 74,000 Users on
our system across 8 States.
(prior to the extended roll out across all 29 Indian
states)
Top Tips:
1. जलजलजलजल म�म�म�म� रहकररहकररहकररहकर मगरमगरमगरमगर सेसेसेसे बैरबैरबैरबैर ठ�कठ�कठ�कठ�क नह�ंनह�ंनह�ंनह�ं : “You should not have enmity with the crocodile if you are
living in the water”- Learn & understand the culture…
2. �◌स�◌स�◌स�◌स क�क�क�क� लाठ�लाठ�लाठ�लाठ� उसउसउसउस क�क�क�क� भ�सभ�सभ�सभ�स : ”Whoever owns the lathi (a huge cane/stick) owns the buffalo” -
Negotiate from a position of strength…
3. भारतभारतभारतभारत म�म�म�म� कोईकोईकोईकोई तलाकतलाकतलाकतलाक नह�ंनह�ंनह�ंनह�ं हैहैहैहै : “In business there is no divorce in India……!!!!!!” - Once mutual
trust is established its there for life…
Additionally:
• Use support that is already there in the local region – SDI – both for research and initial interviewing/introductions to clients and local suppliers.
• Local distributors and resellers can be worth their weight in gold as they already have a close & trusted network for off the shelf sales pipelines.
• If possible find local high level business development agents or ambassadors – to add to your product credibility and to aid in negotiating the local laws and customs
• Have everything written and signed in black and white including timescales – don’t be scared to input time penalties into contracts
• Start how you mean to continue• If possible, pool your resources with other Scottish companies to decrease risks
and learning curves and speed up the route to a positive ROI
Doing Business in India2014
Q&A panel session
Doing Business in India2014
End of event
1-2-1 sessions1-2-1 sessions(15 min. each
in the balcony and bar area)
(please sign up for 1-2-1s at the entrance)
Doing Business in India2014
THANK YOU!THANK YOU!
Doing Business in India2014
www.scottish-enterprise.com/international
Talk to an export adviser 0800 019 1953