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“ Art & Science of doing business with India”

“ Art & Science of doing business with India”. JAGAT SHAH CEO – Global Network jagat@globaljagat.com. HISTORY. The Indus Valley civilization, one of the oldest in the world, dates back at least 5,000 years. HISTORY. Nonviolent resistance to British colonialism

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“ Art & Science of doing business with India”

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  1. “Art & Science of doing business with India” JAGAT SHAH CEO – Global Network jagat@globaljagat.com

  2. HISTORY The Indus Valley civilization, one of the oldest in the world, dates back at least 5,000 years.

  3. HISTORY Nonviolent resistance to British colonialism under Mohandas GANDHI led to independence in 1947.

  4. TOPICS • General information on Indian markets and economy, • Ways of successful business relations with India • Strategies of developing a new market in India • Finance system in India - LC • Tips about India market

  5. INDIA Geographic Hub 5

  6. REGIONS • EAST - Kolkata • WEST – Mumbai & Ahmedabad • NORTH – Delhi & Ludhiana • SOUTH – Chennai , Bangalore & Hyderabad • CENTRAL – Nagpur

  7. Doing Business in INDIA • Geographical, Social, Cultural and • Political diversity • Large, unorganized and complicated • distribution set-up • Unique and complicated market • structure • Changing and stricter regulation • Fiercely competitive market with large • financially strong MNC’s on one side • and cost competitive local companies • on the other Challenges

  8. THE NEW INDIA ….. • THE IT STORY OF INDIA • THE PHARMA STORY OF INDIA • THE LARGEST PETROCHEMICAL PLANT OF THE WORLD • 300 MILLION MIDDLE CLASS POPULATION

  9. THE NEW INDIA …. US$ India Gujarat • Per Capita Income 3200 9100 • Middle class income 11500 23500

  10. Internet Users : • Country Internet Users Population % Users • Million Million • 1. United States 200.00 290.00 68.5 % • 2. China 100.30 1280.00 7.9 % • 3. Japan 78.00 128.81 60.9 % • 4. India 74.20 1040.00 7.11 % • 5. Germany 47.71 82.27 57.0 % • 6.United Kingdom 35.80 59.98 53.8 % • 7. South Korea 31.60 49.99 63.3 % • 8. Italy 28.60 58.86 48.8 % • 9. France 25.60 60.06 52.7 % • 10. Brazil 22.30 180.18 12.3 % • www.devrekha.com

  11. INDIA INTEGRATION Restraining Forces Driving Forces Technology Culture Market Needs Cost Free Markets Economic Integration Peace Management Vision Strategic Intent Global Strategy and Action Culture Market Differences Costs National Controls Nationalism Political Management Myopia Organization History Domestic Focus

  12. INDIA TRADE…….with Turkey US$ Billion 2005-2006 Total With Turkey • INDIA’s IMPORT 149 0.193 • INDIA’s EXPORT 103 1.00

  13. INDIA IMPORT PRODUCTS • INDIA’s Import From Turkey – Top 10 LIST ATTACHED

  14. INDIA EXPORT PRODUCTS • India’s Export to Turkey : Top 10 LIST ATTACHED

  15. Scope of Products…..170 • Textile • Foundry • Packaging • IT • Electric • Electronics • Rug • Iron & steel • Leather • Natural stones

  16. Scope of Products….. • Marble • Machinery • Food • Agriculture • Chemistry • Furniture • Automotive • Construction • Plastics

  17. My experiences on doing business in India…… • Learn About India - Exhibition • Find the Right Partner • Start Small • Hire the Right People • Have a Realistic and Flexible Strategy • Be Prepared for Fast Growth

  18. ENTRY RECOMMENDATIONS • RESEARCH THOROUGHLY • APPOINT A REPRESENTATIVE ( Ex. : RETIRED ) • NETWORK with Trade bodies • MAKE LOCAL LANGUAGE CATALOGS / WEBSITE • GIVE 2 YEARS • THEN SET UP JOINT VENTURE

  19. CHANNELS OF DISTRIBUTION • IMPORTERS - MANUFACTURERS • STATE LEVEL DISTRIBUTORS • AGENTS / REPS • TRADING COMPANIES IN MUMBAI / DELHI • WEBSITES……. B2B / B2C ( Portals )

  20. SPANCO concept of exports • S – SUSPECT ( Country ) site….. • P – PROSPECT ( Importer ) • A – APPROACH ( Contact ) • N- NEGOTIATE ( Terms ) • C - CLOSE ( Art ) • O – ORDER ( Format )

  21. Tips on Site search…DEMO • www.commerce.nic.in • http://www.strategis.ic.gc.ca/cgi-bin/sc_mrkti/cid/cid_e.cgi?func=start_search&search_type=by_product

  22. STEPS : Short run • Take part in IITF – India International Trade Fair ( Nov. 14 to 27 , 2006 ): www.iitfglobal.com • Feel importers , consumers , distributors, import duty , systems , everything. • Sell retail , if such a product or display.

  23. ABOUT IITF – 2005 • IITF' 2005 , last year had received tremendous responses with participation from more than 9,000 Indian and 1445 overseas companies from 69 countries. The fair witnessed a whopping turnover of 2,94,000 business, visitors including 91 delegations from 53 countries.

  24. Costing : • US$ 210 x 24 sq. mtr. = US$ 5040 • Airfare US$ 500 • Visa fees US$ 35 • Hotel Accomodation US$ 400 - 16 Days x US$ 25 Miscellaneous US$ 200 TOTAL = US$ 6175

  25. Steps ….Exhibition 1.   Booth booking. 2.   Prepare a database on importers & wholesalers of your product in India 3.   Host a website for your visit to India & print your introduction brochure for India. 4.   Communicate with prospective importers & wholesalers of your product in India to invite them to your booth. 5.   Arrange one to one meetings with importers & wholesalers of your product in India.

  26. Steps….Exhibition 6.   Take counsel on legal , technical , banking , customs , shipment , billing aspects of India. 7.   Arrange your hotel stay & transport in Delhi. 8.   Custom clearance of your container.9.   Arrange your visit to other cities in India , for business , if required.10. Introduce yourself to the importers association of your product in India. 11. Seek strategic guidance to your entry into India market.

  27. STEPS – Long Run Operations • Hire a professional manager who knows computers, internet & english & your product knowledge. 2. Register a company in India 3. Rent an office / Warehouse in India 4. Hire a manager in India for marketing - Malls • Open a bank account in India

  28. STEPS - Operations 6. Sell at a better price 7. Collect money • Deposit your money in your bank account in India 9. Transfer the money to your bank account in Turkey

  29. IMPORT DUTY • Right calculation of import duty • And local taxes • www.eximkey.com

  30. STAFF • HIRE LOCAL STAFF • BRING THEM TO TURKEY & SHOW YOUR OFFICE & FACTORY. • GIVE INCENTIVES

  31. CULTURE …. • Most Turkish companies who had difficulty in doing business in India was because of lack of cultural orientation rather than business opportunities! A. Making appointments B. Business dress C. Conversation D. Addressing people E. Gift giving - Science F. Gift giving - Art

  32. CULTURE …. G. Let's make a deal - Science H. Let's make a deal - Art I. Prosperous entertaining - Science J. Prosperous entertaining - Art K. Public behaviour , acceptable public conduct

  33. INFORMATION WEBSITES • www.dgft.delhi.nic.in -Foreign Trade • www.cbec.gov.in -Customs/Excise • www.dnb.co.in -Credit rating • www.eximbankindia.com -Exim Finance • www.tradeportalofindia.com -Trade Portal

  34. INFORMATION WEBSITES • www.concorindia.com - Container • www.transinfopreneur.com - Language • www.eximkey.com - Customs • www.ieport.com - Customs • www.indiamart.com - Buy / Sell

  35. www.turkey2worldstreet.com • 20 Sept. 2006 ( Wednesday ) • The Marmara Istanbul , Taksim , IST • 2.45 PM to 5.45 PM • Exporting to USA - A New Way • No Fees

  36. Exporting to USA - A New Way • Import yourself into USA • Wholesale in entire USA • Distribute in entire USA • Retail in Worldstreet , USA • TV sales in entire USA • Visa • Buy / Lease option

  37. THANK YOU QUESTIONS Jagat Shah CEO – Global Network jagat@globaljagat.com

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