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Doing Business in India


1. India: An Overview. Map of India. Slide 4/62. GDP USD 590 billion. GDP growth rate 9 ... India has a consumer base of 1.14 billion people ... – PowerPoint PPT presentation

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Title: Doing Business in India

  • Doing Business in India
  • Prem Behl
  • Managing Director

  • India An Overview
  • Opportunity Sectors
  • Market Entry Strategies
  • Exhibitions India Group

Slide 2/62
(No Transcript)
Map of India
Slide 4/62
Growing Indian Economy
ProjectedSource Economic Times India Brand
Equity Foundation (IBEF)
Slide 5/62
Growing GDP
Contribution of Services - increased from 48
to 62 and is estimated to contribute 60 by 2010
ProjectedSource India Brand Equity
Foundation (IBEF)
Slide 6/62
Growing Exports
Projected Source Ministry of Commerce IBEF
Slide 7/62
Growing Imports
Slide 8/62
Increasing Forex Reserves
Steadily increasing Forex reserves offer adequate
security against any possible currency crisis or
monetary instability
Source Reserve Bank of India India Brand
Equity Foundation (IBEF)
Slide 9/62
Growing FDI Inflows
India is ranked second in AT Kearneys FDI
confidence index (2007)
Electronic equipment, manufacturing and telecom
have witnessed significant FDI inflow
  • Provisional
  • Source Department of Commerce

Slide 10/62
Increasing Per Capita Income
Source India Brand Equity Foundation (IBEF)
Economic Survey 2007-08
Slide 11/62
Vibrant Economy Driving MA Activities
In 2007, there were 676 MA deals and 405
private equity deals with a total value of USD
70 billion
Source IBEF
Slide 12/62
Major MA and Investments Announcements in India
POSCO to invest in building steel manufacturing
plants and facilities in India by 2016
USD 12 billion
Plans to establish three manufacturing plants to
produce photo-voltaic units
USD 2 billion
Plans to spend on its development operations in
India over the next four years
USD 1.7 billion
Source India Brand Equity Foundation (IBEF)
Slide 13/62
Major MA and Investments Announcements in India
Source India Brand Equity Foundation (IBEF)
Slide 14/62
India Inc. Investing Overseas
  • India Inc spent USD 32.73 billion for its 240
    overseas MA deals in 2007.
  • Outbound FDI by Indian companies is set to
    increase by 15 per annum over the next five
  • It is estimated that FDI outflows in 2007-08 are
    likely to overtake FDI inflows into India
  • Reasons
  • acquire new markets and maintain its growth
  • buy cutting-edge technology
  • develop new product mixes
  • improve operating margins and efficiencies
  • take worldwide competition head-on

Slide 15/62
India Inc. Investing Overseas
Main sectors Main Destinations China,
UAE, UKNorth America is emerging as a
Slide 16/62
Major MA Deals Undertaken Abroad by India Inc.
Source India Brand Equity Foundation (IBEF)
Slide 17/62
Additional economic indicators
  • India has a consumer base of 1.14 billion people
  • India is the 4th largest economy in the world
    when measured by PPP
  • Indias has a growing middle class of over 300
    million people - 30 of Indias population and
    larger than the population of the US
  • India is the 3rd largest global telecom market.
    The mobile subscriber base has grown from 0.3
    Million in 1996 to over 250 million currently.
  • India is likely to add over 200 shopping malls by
    2010 and 715 malls by 2015
  • The number of billionaires in the country were 3
    in 1999 23 in 2006 and are 48 currently.

Slide 18/62

2. Opportunity Sectors for Ohio companies
Indias Trade with USA
USD Billion
Imports from US
Source Department of Commerce, Govt of India
Slide 20/62
Major Items Exported to USA (2006)
Source US Department of Commerce
Slide 21/62
Ohios top manufactured exports to India (2006)
Source ODOD, State of Ohio
Slide 22/62
Major Items Imported from USA (2006)
Source US Department of Commerce
Slide 23/62
Aerospace and Nuclear
  • Main Items imported from USA
  • Helicopters, Aeroplanes, Spacecraft (Incl
    Satellites) Spacecraft Launch Vehicles, Nuclear
    Reactors, Boilers, Machinery And Mechanical
    Appliances Parts Thereof.
  • Aircraft Engines - GE Aircraft Engines, Pratt and
  • Aircraft Boeing, Lockheed-Martin
  • Helicopters - Bell Helicopters
  • Sikorsky Aircraft Corporation (SAC) plans to set
    up in India

Slide 23 a
Precious Stones Metals
  • Main items imported from USA
  • Gold (Incl Gold Plated with platinum) unwrought
    or in Semi Manufactured Forms/In Powder Form
  • Diamonds (not mounted)
  • Articles of Jewellery parts

Slide 23 b
Optical Medical Instruments
  • Major items imports from USA
  • Instruments Appliances used in Medical,
    Surgcial, Elctro-Medical Apparatus
    Sight-Testing Instruments
  • Instruments Apparatus for Physical/Chemical
  • Measuring/Checking Instruments, appliances
    machines, N.E.S. Profile Projectors
  • Measuring Alpha, Beta, Gama, X-Ray
  • Radiotherapy Apparatus
  • Orthopedic appliances, artificial parts of the
    body, implants, etc.
  • Lab Equipment Heating / Cooling

Slide 23 c
Engineering Goods Machinery
  • Major items imports from USA
  • Electrical parts for Line telephony/telegraphy,
    including telephone sets, handsets, videophone
  • Turbo-Jets, Turbo-Propeller other Gas Turbine
  • Pumps
  • Liquid Elevators
  • Ball or Roller Bearings
  • Other Moving, grinding, leveling, scraping,
    excavating, extracting, boring machinery
  • Cranks Gears Ball Screws
  • Switch Relays
  • Transformers

Slide 23 d
Automotive Sector - Overview
  • India is the worlds
  • 2nd largest two-wheeler market,
  • 4th largest commercial vehicle market
  • 11th largest passenger car market.
  • Expected to be the 7th largest automobile market
    by 2016
  • India has become an attractive destination for
    global American, European, Japanese and Korean
  • Over 50 new cars and models were launched in
    2007-08. Over 60 new cars and models are expected
    to be launched in 2008-09.
  • General Motors India, a wholly owned GMC
    subsidiary reported 114 increase in domestic
    sales in August 2007 (5,817 units vs. 2,720 units
    in the same month last year).
  • Indian companies are aggressively looking at
    North America, Europe and Asia to spread their
    wings and become global players in this sector.

Source IBEF, Economic Times
Slide 24/62
Automotive Sector - Opportunities
  • Export to India
  • India imported US 3.3 billion worth auto
    components in 2006-07 - mainly wheel rims, ball
    bearings, gears and gearing components
  • Bosch Chassis Systems will be making parts for
    Tata Motors Nano car
  • Harley Davidson is expected to enter the Indian
  • Leading India automobile manufacturers are
    investing overseas
  • Mahindra and Mahindra (MM) will set up a
    assembly plant in North Brazil
  • TVS Motor Company has set up a two-wheeler
    manufacturing plant in Indonesia
  • Tata Motors acquired a Nissan facility in
    Pretoria, S. Africa
  • Mergers/Acquisitions/JVs with Indian auto
    companies DaimlerChrysler AG of Germany has
    taken a call option to buy 26 per cent in
    Jalandhar-based bus body builder Sutlej Motors.
  • Set-up manufacturing in India Audi, Fiat, Ford,
    Honda, Hyundai, Suzuki Motor Corp, Yamaha, etc.
    have manufacturing plants in India. Others like
    Piaggio, SkodaAuto, Volkswagen, are planning to
    set-up facilities in India.

Source IBEF, Economic Times
Slide 25/62
Advanced Energy - Overview
  • Hydro Energy
  • India has been generating hydro-power for more
    than a century and ranks 5th in the world in
    terms of exploitable hydro potential.
  • According to CEA estimates, Indias exploitable
    hydroelectric potential is estimated to be 150GW,
    whereas the installed capacity in the country has
    so far been 34.65GW.
  • The potential of Indian small hydro power
    projects (up to 25 MW) is estimated at 15GW,
    whereas the country has so far set up SHP
    projects with a cumulative installed capacity of
    1.98GW only.
  • Solar Energy
  • Most parts of India have 300 - 330 sunny days in
    a year
  • About 66 MW of aggregate capacity is installed
    for various applications comprising 1 million
    industrial PV systems
  • India has attained 7th place worldwide in Solar
    Photovoltaic (PV) Cell production and 9th place
    in Solar Thermal Systems

Slide 26/62
Advanced Energy - Overview
  • Tidal Energy
  • An estimated combined potential of 15GW has been
    identified at the Gulf of Kutch and the Gulf of
    Cambay on the west coast and Durgaduani creek in
    the state of West Bengal on the east coast.
  • Wind Energy
  • India's wind energy sector is estimated to have a
    potential of over 45GW
  • India ranks 4th worldwide in use of wind power
    with an installed capacity of 7.09GW. Capacity
    addition of 10.5GW is anticipated.
  • India is 3rd in the world in new construction
    corresponding to an overall increase of over 40
    in new wind power stations.
  • Bio Energy
  • Indian climatic conditions offer an ideal
    environment for biomass production.
  • The Agriculture Ministry has large scale plans to
    plant Jatropha across the country. India
    currently has nearly 250,000 acres under Jatropha
  • The Indian Railways had a successful trial run
    with a 20 mix of Jatropha fuel with diesel.

Slide 27/62
Advanced Energy - Opportunities
Export to IndiaKhandelwal Solar Power Ltd has
signed an MoU with Shanghai-based Solar EnerTech
Corp to import and market the latter's products
in India. Technology Collaborations American
Superconductor Corporation licensed its
proprietary wind turbine design and manufacturing
know-how exclusively to Ghodawat Industries
(India) Pvt. Ltd. for certain countries in the
Middle East, South Asia and Africa.
JV/Investments/Acquisitions Tata BP Solar, a
joint venture between Tata Power Company and BP
Solar has manufacturing plants in India, and
regularly exports it products and systems. Essar
Power is exploring JV options to manufacture wind
turbines. Set up manufacturing in India
Slide 28/62
Advanced Energy - Opportunities
  • Indian companies overseas Wind power major
    Suzlon Energy Ltd. recently acquired German wind
    turbine manufacturer RE Power for Euro 1.35
    billion. Suzlon Energy (Tianjin) Ltd., a
    wholly-owned subsidiary, has orders for wind farm
    projects in China.
  • Exports from India
  • The export of wind turbines and components
    together is expected to be US 500 million during
    this financial year.
  • During 2006-07 (up to 30 September 2006),
    indigenously produced wind turbines valued at
    250 million were exported to Australia, Brazil,
    China, USA and to European countries.

Slide 29/62
IT / ITeS - Overview
  • The rapidly-growing Indian IT sectors revenues
    are estimated to touch US 49-50 billion in FY 08
    with a growth _at_ of 24-27.
  • Indian information technology enabled services
    (ITeS), which provided basic data entry services
    over a decade ago, now offer services such as
  • Knowledge Process Outsourcing (KPO)
  • Legal Process Outsourcing (LPO)
  • Games Process Outsourcing (GPO)
  • Design Outsourcing
  • In 2006-07
  • Software and services exports grew by 33 to a
    revenue of 31.4 billion.
  • The Indian domestic IT segment grew 23 to 8.2
    billion. The BPO segment touched 9.5 billion,
    and is estimated to reach 12.5 billion in FY
  • Further, the industry expects the export turnover
    to touch 80 billion by 2011.

Slide 30/62
IT / ITeS - Opportunities
  • Indian companies are investing overseas
  • Responding to the falling dollar, companies such
    as Infosys, Satyam, Tata Consultancy and Wipro
    have stepped up acquisitions and opening
    additional facilities closer to US and European
  • Wipro has opened a facility in Monterrey, Mexican
    to service American and European clients.
  • Satyam has launched a software centre in MSC
    Malaysia, a government-designated high-tech zone.
  • ExlService Holdings, Inc. are to open BPOs in
    Croatia, Philippines and Romania.
  • Satyam is looking to buy small boutique BPO and
    knowledge process outsourcing (KPO) firms in Asia
    Pacific, Europe and US with deal sizes between
    40- 50 million.

Slide 31/62
Biotechnology - Overview
  • Indian biotech accounts for 2 of the global
    biotech market.
  • With over 340 companies, growth has been 35-40
    pa for last 3 years.
  • Has already attracted as many as 200
  • Ranks 1st in terms of growth in the transgenic
    crops sector.
  • Is already the world's largest vaccine producer
    as well as the largest cultivator of BT cotton.
  • The Indian bioinformatics market is poised to
    double by 2010.
  • The biotech industry in India comprises five
    broad divisions
  • Biopharma
  • Agri-biotech
  • Bioinformatics
  • Bioindustrial
  • Bioservices

Slide 32/62
Biotechnology - Overview
Biotech Parks in India  Andhra Pradesh
Development and scale-up of bioprocesses and
technologies. Himachal Pradesh Medicinal and
aromatic plants, horticulture. Karnataka Drugs
and pharmaceuticals. Maharashtra Pharmaceutical
and bio-medical research Punjab Agribusiness
and certification of export goods. Chennai RD
in Medical Biotechnology, Nutraceuticals,
Agricultural Biotechnology and Bioinformatics
Lucknow Health care, agriculture, environment,
industrial applications, energy.
Indian Bio Clusters
Slide 33/62
Biotechnology - Opportunities
  • Export to India
  • The Indian biotechnology reagent market is
    primarily import-oriented.
  • Technology imports are growing in India.
  • Invest in Indias Biotech Success Story
  • 100 foreign equity investment is allowed in
    manufacturing of all drugs except recombinant DNA
    products and cell targeted therapies.
  • DBT provides a single window processing mechanism
    for all mega biotechnology projects involving
    foreign direct investment (FDI) of 22 million or
    more under the Foreign Investment Implementation
    Authority (FIIA) with its Fast Track Committee

Slide 34/62
Biotechnology - Opportunities
  • Mergers, Acquisitions and tie-ups
  • Indian firms do research for pharmaceutical
    giants like AstraZeneca, Merck and Pfizer, while
    other partnerships involve Indian firms acquiring
    the intellectual property of small American
  • Outbound
  • Biocon has taken 70 stake in German pharma
    player AxiCorp enabling it to market injectible
    insulin, generics, biosimilars and biologics in
    the region.
  • Biocon acquired the intellectual property assets
    of US-based Nobex Corp., entered into
    co-development with Bentley Pharma and is
    currently looking to acquire a US pharma
  • Nicholas Piramel acquired UK's Avecia Biopharma.
  • ITC acquired Australian agri-biotech company
  • Inbound
  • Merrieux Alliance picked up a 60 stake in
    Hyderabad based Shantha Biotechnics.

Slide 35/62
Polymer / Plastics - Overview
  • Growing electronics, packaging, healthcare,
    consumer durables and telecommunication sectors
    of Indian economy offer growth for plastics
  • The consumption of plastics is expected to reach
    12.5 MMT, making India the third largest consumer
    of plastics by 2010 from the current 8th rank.
  • In 2007, the Polyolefin segment grew by about
  • Polymer demand dominated by polythene
  • The Indian plastics processing industry is highly
    fragmented and small and tiny players constitute
    majority of the units.
  • Injection moulders dominate the plastics
    processing sector.
  • Polyethylene bag and sheet producers dominate the
    extrusion segment.

Slide 36/62
Polymer / Plastics - Opportunities
  • Export to India
  • Import duty on polymers and plastics products is
    one of the worlds lowest.
  • Equipment for special end-product such as BOPP
    film, heat shrinkable film and rigid PVC foam are
    imported from countries like China, Germany and
  • JVs/Ownership
  • International equipment suppliers have entered
    India either by joint venture or through 100
    ownership. Some technology tie ups are also
  • Some of the prominent suppliers present in India
    include   ASB Nissei  Battenfeld
     Brampton  Cincinnati Milacron  Frankische
    Rohrwerke  Krah  Reifenhauser   Sidel  
    Windmoller Holscher

Slide 37/62
Polymer / Plastics - Opportunities
  • Mergers, Acquisitions and tie-ups
  • Outbound
  • Sintex has acquired Frances Nief Plastic, a
    leader in plastic injection mouldings and
    thermosets, Chennai-based Bright Brothers and
    US-based Wausaukee Composites (WCI) over the last
  • Uflex Ltd is likely to set-up a new plastic film
    line in Dubai through a wholly-owned unit.
  • Inbound
  • Alpla Group, an Austrian plastic packaging
    company, is set to form JV
  • Mitsui Chemicals Group is investing 7.5 million
    to set up a new unit in India
  • DSM plans to invest over 100 million by 2010

Slide 38/62
(No Transcript)
Market Entry Strategies
  • US companies can enter the Indian market via the
    following routes
  • Appoint an agent
  • Open Project Office / Branch Office
  • 100 wholly owned locally incorporated company
  • JV with Indian partner
  • Franchise agreement
  • Technology transfer

Slide 40/62
Marketing Strategies
  • Research Find more information about the
    industry and competitors
  • Liaise with relevant government departments
  • Liaise with relevant multipliers / trade
    associations and chambers of commerce
  • Attend conferences and meetings
  • Exhibit at important trade shows to generate
  • Participate in Trade Missions coming to India
  • Plan company visits
  • Organise / Attend roadshows
  • Advertise in local media and PR activities
  • Price Appropriately Good quality at affordable
    price market
  • Customer Service is an important factor
  • Database membership directories of various
    chambers of commerce and trade associations are
    good database
  • Liaise with Ohio India Office

Slide 41/62
Export to India
  • Import Regime
  • India imports most goods on the payment of a
    specified custom duty. The basic customs tariff
    rate ranges from 0 to 40 plus additional duty of
  • Classification - The Indian classification on
    tariff items follows the Harmonized Commodity
    Description and Coding System (Harmonized System
    or HS).
  • A small number of goods fall in the
    prohibited/restricted list of items which are on
    grounds of national security, health and
    environmental protection.
  • Anti - dumping measures are taken by India
  • Keep abreast of the latest duty changes imposed
    by Central Board of Customs Excise within the
    Ministry of Finances Department of Revenue

Slide 42/62
Import Regime
Export to India
  • Imports generally fall into one of the following
    three categories
  • Freely importable items - Most capital goods
    fall into this category. Items in this category
    do not require import licenses and may be freely
    imported by any individual or entity.
  • Canalised items - Items under this category can
    be imported only by specified public-sector
  • Prohibited items Majorly relate to import of
    Ivory, animals and products related to wild
  • Import approval is based on compliance with

Slide 43/62
Import Regime
Export to India
  • Imports are allowed free of duty for export
    production under a duty exemption scheme.
  • Export Promotion Capital Goods (EPCG) Scheme
    allows manufacturer exporters to import capital
    goods for pre production, production and post
    production (including CKD/SKD thereof as well as
    computer software systems) at 5 Customs duty
    subject to fulfillment of specified export
  • Agent can assist in providing detailed and
    customised information on applicable schemes,
    duties and various formalities

Slide 44/62
  • Infrastructure is being improved Golden
    Quadrilateral, privatization of road
    construction, Railway East-West Freight corridor
  • Inter-state tariffs are applicable
  • Appoint local wholesaler or distributor for
    distribution in India

Slide 45/62
Product Certifications, Labeling Standards
  • Bureau of Indian Standards (BIS) operates Product
    Certification Scheme
  • The Certification Scheme is basically voluntary
    in nature but for a number of items affecting
    health and safety has been made Mandatory. These
    are LPG cylinders, food colours, food additives,
    pressure stoves, safety items used in mines,
    clinical thermometers, packaged drinking water,
  • BIS operates two schemes for certification of
    imported goods, one for foreign manufacturers and
    the other for Indian importers.

Slide 46/62
Language and Numerics
  • India has 22 recognised languages
  • English is used commonly for business
  • Exchange rate US1 Rs. 40
  • Grams, meters, liters are used for measurements

Slide 47/62
(No Transcript)
20 years of Promoting Trade
Slide 49/62
A Profile
  • Established 1987
  • Total Employees 130
  • Area Sold (Dom/Intl) 300,000 nett sq.
    ft. (Apr07 Mar08)

Slide 50/62
  • Headquarters
  • New Delhi
  • Branch Offices
  • Mumbai
  • Bangalore
  • Hyderabad
  • Chennai
  • Menlo Park, CA, USA
  • Rep Office
  • Ahmedabad

Slide 51/62
Business Strengths
  • Understand Indian and international business
  • with in-depth market knowledge,
  • have robust database,
  • with extensive business contacts,
  • media contacts,
  • and relationships with Central and State

Slide 52/62
Exhibitions India Group Committed to Excellence
Slide 53/62
  • Indias leading ISO 90012000 certified trade
    show organiser
  • Our Mission
  • To organize a complete range of knowledge based
    international trade fairs and conferences.
  • To provide associated services to help our
    customers create
  • Joint ventures technology transfers
  • Promote bilateral trade
  • Increase investments

Slide 54/62
Our Events in 2008 - 09
  • All About Food (6 8 August 2008)
  • Renewable Energy India (21 23 August 2008)
  • Elcomp India (10 -12 September 2008)
  • Sports, Fitness, Adventure Leisure (13 16
    October 2008)
  • Convergence India (18 20 March 2009)
  • Airport Airline Expo (Civil Aviation Week) (3
    5 August 2009)

Slide 55/62
  • Facilitate participation of Indian companies at
    overseas trade shows.
  • Sales agent for over 180 exhibitions, focusing on
    37 industries in 48 countries.
  • Market leader in this field.

Slide 56/62
  • A unique print resource for the used car segment
    targeting car buyers.
  • The Ultimate Car Marketplace

Slide 57/62
  • Provide design and display solutions for
    exhibitions, retail showrooms, events, etc.
  • Focus on quality and innovation.

Slide 58/62
  • Group Hospitality wing serving clients.
  • Arrange hotel reservations, domestic and
    international ticketing, tours / sightseeing,
    etc. services.

Slide 59/62
  • Represent
  • State of Ohio, United States of America (USA)
  • Hong Kong Trade Development Council (HKTDC)
  • City of Stuttgart, Germany

Slide 60/62
Main Activities
  • organise overseas trade missions
  • prepare research reports
  • facilitate media coverage
  • promote trade ties
  • organise seminars road shows
  • undertake business matching
  • co-ordinate visit schedule / appts.

Slide 61/62
Thank You Prem Behl Managing Director OHIO INDIA
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