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Doing Business in India

With Indians..

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REQUIRES A CLOSER UNDERSTANDING OF THE INDIAN MIND, INDIAN ETHOS AND INDIAN CULTURE

Doing business in India..

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Indians are

• Fiercely independent minded• Protective of autonomy, whether of country,

society or company.• They are generally not adaptive towards

foreigners as “marriage partners” but very • Welcoming as friends and acquaintances.• Indians like equality in relations of exchange

and

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Would go for joint ventures where both parties are on equal footing

And benefit each other mutually in the same degree.

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Indians are eager to know, if they gain from a deal

What the other party would also gain

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Japanese must show the Indians their gain

Which is not always in terms of money.

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KNOWLEDGE, TECHNOLOGY, CULTURE AND DISCIPLINE.

Indians would love to gain most from the Japanese in

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Indians would like the Japanese to treat Indians with respect of an

equal

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BE ABLE TO SUPPLY RAW MATERIALS AND INPUTS, TECHNOLOGY FOR BETTER PRODUCTS AND IF POSSIBLE ASSURED PROCUREMENT BY JAPANESE AUTOMOTIVE COMPANIES

The Japanese businesses are expected to;

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Sumitomo’s strategy in India has been through strategic partners

Like Bhushans and Tatas

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Such a strategy has limited success

• To be able to enter the Indian market on a large scale, Sumitomo could concentrate on

• Building a series of alliances with smaller plants• Supply them with raw materials• Infuse technology

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For supply of raw materials

• Sumitomo can procure and supply iron ore to sponge iron plants on long term contracts.

• Sumitomo can “adopt” cold rolling plants to roll HR sheets from Japan and finish them for auto makers.

• Sumitomo can supply steel to fabricators and metal product manufacturers.

• With a close monitoring of processes.

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For supply of technology, both against royalties and profit sharing

• There could be smaller mills that could be “adopted” and then given the incentives to export to Japan.

• Or supply to Japanese companies for re-exports.

• Or eventually exported out to Japanese clients.

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BUY BACK ARRANGEMENT EITHER FOR CONSUMPTION IN JAPAN OR FOR RE-EXPORTS

The ideal strategy is then to have a

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Contacts in India would be

• Sponge iron plants.• Secondary steel producers.• Cold rollers• Steel fabricators.

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Some possibilities..

• Sponge Iron Industries in West Bengal and Karnataka.

• Cold rolling units in Orissa, Maharashtra.• Steel fabricators in Uttar Pradesh,

Maharashtra.• Steel castings in Tamil Nadu and West Bengal.