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


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


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


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


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?




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!


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


Hilary Dunne

Project Team ManagerProject Team Manager

Trade Mission to India 2014


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.


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.


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


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.


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.


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


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


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


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


Coffee break10 minutes10 minutes

(please sign up for one to ones at the entrance)


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


Q&A panel session


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)


THANK YOU!THANK YOU!


www.scottish-enterprise.com/international

Talk to an export adviser 0800 019 1953

Doing Business in India 2014 - presentation

Education

Transcript of Doing Business in India 2014 - presentation