Doing business in india
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Transcript of Doing business in india
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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.