India, with a population of 1.21 billion, is a parliamentary republic and the 7th largest country globally, featuring 18 official languages and diverse industries including textiles and software. It has a rapidly growing economy, projected to be the 3rd largest by 2050, and offers favorable investment and business conditions, including a large young workforce and significant foreign investment opportunities. The document outlines various market entry strategies for businesses, including franchising and joint ventures, highlighting their advantages and disadvantages.

2.  Population is 1.21 billion (as of 2011 census)
 India is a republic, governed by a parliamentary system,
consisting of 28 states and 7 union territories
 India is the 7th
largest and 2nd
most populous country in the world
 India has 18 official languages, with Hindi and English been
predominantly used throughout the country
 Currency is the Indian rupee
 Main industries: textiles, chemicals, food processing, steel,
mining, petroleum, machinery, pharmaceuticals and software
 Major economic Centers: Mumbai (Bombay), Chennai (Madras),
Hyderabad, Bangalore, Delhi, Kolkata
 One of the youngest countries in the world, average age 25
 Each year 19 million students enroll in high school and 10 million
in pre graduate degree course across India. 2.1 million
Graduates and 0.3 million post graduates pass out of India’s non
engineering colleges

3.  The Indian economy is
10th
by nominal GDP, and
3rd
by purchasing power
 India’s GDP grew by
9.7% 2010-11, 6.2% 2011-
12 and 5% 2012-13 and is
expected to grow by
5.7% in 2013-14 (RBI
forecast)
 There has been an
average annual GDP
growth rate of 5.8% over
the past two decades
 Over 100 of fortune 500
companies have R & D
facilities in India
 The Bombay stock Exchange
lists 6600 companies, only
NYSE has more
 Labor force of 498.4 million
 Low cost labor
 Political Stability and
government policies
Sources: The World Bank, Indian
Ministry of Finance Wikipedia,

4.  Rates as the 2nd
best
destination for
manufacturing projects
and the most attractive
investment destination
(IBM)
 3rd
in UNCTAB report on
world Investment prospects
(2009)
 Rated among most
favorite Investment
destinations (JETRO, JBIC,
EIU, Deutsche Bank, etc)
 Operates under English
common law and based
on English style justice
system
 Largest democracy in the
world
 2nd
largest English speaking
nation in the world after
USA
 Projected to be 3rd
largest
economy by 2050
 Harmonized IP rights laws
 2nd
largest pool of scientists
and engineers in the world
 Superb banking systems
and well developed
financial systems
 Favorable business policies
& political outlook

5. Route Description
Local Office Create a base in India with limited capabilities
Franchising Parent company allows franchisee to use companies
strategies and trademarks
Joint Venture Partnership between host and home firms, in which home
firm has an equity and management voice within the firm
Contract Manufacturing Product is produced in India by a local producer.
Licensing Give licensee in India patent and trademark rights,
copyrights and know-how on products and process
Direct Export Uses agent, distributor, overseas subsidiary or act via
government agency.
Indirect Export The products are exports though trading companies, export
management companies.
Wholly Owned Subsidiaries Buy a company already in India or build a new facility.

6. Advantages
 Direct contact with
customers
 Improved credibility
in market place with
customers
Disadvantages
 Cost of establishing
an office is higher
than using an agent
and/ or distributor
 Don’t have a local
partner with
contacts and
expertise

7. Advantages
 Rapid international
expansion
 Group purchasing and
advertising
arrangements
 Relatively inexpensive
way of expanding
 High levels of
consumer demand
and relatively low
levels of competition
Disadvantages
 Difficulty adapting
franchised chain to
local market tastes
 Limited revenue
growth as only receive
a percentage of
profits

8. Advantages
 Decrease the capital risk
involved
 Leverage the local companies
facilities, in manufacturing,
distribution and retailing
 Leverage the local companies
managerial capability in the
local environment
 Leverage the local
company’s contacts with the
government to get green
signals
Disadvantages
 Complexity in coordinating
policies, decisions and
execution with a different
company.
 Difference in culture
 Difference in managerial styles
 Difference in the motivation
behind the participation
 Communication problems
 Selecting right partner
 Complications at time of exit
 Safety of intellectual property

9. Advantages
 Low capital required
 Low managerial Risk
 Focus on core
activities
 Less Complicated exit
problems
 Less Complicated
division of
responsibilities
Disadvantages
 Chance for a lack of
control on certain
parameters
 Differences in quality
Standards, lead to
negative initial
experience for
customers
 Scalability of problems
 Selection of vendors

10. Advantages
 Import and investment
barriers
 Legal protection possible in
target environment
 Low sales potential in
target country
 Large cultural distance,
licensee lacks ability to
become a competitor
 Rapid entry into foreign
market
 Virtually no capital
requirements
 Returns realized faster
Disadvantages
 Control over use of assets
may be lost over
manufacturing and
marketing
 Licensee has to obtain
approval from international
vendor for product design
and specifications, as not a
representative of
international vendor
 Could create future
competitors.
 Have to reveal secrets,
intellectual property

11. Advantages
 Most tradition and well
established form of operating
in foreign market.
 Simple with low
cost/investment and risk
 Can obtain knowledge of
foreign market
 Increased utilization of
domestic plant
Disadvantages
 Significant investment in
marketing strategy
 High transport costs
 Tariffs
 Problems with local agents
 Less controls of distribution
 Exchange rate fluctuations
 Customs duties and taxes
 Costs to gain exposure, set up
sales and distribution networks
 Product might need to be
modified or redesigned to
meet local requirements or
customer preference

12. Advantages
 Full ownership
 Greater control over
operations
 Higher profits
 Can keep company
secrets (patents) to
yourself
 Able to dictate
quality in brand
Disadvantages
 Larger investment
 Higher risks
 Harder to exit

13. Market Assessment •Market size, growth rate and trends
•Regulatory framework
•Barriers to entry
•Location and distribution channels
•Possible exit strategy
Competitive analysis •Intensity of competition
•Key players and their positioning
•Competitive strategies and benchmarking of key parameters
Consumer Analysis •Consumer segmentation
•Consumer Behavior
•Identification of un-met needs
Option Generation •Exhaustive option generation
•Option evaluation
•Shortlist potential opportunities to suit individual
G0-to-market Strategy •Detail financial modeling
•Go-to-market strategy covering value proposition, product
detailing, pricing, target customer, operating model and mode
of entry.
•Detail implementation roadmap

14.  Obtain PAN number from Income
Tax department
 Open a current account
 Register a Limited Liability
Partnership
 Register Your Company
 Register for service tax
 Register for VAT/Sales tax
 Excise Duty (if applicable)
 Customs duty
 File entrepreneurship
Memorandum at DIC
 Apply for TAN
 Find State Specific guidelines &
Procedures
 Obtain DSC (Digital Signature
Certificate)
 Form No.1 - it states that all the
requirements of the incorporation
have been complied with
 Form No. 18 – Notifies the address
of the registered office of the
proposed company
 Form No. 29 - This is a consent
obtained from all the directors of
the proposed company to act as
directors of the proposed
company. (Not required for pvt ltd
company)
 Form No. 32 – This states the
appointment of the proposed
board of directors from the date
of incorporation of the company
and is signed by any of the acting
directors

15. The major regulations of law in India affecting foreign
investment are:
 The Foreign Exchange management Act of 1999
("FEMA") – regulates foreign collaboration and equity
participation in India
 The Companies Act of 1956 – regulates corporations and
their management in India
 The Industries Act of 1951 – governs industrial regulations
 The Monopolies and Restrictive Trade Practices Act
of 1969 – governs restrictive and fair trade practices
 The New Industrial Policy of 1991 – lays down the policy
and procedure for foreign investment

16.  The corporate income tax effective rate for domestic
companies is 35% while the profits of branches in
India of foreign companies are taxed at 45%.
Companies incorporated in India even with 100%
foreign ownership, are considered domestic
companies under the Indian laws
 India has entered into tax treaties with a number of
countries including, Australia, Belgium, Canada,
Denmark, France, Germany, Indonesia, Japan,
Korea, Mauritius, Singapore, the United Kingdom and
the United States. These treaties endeavor to avoid
double taxation and attract know- how and
technology. In many treaties the withholding tax on
royalties and fees for technical services coming from
India is lower than the general tax rate

17. The New Export-Import Policy of 1992 provides substantial
tax incentives for investments in Export Oriented Units
("EOU's")
 Concessional rent for lease of industrial plots
 Preferential power allocation and supply
 Exemption from import duty for capital goods and raw
materials for power sector industries as well as for trading
companies primarily engaged in export activity
And industries located in the Export Processing Zones
("EPZ's")
 Import duty exemption
 Complete tax holiday
 Decentralized "single window clearance”

18. Remain Competitive
 High Performance Management and
Benchmarking
 Management Audit & Review
 Joint Ventures, Partnerships & Strategic
 Alliances
 Assistance in Private Equity Investments
 Identification of Key Managerial
Personnel
 Market Research & Feasibility studies
M&A advisory
 Acquisition
 Infusion of Private Equity Investments,
 HNI’s, Venture Capital Funds
 Due Diligence,
 Post-Merger Integration
Build
 Conceptualization
 Market Sizing
 India Entry Strategy, find which is best
route.
 Startups
 Strategic/Business planning (Formulate
business Growth Plan and Business
Strategy for 3-5 years)
 Feasibility studies
 Identification of Local partner,
representative
Grow
 Corporatization & Professionalization of
Entrepreneurial firms
 Sales and Marketing Strategy
 Generate capital raising alternatives
 Prepare investment kit for fund raising
 Management support for startup
ventures

19. Commencement •Understand vision
•Missions and goals
•Discuss assumptions and plans
Industry Analysis •Current industry status
•Future opportunity
•Market, consumer and competitor analysis
Business Unit analysis •Corporate structure
•Culture
•Processes and operations
Validation •Validation of key findings
Strategy Formulation •Use multiple techniques to be future ready
Delivery •Presentation and delivery of the report
Implementation •Assistance in implementing the strategies

20.  Senior partners involved in every
assignment
 Specialized expertise
 Higher degree of confidentiality
 Less bureaucratic, more flexible thus faster
delivery and turnaround times
 Identify key personnel
 Review of current business model

21. D’Essence
Investment
Banks
Venture
Capitalists
Banks
Private
Equity Funds
Senior
Corporate
Leaders
Entrepreneurial
Firms
International
Network
Associates
Domain Specialists
– CA’s Lawyers, CS
Trade
Associates
Our strong network of relationships
woven over years of associations
enables us to provide you with best
market access, and growth options.
We work with reputed VC’s Private
Equity Funds, Corporates and HNI’S”

22. D’Essence Consulting,
303, Aar Pee Centre
11th Road, Gufic Compound
MIDC, Andheri (East)
Mumbai – 400093
India Fax- +91-22-2822 8142 / Tel- +91-22-2834 7425
www.dessenceconsulting.com
Email: chandni@dessenceconsulting.com
Tel direct +91-22-28228142
.