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CRITICAL AREAS WHILE
ENTERING INDIAN MARKET AND
SOME COMMON MISTAKES.
STRUCTURING
THE COMPANY IN
INDIA
Nature of entity at the start – Complex
Laws and regulations
Issues pertaining to inflow and outflow
of the money from India
Risk perspective - if for any reason you
need to pull out or down size or change
the structure.
Outsourcing is emerging as
preferred model for early-stage
companies.
Salary structures and regional
language issues.
Stability and company track record is
given priority for foreign startups by
prospective employees so attracting
good talent is difficult.
Very high technology-based
manpower but distributed
regionally.
MANPOWER
AND HIRING
CHALLENGES
GEOGRAPHICAL
MARKET
DIMENSIONS
Metro cities have huge population and
educated consumer base B but C class cities
are now dominating the consumer segment
due to knowledge penetration, mobile and
internet penetration and economic power.
Healthcare sector see big success in
B and C class cities.
This segment of B and C class cities will
be poised to give high growth rate and
early adoption of product.
Agriculture and infrastructure sector is
not grown consistently across the
country.
Weather is diametrically opposite in 4
parts of the country.
CULTURAL
INTEGRATIO
N BETWEEN
TWO TEAMS
HR, Language issues and legal
issues.
Working style
Education level
Status of technology adoption
Trust
CONTROLLING
ISSUES
On site multilingual supervision is a
must in India especially for physical
products company.
The operational challenges can
be better solved by native and
local person since at ground level
language becomes a issue.
Remote management and
control is possible in technology
based ideas.
IDENTIFICATION
OF PARTNERS
Cannot rush in signing up because
unlocking will be very difficult.
Should try freelancing model
first, before locking in partner to
access his capabilities and
compatibility.
Multiple business partners help
to spread out the risk.
MISTAKES WHILE
LAUNCHING THE
PRODUCT
Should not try to cover multiple states
since the demographical and geographical
dynamics will stretch the management
bandwidth.
Small and homogeneous group of cities
in a state helps you to launch and
reassess the strategies if required.
In depth market research is a must with
Indian partner.
Price sensitivity should be taken in to
account in case of physical product
ideas.
MARKET
RESEARCH
PARAMETERS
FUNDING
OPPORTUNITIES.
Investor market is highly developed
but preference is always towards
companies established in India.
For a manufacturing startup the
funding opportunities are slow
moving since gestation period is
perceived to be long.
of the
For international startups structure
of the company is very critical from
investor point of view.
corporaterecipes@gmail.com
Email address
https://www.corporate-recipes.com/
Website

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Tips for entering the Indian Market

  • 1. CRITICAL AREAS WHILE ENTERING INDIAN MARKET AND SOME COMMON MISTAKES.
  • 2. STRUCTURING THE COMPANY IN INDIA Nature of entity at the start – Complex Laws and regulations Issues pertaining to inflow and outflow of the money from India Risk perspective - if for any reason you need to pull out or down size or change the structure.
  • 3. Outsourcing is emerging as preferred model for early-stage companies. Salary structures and regional language issues. Stability and company track record is given priority for foreign startups by prospective employees so attracting good talent is difficult. Very high technology-based manpower but distributed regionally. MANPOWER AND HIRING CHALLENGES
  • 4. GEOGRAPHICAL MARKET DIMENSIONS Metro cities have huge population and educated consumer base B but C class cities are now dominating the consumer segment due to knowledge penetration, mobile and internet penetration and economic power. Healthcare sector see big success in B and C class cities. This segment of B and C class cities will be poised to give high growth rate and early adoption of product. Agriculture and infrastructure sector is not grown consistently across the country. Weather is diametrically opposite in 4 parts of the country.
  • 5. CULTURAL INTEGRATIO N BETWEEN TWO TEAMS HR, Language issues and legal issues. Working style Education level Status of technology adoption Trust
  • 6. CONTROLLING ISSUES On site multilingual supervision is a must in India especially for physical products company. The operational challenges can be better solved by native and local person since at ground level language becomes a issue. Remote management and control is possible in technology based ideas.
  • 7. IDENTIFICATION OF PARTNERS Cannot rush in signing up because unlocking will be very difficult. Should try freelancing model first, before locking in partner to access his capabilities and compatibility. Multiple business partners help to spread out the risk.
  • 8. MISTAKES WHILE LAUNCHING THE PRODUCT Should not try to cover multiple states since the demographical and geographical dynamics will stretch the management bandwidth. Small and homogeneous group of cities in a state helps you to launch and reassess the strategies if required. In depth market research is a must with Indian partner. Price sensitivity should be taken in to account in case of physical product ideas.
  • 10. FUNDING OPPORTUNITIES. Investor market is highly developed but preference is always towards companies established in India. For a manufacturing startup the funding opportunities are slow moving since gestation period is perceived to be long. of the For international startups structure of the company is very critical from investor point of view.