Alliances Around the World Cultural Roundtables - India

Subhojit Roye, CSAP Principal, Strategic Alliances

Tradeshift, Inc.

3rd March 2016

1.  RelevantBasics2.  Implica3onsofPartnering

3.  BusinessRela3onships4.  CaseStudy5.  Keytakeaways

Agenda

India:ThelastBRICstandingIndia is set to become one of the fastest-growing economies in the next few years. GDP in 2016 is expected to grow 8%, significantly stronger than China - though, from a lower base.

http://www.worldbank.org/content/dam/Worldbank/GEP/GEP2015b/Global-Economic-Prospects-June-2015-Table1.pdf

India:Amatchlessbusinesspartner

http://www.nasscom.in/india-value-proposition

1.  Value-to-weightra3o2.  Highvalue-addedorIPdrivenbusiness3.  Typeofpartnercompany:

–  Global,Local,andGlocal–  WesternvsIndian

RelevantBasics

•  Therecouldberadicalchangestoassump3onsandini3albusinesscase:

–  Yourcollaboratorhaspoten3altobecomeacompe3tor.

–  Yourprospec3veacquisi3ontargetmayevenbuyyouout!

•  Poten3altoimpact:

–  IP:Patents,copyright,licensingandfranchising–  PhysicalAssets,Know-how,Brands,Talent–  Long-termbusinessplans

Implica3onsofPartnering

General:

•  Indiaisavastcountry,andwhileitiseasytogeneralize,thereisimmensediversity

•  Butthemorethingsseemdifferent,themoretheyremainthesame

–  Indiaisthe“servicesback-officefortheworld”forIT,BPO,R&D,Engineering

–  Concernsaboutlanguage/culturearenolongerrelevant.(Peopleunderstandyou)

•  Beawareofdifferencesacross3mezonesandincurrencies(Rupees/Paise)andnumbering(Lakhs/Crores).

BusinessRela3onships

Sociale-que0e

●  Understand levels within a company. Respect seniority. (Be aware of hidden or informal influencers)

●  Be gentle. Never loud, arrogant or false. (Better to be trusting)

●  Meeting start times and durations are not always followed. (But you should remain punctual)

Commitments

●  A “nod” can mean a “yes”, but also a “no”? (Always confirm your understanding).

●  Ask whether "I can do it" means "best intentions" or "I WILL make it happen”

●  Define “success”, “failure” and what is “acceptable”. (Plan contingencies, and escalations)

BusinessRela3onships

Laws,IP,Taxesandcompliance●  Laws are complex – vary by state, sometimes by city and can change suddenly

●  IP/ Patents: There are a lot of safeguards, but do take care to protect yourself

●  Foreign currency: Assume exchange rate fluctuations, explore locking-in rates

●  Taxes are complex– understand implications to your business model.

●  Be aware of Double Taxation Avoidance Agreements (DTAA) that can impact transfer pricing, royalties, margins.

●  Take care about repatriation of funds and profits

●  There is increased pressure from government and from social media to be transparent

BusinessRela3onships

Ini-aldriverforTescotoenterIndia:

●  Lowcostsourcingforitssupermarketsworldwide

Currentsitua-on:

●  Bangaloreisnowtheirsingleglobaltechnologyandretailopera3onscenter

●  50-50JVwithaTatacompanytoenterIndia's$500bnretailsectorwith12stores

CaseStudy

Ques-onsforourbreakoutsession:

1.  WhatpointsaboutIPshouldoneconsiderwithpartnersinIndia?

2.  Whatlevelofsupportshouldoneexpectfromgovernment?

3.  Whatare“unexpected”benefitsonecangetthroughpartneringinIndia?

1.  Themorethingsseemdifferent,themoretheyarethesame

2.  Therecanberadicalchangestoassump3onsandini3albusinesscase

3.  Bepreparedtobesurprised4.  Rela3onshipscanrundeep,personalandverylong5.  Indiaisincredible,enjoytheride!

Keytake-aways

Dhanyawad!Thankyou!