doing business in nidia

8/7/2019 doing business in nidia

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A

PRESENTATIONON

DOING BUSINESS

IN INDIA


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WHY INVEST IN INDIA?

There is no dearth of evidence about therelatively unattractive nature of the Indian economy for theobjective investor. The economic times (Mumbai ,june

1,1994)carried a report entitled moodys sovereignratings: Global outlook, had india as an Asian economywith lower than investment grade ratings, in a survey of10Asian nations.

The heritage foundation in its index ofcounties, by degree of controls, ranked India 140 among(The observe, Mumbai 17, 1997). Under thesecircumstance, is it suprising that the patriotic NRI forpatriotisms sake makes a token investment in India.


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WHAT DOES ONE DO IN INDIA ?

BUSINESS, COURSE

A large number of Indians living abroad may like to return and

settle down in India.However the ratio was found to vary

depending on their country of domicile abroad.while 80 per cent

of Indians settled in England wanted to return, only 60 per cent in

USA wanted to. Now, traders and industrialist may have clear

options,they can always return to do business in India.

The NRI professional may not really want to return in a hurry,unless there is a negative push from his country of domicile

abroad.


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THE CONFIDANCE OF NEVER

RESIDED IN INDIA INDIANS

Of Indian blood, but born and brought up in Uganda,where his grandparent had migrated from Jaipur,inRajasthan,sunial mukherjee return to do business in india.

In 1977, a thirty four, he initiated the process of settingup a wireless equipment manufacturing unit near Udaipur.

In all his year Abroad, prior to his decision of doingbusines in india, he had only once visited india in 1996.

During his visit he explore business options in india, andsomewhat familiarized himself with the environment. Butit was several years later that he return with a businessidea, linked to his training expertise and perceived corecompetencies.


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THE ECONOMICE BENEFITS

REGARDING LOCATION

He initially adopted an objective viewpoint while deciding on theselections of locations for his proposed venture.

Indians like mukherjee, born and brought up abroad, seem to be moethan rationl about the selections of the ideal locations to do businessin india.

He had, in fact, first considered Bangalore, in the south, but herealised the important of a partnership, family business , and hisbureaucratic contacts in Baroda.

His decision regarding location was, hence,not on the basic ofpsychological affinity to a particulr state,city, town of origin or former

stay.

Mukherjee observe, indians born or reared in india way favour aparticular region to do business,even if specific language barriersdont exist.

H

owever, people like myself are more interested in the economicbenefits of location.


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MARKETING AND NETWORKING

WITHOUT ACLOSEDMIND

Having been in business, specifically trading abroad, he was

confident of succeeding in manufacture.

His strong resolution and confidence, in spite of beingstrapped with a currently loss making company, is

reflective of the potential of returning NRI professionals for

doing business in india

Success ingredients, for potential RNR entrepreneurs,he

believes, lies in their marketing and creative ability in their

capability for fund procurement and management and in

their personal and formal networking arrangements.


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KARMIC INFLUENCES ON BUSINESS

&TH

E ENTREPRENEURIALPERSONALITY

Are you an NRI wanting to do business on a small or medium scale

in India ? Maybe you have already resettled in India and exploringbusiness options ,or perhaps you are still abroad, and ponderingover the idea of doing business in India.

Maybe you are in independent professional, have perhaps workedfor somebody abroad in some functional management, technical or

research area,or you may be a trader or manufacturer in yourcountry of domicile.

You may be nurturing an idea for a new and unique productperhaps, or a service that you are certain will help you earnadequate money, to at least help you maintain the standard of living

that you were used to while abroad.


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RECOGNIZE THE TRADE OFF AND TAP

THE BENEFITS

Haren believes that the key to successfully doing business in India

is to have a flexible approach towards the authorities.

Returned NRIS should not stick to their own views regardingdelays and about crossing institutional hurdles to secure various

facilities.

They must understand that authorities too are hard-pressed, and the

institutional incentive mechanism does not encourage dynamic of

extraordinary effort on the part of support authorities to promote

industry.


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TRANING & SAVING PRECEDES

ENTREPRENEURSHIP

His return to India in 1987,& his initiation into entrepreneurial

activity, were all pre-planned.

Haren manharlal shah initiated himself in his maiden role asentrepreneur at the age of thirty, in 1989. Before he return to India, he

worked as the first line manager, a staff engineer for a leading

American information systems firm.

He wanted to train himself abroad, earn some cash and return to Indiato do business. No other options had ever been considered. His

technical knowledge and financial saving from abroad provided

invaluable support in his attempt to do business in the subcontinent.

In his decades stay in the united states, he completed his studies,

before working for a few years, and gaining valuable experiences.


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FORGET THE SUPPORT SYSTEM,FOCUS

ON THE PRODUCT AND ITS MARKET

Hemrajani believes that the slow process of the initiation of abusiness venture in India, and the negative experiences of

inexperienced (in term of business) return NRIS, oftendissuades entry of potential RNRI entrepreneurs.but thecomplaints often with regard to the bureaucracy, by nomeans present insurmountable hurdles.

A small scale of operations rarely causes serious difficulties orinteractions with administrative machinery in any phase ofbusiness management.that is so long as interests onborrowing from funding institutions are paid on time andmore than a score of different types of returns have been

filed regularly.


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A RECIPE FOR SUCCESS IN

BUSINESS

Desai believes that right presentation is a crucial business style that

must be adopted for successful growth in business.

It is the approach and to image that one project to the externalenvironment and to business- related players that counts. However,

presentations does not imply a blown-up image, or media hype,but a

solid, conservatives profile.

This helps in ones efforts to mobilize funds from institutions and the

public in a growing firm.


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A JACK OF ALL TRADERS OR AJACK

FOR EACH TRADE

The cash crisis occurs due to the entrepreneurs concentration on

profit rather than on cash, which on necessary to maintain

activity levels and to meet marketing obligation. The starting crisis that ruins many an enterprise just after the

initiation stage, often occurs due to underestimation project,

working capital requirement relative neglect of the market or of

taxation.

Typing up funds in fixed investment and unplanned expansion

may also culminate in a crisis any of these and many more such

crises may occur due to lack of all-round managerial exposure.


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IMPRESSION FROM A GLOBALIZED

ENTREPRENEUR,ABOUT WETTING HIS

FEET

At moment, Pujaris electronics firm is teething

problems.however,while his current turnover is just about Rs

10million, he confidently talks in term of achieving a Rs 1.5billion turnover in ten to fifteen years time.

He expects his turnover to touch Rs 100million by A.D.2000.

The major rationale in a doing business in India. He confides was

first the decision to wet my feet in India, and than expand abroad,because there are well-protected Indian banks and institutions,

which provide infrastructure and all necessary facalities


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INNOVATIVE STRTEGIES TO BEAT

SICKNESS

Several of the firm discussed in this book are performing in a

rather poor fashion.In most cases, the RNRI operating the show

are confident of a turnaround.However, some cases are not veryviable from an independent financial point of view.

In such cases, unique options have been successfully explored

by entrepreneurs.sudhir parikh got an opportunity and utilized it.

Dr G.R Patel, with his chemical units, developed the availableopportunity.Defective implementation has invariably been a

result of the market environment

.


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COST IN BUSINESS

As amply indicated in Basants case as in most others discussedearlier the marketing and sales functions may make or break abusiness opportunity.But linked to these in another important

variable that effects profit and viability _costs. This variable is more under the control of an entrepreneur.the

product mix, the method of

productions, and productivity of labour. To plan for achieveprofit, it is necessary to analyze the specific relationship in thefirm between cost,profit and volume.

Variable cost and hence profit are affected by changes in thelevel of activity, selling price, variable cost per unit and changein fixed cost

.


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AN ASSESSMENT OF MOTIVE

Academicians like Shama bhat or G.R Patel are used to certain

levels of in independence that being ones own can ensure in the

Indian environment.

This is an underpinning characteristic of the true entrepreneurial

breed.


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CASH

IS KING(?)

Let us look at Arora s predicament in terms of a

balance sheet.sundry debtors and inventory are crucial

elements influencing the liquidity position of a firm. Speed of turnover, volume of working capital and

structure of financing influences the liquidity of a

business unit. Liquidity of a depends on current

assets.which can be converted into cash within a years(which is normally taken as short_run) and on current

liability, such as accrued expenses, trade creditors and

options.s


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THE HOW QUESTIONS OF

OPPORTUNITY IDENTIFICATION

Narain was a businessman.his family background was business

and he had been always looking for new opportunities. From

trading in tea to operating cinema cinema house in India, his

operations were diverse.

A casual suggestions from an acquaintance started him bottling a

cola drink in Maharshtra. Hemrajani, in Nigeria, while scanning

newsletters and magazines related to the chemical industry,came

across something interesting.

The per capita consumptions of plastics was observed to be low

in India _his decision was made.


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WITHIN THE ENVIRONMENT AND

WITHOUT

Business in India will be piece of for non first generation

entrepreneurs, especially if they have done business in India or

abroad earlier. One may just retire into business. But, ones business family

background and previous experiences in the field could easily

lead to success. In, the fact those who have been doing business

all their lives look down upon new first- generation entrepreneurs

and ridicule their foibles and lack of commitment.

The former have the experiences and the financial muscle, and

invariably do well.


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THE HOW QUESTIONS OF DOING

BUSINESS IN INDIA

Some RNRI have been following a policy of flexible

manufacturing and a high value-added composition of

imported and domestic input, to face progressive competition.

The ideal methodology: During visits potentialRNRI could make personal enquiries, establish contacts and

focus on a business idea. Business identification may come

from colleagues in India offering an idea and market to anNRI abroad, or NRI from abroad offering the same to an

RNRI or Indian, the second may also involve funding

support.

doing business in nidia

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