BUSINESS OPPORTUNITY
By:
Entry India, LLC
www.entryindia.com
Russia
USA
Entry India, LLC
www.entryindia.com
China
Australia
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Agenda
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India and its people
Opportunity identification and making money
Real world examples
Factors for success
Showcasing of real-world projects in
Entrepreneur booklet
Note:
• Topics not covered: US side of the business
(Exporting, Financing, Customs, etc.)
Entry India, LLC
www.entryindia.com
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Target Audience
• Small & Medium Enterprises (SMEs) and
Start-ups with products and services to sell in
India
• Entrepreneurs to create or innovate unique
solutions for the Indian market
• Non-Resident Indians (NRIs) who want to
establish a revenue-generating business for
their families in India
Entry India, LLC
www.entryindia.com
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What comes to the mind when we
hear the word ‘INDIA’?
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Outsourcing
Population
I don’t know where India is on the world map
Mahatma Gandhi
Corruption
Bollywood
Slumdog Millionaire
Young population with so many ‘wants’
Everything seems to sell in India
Risk taking entrepreneurial spirit
Are people really making money there and how I can?
Where do I start…??? Entry India, LLC
www.entryindia.com
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India Statistics
• 7th largest country in the world
• Population: 1.156 billion (July 2010 est.)
• World’s 4th largest economy; GDP: $1.236
trillion or $3.57 trillion (PPP)
• Capital is New Delhi and Financial Center is
Mumbai
• Largest English speaking nation in the world
• Over 200 languages are spoken
• Density: 389 persons per square km as
compared to 31 persons per square km in USA
Entry India, LLC
www.entryindia.com
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‘India Rising’ Indicators
GDP Growth:
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6.8% in 2009 and expected 8.5% in 2010-11
US-India Trade:
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Export to India (2008): $32.44 billion, a 85% up from 2007
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Import from India (2008): $39.89 billion, a 65% up from 2007
Population divide:
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52% less than 25 years of age
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Middle Class: 300 million
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One-third households got a raise of over 20% in last 12 months
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Only 2% of Indians have life or health insurance
Urbanization:
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Currently 29% of population is living in cities and this will increase to 590 million by 2030
Per Capita Income
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grew by 10.5% to $985 (2009-10) from $892 (2008 – 09)
Working Population:
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180 million new job seekers will enter working age by 2020
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Cities will account for 70% of the new jobs created
College Graduated Workforce: Currently 14 million
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500 universities and 25,000 colleges
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Requirement: Additional 800 universities and 35,000-40,000 colleges by 2020
Stock Market:
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BSE index 3000 in 2003; 21,000 in 2008; 8000 in 2009; 18000 current
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Less than 1% actively participate in stock market
Advertising: 134 million households have TV; Private satellite channels: 500 from 1 (2000); News & current affairs 211
Mobile Phones: current 652.42 million subscribers, 17million added in July (monthly growth of 2.66%)
Entry India, LLC
www.entryindia.com
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About Indians
People do Business with People
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Compete: work hard and win
Make more money, buy branded clothes, big cars, big houses
News: must know what is happening (necessarily complete or accurate)
Go to school, get a degree and a high paying job
Save and own a home
Negotiate a price and get discounts
Secretive about what they know
Relationship building
Senior to be called Sir or use Mr. as prefix to their last name
Talking, Food, Cricket, Politics
Family and sacrificing for their kids
Family run businesses
Show-off (regional)
Believe in astrology
Sensitive to religion: won’t do business or accept a check during certain time of the
year
Advertisement Tag line: ‘Brand that Americans Love’
Entry India, LLC
www.entryindia.com
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What Indians think About
America/Americans..?
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World leader
Wants to control
Clean, pollution free
Innovators and leaders
Abundance
Superior Education
Excellent law-enforcement
Angelina Jolie
Too much process oriented
Dying consumerism
Cheap real estate
America on Sale
Who is buying in America?
Entry India, LLC
www.entryindia.com
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Budding Areas of Opportunities
The following is a small sample-set of areas with opportunities to make money
• Food & Beverages
– roof-top farming, food processing technologies, food packaging technologies,
water treatment plants for drinking water…
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Home based
– Home décor products, kitchenware, bed and bath, etc.
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Healthcare
– setup hospitals, medical clinics, drug development industry
– Medical devices/equipments, scanning and testing labs, etc.
– Development of disease specific herbal products following FDA guidelines
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Education
– degree colleges (medical/nursing), vocational institutes
– Programs to train teachers, automotive mechanics, medical technicians, etc.
– Courses in upcoming fields of genetics, nanotechnologies, etc.
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Infrastructure
– waste management, solar and wind technologies, temperature controlled
warehouses, air and noise pollution control technologies
– Towing trucks, automated parking lot technologies
Entry India, LLC
www.entryindia.com
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Identifying an Opportunity:
An Example
• What is the Scene
– 180 million entering working age in 10 years
– Huge Demand/Supply mismatch in education, skills
• What can be done
– Setup colleges, training centers
– Create programs, design new courses in upcoming
fields
• Scalability or business expansion model
– Franchising
Entry India, LLC
www.entryindia.com
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Some Examples
with next steps
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You have a product or service that you want to sell in India. For example
face cream, hand sanitizer, education service, consulting service,
automated parking lot technology, etc.
– Do your research, Make a business case, Find a Distributor, Become a
Franchisor etc
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You want to buy cost effective products from India to sell in US. For
example handicrafts, handlooms, rugs, jewelry, herbal medicines, etc.
– Do your research, Find a Supplier or a Sourcing Agent
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You want to save on your costs in US by using India’s workforce in India.
For example software development, research, legal and financial opinions,
etc.
– Hire an outsourcing consultant, find and select an outsourcing company
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You want to start a project in India like setting up a manufacturing plant,
power plant, develop a product for Indian or US market, etc.
- Contact US dept of commerce, Find a partner company in India…….
Entry India, LLC
www.entryindia.com
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Example 1
Recommended steps
Example 1: I want to sell Hand Sanitizer Gel in India
(the following depends on the size of your project and your expectations from India)
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Call US Commercial Service Office (USCS) in India and give them your requirements
– I need to have a feasibility report that presents the market size for the product, competition, pricing models,
market development, distribution network and supply-chain recommendations, logistics and shipping
arrangements, expansion strategies and revenue repatriation.
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USCS will recommend consulting companies that can create a feasibility report
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You would select one of the consulting companies based on cost, location, previous clients. Etc.
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Based on the recommendations of the report, you would proceed further or end the project
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If proceed further: Call US Commercial Service Office to find and select a distributor
– Pay the fees ($350 minimum) to USCS
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Based on recommendations by USCS, visit India and do one-on-one meetings with the prospective distributors in
presence of an official from USCS office
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Select the distributor of your choice and finalize terms and conditions with the distributor (USCS plays no role in
this part)
– Call Entry India, get a Lawyer recommendation and sign a legally binding agreement
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Start your project and make MONEY
Entry India, LLC
www.entryindia.com
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Success Factors
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Time and Patience
Right Expectations
Well defined agreements
Clear Strategy
An Indian on your side
Entry India, LLC
www.entryindia.com
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When Dealing with an Indian
Partner
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Reliability: Testimonials with Client verification
Ethical Practices
Commitment to work/doing business
Cooperation with partner
Fair and responsiveness to employees
Show that you have multiple options open
You are in the game for long time
Willingness to come to India
Build relationship
Entry India, LLC
www.entryindia.com
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Pay Special Attention to
• Scams, crime and corruption (82nd in
Corruption Index)
• IP infringement
• Resolution of disputes, court settlements
Entry India, LLC
www.entryindia.com
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Resources
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India Business and Travel Guide by Entry India
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Camille E. Sailer, Esq., Director of
International Trade, NJEDA
Sidney Simon, Special Agent in Charge Office of Export Enforcement
Regina Gordin, Business Development
Officer – Export - Import Bank
Abdul Quader Shaikh, Ph.D., Senior
International Economist, US Commercial
Service
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Download more presentations on Doing
Business in India, Financing in US, US side of
Export control and more from entryindia.com
Entry India, LLC
www.entryindia.com
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THANK YOU
Entry India, LLC
www.entryindia.com
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Slide 1 - Entry India