gives info about all one need to know to do business in india

1. BOOK REVIEW
ON
TITLE:- DOING BUSINESS IN INDIA FOR DUMMIES
SUBMITTED TO PROF VS CHAUHAN sir,
Presented by P svsn Parameswarao,
I sem MBA Bhartiar

2. DOING
BUSINESS
IN
INDIA
FOR
DUMMIES
- Ranjini

3. ABOUT THE AUTHOR
RANJINI MANIAN is a linguist, pioneering business
woman, Multi-cultural expert, lives in chennai.
She is founder & CEO of GLOBAL ADJUSTMENTS, a
one of top 10 cool companies (Business India rating).
An editor of India’s only free cultural magazine –
‘At a Glance’.
Received several awards included a commendation
from President of India.

5. • The book is directed primarily toward professionals
who explore opportunity of the Indian economy .
• for managers for forming Indian strategies.
• for foreigners who is willing to set up a business in india and
need a basic guide to understand indian environment.
• (book is written keeping from foreigners
point of view & solely meant for them)

6. •
Table of contents :
Introduction.
• Part I: Brushing Up on India Business Basics.
Chapter 1: So You Want to Do Business with India.
Chapter 2: Understanding Breaks and Brakes in Emergent India.
Chapter 3: Making Sense of India: A Business Viewpoint.
• Part II: Getting Your Business Up and Running.
Chapter 4: Putting Together a Business Plan.
Chapter 5: Starting Up in India.
Chapter 6: Doing Business from Abroad: The Long Distance
Relationship.
Chapter 7: Building Your Team India.
Chapter 8: Dealing with the Powers That Be.
Chapter 9: Counting Your Rupees and Paise.

7. Table of contents cont…d
• Part III: Going About Your Business in India.
Chapter 10: Enjoying Your Stay in India.
Chapter 11: Making the Sale.
Chapter 12: Establishing a Manufacturing Presence.
Chapter 13: Legal Landmines.
• Part IV: Ensuring an Indian Success Story.
Chapter 14: Understanding Indian Culture.
Chapter 15: Being on Your Best Behavior: Indian Etiquette.
Chapter 16: Avoiding Potholes on the Road to Success.
• Part V: The Part of Tens.
Chapter 17: Ten Tips for Training Your Team India.
Chapter 18: Ten Cultural Tips.
Chapter 19: Ten Tips from Chanakya, the World’s First Management Guru.
Chapter 20: Ten Ways to Enjoy Your Downtime in India.

8. The book highlights the following:
 How to create an effective business plan for
your indian venture.
 What to consider when choosing an appropriate
entity for your indian business.
 How to train your indian team.
 Where to find invaluable resources for your
business.
 What to expect as far as rules & regulations that
govern business in india.
 How to communicate with your indian
colleagues, partners & employees.

9. SO YOU WANT TO DO BUSINESS IN
INDIA,THEN WHY?
India has a population of more than one
billion people.
Salaries in India are often much lower than
elsewhere in world and quality is still good.
Natural resources are abundant
Indians are hardworking, well educated &
have english language skills.
India is an ancient civilization &
a young nation. (youngistan)

10. What makes india now an Attractive
place to do business
• Prior to liberalization, FDI was restricted
• by ceilings on equity participation,
• curbs on technology transfer,
• export obligations & government approvals.
• Since 1990’s after continued liberalization efforts,
india’s economic doors open wide for international,
• Total FDI is now possible in many fields,
For e.g.100% FDI in march 2005 in construction industry ,you name any
construction & it is being constructed by international companies.
India’s GDP rate has grown by an average of 7%
annually since 1994.

11. Evidence of india’s economic potential
• India 3rd largest investor base in the •The country is a commercial
World. launcher of satellites for both military
& communication purposes,both
•India is a 3rd country to build a super nationally & internationally
computer on its own
•India has a 2nd largest cultivable land
•The country is a supply source for a in world
vast list, from traditional list like tea
to cutting edge software •Indian road network 2nd largest in
world
•Largest manufacturer of motorcycles
•Ranks 3rd in bio-technology •It produces 38million tons of steel,
development annually
•& what not ,Many
more…………………..

12. Business opportunities abound
The following industries list have shown fastest growth & most
potential for foreign business ventures in india
• Automobiles & auto components
• Business process outsourcing
• Communications
• Healthcare
• Hospitality
• Information technology
• Infrastructure development

13. As per FICCI, The following areas are sure to be
long term growth industries:
The future belongs to these industrial areas:
 Bio-tech and bioinformatics
 Food processing
 Metals & minerals
 Oil & gas
OPEN FOREIGN POLICY:-
India adopted international policy soon after its independence.
India’s non-alignment policy is an advantage from business prospective that it
allows companies from countries like U.S., China, and south africa & others to
operate with equal ease in .
i.e. every country enjoys equal opportunities in india without any discrimination.

14. Other reasons to setup shop in
india
• A favourable time zone and geographic
location. E.g. an office located in india can communicate
• business with Australians in the morning, Europeans in the afternoon,
and Americans at the end of the day.
portions of population
Population age segment is as follows:
0-14 yrs old = 31%
15-64 yrs old = 64%
Over 65 yrs old = 5%
i.e. india has enormous workforce that rest of the world can draw, especially women
account for 28% of the work force,each year more and more women join the
salary ranks, which means more power on spending,
clearly we can see marketing opportunities opening up

15. Potential Pitfalls
Two of major hindrances for doing business
in India.
1. Cutting through remaining red tape.
Bureaucracy
Certain hoops such as obtain electricity connection,
environmental clearances, land approvals and other
formalities can be difficult to jump through.
2. Breaking through language barriers.
people having varying english language abilities
and proficiencies with different mother tongue &
accents.

16. Business communities in india
• The marwaris:- a entrepreneurs community from rajasthan
in north.commerce, finance industrial manufacturing are
their preference.
surnames - Goenka or Jhaver.
• The gujaratis:- A business minded group.
Diamond trade attracted them to belgium.
their last names are shah & mehta.
• Jats:- Agriculturists by tradition,official farming class of
punjab, common surnames- chauhan or Dalal
• The chettiars:- Tamil community,traditionally merchants &
lenders.they finance for shopkeepers, sur names ending
appan or aiah e.g. meyappan, muthaiah etc.

17. • Baniyas:- they concentrated along west coast of
India. As bankers, money-lenders, sur names are
like gujarati.
• Jains:- country’s most prosperous trading groups.
Last name jains, e.g. as in case of family that
owns -Times Of India
• The ezhavas: In the state of kerala, matriarchal
form of society, they made name as merchants,
land owners, cultivators. Panicker or ashan are
often surnames.
• The Nadars:- Translates as lords of the land,
business people & merchants,known to be hard
working,.nadar as last name, e.g.
famous HCL founder –Shiv Nadar

18. A few core questions you should
consider before begin of business plan
• What’s the product or service that your
business proposes to provide
• What need does ur product or service propose
to fulfill
• Who are your potential customers and why do
you think they will buy ur product
• How will you reach your customers
• As a planning tool, ur business plan should:
i.Guide you through various phases of business plan
ii.Help you identify road blocks & obstacles & establish alternatives.

19. Exploring investment routes
No-No Investment areas:
• You can invest in any industry except the following due to
strategical, political & religious concern:
 Atomic energy
 Arms & ammunition
 Railway transport
 Mining or certain materials like iron,manganese,
gold,diamonds ,copper & zinc etc.
Since india wants to keep the control of these vital &
sensitive industries to protect soverignity of country.

20. For Foreigners Starting up in India
Seeking approval for business:
• The govt of india allows FDI through two
routes;
• 1. Automatic route(AAR)
• 2. Govt Approval- an OK from FIPB
(foreign investment promotion board)

21. Choosing a business address
• Govt of india classifies india’s cities as Tier I,II & III
cities based on population,infrastructure, & spending
power.
• Considering tier I cities:-
Tier I cities provide largest & most qualified labor pools, best
infrastructure, and feature most modern buildings. refered as
metro cities,
overseas companies tend to operaes in cities like
mumbai,Newdelhi, Chennai, Bangalore and hyderabad.
Bangalore is silicon valley of india(IT), chennai is detroit of
india(favoured by automobiles mfrs)

22. Because of overcrowding, and costs rise, tier II & III
cities are being considered for establishing
• Some remote areas even found themselves in
international business scene.
• These tier II & III cities can offer advantages;
– Competitive infrastructure
– Good quality of life
– Highly educated population
– Proximity to primary cities.
*Pune with its quality infrastructure is one example
of tier II city.
*Companies like IBM,Microsoft and Dell are leading
the charge into Tier III cities.

23. Consider the following up-coming cities of
business destinations.
• Bhubaneswar in the east
• Chandigarh & jaipur in the north of india
• Kochi & thiruvananthapuram in southern state of
kerala.
• Mangalore & Mysore in the south.
Your Choice of location should be based on
following:- Access to and cost of utilities.
Availability of infrastructure
Availability of skilled man power
Proximity to resources etc…

24. Taking advantages of benefit of
location
• SEZs(Special economic zones): It is an area that designed to
provide a globally competitive, duty free, cost-effective environment to
export oriented businesses such as manufacturing, trade & services.
• SEZs features many benefits:
– Good infrastructure including roads,water
supply,drainage, and electricity.
– Developed land & Bldgs with certain standards.
– Customs clearance facilities available on site.
– Tax advantages also available.

25. There are currently 7 SEZs operational in india at these
locations:
Chennai,
Falta(west bengal),
Indore, Jaipur,
Kandla(Gujarat),
Kochi(kerala),
Noida(UP),
santa Cruz(maharastra),
Visakapatnam.
Over 40 new SEZs have been approved & are at various stage of completion.
The following are few of indian business locales of future:
 Bhadohi(kanpur)
 Dronagiri(maharastra)
 Hassan(Karnataka)
 Kulpi(West bengal)

26. Export oriented units & parks
• Exported oriented units(EOUs) offer a host of
advantages many of same as SEZs. They can
also provide a technological skills pool and
industrial base.
• Business parks such as software & technology
parks can also provide an attractive situation
for some companies & offer various
infrastructure benefits & other perks.

27. Joint ventures
• A joint venture is a financial or technical collaboration
that can take many forms,including an alliance with an
indian firm, a take over,.
• An example from mining industry where foreign companies that specialize
in mining of bauxite form JVs with existing indian aluminium smelters.
For a JV, Pay special attention to following:
• Contribution by two parties
• Exercise control
• Exit options
• JV entry pricing
• Legal implications, governing laws & arbitration
• Management of the company
• Mode of investment

28. BUSINESS PROCESS OUTSOURCING
The most popular types of outsourcing are:
 Direct outsourcing
 Indirect outsourcing
 Build own transfer
 Captive outsourcing
If you want to use BPO, you have to follow few
steps to get u there:
1. Request a proposal.
2. Sign a memorandum of understanding(MOU)
3. Start agreement negotiations
4. Get an outsourcing agreement
5. Review service provided
6. Take a call

29. The following areas are some of most common in
Indian BPO
 Computer programming
 Customer care & technical support
 Data entry/processing/conversion services.
 Human resources & administration
 Insurance & processing
 Legal services
 Market research analysis
 Medical transcription
 Remote network maintenance & monitoring
 Telemarketing
 Typesetting & publishing
 Web-based training

30. Planning your outsourcing strategy
• The length of time needed to get a BPO up
and running in india depends on various
factors:
 Location
 The process being outsourced
 State government policies.
You can find plenty of information like approximate costs etc in
starting BPO operation in India @ following websites:
 www.dqindia.com
 www.expresscomputeronline.com
 www.idcindia.com/about/about.htm

31. Bumps in the BPO Road
Some Problems
• A shortage of skills
• Cost increases and management
investment
• The problem of overpromising
• Scam artists

32. Other modes of entry
You have number of options for starting up your
business in india :
Indian companies shopping for overseas
investors
Foreign companies setting up distributions
arrangements with Indian.
Foreign business franchising in India
Foreign businesses selling directly to indian
consumers

33. Putting your plan ready into action
• To get your business rolling,refer to following
steps:
• 1. you need to make name of your company officially by
getting it approved by Registrar of companies, & have to
submit name along with memorandum of association &
articles of association to ROC.
• 2. The next stop is superintendent of stamps or an
authorised bank to get the MOA & AOA stamped
• 3. Back to ROC, take duly stamped papers along with you,
pay registration fees,inreturn get a certificate of
incorporation.
• 4. Have a company rubber stamp made.
• 5. Now you need a PAN for tax registration from nearest
UTI.

34. • 6. Visit the assessing office of income tax
department to get yourself a tax account number.
• 7. Next comes your business registration
( under mumbai shops & establishment act).
• 8. Register for Value Added tax.
• 9. Register for professional tax.
• 10. Register in the employees provident fund
organisation
• 11. Finally, register with employees state insurance
corporation for medical insurance

35. • Indian economic law: 20 essential law which
you need to be familiar.
THE INDIAN CONTRACT ACT (1872) PAYMENT OF BONUS ACT(1965)
NEGOTIABLE INSTRUMENTS MONOPOLIES AND RESTRICTIVE
ACT(1881) TRADE PRACTICES ACT(1969)
WORKMEN’S COMPENSATION INDIAN PATENTS ACT(1970)
ACT(1923) PAYMENT OF GRATUITY ACT(1972)
SALES OF GOODS ACT(1930) COPYRIGHTS ACT(1975)
PAYMENT OF WAGES ACT(1936) ARBITRATION AND CONCILLATION
INDUSTRIAL DISPUTES ACT(1947) ACT(1996)
MINIMUM WAGES ACT(1948) GEOGRAPHICAL INDICATIONS OF
FACTORIES ACT(1948) GOODS ACT(1999)
EMPLOYEES PROVIDENT FUND AND TRADEMARKS ACT(1999)
MISCELLANEOUS PROVISION ACT DESIGNS ACT(2000)
(1952) COMPETITIONS ACT(2002)
MATERNITY BENEFITS ACT(1961)

36. FEDERATION OF INDIAN CHAMBERS OF COMMERCE AND
INDUSTRY (FICCI):
• It is the direct and indirect voice for more than
2,50,000 business units of all sizes and types.
Works towards promoting global trade
investment,acts as international business
forum, offering information and guidance to
investors from abroad.It has also a vast
database of important contacts & details of
companies registered with it.
Confederation of Indian industries(CII)-
its non-government,non-profit organisation, to
• promote the growth of industry in india by
working with various industries and Govt.

37. CONCLUDING…………
• Further, The Book further supplies
information to understand Indian culture, Its
Etiquette,Making sale, Establishing
manufacturing presence, Tips for training your
team in India,Cultural tips, ways to enjoy your
downtime in India, etc…
• It is recommended that ten chankya tips
mentioned in this book is very useful to read
which is an add -on to a business mind.
.

38. Any Questions that I can answer

39. &
Exhausted