Nortech Trinity India

Private Limited
INDIA ENTRY STRATEGY & WORKING PROPOSAL

INDIA ENTRY STRATEGY

INDIA ENTRY STRATEGY & WORKING PROPOSAL

Road to Success

Indian Railways is aiming at $500 billion investment in next 10-12 years to increase capacity
in anticipation of faster economic growth.

INTRODUCTION

India has become a very compelling investment case that has promising prospects

➢ Economic growth is driven by the increasing consumer spending power of the Indian population.
The coming years India will becomeone of the largest consumer markets in the world;

➢ India is also an attractive destination for Foreign Direct Investment (FDI) due to its first-class
outsource destinations, whichoffer cheap, skilled labor pools. Moreover, the Indian government
focuses on implementing investor-friendly policies, which enhances the attractiveness of the
Indian market.

Numerous multinationals have already entered the Indian market successfully. Formulating an
inclusive market entry strategy can help you to become successful in the Indian market, whether
you are looking to invest in production facilities or to target the consumer or b2b market

➢ India has a large infrastructure that is continuously expanding. Furthermore, due to its central
location companies can easily reach Middle Eastern, African and South-Asian countries as well;

➢ India’s demographics make it an interesting market with remarkable future chances. Due to its
relatively young population (median age is 26.7 years) it has a large consumer market potential.
This is further strengthened by the still expanding middle class.

As a result of further liberalisation of the Indian market, it has become more easy for investors to
enter. However, due to country-specific complexities of doing business in India, it remains a
challenging business environment

NORTECH TRINITY INDIA PRIVATE LIMITED | INDIA ENTRY STRATEGY & WORKING PROPOSAL
 ➢ It is important to be aware of sector-specific initiatives and regulations, legal entity types, the
business registration process, local tax structure and cross-cultural issues when devising an entry
strategy.

➢ Nortech Trinity has a large footprint in India and its professionals have experience in helping foreign
companies and investors do enter or grow in the Indian market

➢ Nortech Trinity has offices on strategic locations in India, including the top destinations for
outsourcing and employing;

➢ As a result of our presence in USA, Norway and India and our resulting local and international
knowledge and experience, we are perfectly equipped to meet all your Market Research,
consulting, and Marketing needs.

MARKET ENTRY STRATEGIES

The keys to market entry success in Indian market are diverse

NORTECH TRINITY INDIA PRIVATE LIMITED | INDIA ENTRY STRATEGY & WORKING PROPOSAL
FORMULATING A STRATEGY

Nortech Trinity helps foreign companies to formulate right strategy for India Entry as per industry segment
and business priorities after researching the present and future aspects with its vast industrial network.

DIFFERENT INDUSTRY SEGMENTS

NORTECH TRINITY INDIA PRIVATE LIMITED | INDIA ENTRY STRATEGY & WORKING PROPOSAL
India Entry Strategies for Foreign Investors

With the liberalization of FDI policy 2017, most restrictions on foreign investment have been removed and
procedures have been simplified. Today, there are very few industries where foreign investment is
prohibited. Moreover, investment ceilings, which are applicable in certain cases, are gradually being
removed or phased out. Government of India on a yearly basis formulates a consolidated FDI Policy, with
the intent and objective to promote FDI through a policy framework, which is transparent, predictable,
simple and reduces regulatory burden.

A non-resident entity can invest in India, subject to the FDI Policy, except in those sectors/activities, which
are prohibited. However, a citizen of Bangladesh or an entity incorporated in Bangladesh can invest only
under the Government route. An entity incorporated in Pakistan can invest, only under the Government
route, in sectors/activities other then defence, space and atomic energy and sector prohibited for foreign
investment.

FDI is allowed either under the automatic route without prior approval of the Government or the RBI in all
the sectors as specified in the FDI Policy. FDI in sectors not covered under the automatic route requires
prior approval of the Government, which is considered by the Foreign Investment Promotion Board (FIPB).

Depending upon its business needs, a foreign company can choose between setting up a liaison office, a
branch office or a project office or incorporating an Indian company, either its wholly owned subsidiary or
joint venture with an Indian/overseas partner.

A. AS AN INDIAN COMPANY

A foreign company can start its business operations in India by incorporating a company under the
Companies Act, 1956 through either a Joint Venture (JV) or forming a Wholly Owned Subsidiary (WOS).
Foreign equity in such Indian companies can be up to 100%, subject to sectoral equity caps under the FDI
policy.

1. Joint Venture with an Indian partner

Foreign companies can set up their operations in India by entering into strategic partnership with Indian
entities and forming a Joint Venture (JV). JV can provide many advantages to the foreign investor, like
access to established distribution/marketing set up of the Indian partner and established contacts of Indian
partners to smoothly run the operations in India.

2. Wholly Owned Subsidiaries

NORTECH TRINITY INDIA PRIVATE LIMITED | INDIA ENTRY STRATEGY & WORKING PROPOSAL
Foreign companies can also set up their operations in India by forming a Wholly Owned Subsidiary in
sectors, where 100% foreign direct investment is permitted under the FDI policy. An application has to be
filed with the registrar of Companies (ROC) for registration and incorporation of the Company in India. Once
a company has been duly registered and incorporated as an Indian company, it is subject to Indian laws
and regulations, as applicable to other domestic Indian companies. Such a subsidiary is treated as an
Indian resident and an Indian company for all Indian regulations (including Income Tax, Foreign Exchange
Management Act, 1999 and the Companies Act), despite being 100% foreign owned. For detailed
procedure and guidelines for incorporation of company in India, read here.

B. AS A FOREIGN COMPANY

Foreign companies can set up their operations in India through Liaison Office, Project Office or a
Branch Office.

1. LIAISON OFFICE

Foreign companies are allowed to open liaison offices in India, subject to obtaining specific approval from
the RBI, to undertake liaison activities on their behalf. Liaison office acts as a channel of communication
between the principal places of business and entities in India.

Scope of Activities

Under the current exchange control regulations, a liaison office is permitted to:

• Represent the parent/group companies in India;

• Promote exports and imports from/to India;
• Promote technical /financial collaborations between parent/group companies and companies in India;
• Act as a communication channel between parent/group companies and companies in India.

Typically, a liaison office is not permitted to:

• Earn any income;

• Undertake any industrial, trading or commercial activity;
• Enter into any agreement on behalf of the head office;
• Borrow or lend money for any commercial activity;
• Charge any fee or commission or otherwise earn any income, in respect of liaison activities carried on
in India.

NORTECH TRINITY INDIA PRIVATE LIMITED | INDIA ENTRY STRATEGY & WORKING PROPOSAL
 For detailed procedure and guidelines for opening the liaison office in India, read here.

2. BRANCH OFFICE

Foreign companies engaged in manufacturing and trading activities abroad are allowed to set up Branch
Office in India for the following purposes:

• Undertake the export and import of goods;

• Render professional or consultancy services;
• Carry out research work in which the parent company is engaged;
• Promote technical and financial collaborations between Indian companies and parent/overseas group
companies;
• Represent the parent company in India and act as buying and selling agents;
• Render services in information technology and development of software in India;
• Render technical support to the products supplied by the parent/group companies;
• Operate as a foreign airline/shipping company.

Apart from obtaining RBI approval for establishing a liaison office, project office/branch office, the
foreign company is also required to register with the Registrar of Companies ("ROC"). An application has
to be filed in the prescribed form within 30 days of the establishment of the office in India with ROC,
pursuant to which ROC would issue a certificate of establishment of place of business in India to the
foreign company.

3. PROJECT OFFICE

Foreign companies planning to execute specific projects in India can set up temporary project/site offices
in India. RBI has now granted general permission to foreign entities to establish project offices, subject
to specified conditions. Such offices cannot undertake or carry on any activity other than the
activity relating and incidental to execution of the project. Project offices may remit outside India the
surplus of the project on its completion, general permission for which has been granted by the RBI.

NORTECH TRINITY INDIA PRIVATE LIMITED | INDIA ENTRY STRATEGY & WORKING PROPOSAL
Nortech Trinity has a well-connected supply chain connectivity and process in the field of
commodity trading with a focus on Metals & Minerals, Energy Products, Chemicals. Pharma and Food
Industry.

Our diversified operations comprise around 50 mining and metallurgical, oil production, mud
chemicals and agricultural assets. Nortech Trinity has a well-recognized industrial and marketing
activities with a well-supported global network to serve our clients at best.

We trade in and distribute physical commodities sourced from third party producers as well as our
own production. We also provide, processing, storage, logistics and other services to commodity
producers and consumers.

Nortech Trinity India Private Limited intend to achieve growth objectives by adopting the
following strategies:

1. Maintain performance and competitiveness of existing business to capitalize on huge

investments expected to be made in infrastructure development, especially in segments
where Nortech Trinity India Private Private Limited presently operates.
2. Focus on BOT based projects in the infrastructure sector.
3. Focus on projects involving higher degree of engineering skills.
4. Leverage our business growth by identifying and forming strategic joint venture
relationships for mutual benefit through sharing of resources and business skills for entering
into other fields of business.

Contact Persons : Mr. Ashutosh K. Gupta - +91 9910513444, +91 9971466668

NORTECH TRINITY INDIA PRIVATE LIMITED

4th Floor, Statesman House, Barakhambha Road, Connaught Place, New Delhi- 110001, INDIA
E-mail – info@nortechtrinity.com & nortechtrinity@outlook.com
Web – www.nortechtrinity.com

NORTECH TRINITY INDIA PRIVATE LIMITED | INDIA ENTRY STRATEGY & WORKING PROPOSAL