A

PRESENTATION
ON
DOING BUSINESS
IN INDIA
 WHY INVEST IN INDIA?
There is no dearth of evidence about the
relatively unattractive nature of the Indian economy for the
objective investor. The economic times (Mumbai ,june
1,1994)carried a report entitled moody‘s sovereign ratings:
Global outlook‘, had india as an Asian economy with lower
than investment grade ratings, in a survey of 10Asian
nations.
The heritage foundation in its index of
counties, by degree of controls, ranked India 140 among
(The observe, Mumbai 17, 1997). Under these
circumstance, is it suprising that the patriotic NRI for
patriotism‘s sake makes a token investment in India.
 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.
 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,in
Rajasthan,sunial mukherjee return to do business in india. In
1977, a thirty –four, he initiated the process of setting up a
wireless equipment manufacturing unit near Udaipur.
• In all his year Abroad, prior to his decision of doing busines
in india, he had only once visited india in 1996.
• During his visit he explore business options in india, and
somewhat familiarized himself with the environment. But it
was several years later that he return with a business idea,
linked to his training expertise and perceived core
competencies.
 THE ECONOMICE BENEFITS
REGARDING LOCATION
• He initially adopted an objective viewpoint while deciding on the
selections of locations for his proposed venture.
• Indians like mukherjee, born and brought up abroad, seem to be moe
than rationl about the selections of the ideal locations to do business in
india.
• He had, in fact, first considered Bangalore, in the south, but he realised
the important of a partnership, family business , and his bureaucratic
contacts in Baroda.
• His decision regarding location was, hence,not on the basic of
psychological affinity to a particulr state,city, town of origin or former
stay.
• Mukherjee observe, indians born or reared in india way favour a
particular region to do business,even if specific language barriers don’t
exist.
• However, people like myself are more interested in the economic
benefits of location.
 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 being
strapped 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.
 KARMIC INFLUENCES ON BUSINESS
&THE ENTREPRENEURIAL
PERSONALITY
• Are you an NRI wanting to do business on a small or medium scale
in India ? Maybe you have already resettled in India and exploring
business options ,or perhaps you are still abroad, and pondering
over the idea of doing business in India.
• Maybe you are in independent professional, have perhaps worked
for somebody abroad in some functional management, technical or
research area,or you may be a trader or manufacturer in your
country of domicile.
• You may be nurturing an idea for a new and unique product
perhaps, or a service that you are certain will help you earn
adequate money, to at least help you maintain the standard of living
that you were used to while abroad.
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 regarding
delays 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.
 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 as
entrepreneur 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 India
to 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 decade‘s stay in the united states, he completed his studies,
before working for a few years, and gaining valuable experiences.
 FORGET THE SUPPORT SYSTEM,FOCUS
ON THE PRODUCT AND ITS MARKET

Hemrajani believes that the slow process of the initiation of a

business venture in India, and the negative experiences of
inexperienced (in term of business) return NRIS, often
dissuades entry of potential RNRI entrepreneurs.but the
complaints often with regard to the bureaucracy, by no
means present insurmountable hurdles.
A small scale of operations rarely causes serious difficulties or
interactions with administrative machinery in any phase of
business management.that is so long as interests on
borrowing from funding institutions are paid on time and
more than a score of different types of returns have been
filed regularly.
 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 external
environment 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.
 A JACK OF ALL TRADERS OR AJACK
FOR EACH TRADE
• The cash crisis occurs due to the entrepreneur‘s 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.
 IMPRESSION FROM A GLOBALIZED
ENTREPRENEUR,ABOUT WETTING HIS
FEET
• At moment, Pujari‘s electronics firm is teething
problems.however,while his current turnover is just about Rs
10million, he confidently talks in term of achieving a Rs 1.5
billion 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
 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 very
viable 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 available
opportunity.Defective implementation has invariably been a
result of the market environment
• .
 COST IN BUSINESS
• As amply indicated in Basant’s case as in most others discussed
earlier the marketing and sales functions may make or break a
business 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 achieve profit,
it is necessary to analyze the specific relationship in the firm
between cost,profit and volume.
• Variable cost and hence profit are affected by changes in the level
of activity, selling price, variable cost per unit and change in fixed
cost
• .
 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.
 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
 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.
•
 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, one‘s 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.
 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 potential
RNRI 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 an
NRI abroad, or NRI from abroad offering the same to an
RNRI or Indian, the second may also involve funding support.