Open de l'International 2016 - Focus Inde
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Transcript of Open de l'International 2016 - Focus Inde
Inde
Focus IndeVannes, 4 juillet 2016
SpeakerKuntal DESAIBretagne Commerce International Partner for India, Bangladesh, Burma
Indian market
Focus IndeVannes, 4 juillet 2016
Focus IndeVannes, 4 juillet 2016
Loca
tion
29 States 7 Union Territories
General information on India
Focus IndeVannes, 4 juillet 2016
• Area: 3.287 million sq. km(5 times France)
• Administrative capital: New Delhi29 State capitals and 7 Union Territories
• Main Economic Cities: Mumbai, New Delhi, Kolkata, Chennai, Bangalore, Hyderabad.Numerous regional cities and towns
• Currency: Indian Rupee INR, 1 Euro = 73 INR
• Demographics1.32 Billion inhabitants50% of population is between 0-25 years
• LanguagesHindi: Official LanguageEnglish: Main language for business and administrationThere are 22 regional languages with more than 100 dialects
Country data
Focus IndeVannes, 4 juillet 2016
Parliamentary form of Government in the centre with Prime Minister and Council of Ministers; two houses of Parliament.
Each State has its own government with Chief Minister.
GDP: 2050 billion USD, GDP rank 7 th.
Growth: 7.5%
Inflation: 5.65%
Foreign Direct Investment received 45 billion USD in 2015
Main FDI routes/countries: Mauritius, Singapore, Netherlands, Japan, USA.
Unemployment rate: 4.5%
Foreign tradeIndia & its business partners
Focus IndeVannes, 4 juillet 2016
Imports• 448 billion USD in 2015• Major suppliers: China, UAE, Saudi Arabia, Switzerland, USA.• Main items: oil, gold & silver, machinery, electronics, precious stones.
Exports• 310 billion USD in 2015 (merchandise), 155 billion USD (services)• Key export customers: UAE, USA, Singapore, China, Hong Kong, Netherlands.• Main items: Refined crude, engineering products, chemicals & pharmaceuticals, gems & jewellery, agricultural products, textiles.
Economic relations India - France
Focus IndeVannes, 4 juillet 2016
Global Exports Share 2014• France 3.1%. No. 6• India 1.7%. No. 19
Trade • France exports to India: 2.7 billion Euro • India exports to France: 5.2 billion Euro
More than 1000 French companies in India.Investment of 20 billion Euro.Employ more than 300,000 people.French Schools in major cities
French Companies in India• Automotive: Michelin, Renault, auto – ancillaries.• Banking and Financial Sector: BNP Paribas…• Energy: Areva, Alstom, Total...• Retail and consumer goods: Decathlon, Auchan, Sephora, Louis Vuitton, Chanel…• Tourism and hospitality: Accor, Shanti, Dune…
Market attractivenessWhy invest in India ?
Focus IndeVannes, 4 juillet 2016
The opportunities:
• Growing economy > 7 % per year• Growing ‘middle class’ of 300 million with purchasing power• Young population, 50% under 25 years of age• Reasonable education levels for employment• Large employable population• Improving standard of living and aspiration• Improving communications & infrastructure• Structured Company Law for Limited Companies & LLPs• Independent Judiciary • Foreign Direct Investment 100% possible with exceptions• Organized Industrial areas in major states to attract industry
Why invest in India ?
Focus IndeVannes, 4 juillet 2016
The broad challenges:
• Inter Cultural: Time, Punctuality, Performance levels• Localised issues – there are 28 states in India with numerous
languages!• Trust, respect for contracts• Recruitment of employees and Training• Retention of employees• Establishment of company / organization: time taken for: - Limited Company or LLP - Regulatory approvals - Central and Regional regulations, Corporate Tax & VAT• Repatriation of investment: structure your equity investment and pay attention to regulatory approvals (Reserve Bank of India) with care• Corporate Tax:
Domestic Companies >100 m INR: 34.61%Foreign Companies > 100 m INR: 43.26%
Why invest in India ?
Focus IndeVannes, 4 juillet 2016
Business in India for foreign companies establishment
• Foreign Direct Investment through the Automatic route- 100% ownership of foreign company- Establishment of company in India as per Indian regulations
• Foreign Direct Investment through the Approval route
- Approval required for investment by FIPB depending on nature of business- % of ownership to be ascertained depending upon regulations
• ‘Limited Company’ or ‘Limited Liability Partnership’; 100% ownership as per regulations or with Indian shareholders / partners
• Operate through Importers, Distributors, Selling Agents, Representatives or Service Providers through contractual agreements
India, Industry specific information
Focus IndeVannes, 4 juillet 2016
India Industry specific information
Focus IndeVannes, 4 juillet 2016
Automobile & ancillaries:OEMS: Maruti Suzuki, Hyundai, Mahindra, Tata Motors, Toyota, Honda, Ford, Renault-Nissan, GM, Volkswagen, Skoda, Daimler Benz, Audi, BMW, Mitsubishi.Tyres: Michelin, Bridgestone, MRF, Apollo, Ceat, JK, TVS.Ancillaries: Numerous from many countries including France.Growth: Approx. 5% , > 11 million vehicles sold per year.
India Industry specific information
Focus IndeVannes, 4 juillet 2016
Pharmaceuticals:• 3 rd. largest in volume, 14 th. largest in value, USD 30 billion• High growth over the last few years at 10% per year• Generics, Active Pharma Ingredients form the major exports, 20% of global exports• >100 USFDA approved pharma manufacturing units, >USD 6 billion USA export• Formulations, Biotech are newer companies expanding• Multinational presence in India at the top end of the market due to Patent Act
• Pfizer, Glaxo, Sanofi Aventis, Merck, J&J• Indian companies:
• Sun, Lupin, Dr. Reddys, Aurobindo, Torrent.
Power:• 3 rd. largest producer of electricity in the world at 303 GW• 28% - Renewable sources, 72% - non renewable sources• Focus on Renewable sources at present
India Industry specific information
Focus IndeVannes, 4 juillet 2016
Retail:• USD 500 billion• 80% small retailers, Governmental regulations for large foreign retail chains• Exception for Hypermarkets: Walmart, Tesco, Auchan etc. presence• Presence of Indian and foreign single and multiple retail chain stores increasing• Single brand stores allowed 100% FDI, presence of global brands increasing
Animal Husbandry:• Largest cattle population > 300 million, 115 m tonnes of milk annually• 3 rd. largest egg producer 75 billion eggs per year• 6 th. largest poultry meat producer, largest exporter of buffalo meat • Dominated by small dairy farms < 50 cattle selling milk to Co operatives• Presence of large modern dairy and poultry farms increasing
India Industry specific information
Focus IndeVannes, 4 juillet 2016
Textile:• Market size of USD 120 billion at present.• Exports USD 45 billion, 11% of India exports.• Employs 40 million directly, 60 million indirectly.
Agriculture:• GDP at USD 260 billion, employing 58% of India’s population• 250 m tonnes of food grain, 18 m tonnes of pulses. • Agriculture constitutes 10% of Indian exports, largest spice exporter.
Risks
Focus IndeVannes, 4 juillet 2016
Risks
• Inter cultural issues, location and industry specific
• Policy changes by the Government
• Lack of infrastructure in particular locations
• Need for complete transparency on costs
• Time related deadlines often not met
• Issues arising from natural calamities
Focus MexiqueVannes, 4 juillet 2016
Focus IndeVannes, 4 juillet 2016
Business practices, intercultural aspects
Doing Business in India
• Be very clear and precise in your business goals
• Due diligence from internal & external sources is very important for:
• Hiring personnel
• Partners in Business
• Business structure & activity: company and methods
• Periodic Business reviews are essential with key personnel
• Personal and Business interests often overlap: be vigilant
• Take special care on contractual obligations which can change frequently
Focus MexiqueVannes, 4 juillet 2016
Focus IndeVannes, 4 juillet 2016
SpeakerKuntal DESAIBretagne Commerce International Partner for India, Bangladesh, Burma
Questions/réponses
Focus IndeVannes, 4 juillet 2016
Merci de votre attention !
Focus IndeVannes, 4 juillet 2016