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STRATEGY-INDIA MARKET ENTRY
Evaluation Report
ABOUT INDIA
   India is the seventh – largest country in the world by area
    and the second- largest by population. Located in South
    Asia, the country supports over 16% of the world’s
    population and more than 2.4% of the world’s land.
MARKET FOR WATER TREATMENT IN INDIA
   The water treatment market in India is seeing immense
    expansion.
   While no reliable published figures are available, Everything
    About Water estimates the total water and wastewater treatment
    market size to be about USD 420 million.
   According to a recent government assessment, the water
    requirement for industrial use will quadruple from the current 30
    billion cubic meters to 120 billion cubic meters by 2025.
   The wastewater treatment market segment is highly fragmented
    and unorganized. Imports constitute approximately $110 million
    of the $690 million market for municipal and industrial water
    treatment equipment.
   The U.S. is India's principal source of imports of water treatment
    equipment, with an estimated share of 40 percent.
   It is growing at about 18% annually with certain segments like the
    industrial and drinking water segments seeing even higher
    growths.
   http://waterexpo.biz/why_india.html#market
INDIAN GOVT. RULES FOR FOREIGN
 COMPANIES
  Joint ventures : Because of the govt. restriction we
   cant get into the partnership without JV proposal(51
   and 49%) on the share’s basis.
  Wholly owned subsidiaries : Or else we can do
   our own 100 % subsidiary branch.
 As an office of a foreign entity enter through
  Liaison Office / Representative Office

  Project Office

  Branch Office

“16. Can a foreigner set up a partnership/proprietorship concern in India?
 No. Only NRIs/PIOs are allowed to set up partnership/proprietorship concerns in India. Even for
NRIs/PIOs investment is allowed only on non-repatriation basis.”
http://www.rediff.com/money/2007/jul/24rbi1.htm
MARKET ENTRY STRATEGY

   Risk                                              High Risk/ High Return

                                                      Direct
                                                      Investment
                                           Joint
                                           Venture
                               Outsource

                     License

           Export

   Low Risk/Return

                                                      Time Commitment
JOINT VENTURE
 All most all the multi national companies have
  entered into the agreements of Joint Venture of
  51% Ratio type of business set ups.
 Examples – Motorola + Blue Star Company (India )
  = Successful
 Xerox + Modi ( India ) = Successful
 Haier (China ) + Hotline Group (India ) = Failure
 TVS motors (India ) + Suzuki = Successful until
  2001
 Godrej (India ) + GE = Failure
 http://business.gov.in/growing_business/joint_ventu
  res.php
STRATEGY ALLIANCE
 I haven't found any company that had only alliance or
  partnership . Most of them have only JV with 50 % or more share
  in the venture.
However, the advantages are
 Mission : A win- win situation, where our company and the Indian
  company pursue on the basis of mutual need or advantage.
 Strategy : The strategy must be thought out up front to avoid
  conflicts
 Governance : We both viewed as equal in taking decisions and
  managing the conflicts
 Culture : Chemistry is Important; shared set of values in the
  organization
 Organization : Innovative business structure should be
  developed
 Management : Divisive issues must be identified in advance and
  clear, unitary lines of authority must be established.
PORTERS MODEL
                                  Potential Entrants
                                 ( Many foreign companies
                                  are trying to enter Indian
                                           market)


                                                    Threat of New Entrants
Bargaining Power
of Buyers
                                        Industry                          Buyers
        Suppliers                   Competitors and                 ( Bargaining power of
   ( As we are our own                                             buyers may be high due
                                     Rivalry among                 to high competition and
suppliers , the effect is nil)
                                     existing firms                   cheaper products )
                                                                Bargaining Power of Buyers
       Threat of substitutive products or
       services
                                        Substitutes
                                  ( The product knowledge
                                  has to be created to show
                                      the variation from
                                         substitutes )
OUR VALUE IN INDIAN MARKET


     Strengths                    Weaknesses
      - Strong Brand Name          -Dealer network not a
      - R&D                        match to other compe
      - Superb Technology          titors
      -Having Good Contacts        - Lower installed capa
      with Govt. People            city
    Opportunities                 Threats
     -Growing market for pure       - Intensive competition
     and clean water after use.     - Increasing input costs
     - Increase of awareness of
     pure water.
INDIAN WASTE WATER TREATMENT EXPOS
   http://www.indiawaterexpo.com/ during (27-29 April,
    2012) at Chennai.
    http://www.indiawaterexpo.com/download/indiawater_ex
    po_chennai.pdf
   25.04 to 27.04.2012 Aquatech India – 2012, Exhibition
    and Conference on Water and Waste Water Purification
    Technologies.
    http://www.exponet.ru/exhibitions/countries/ind/cities/del
    hi/dates/future/index.en.html

   http://www.biztradeshows.com/water-expo-chennai/
    during 07-09 Feb,2012 chennai ( Over)
   http://www.eawater.com/expo/ during 07-09 Feb,2012
    delhi, recently over
   http://www.watertoday.org/index.html during 2012, year
    end .
THANK YOU

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Strategy india market entry- water segment

  • 2. ABOUT INDIA  India is the seventh – largest country in the world by area and the second- largest by population. Located in South Asia, the country supports over 16% of the world’s population and more than 2.4% of the world’s land.
  • 3. MARKET FOR WATER TREATMENT IN INDIA  The water treatment market in India is seeing immense expansion.  While no reliable published figures are available, Everything About Water estimates the total water and wastewater treatment market size to be about USD 420 million.  According to a recent government assessment, the water requirement for industrial use will quadruple from the current 30 billion cubic meters to 120 billion cubic meters by 2025.  The wastewater treatment market segment is highly fragmented and unorganized. Imports constitute approximately $110 million of the $690 million market for municipal and industrial water treatment equipment.  The U.S. is India's principal source of imports of water treatment equipment, with an estimated share of 40 percent.  It is growing at about 18% annually with certain segments like the industrial and drinking water segments seeing even higher growths.  http://waterexpo.biz/why_india.html#market
  • 4. INDIAN GOVT. RULES FOR FOREIGN COMPANIES  Joint ventures : Because of the govt. restriction we cant get into the partnership without JV proposal(51 and 49%) on the share’s basis.  Wholly owned subsidiaries : Or else we can do our own 100 % subsidiary branch. As an office of a foreign entity enter through  Liaison Office / Representative Office  Project Office  Branch Office “16. Can a foreigner set up a partnership/proprietorship concern in India? No. Only NRIs/PIOs are allowed to set up partnership/proprietorship concerns in India. Even for NRIs/PIOs investment is allowed only on non-repatriation basis.” http://www.rediff.com/money/2007/jul/24rbi1.htm
  • 5. MARKET ENTRY STRATEGY Risk High Risk/ High Return Direct Investment Joint Venture Outsource License Export Low Risk/Return Time Commitment
  • 6. JOINT VENTURE  All most all the multi national companies have entered into the agreements of Joint Venture of 51% Ratio type of business set ups.  Examples – Motorola + Blue Star Company (India ) = Successful  Xerox + Modi ( India ) = Successful  Haier (China ) + Hotline Group (India ) = Failure  TVS motors (India ) + Suzuki = Successful until 2001  Godrej (India ) + GE = Failure  http://business.gov.in/growing_business/joint_ventu res.php
  • 7. STRATEGY ALLIANCE  I haven't found any company that had only alliance or partnership . Most of them have only JV with 50 % or more share in the venture. However, the advantages are  Mission : A win- win situation, where our company and the Indian company pursue on the basis of mutual need or advantage.  Strategy : The strategy must be thought out up front to avoid conflicts  Governance : We both viewed as equal in taking decisions and managing the conflicts  Culture : Chemistry is Important; shared set of values in the organization  Organization : Innovative business structure should be developed  Management : Divisive issues must be identified in advance and clear, unitary lines of authority must be established.
  • 8. PORTERS MODEL Potential Entrants ( Many foreign companies are trying to enter Indian market) Threat of New Entrants Bargaining Power of Buyers Industry Buyers Suppliers Competitors and ( Bargaining power of ( As we are our own buyers may be high due Rivalry among to high competition and suppliers , the effect is nil) existing firms cheaper products ) Bargaining Power of Buyers Threat of substitutive products or services Substitutes ( The product knowledge has to be created to show the variation from substitutes )
  • 9. OUR VALUE IN INDIAN MARKET Strengths Weaknesses - Strong Brand Name -Dealer network not a - R&D match to other compe - Superb Technology titors -Having Good Contacts - Lower installed capa with Govt. People city Opportunities Threats -Growing market for pure - Intensive competition and clean water after use. - Increasing input costs - Increase of awareness of pure water.
  • 10. INDIAN WASTE WATER TREATMENT EXPOS  http://www.indiawaterexpo.com/ during (27-29 April, 2012) at Chennai. http://www.indiawaterexpo.com/download/indiawater_ex po_chennai.pdf  25.04 to 27.04.2012 Aquatech India – 2012, Exhibition and Conference on Water and Waste Water Purification Technologies. http://www.exponet.ru/exhibitions/countries/ind/cities/del hi/dates/future/index.en.html  http://www.biztradeshows.com/water-expo-chennai/ during 07-09 Feb,2012 chennai ( Over)  http://www.eawater.com/expo/ during 07-09 Feb,2012 delhi, recently over  http://www.watertoday.org/index.html during 2012, year end .