ABOUT PROTEUS

Market size

A vast market of 1.3 billion people

Increasing urbanization is gradually bringing the huge untapped rural market into the mainstream. The rural market is itself a different market with separate needs.

 

Demographic advantages

Young age population moving into the productive workforce

Defined as having an income of US$ 10-100 per day, India’s growing middle class population

with rising incomes and aspirations is driving consumer spending

The two factors combined will create a huge market for consumer goods as well as services in finance, healthcare, education, telecom, aviation, road transport, entertainment, retail etc.

 

English speaking population

English is the primary language for official business in India making it easier to communicate and do business.

 

Stable institutions

Stable government and liberalizing trade and FDI regime

Well established judicial system

 

Import dependence for high end products

India has a high degree of dependence on imports for high end products and sophisticated technologies.

 

India depends on imports for:

50% of auto component requirement

60-65% of military equipment requirement 43% of electrical equipment requirement 70% of medical device requirement

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1. No office: Agent / Distributor

Agent: Using an in-market representative to negotiate sales. Agents take a percentage of the sales as payment for their services.

Distributor: Selling to an Indian distributor who then sells to the end-user or an additional

intermediary.

 

2. Establishing an Office: Equity:

Joint Venture: Partner with an Indian company or entity with joint control as well as investment and

sharing revenues, expenses and assets.

 

Subsidiary: Acquire a controlling interest in an Indian company or set up a new company.

 

3. Establishing an Office: Non-Equity:

Branch Office: Functions as an extension of the foreign parent – not a separately incorporated company

Can represent foreign parent as a buying/selling agent, promote technical or financial collaborations with Indian companies, conduct import-export activities and render professional/consultancy services

Subject to tax in India and can remit profits abroad

 

Project Office: A branch office set up by a foreign company to execute specific projects. Focuses

only on activities relating to and incidental to the execution of the project.

 

Liaison Office: A representative office set up to investigate the business and investment climate. It cannot directly engage in commercial activity or earn income in India.

 

4. Franchise

Allow an operator, or a franchisee, to use your trademark, operate your business model and distribute the your goods in return for a royalty or fee

 

5. Direct Selling

Contacting potential customers and selling to them directly. This can include selling online, regular trade visits and establishing an overseas office to sell or manufacture locally.

 

Market diversity

India has major variations by regions. Businesses need to understand this and take advantage by customising marketing, products and pricing.

 

Market research and visits

Identify competitors / pricing / regulatory issues

 

Tariffs and tariff structure

India has simplified its tariffs to some extent with the introduction of GST. However, there is no easily available list of goods with applicable tariffs, anti-dumping duty or items on negative list. Some information is available from government websites.