An Overview

1

MOTHER INDIA

• An Overview
• of
• The Indian
• Environment
• 2006

PART I
2

3
DOING BUSINESS IN INDIA
OUTLINES

• armoogum_at_sawmy.net

I N D I A
INTRODUCING BUSINESS IN INDIA
4
DOING BUSINESS IN INDIA
OUTLINES

• Design a Market Entry strategy
• in a three dimensional
• environment of
• Multicultural ,
• Multi-castes,
• Multi-Gods ..

Course Objectives
5
DOING BUSINESS IN INDIA
OUTLINES

• Learn to implement a channel strategy for
  foreign capital investors

Students objectives
6
DOING BUSINESS IN INDIA
OUTLINES

• Exchange
• (Export , Exhibition , Exile ,
• Excommunication..)
• Exchange of goods , services , Know-how

I N D I A
7
DOING BUSINESS IN INDIA
OUTLINES

• Exchange
• Integrating environmental culture
• ( No two countries exchange
• according to the same standard)

I N D I A
8
DOING BUSINESS IN INDIA
OUTLINES

• Exchange
• Principles of negotiation
• (Bartering is based on mutual
• understanding of reciprocal needs
• does not necessarily integrate the
• phenomenon of intercultural
• Negotiation)

I N D I A
9
DOING BUSINESS IN INDIA
OUTLINES

• BUSINESS
• A Compilation of the Above

I N D I A
10
DOING BUSINESS IN INDIA
OUTLINES

• BUSINESS
• For the sake of making Profit,
• Acquiring Know-how
• Market conquest ,
• Expanding,
• Innovating,
• Acquiring a competitive edge ,
• Creating Jobs..

I N D I A
11
DOING BUSINESS IN INDIA
OUTLINES

• BUSINESS
• Finally to Gain Power?
• Industrial Airspace industry
• Servicing Foods and Beverages
• Financial Banks merging
• Media CNN, TPS
• Political Berlusconi , G.Bush

I N D I A
12
DOING BUSINESS IN INDIA
OUTLINES

• Internship at Indian companies
• Torrent pharmaceutical, Delhi,
• Walton Exports Bombay,
• Drâger medical instrument,
• Bombay
• Pizza Hut ,Madras
• Terre des Hommes , Tieuvannamalai

I N D I A
13
DOING BUSINESS IN INDIA
OUTLINES

• Internship reports
• Report from Madhu Chandan
• Report from Sandrine Tran A
• Report from Maurice Abouaf
• Report from Severine Cappalaere
• Report from Sujata Chetty

I N D I A
14
DOING BUSINESS IN INDIA
OUTLINES

• Relationship with Indian University
• Three Students exchange between Institute of
  Management Technology , Ghaziabad and Negosup,

I N D I A
15
DOING BUSINESS IN INDIA
OUTLINES

• Principles of Culture as foundations to economic
  development and technology growth
• based on the STRUGGLE FOR FREEDOM as
• inspired by M.K Gandhi

The principles
16
DOING BUSINESS IN INDIA
OUTLINES

• INDIA
• A multicultural vector
• expanding in the world market
• with confrontation to the three
• blocs China , European Union,
• United States)

FOCUS
17
DOING BUSINESS IN INDIA
OUTLINES

• 1)European Union failed to
• elaborate a final constitution to
• Admit Turkey
• 2)Americas dictate over the
• world irrespective of
• UN Recommendations,
• WTO regulations or
• Kyoto protocol
• 3)Asia Chinas hegemony of low
• cost products

THREE BLOCS
18
DOING BUSINESS IN INDIA
OUTLINES

• In doing Business in India,
• The focus
• Culture Environment
• Free practice of Religions
• Technology development

MODERN INDIA
19
DOING BUSINESS IN INDIA
OUTLINES

• WHY in India
• WHEN is the opportunity,
• WHAT segment of Business,
• WHERE to focus the strategy
• WHICH is the company

The FIVE Ws
20
DOING BUSINESS IN INDIA
OUTLINES

• Cross Road of Vedic and Abrahamic religions
• Indian Union with Federal states and Territories
• Rural and Urban segmentation
• High-tech Globalisation and Village Tech
  regionalisation

Geopolitics and Sociology
21
DOING BUSINESS IN INDIA
OUTLINES

• India self sufficiency
• Economic principle of state intervention in a
  free trade market
• New business practices under liberal pressure
  and WTO regulations

Consumer market expands
22
DOING BUSINESS IN INDIA
OUTLINES

• Political and Religious unrest,
• Social and Economic instability.
• Multiple borders vulnerability,
• Open to invasion and terrorist attacks.

Evaluating and managing risks
23
DOING BUSINESS IN INDIA
OUTLINES

• Environmental turbulence
• (climate , Sanitary, Pollution)
• The 26th December 2004
• Tsunami in the Bay of Bengal causing calamity
  along the Coast of Andhra Pradesh, Pondicherry,
  Madras , Kerala..

Evaluating and managing risks
24

Geopolitics and Sociology

• Alexander the great(335BC)
• Through Middle East
• Phrygia(333 BC) , Persia and Buddhist India to
  finally die on his return.
• Saint Thomas 52 AD died in Tamil Nadu ,
  devastated by the Bay of Bengal Tsunami.on 26th
  December 2004.

Explorers
25

Geopolitics and Sociology

• Arabs reached Sind in the 8th Century
• Ottoman Empire through Afghanistan 12th century
• Marco Polo 1254 -1324 along the silk Route. ,
  stopped in South India in 1297 , did not die in
  India?

Explorers
26

Geopolitics and Sociology

• Vasco Da Gamma Trip to Calicut 1498 and
  conquest of East India in 1502 to finally died on
  his return 1524
• Jewish Settlers in Cochin , The Sassoon
  dynasty in
• Bombay

Explorers
27
DOING BUSINESS IN INDIA
OUTLINES

Geopolitics and Sociology
28
(No Transcript)
29

Geopolitics and Sociology

• States 28
• Territories 07
• Districts 500
• Villages 550- 600.000

GEOGRAPHY
30
Population Evolution
Figaro Economie 16th January 2004
31

• Trend of Undernourished people in the
  world
• From 920 Million to 798 Million

32

Geopolitics and Sociology

• Population One billion
• Density 250 -300 people/km²
• (France 100 people/km²)
• group Age(15-60) 60

GEOGRAPHY
33

Geopolitics and Sociology

• Languages 18
• Indo-Aryan languages mostly of
• Northern origin 10
• Dravidian languages of Southern
• Origin 4

GEOGRAPHY
34

Geopolitics and Sociology

• From North along the Himalayen Border of 3200km
• and the River Ganges
• Sino Himalayen Nepal/Bhutan
• population and land of Buddha

Population
35

Geopolitics and Sociology

• From North East/East along the Bay of Bengal
• The land of Nobel prize
• winner R.Tagore and the Orissa
• population.

Population
36

Geopolitics and Sociology

• From tropical South along the Bay of Bengal ,
  Indian Ocean and Arabian coast roundabout of
  the three Seas
• Land of famous Mathematician
• Srinivasa Ramanujan and
• population of the Dravidian
• origin

Population
37

Geopolitics and Sociology

• From West facing the Arabian sea and the
  Arabian Golf
• The Natal Territory of the
• Apostle of Non-violence M.K.
• Gandhi and the Marathi
• population

Population
38

Geopolitics and Sociology
Birth of Indian religions
39

Geopolitics and Sociology

• Birth Abrahamic Religions
• from Chaldée to Medina
• Judaism
• Abraham in search of the
• promised land chased away from
• Chaldée-Mesopotamia,
• Jewish religion reached India,

Birth of Eastern religions
40

Geopolitics and Sociology

• Christianity
• Christ , the saviour, born to save
• mankind , Saint Thomas
• introduced Christianity in India
• right in the First Century AD.

Birth of religions
41

Geopolitics and Sociology

• Islam
• Mahomet , heard the voice of
• Archangel Gabriel besieging him
• to unify his people against the
• impostors of Mecca,
• Muhammed of Ghazni ,Afghani
• Prince, brought Islam to the
• North India in 11th AD.

Birth of religions
42

Geopolitics and Sociology

• VEDIC Religions born along the silk and Spice
  Route
• Hinduism
• The Pantheon , the cycle of
• Reincarnation and the Varna
• system of caste (Approx 1800BC
• to 500BC)

Birth of religions
43

Geopolitics and Sociology

• Jainism
• Ahimsa , theory of Non-violence
• as preached by Guru Mahavira
• in the 6th Century BC.

Birth of religions
44

Geopolitics and Sociology

• Buddhism
• The Four noble truths(Suffering,
• Origin of Suffering, Cessation of
• suffering,Way leading to
• cessation of suffering) and
• the achievement of our union into
• the supreme bliss (Nirvana) in the
• 6th Century BC.

Birth of religions
45

Geopolitics and Sociology

• Sikhism
• Belief in One God and in the
• cycle of Reincarnation , at the
• junction of Hinduism , Islam and
• Sufism under Guru Nanak in
• 15th Century.

Birth of religions
46

Geopolitics and Sociology

• Sikhism
• Poet Kabir , too, influenced the
• Sikhism in the 15th Century as
• mentioned in their Holy book Guru Grant Sahib.

Birth of religions
47

Geopolitics and Sociology

• The Zoroastrian
• Originated from the old religion
• of Ahura Mazda in Persia ,
• belief in the Sun as creator of
• the Universe.
• Atharvam Zarathustra reformed
• the Indian Principles of
• Polytheist, Caste and race
• inequality

Birth of religions
48

Geopolitics and Sociology

• First Bases of Hinduism
• Holy Scriptures The Upanishads
• ( The master in an UP position receiving the
  pupil in a down (NI) posture sitting(SHAD) at his
  feet.

Birth of religions
49

Geopolitics and Sociology

• Five Groups of Upanishads
• The Vedanta ( Who Am I)
• Yoga ( Detachment)
• Sanyas ( Asceticism)
• Vishnu ( Preservation)
• Shiva ( Destruction)
• Translated by Antequil Duperron,
• A. Schopenhauer,.Max Muller...

Birth of religions
50

Geopolitics and Sociology

• The Vedanta Upanishads are
• regrouped into 10 major books.
• Abstract of one Allegory in the
• Chandogya Book
• We cannot see the salt which is
• dissolved in water but we can
• taste its presence. So is the
• Supreme, we do not perceive Him
• but He is present in us.

Birth of religions
51

Geopolitics and Sociology

• Second Bases of Hinduism
• Epics of glory to historical
• persons
• 1)Mahabharata
• (War against the self)
• Peter Brook staged it in Avignon
• in 1984 and at Bouffe du Nord
• 1985.

Birth of religions
52

Geopolitics and Sociology

• 2)Bhagavad Gita
• (The principles of self detachment as a Yoga
  discipline)
• The Dialogue between the
• Warrior and his coachman who is
• the voice of God.
• In 1888 in England , MK Gandhi
• was inspired by the same dialogue
• to advocate the principle of
• Satygraha.(Quest for Truth)

Birth of religions
53

Geopolitics and Sociology

• 3)Ramayana
• ( The triumh of Righteousness , Dharma)
• Performed as classical dances
• where Indians diaspora is settled ,
• like Jog Jakarta in Indonesia ,
• unfortunately struck by the
• terrible earthquake of 26th Dec.
• 2004

Birth of religions
54

Special Caste system

• Varna System,
• The Forward Castes (4)
• (Castus Pure , no mixture)
• 1)Brahmin
• (The Clergy ,depositor of Spiritual knowledge
  from the Vedas , professionally Liberal )

Varna and Shreni
55

Special Caste system

• Varna System,
• The Forward Castes
• 2)Kshatriya
• (The Administrators of the kingdoms of India and
  warriors to guarantee the sovereignty of the
  mother land , Arjuna the hero of Mahabharata was
  Kshatriya)

Varna and Shreni
56

Special Caste system

• Varna System,
• The Forward Castes
• 3)Vaishas
• (The Agricultural manpower and the traders in a
  Mercantilist system)

Varna and Shreni
57

Special Caste system

• Varna System,
• The Backward Caste
• 4)Shudras
• ( The specialised manual Workers
  
  
  of Wood , Pottery , hewers of
  stone ,blacksmith , Street hawkers, )

Varna and Shreni
58

Special Caste system

• The Scheduled caste ,
• (25 of the Population)
• The Pariahs being renamed the
• Underprivileged Caste after
• having been Gandhis Harijans,
• Children of God.
• The Dalits the exploited mass of
• cheap labour.

Varna and Shreni
59

Special Caste system

• The Schedules Caste
• The unclassified population of
• Untouchables made to become
• second rate citizens by offering
• their unskilled labour
• in jobs like animal slaughter,
• leather treatment, street
• scavenging, corpse burial.

Varna and Shreni
60

Special Caste system

• The scheduled caste
• Their cause is defended by
• 1)Poonam Devin saved from life
• sentence by Irene Frein,was later
• assassinated in defending her
• cause),
• 2)Noble prize Amartya Sen,

Varna and Shreni
61

Special Caste system

• The scheduled caste
• 3)By Author Arundhati Roy,
• 4)By Freedom Fighter Medha Patkar
• 5) By the Apostle of non-violence MK Gandhi

Varna and Shreni
62

Special Caste system

• SHRENI Thirty six (36)
• Overlapping of Castes and Trades
• Whatever the original castes be , the economic
  environment has regrouped people of the same
  trade to be united together and gain more
  material benefits.

Varna and Shreni
63

Special Caste system

• The driving profession can be practised by any
  of the four castes ,
• Medical professionals have no specific caste
  origin ,
• The new technology boom drags in know-how from
  any qualified person.

Varna and Shreni
64

Special Caste system

• A Brahmin priest may come from a poor family of
  any SHRENI.
• The head of the army is not a chosen among the
  Kshatriya
• (Warriors) ,
• MK Gandhi, father of the Indian nation, was a
  Vaisha (Trading)

Varna and Shreni
65

Geopolitics and Sociology

• Independent on 15 August 1947
• Constitution of 26th Nov 1949
• Indian Republic 26th Jan 1950

POLITICAL CHOICE
66

Geopolitics and Sociology

• The Modern Clauses for a young Nation
• No 14 Equality before Law
• No 15 Prohibition of
• Discrimination on grounds of
• religion, Race,Sex or Caste
• (Parity Law introduced in France
• in 1998)

Constitution by Dr Ambedkar
67

Geopolitics and Sociology

• No 16 Equal opportunities in
• matter of public employment
• No 17Abolition of
• Untouchability
• (Anti-racist laws in France)

Constitution by Dr Ambedkar
68

Geopolitics and Sociology

• No 18 Abolition of Titles
• (France did it in 1792 at the fall
• of the Monarchy of Louis XVI,
• beheaded 21st January 1793
• at place de la Guillotine)

Constitution by Dr Ambedkar
69

Geopolitics and Sociology

• First lesson of a Secular
• Secular Democracy in a Hindu
• land under Nehru, similar to
• Turkey turning Secular in a
• Muslim land in 1923
• under Mustapha Kemal, AtaTurk

POLITICAL STRUCTURE
70

Geopolitics and Sociology

• Federal Union govt. based on
• Federal elections
• (Similar to Congress US)
• Parties are declared National when they are
  present in more than 4 local states
• Ex. Congress, BJP, Communist

POLITICAL STRUCTURE
71

Geopolitics and Sociology

• Local State govt.
• Based on Local state elections
• State Parties represent their own States
• Dravidian Munnetra in Madras,
• Shiv Sena in Bombay,
• Telegu Desam in Hyderabad,
• Muslim League in Kerala,
• All-India Forward Bloc Calcutta

POLITICAL STRUCTURE
72

Geopolitics and Sociology

• At Union Level
• Lok Sabha
• House of people 545 Members
• including 2 Anglo-Indians
• (Similar to UK House of commons,
• to US House of representatives,
• to FR Assemblée Nationale)

PARLIAMENTARY STRUTURE
73

Geopolitics and Sociology

• Rajya Sabha
• 245 Members , 233 elected by members of the Local
  State Legislative Assembly 12 nominated by the
  president,
• Renewed by 1/3 every 2 years
• (FR Senate House elected by
• Grand Electors renewed 1/3 every
• 3 years)

PARLIAMENTARY STRUTURE
74

Geopolitics and Sociology

• The Union Executive
• President , Abdul Kallam,
• head of the Executive, elected by
• Houses of Parliament and State
• Assemblies but has to take advice
• from the Prime Minister .

PARLIAMENTARY STRUTURE
75

Geopolitics and Sociology

• French 4th republic pattern
• The Indian executive is based on the
• same Pattern as the French 4th
• Republic until the referendum held
• by De Gaulle of 1962 entrusting
• the president with full executive
• power alongside a prime minister
• of his choice not necessarily voted
• by universal suffrage.

PARLIAMENTARY STRUTURE
76

Geopolitics and Sociology

• Indian Prime Minister
• Manmohun Singh chosen on 22nd
• May 2004 on the recommendation
• of Italian born Sonia Gandhi.
• French Prime Minister
• Mr Geogres Pompidou, was
• called in office in 1962 by the
• president De Gaulle ,though he was
• never an elected member of
• Parliament, became President later.

PARLIAMENTARY STRUTURE
77

Geopolitics and Sociology

• The president delegates
• Governors to represent him in the
• State, however they are advised
• by the State chief Minister .
• The President administers the 7
• Territories.

PARLIAMENTARY STRUTURE
78

Geopolitics and Sociology

• The president proclaims State of emergency as was
  done at the time of Mrs Indira Gandhi in the 75s
  to arrest opposition leaders.

PARLIAMENTARY STRUTURE
79

Geopolitics and Sociology

• .
• (French Article 16 of the 1958 constitution was
  used by De Gaulle to declare state of Emergency
  in 1962 to legally declare the military Putsch
  Of Salan , Jouhaud and Chale as an act of
  Treason against the republic )

PARLIAMENTARY STRUTURE
80

Geopolitics and Sociology

• The president s vice-president
• is Chairman of the Rajya Sabha.
• (In France, the president of the
• Senate house is by constitution
• the Vice president of the republic
• and steps in office in case of
• vacancy..)

PARLIAMENTARY STRUTURE
81

Geopolitics and Sociology

• It happened in 1969
• upon De Gaulles resignation
• from Office and upon
• Pompidous death in 1974 the
• then President.

PARLIAMENTARY STRUTURE
82

Geopolitics and Sociology

• Parliament legislates on the
• Union LIST 1Defence, foreign
• affairs , Currency, Income taxes
• State Legislates on the
• State LIST 2 Public Order,Public
• Health, Communications,sales tax

PARLIAMENTARY STRUTURE
83

Geopolitics and Sociology

• Parliament and State on
• Concurrent LIST 3 Price,
• Criminal Law, Electricity

PARLIAMENTARY STRUTURE
84

Geopolitics and Sociology

• At National level
• Supreme court with Chief Judge and 25 judges,
• Dispute between Union and States (US supreme
  court V/S Florida supreme court in 2000
  presidential elections
• Al Gore/G.Bush dual),

Judicial System
85

Geopolitics and Sociology

• At National level
• 1)To Enforce fundamental rights
• (In Fr. Conseil Constitutionnel
• rejected the Regional project
• of Corsica as presented by the
• Socialist Govt in 2000).
• 2)The Appellate courts to interpret the
  constitution
• (In Fr. Conseil dEtat )

Judicial System
86

Geopolitics and Sociology

• At State Level
• High courts jurisdiction divided into Judicial
  districts presided by district and sessions judge
• Civil Jurisdiction
• Criminal Judiciary
• Appellate courts

Judicial System
87

Geopolitics and Sociology

• India has developed High Tech in the Silicon
  valley
• (Bombay, Bangalore, Hyderabad, Madras, Kerala)
• India has kept to her traditional village
  technology as advocated by Gandhi

Technology
88

Geopolitics and Sociology

• Women are recognised equal rights by the
  constitution
• They have gained political power
• (Prime Minister of India Late
• Mrs Indira Gandhi or Chief
• Minister of Tamil Nadu Mrs
• Jayalalithaa )

Women's Rights
89

Geopolitics and Sociology

• They participate in
• professional life on equal terms
• (Head of banks , Ambassadors in
• France)
• They have become defenders of
• social minorities

Women's Rights
90

Geopolitics and Sociology

• They have built up civil
• associations to fight
• Globalisation at the last Bombay
• Forum January 2004
• World Known Novel writer
• Indian Arundhati Roy and Iranian
• Nobel prize Winner Chirine
• Ebady supported the movement.

Women's Rights
91
Doing Business in India

• A solid Indian
• structure for
• a prosperous
• India

END PART I
92
Doing Business in India

Market Entry Approach
PART II
93

CONSUMER MARKET EXPANDS

Marketing and economic data
94
Gross Domestic Product In
Billion
95

• ECONOMIC GROWTH INDIA
• 5,5 , 4,4, 7,0 , 9,0

96
Gross Domestic Product per industry
in terms of
97
G.D.P GROSS DOMESTIC PRODUCT
Realised Year 2002 502,4
Billion
Forecast Year 2004
576,8 Billion



(P.I.B. Produit
Intérieur Brut)
2002
1995 AGRICULTURE 22, 8
28,2 INDUSTRY
26 28,1
SERVICES 51,2
43,7 (Growing Faster)
98
GDP growth per Inhabitant
99

CONSUMER MARKET EXPANDS

• High Income 10/15
• ( Industrial,Business)
• Mid-Income
• (3 Subgroups60/70
• (High Tech, Freelance, SME )
• Lower Income 20/30
• (Unskilled Cheap labour)

Five social Classes
100

CONSUMER MARKET EXPANDS

• Annual Income of some classes
• 100 Million people at 1400 /Y
• 300 million People at 700/Y
• Rest at approx. 470 /Year

Five social Classes
101

CONSUMER MARKET EXPANDS

• NCAER Sources
• (National Council of Applied
• Economic Research)
• Analysis of Consumer Classes,
• a plausible market in terms of
• households where one household
• represents approx. 6 persons

Classes
102

CONSUMER MARKET EXPANDS

• Rural Area
• 70-75 (72,6) of the
• population representing 50 of
• the volume of consumption
• Urban Area
• 20-25 (27,6)of the population
• consuming the other 50

Urban and Rural Segmentation
103

CONSUMER MARKET EXPANDS

• PLAUSIBLE MARKET SIZE IN 2007
• Group Income/y 2001 2007
  Growth
• 
  Family Family
• Rich gt 215kRs 2.0M
  6.2M 210
• Consumers gt45kRs 54.6M 90.9M
  66
• Climbers gt22kRs 71.6M 74.1M
  7
• Aspirants gt16kRs 28.1M 15.3M
  -55
• Destitute lt16kRs 23.4M
  12.9M -55
• Total 179.7M
  199.2M 10
  

104

CONSUMER MARKET EXPANDS

• PLAUSIBLE MARKET SIZE Urban/Rural 2007
• Group Income/y Urban Rural
  
• Rich gt 215kRs 65
  35
• Consumers gt45kRs 50
  50
• Climbers gt22kRs 35
  65
• Aspirants gt16kRs 15
  85
• Destitute lt16kRs 15
  85
  

105

CONSUMER MARKET EXPANDS

• India attracts Investment
• Consumer Market Growing over 400M consumers
• Parliamentary Democracy
• History of Market economy
• since Rajiv Gandhi (1984)

Why Choosing India
106

CONSUMER MARKET EXPANDS

• Manufacturing activities all over India ( 6 times
  larger than France)
• Large pools of Know-how
• Respect of WTO norms and standards

Why Choosing India
107

CONSUMER MARKET EXPANDS

• Economic Profile geared towards Private
  Investments
• Ann. Gross Domestic Product
• 6 to 10 depending on sector
• whereas China is growing at
• above 10
• Inflation 3.8 to 4.8 in 2004

Why Choosing India
108

CONSUMER MARKET EXPANDS

• Parity Purchase
• ( 5th Purchasing power)
• 1 Euro buys
• a refilled vegetarian Thali (25Rs),
• an Ice Kulfi (15 Rs) ,
• a Tea (5 Rs)
• a Rickshaw Trip (10 Rs) to your
• Guest House
• This is a 25 Euro bill in France .

Why Choosing India
109

CONSUMER MARKET EXPANDS

• Market Corridor Location
• North Delhi - Chandigarh
• North.East Allahabad
• West Bombay- Baroda
• South Hyderabad , Bangalore-
• Madras-Cochin
• East Calcutta-Nepal

Why Choosing India
110

CONSUMER MARKET EXPANDS

• Foreign Direct Investment
• Up to 51 in Tourism,Hotels,
• Restaurants, petrochemicals..
• Up to 100 in IT sector
• Foreign Institution Investment
• Up to 74 in Pension Funds,
• Mutual funds,Investment Funds

Why Choosing India
111

CONSUMER MARKET EXPANDS

Negative Trade balance Exports - Imports
112

CONSUMER MARKET EXPANDS

• India Tariff Lines 11.000
• out of which 66 offered to
• market access
• Article XVIII of GATT regulations and Under US
  pressure India was compelled to release all Items
  by April 2001

Trade
113

CONSUMER MARKET EXPANDS

• However , at Cancun 2003 ,
• India refused the US agricultural
• project for the third world,
• In 2004 , India sues US for the
• Anti-Dumping Taxes
• (If a country protects dumping,
• US suggested Taxes to be
• imposed)

Trade
114

CONSUMER MARKET EXPANDS

• India gained that through Article
• XX of WTO restricts certain
• products , animals ,plants..

Trade
115

CONSUMER MARKET EXPANDS

• Imports /exports of India(1999)
• Imports Exports
• US 4572M 746M
• UK 767M 1545M
• FR 433M 96,3M

Trade
116

CONSUMER MARKET EXPANDS

• Investments(Y. 2000) in Food
• US 1260M
• UK 9,84M
• FR 53,0 M

Trade
117

CONSUMER MARKET EXPANDS

• Demand for general products
• -Home Appliances
• -Entertainment and Gifts
• -Food and beverages
• -Casual Wear , Footwear
• -Healthcare , Pharmaceutics
• -New technology- PCs,electronic

Market demands
118

CONSUMER MARKET EXPANDS

• Fast Moving Consumer Goods
• Durable Goods Products
• Refrigerator Coffee
• TV(b/w,Colour) Biscuits
• Washing Machine Toilet soap
• Pressure cooker Toothpaste
• Water Heater Talcum Pwder
• Mixer,Grinder Hair oil,Shamp
• Scooter,Moto Razor Blade

Market demands F.M.C.G
119

CONSUMER MARKET EXPANDS

• Pilgrimage Sites
• (Mass Moving Consumer Goods)
• as practised in
• Lourdes,Rome ,Jerusalem,Mecca
• -Benares Ghats On the Ganges
• -Hardwar Holy Banks of Ganges

Market Demands M.M.C.G
120

CONSUMER MARKET EXPANDS

• Pilgrimage Sites
• -Badrinath Sources of Ganges
• -Tirupati Darshan rituals
• -Rameshwaram Ramas departure
• -Nagga Patinam
• 3 Religions meet
• (To-day ,victims of the 26th.12.04 Tsunami)

Market Demands M.M.C.G
121

CONSUMER MARKET EXPANDS

• The Gurukulas
• (Customised Oriented products
• for religious devotees )
• Tiruvanmallai Sw. Ramana
• Bangalore Hare Krishna
• Pondicherry Sri Aurobindo
• Quillon Sri Amrita Nanda Mayi
• Calcutta Sw. Ramakrishna
• Rishikesh Sw. Sivananda

Market Demands C.O.P
122

CONSUMER MARKET EXPANDS

• Districts
• 150 Class A 78 of Market
• 150 class B 15 of market
• 200 Class C 7 of market
• (40 of geographical share in East,N.East,
  Central regions)

Urban and Rural
123

CONSUMER MARKET EXPANDS

• Villages
• 600.000
• Retail Outlets per village
• 6 shops
• No of outlets 3.600.000

Urban and Rural
124

CONSUMER MARKET EXPANDS

• Market Tendency
• URBAN will double the Upper and Middle class
• RURAL Lower will expand rapidly
• 75 of the population
• 33 of the national Income

Urban and Rural
125

CONSUMER MARKET EXPANDS

• 1)Urban and Rural SPECIFICS
• Urban claims Modernity, Western Values ,
• Rural Claims simplicity, agricultural values

Urban and Rural
126

CONSUMER MARKET EXPANDS

• 2)Urban and Rural SPECIFICS
• Urban claims leisure , wealth
• Rural Basic living ,
• health, water, Electricity

Urban and Rural
127

CONSUMER MARKET EXPANDS

• 3)Urban and Rural SPECIFICS
• Urban claims Family control,
• few children
• Rural claims large family respecting Indian
  traditions

Urban and Rural
128

CONSUMER MARKET EXPANDS

• A geographic Approach
• in terms of an Area within
• a state , within urban/rural

Marketing Approach
129

CONSUMER MARKET EXPANDS

• A Demographic approach
• Towards a specific population
• in terms of Age, Sex , purchasing
• power

Marketing Approach
130

CONSUMER MARKET EXPANDS

• A Psycho-graphic Approach
• In terms of the caste , class , religious
  sensitivity, local emotions

Marketing Approach
131

CONSUMER MARKET EXPANDS

• Global marketing
• A national strategy for Standard
• Products
• (Cigarettes, Drinks , fast Food.)

Marketing Strategy
132

CONSUMER MARKET EXPANDS

• Area Marketing
• Targeting Regional specifics
• (Film Entertainment in Bombay,
• Open air restaurants in the South,
• Household appliances in the East,
• Warm clothes in the North)

Marketing Strategy
133

CONSUMER MARKET EXPANDS

• A Niche marketing
• Choose one product to hit one target
• (Yves Rocher Cosmetics in the
• 5 hotels)

Marketing Strategy
134

CONSUMER MARKET EXPANDS

• Customisation Marketing
• Choose a class of customer and
• adapt to their needs
• (Home chocolate for birthday
• parties)
• (Continental Breakfast for
• Business men)

Marketing Strategy
135

CONSUMER MARKET EXPANDS

• Cannibalisation Marketing
• Develop one emerging sector
• against the one already matured
• (Video Camera against Film
• Camera)
• (Fast Food against three course lunch restaurant)

Marketing Strategy
136

CONSUMER MARKET EXPANDS

• A Channel Marketing
• 1)Buy equity in Indian established
• market leaders (FDI)
• 2)Choose joint venture with Indian government and
  Partners
• 3)Transfer to Local management
• and local consulting
• 4)Negotiate with Indian distribution network

Marketing Strategy
137

CONSUMER MARKET EXPANDS

• Room to
• expand in the
• Indian Market

END PART II
138

CONSUMER MARKET EXPANDS

• PART III
• Evaluating and Managing Risks

What Risks?
139
Managing and Evaluating Risks
The Unexpected always happens

• The Tsunami
• of the Bay of Bengal

140

Managing and Evaluating Risks

• Political
• 1)Domination of Indian Politics
• by Congress Party of Mrs Gandhi,
• 2)Coup détat ,
• State of emergency as declared by Mrs Gandhi in
  the 75s

Unrest
141

Managing and Evaluating Risks

• Political
• 3)Then Conglomerate of small
• parties creating instability,
• 4)Now a ruling Hindu nationalist
• party BJP (alliance between
• extremes and Modern ), defeated
• in the May election.

Unrest
142

Managing and Evaluating Risks

• Political
• 5)State election in Jammu and
• Kashmir , causing hundreds of
• assassination,
• 6)President delegates a governor
• to represent the Indian union and
• to proclaim State of emergency
• (Art 16 French Constitution),

Unrest
143

Managing and Evaluating Risks

• Political
• 7)Protectionism ( Monroe
• Doctrine in US , so suggested
• Prince Charles in UK , José Bové
• in France)

Unrest
144

Managing and Evaluating Risks

• Religious
• 1)By constitution , India is a
• secular democracy , free exercise
• of religions in a Multi-God
• system,
• 2)However, Muslim/Hindu
• Clashes are still on going( The
• Ayodya site by Hindus, The
• Gujerat train by Muslims)

Unrest
145

Managing and Evaluating Risks

• Religious
• 3)The Hindu/ Christian priest
• killings,
• 4)The Muslim / Christian church
• killings in Pakistan with
• repercussion in India,

Unrest
146

Managing and Evaluating Risks

• Religious
• 5)The Hindu/Buddhist in Sri
• Lanka with repercussion in
• Chennai (assassination of
• Ex-prime Minister Rajiv Gandhi
• in 1991)

Unrest
147

Managing and Evaluating Risks

• Strike
• 1)Mostly led by opposing
• political parties Formerly
• Communist Party , now by Trade
• unions..,
• 2)Sit-in protest against unfair
• rule, a heritage from the Dandy
• walk of Gandhi,

Social stability
148

Managing and Evaluating Risks

• Strike
• 3)Revolt against Childrens work,
• a new phase of slavery (similar
• practice observed in China and
• Pakistan)?
• European Union is trying to
• control this situation but too
• complicated.

Social stability
149

Managing and Evaluating Risks

• Mis-management
• 1)Corruption and Bribes , a
• business practice (Case of
• Defence Minister negotiating
• arms deal on exchange of pot-de
• Vin as in the case of Fregate de
• Taiwan),

Economic
150

Managing and Evaluating Risks

• Mis-management
• 2)Recruiting in the family clan,
• (Co-optation)
• 3)Procedure of Bankruptcy ,
• Is the International monetary fund
• intervening like in Indonesia ,
• Mexico, Argentina?

Economic
151

Managing and Evaluating Risks

• Prestigious Investment
• 1)Bombay Manhattan
• Skyscrapers replica,
• 2)Ahmedabad industries, a
• Manchester industrial complex,
• 3)Hyderabad Cybercity, a silicon
• valley replica,

Economic
152

Managing and Evaluating Risks

• Prestigious Investment
• 4)Bangalore Scanner Hospital
• 5)Delhi Connaught Commercial
• centre
• 6) Madras Spencer plaza

Economic
153

Managing and Evaluating Risks

• Foreign Direct Investment
• 1)Check FDI in Private sectors or
• semi governmental sectors?
• 2) A joint venture With
• Government or local enterprises?
• 3)Repatriation of Dividend

Economic
154

Managing and Evaluating Risks

• Non- observance of Regulations
• 1)No strict rule on Patent delivery
• 2)Dumping of products in the
• market from black economy
• ( France/Italy black economy
• rate is about 30),

Economic
155

Managing and Evaluating Risks

• Inobservance of Regulations
• 3)Fiscal evasion
• ( breaking the Tax laws through Black economy)
• 4) Fiscal avoidance
• (Running business from a Tax
• free country like Luxembourg)

Economic
156

Managing and Evaluating Risks

• Finance
• 1)Is it a laisser-Faire system as
• it was with the feudal lords of
• Afganistan before Afgani was
• introduced or with Argentina
• before the dollar currency.

Economic
157

Managing and Evaluating Risks

• Finance
• 2)What is the position of Central
• Bank of India( Is it very similar to
• BCE , Banque Centrale Eur.)

Economic
158

Managing and Evaluating Risks

• Transportation
• 1)State of technology Road
• (No Highways, No speed limit)
• 2) State of technology Rails
• (Largest network but obsolete,
• train derailment is quite often)

Infrastruture
159

Managing and Evaluating Risks

• Country Risks
• 1)Open Borders with China , Pakistan, Nepal ..,
• 2) Within easy reach by Sea from Sri Lanka or
  Golf Countries,
• 3)Terrorist attacks from Kashmiri, Sikh,
  Assamese, Nagalite population
• (Attack Bombay August 2003)

Vulnerability
160

Managing and Evaluating Risks

• Monsoon
• 1)Heavy Rains destroying
• infrastructure Road , rails ,
• electricity Poles , Houses
• 2)Generates Tough Sanitary
• conditions
• 3)However creates conditions for crops growing ,
  fishing and new environment

Climate
161

Managing and Evaluating Risks

• From 26th December 2004
• The Tsunami Tidal Wave of
• fatality causing Death , Misery and
  Misfortune to a population of 2 billion people.

Climate
162

Managing and Evaluating Risks

• Do not Trespass
• Religious habits(Holy places)
• Food habits(Meat Taboos)
• Dress habits (No exhibition)

Emotions
163

Managing and Evaluating Risks

• Do not Trespass
• Holy Sadhus roaming in India
• Peoples holy rights to Beg
• Womens rights and privileges

Emotions
164

BUSINESS IS NOW ON-GOING IN INDIA

• WRITTEN TEST
• A three-hour individual
• assignment based on
• on elaborating a market Entry strategy to enter
  India

End of Part III