Case study India Entry Strategy
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- Warren Hines
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1 Case study India Entry Strategy Client Background Normet is a world renowned manufacturer of mobile equipment and vehicles for underground mining and tunneling. The company has it s presence across Europe, CIS countries, America and Asia Pacific. The company was established in 1962 and is employing 325 people world-wide. Overview of Services
2 Business Plan Overview of Indian Mining and Tunneling industry Detailed information about Construction equipment Industry in India Domestic market trend and technology Existing opportunity and threats in Indian market Sales Network structure and after sales services offered in India List of potential supplier companies was provided along with following details Website products manufactured client details location of supplier HS Code of the Normet equipments that needs to be imported Customs duty calculation Information about the concession provided by Indian government on Import duty Legislative details and Information about Approval and Certification body Short listing of potential location where manufacturing facility could be set up based on various criteria such as human resource, cost of land, Infra structure, material availability, Industries and location of potential customers Suggestion on appropriate feasible manufacturing strategy List of potential customers in India in mining, rental and project implementation companies Detailed profile of potential company Upcoming projects and future prospects Purchasing process Details of warranty and payment Detailed Company profile of the competitors Product range offered by competitors in Indian market Sales and Service network Geographical spread over of competitors in Indian market
3 Recruitment of Country Manager and Operation
4 2009 Establishment of Brach office and Homologation Homologation Establishment of Branch Office As per Motor Vehicle rules there are certain safety critical component which has to be fitted in construction equipment vehicle. The component that has to be fitted should be approved by one of the testing agency as mention in Central Motor Vehicle Rule. Activities carried out Representing client at various agencies such as Automotive Research Association of India, Central Power Research Institute, Indian Institute of Packaging etc Witnessing testing activities Routine documentations as required Local modification as required by legislation Issue of homologation certificate/test certification along with reports After homologation to sell the Normet vehicle, Normet planned to open branch office in India. By opening office branch office Normet can undertake export/import of goods, render professional service, act as buying/selling agent etc Hence in order to open branch office BA offered following services in order to establish a branch office in India. Services offered by BA Submission of necessary documents such as certification of Incorporation, Memorandum of Association, Audited balance sheet,, Value of goods to be imported, activities proposed to be undertaken, office location, Board resolution etc to Reserve Bank of India Submission of necessary certificate to Registrar of Companies
5 Administration Outsourcing and Accounts Outsourcing
6 2011 Private Limited Company Over a period of time, exploring the Indian market and assessing the existing potential for Normet s equipments in India, Normet decided to establish a private limited company 1.e. 100% fully owned subsidiary in India. Hence BA assisted them in closure of branch office and establishing Private limited company Permission letter from RBI Certificate from CA saying that the company has cleared all its dues and submit it to RBI Providing proper reason for closure of Branch office in India to RBI Handle the formalities for approval of company name for subsidiary Draft the Memorandum and Articles of Associations Handle the Incorporation of the company Obtain local approval and clearance by the approved authorities, i.e. the Reserve Bank of India (RBI), Foreign Investment Promotion Board (FIPB), etc. Open a Bank account for the Private Limited Company Issue shares to the first Directors Pursuant to the registration of 100% subsidiary following Post Registration activities/formalities were carried out Registration and License under Shop and Establishment Obtaining Import-Export Code Registration for Tax deduction (TAN) Service Tax Registration Registration under VAT (Value Added Tax)/CST (Central Sales Tax) Registration under Professional Tax (if required)
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