INDIA:

2011

Management Consulting Services & Growth Advisory Indias GDP figure of over US$ 1.5 trillion along with
factors such as increasing urbanization, a rising middle class and favorable demographics makes it not only a source for global manufacturers through its lower operating costs, but also a huge market for their products and services. In todays slow growth global economy still impacted by the financial crisis, emerging markets such as India offer an attractive growth avenue

and viable business diversification. The fact that the single largest commercial growth opportunity in the decade ahead is in the emerging markets, is well documented and uncontested. Recognizing its magnitude, many businesses have set up a local presence or have stepped up their efforts to do so. However, given the high stakes and inherent competition, a mere presence is not sufficient to ensure sustainable growth management needs to be committed to win and follow locally relevant strategies. India has been ranked at the second place in global foreign direct investments in 2010 and will continue to remain among the top five attractive destinations for international investors in the medium term, according to United Nations Conference on Trade and Development. India ranks first in the Nielsen Global Consumer Confidence survey released in January 2011 and according to a McKinsey Global Institute study, its total consumption is expected to quadruple making it the fifth largest consumer market by 2025. Urban India will account for nearly 68% of consumption growth while rural consumption will grow by 32%.

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Multinational companies focus intently on the opportunities to source, develop, manufacture and sell their products in India. Like many other emerging markets, India has a distinct consumption pattern with unique tastes and preferences. Long term success will take more than minor adjustments to existing products or lowering prices. Managers must embrace a strategy based on locally relevant and innovative products. They must acquire essentially a new set of skills and organizational structures that addresses the special requirements of both consumer and industrial buyers. The local country representatives must be given adequate autonomy while leveraging on global firm core competencies around governance, sourcing, processes and management.
Key Questions regarding India strategy: Is your company developing fundamentally new products or services with cost structures that meet the unique requirements of customers and industrial buyers? Can the India centric innovations be brought back in the developed markets? Have you evaluated the benefits and challenges of locating R&D capabilities to India? How effectively can your company manage regulatory risks intellectual property, labor laws, taxes etc? Is your company able to attract, develop and retain key employees it needs to drive growth, and integrate in its global network?

India presents attractive opportunities across the income spectrum the affluent sector as well as the middle and lower income consumers. The collective economic power of the middle and lower income constitutes a large percentage of the overall demand and the lions share of expected 5 10 year growth. Many companies, including Samsung and LG are positioning themselves to tap this vast opportunity. By creating products and services for consumers and businesses, many of whom are not being effectively served, international companies have the ability to drive sustainable and profitable growth. Many have tried to serve these markets by selling their existing products and often selling older models at lower prices. While some have achieved a degree of success by following

this strategy, there is exists an opportunity to scale much great heights by making innovative products and services tailored to local needs. This is evident in the rise of Samsung and LG, who over a period of ten years have established dominance over the white goods market edging out global and domestic competition. Both invested heavily in R&D to make feature rich products suited for Indian conditions and needs across income segments. Both Samsung & LG have posted an India turover of approximately US$ 3.5 billion in 2010.

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KT Advisory
Daljit S. Kochhar daljit@ktadvisory.com

KT Advisory (or KTA) is a New Delhi based business advisory firm that partners with its clients to identify growth opportunities and address critical challenges. We provide our clients with growth strategies (top & bottom line), lead advisory services (M&A, JVs & strategic alliances) and strategic planning (business plans & financial controls). www.ktadvisory.com

India Market Entry We support international businesses to make a sustained entry into the Indian market. We supplement the core strengths of our clients with a pointed knowledge of the regulatory and business environment in India. We partner with our clients in finding solutions and formulating strategies that are locally relevant and executable. Know more

Management Consulting Services We partner with our clients across all sectors and regions to identify growth opportunities and address critical challenges. We approach each business issue with respect, analytical rigor, practicality and an entrepreneurial spirit. We define our success by the results of our clients. Know more

Custom Research Services We extend bandwidth to business development teams and investment managers to provide proprietary research. We monitor industries, competition, customers and financial markets to ensure that our clients profit from every bit of information relevant to their business. We customize our analysis to fit your requirements. Know more

Value proposition for Management Consulting Firms

Strategic partnership Business development Managing local execution & relationships Partnering on India growth strategies JV & alliance search for home country client relationships Sourcing and coordinating legal, regulatory & other advise Market entry strategy India market & competitive assessment Custom research services

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