How’s the automobile market in India? Ask Ford.

Would anybody like to take a guess at Ford’s scale of investment in India, in the last ten years? One billion dollars! And how many new models is Ford going to launch in India by 2015? Eight new models. Just two more indicators for auto parts/ancillary manufacturers from US and Canada to set shop in India.

Ford’s ambitious plan,  according to Joe Hinrichs, president of Ford Asia Pacific and Africa, ‘will have a tremendous impact on manufacturing, suppliers, dealers and employees in India’. Sales of vehicles in India, still one of the world’s least penetrated auto markets, have grown at an average annual rate of 17 percent over the past five years.

Tip for Canadian & US businesses- invest where Soros invests: India.

Following the 5% buy of the Indian Bombay Stock Exchange in May this year by Temasek [the Singapore sovereign fund], George Soros’ hedge fund has bought into a 4% stake in India’s premier stock exchange.  Just another robust indicator for where the Indian economy is heading and how comapanies doing business in India are expected to perform. Coming from the astute mind of bilionaire George Soros, no doubt after some very thorough analysis.

What has that to do with Canadian & US businesses? Nothing at all or everything. Depending on how businessmen look for indicators on where they should expand their businesses globally. Not only is Quantum, the Soros Hedge Fund, buying into the shares of successful Indian companies but it has now invested in the Stock Exchange where the majority of Indian businesses are listed and traded everyday [4900 listed companies; Market cap of $ 1.4 trillion]. And that I believe is a great statement for how anlysts, the world over, view the potential of India. One more reason why Canadian and US businesses should seriously evaluate the opportunity that India poses for their business.

As the Globe and Mail news that covers this says “With retail stock ownership still low and a booming economy, India’s stock markets are of increasing interest to foreign investors.” And so should it be of interest to Canada and US businesses. To read the Globe & Mail’s news on this go to: Market Entry Strategy Consultancy. Canada>US>India>Middle East

Bloomberg news on India: Fastest Growing Economy by 2015.Canadian businesses looking to expand globally to take note.

In its recent report, Morgan Stanley has stated that as India doubles its infrastructure investment and adds-on a six fold increase in workforce by 2015, it may well become the fastest growing economy in the world. One more reason why Canadian businesses in infrastucture, healthcare, education, automotive, financial services, food, leisure & entertainment and many more should be making plans for entry into India today. Not just big business but every SME whose current sales is over the 3 million mark and is looking to tap into global markets either by exports or by setting up a joint venture must be be asking himself the question: How can my business benefit from reaching out to India? You name the industry segment…..the demand for products in the segment in India is bound to multiply the sales of Canadian SMEs’.

For those who want to know more about this Blomberg’s piece on what’s happening in India, click:

Understand your potential partner in India.

A key question for any Candian or US entreprenuer seeking a partnership in going global would be ”How can I get to know more about how businessmen behave in that country”. There are some qualities that define an Indian entrepreneur and there would be specific questions about the partner one is considering. While Rmagine can provide the service of doing the due diligence on any particular potential partner, here are some insights into how an Indian entrepreneur thinks, in general. A study done recently amongst 4000 entreprenuers, current & aspiring, in India and China, reveal some interesting insights [The research provides the comparison between Indian & Chinese entreprenuers and the points captured below are from an article in the Wall Street Journal on the research. The intent is to present the facts and not bias the reader in favor of or against any particular type]:

**Entrepreneurs in both countries are bullish.

**Asked about their main motivation, the overwhelming majority of Indian entrepreneurs name “being my own boss,” while the most popular response in China is earning more money. Indian entrepreneurs more closely resemble American entrepreneurs, who are more likely to cite “owning my own company” than “building my wealth” as the main reason they launched a business.

**Indian entrepreneurs place nearly as much value on personal qualities, such as creativity and the ability to take risks in the face of adversity, as they do access to finance. Access to information and knowledge, for instance, is more important to Chinese entrepreneurs than being creative. This suggests that Chinese entrepreneurs believe business success depends on external market conditions, whereas Indian entrepreneurs regard success as the result of their internal ability to adapt to changing conditions.

**In India, 81% of business owners say that jugaad, the ability to improvise and find ways around prohibitive rules and institutions, is important to business success. In China, 93% of business owners say guanxi, the networks and relationships (primarily with the state) necessary to succeed in business, are important to their own success. Generally, enterprising individuals in India believe they succeed in spite of the state, while in China they think they succeed through their connections to it.

** Entrepreneurship in India is marked by a kind of sustainability. Because India’s entrepreneurs have succeeded amid dysfunctional government and financial institutions by developing a kind of independent and experimental ingenuity, it stands to reason that the enterprising class would prosper even more were India to reduce barriers to business and clean up corruption.

If you are interested in reading the full Wall Steert Journal artivcle on the subject, use this link: . If you are unable to access it because you are not a subscriber, look out for our next post on how you can access it on Rmagine Blog.

Doing business with the Middle East

Rmagine in the media.

Rmagine Market Entry Strategists in the news

The Managing Editor Jared Mitchell of Business without Borders met  with us  to present our point-of-view on the opportunitites that are in store for Canadian & US businesses in the Middle East . BWOB is a fresh news-and-analysis website dedicated exclusively to Canadian businesses looking to export, expand their operations and sales abroad or to relocate operations in other countries. Track our coversation with Mitchell, who, as a convert , will certainly be a spokesperson for more International trade and business with the Middle East.

Read and spread the good word…

Infrastructure Opportunities in India & EDC

It is great to hear  the head of Canada’s leading corporate in export development, EDC, talk about the opportunities in India. And that too as early as in 2007. All that Eric Siegel, President & CEO of EDC had to say then is still true and even more so. Because  the pace of development in India has quickened even more, since then and because the economic crisis that has crippled the mature markets of US & Europe, India’s opportunities have become even more important to take note of by Canadian small, medium and large companies looking to expand their markets. Especially in the infrastructue sector, as Eric Siegel says, “Canadian companies are world-beaters when it comes to infrastructure development and yet we are not even close to demonstrating these capabilities in India.  What more can we do?

As the second largest country in the world, Canada’s small population is spread over a land mass that’s bigger than some continents.   One thing we have learned is infrastructure.  Our roads, rails and cables cross some of the longest and toughest terrain ever.  We have built some of the world’s major hydroelectric dams, seaways, bridges and ports.  We have become experts in developing  tarsands, offshore platforms, gas pipelines and renewable energy sources.

It’s not surprising then that Canada has world leading companies in telecommunication, power, mining, airport management, engineering and environmental services, among other infrastructure players.  And we have the highly-developed technological expertise in all these areas that can add real value to your Indian firms, as you seek the best partners to build your vital infrastructure. 

In the power arena, for example, some 12 per cent of India’s hydro-electric capacity was developed with the help of Canadian firms such as SNC Lavalin, Acres, GE Canada and RSW.  EDC is behind several key power projects, such as Chamera I and II in the North and Idukki in the South of India.

There is sizeable investment capacity within Canada as well, from private to public sources.  This includes pension funds holding billions reserved for infrastructure investments in emerging markets…….” Read all this and more from his speech featured on the EDC website. Get firsthand authoritative, credible answers from Canada’s own business leader about how a Canadian company can do business in India.

Surge In Foreign Investment In Indian Auto & Power Sectors

Investment up by 106% and 52% respectively. Another reason why Canadian auto component manufacturers and power sector equipment manufacturers should be looking closely at India. To know more:

Go global….go India..go Middle East

“At the end of the day, there are those who will rise to a challenge and say, ‘I’ve waited long enough, I should get on a plane now. ” ‘I should investigate some of these markets.’ “. That’s a quote from Prof.Beamish in an article in the Post talking about how businessmen and entrepreneurs in Canada ought to look at the rest of the globe for survival and growth. While the  world is reeling under this recession, there are markets like India and the Middle East that are still having strong year on year GDP growths. Successful companies need to constantly rmagine their futures by examining the new markets that they can tap. Fortune favors the brave, the wise and the visionaries. Read more of the Post article,