overseas investment

India and A-PAC Markets FDI in the US
Country wise overseas investments by Indian
companies
Map shows percentage change on 2010
Country
April ‘11 to February
‘12 in USD Million
Singapore
1860
Mauritius
2270
Netherlands
700
United States of
America
870
United Arab Emirates
380
The developing nations is where the action is
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“JUGAAD” Approach to Innovation
Years ago, Indians mounted a diesel irrigation pump on a steel frame with wheels, creating a vehicle
they called “jugaad”. Over time, jugaad came to mean grassroots innovation to overcome any
constraint.
Brazilians call it “gambiarra”; the Chinese, “zizhu chuangxin”; and the Kenyans, “jua kali”.
In the midst of rising global competition and depleting R&D budgets, Jugaad Innovation presents
ways to innovate, be flexible, and do more with less.
A frugal and flexible approach to innovation can generate breakthrough growth not only in the
developing world but also in the developed nations.
81% of Indian businessmen said jugaad was the key reason for their success - the Legatum Institute.
Some of the underlying principles of “JUGAAD”

Seek opportunity in adversity

Do more with less

Think and act flexibly

Keep it simple

Include the margin
Jugaad Innovation: Think Frugal, Be Flexible, Generate Breakthrough Growth - Navi Radjou
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FDI from Emerging Markets driven by
SOLUTIONS
Chemicals’ company based out of Mumbai
US based clients want them to supply to them in the US as well
Looking at the following in the US:
Partnering/ Appointing a toll manufacturing company.
Working with a packaging company capable of handling hazardous
chemical.
Requisite support regarding US legal issues on Hazardous chemicals
Opportunity for warehousing the chemical stock
Networks Services company based out of Delhi
Sources substantial amounts of hardware from its US vendors.
Looking at the following in the US:
Setting up a its wholly owned subsidy to start operations
Start with procurement of high tech goods and services
In the second phase would work with American Vendors for
integration and installation of their products not only in USA but
also Latin America & Europe.
Firms are looking at investing for the long term and to factor in future growth plans
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The Industry Ecosystem - SMB Investors
Government
Soft Landing Zones
Major regional
employers
Research labs
Bio-Tech
company
Industrial
Supply chain
Professional
associations
Clinical Trial Labs
Incubation Facilities
Industrial
associations
Investors – VC, PE, others
An information pack that has ready answers to most of these questions would help speed the process
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Integrated Finance and Operations View –
Corporate Investors
Federal
Agencies
State
Government
Municipal
Support
Regulatory climate
Workforce statistics
Industry clusters
Immigration & visa
Federal taxes
Tax climate
Labor costs
Geographic advantages
Financial resources
Industrial groups
Economic strengths
Energy costs
Pollution regulations
Development costs
Financial resources
Major employers
Making detailed information available ensures an informed choice & therefore a better buy-in
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Investor Identification - Best practice
 Interop
Market/sector research
 COMPTEL PLUS Convention
 Air & Space
Lead Qualification & validation
Conference & Technology
 International Wireless
Establish Intent
Communications Expo
 MAST
Contact
 Oracle World
and SAPphire
Build Biz case
USIIF
TIE
Skills
Talent Availability
Cost Implications
Technology
Practice
Vertical
Visit
Market Customer
Size
Proximity
Follow up
IACC
IUSBN
Location
Benefits,
Financial
Incentives
N. America Business need
revenues, – Sales, Tech
Onsite
Near shore,
presence
Close
USIBC
Iterative innovation in practice
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Case
Studies
Business
Solution
Tapping the Supply chain – Best Practice
Corporations today understand the value of business relations
They prefer to have the same vendor supplying to them around the world
This makes Executives running the supply chain of firms a key cog in the wheel driving FDI
Some of the ideas to tap this network are:
Constant interactions with the global supply chain & procurement teams
Interacting with them at global supplier meets and events
Creating a committee of heads of supply chains
Case:
Volkswagen’s claims its Polo is the same car that is sold in Brazil, Europe & India
VW invited its suppliers to go global and wanted the same vendors in all these locations
The result: a car that is the same across continents
Favorable outcome: these suppliers had to invest in new geographies
Diverse drivers leading to Foreign Direct Investment
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Integrating Social media insights
Solutioning
Customized databases depending on country, region &
industry
Signals depicting the globalization needs of a prospect
Travel plans via TripIt
Requests for information on Linked-in Groups
Job postings for new geography
Tweets of decision makers
Tracking
Organizational changes
Sector specific challenges & Issues
New connections or contacts
Industrial Challenges
Adapting technological changes for effective delivery
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Investment Source - India
India is the tenth largest investor in United States. In the last 10 years, Indian companies have invested
over US$21 billion in the US economy.
The fact that makes the US attractive for Indian companies is its high rate of innovation, relatively low
valuations arising from the recession, abundance of natural resources, and the presence of a large
consumer market.
The top ten Indian Greenfield projects in the US amounted to $5.5 billion of investments, led by Essar
Steel (1.6 bn in Minnesota) and JSW (1 bn in Texas)
In terms of value of cross border acquisitions by Indian companies in 2010, India was placed 5th in the
World after the US, Canada, Japan and China.
Scale of overseas investment has also expanded as India was 2nd in 2010 only after China in terms of
average size of purchase deals (US$190 million in India compared to US$ 197 million in China).
India among the top five emerging and developing economies whose state owned enterprises are
increasingly becoming transnational corporations.
Overseas direct investments by India Inc stood at US$ 1.24 billion for July 2012.
More than 100 Indian companies (Food processing, healthcare, IT, consumer durables, energy, etc.)
explore investment opportunities in the US in the coming months.
India’s proven resilience to counter-act macroeconomic challenges outweighs global uncertainty concerns
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Maeflower Consulting
Maeflower Consulting is a leading service provider to Investment Promotion & Economic
Development clients from Americas and Europe. OCO Global partner in India.
Over the years Maeflower has met over 500 potential investors, and has delivered
consistently, to be a world class investment generator for economic development
organizations, in India.
We have helped export ready US companies understand the Indian markets & supported
their sales / operations in India.
Maeflower has successfully built up a team of industry experts who are very conversant
with the industry they are passionate about.
Maeflower’s expertise lies in:
Creating India centric Investment promotion strategies
Market / Investor Intelligence, Company Targeting & Lead Generation
Trade support, India entry strategy and operations in India
Understanding the demands of the Indian enterprise
Iterative Innovation is a key tenant in Maeflower’s approach to Foreign Direct Investment
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Nitin Pangam
Maeflower Consulting
Email: [email protected]
Tel: +91 98230 56812
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